SUPPLY CHAIN MANAGEMENT PLAN

II. Executive Summary

The supply under consideration is one revolving around the manufacture of aircraft tyres. Consequently, the concepts and ideas that will be put forward in subsequent sections of the essay will revolve around the procurement of raw materials for manufacture; it will also entail the process of transforming the material from one form to another. These steps are then followed by the distribution of the finished tyres to a series of aircraft companies in need of them. Because this product is relatively complex, then a series of players will be considered during the manufacturing period and beyond. This will be seen through the various modes of transport available, the numerous networks prevalent at the time and also the total material bills at the need of the entire process.

III. Supply Chain
Availability and quality of suppliers
Aviation tyre manufacturers are one of the highest consumers of rubber in the world. This is because the latter material is a major component. There are numerous rubber suppliers operating in Great Britain. Some of them may be based here while others come from different parts of the world. Consequently, there will be a wide network to choose from. (Ballou, 2001)

The quality of their services is also quite acceptable because most suppliers have been in the business for many years now. Examples of suppliers operating in Great Britain include Butser Rubber Ltd Hampshire. This company focuses on provision of rubber moldings, metal bondings, extrusions and gaskets. Another Company is Kumho tyre Europe. This company offers aviation tyre manufacturers a good deal on a wide range of rubber related products that would be instrumental in the process of tyre manufacture. The latter two companies are just some of the numerous examples of suppliers that would be able to do business with this company.

Availability and quality of 3rd Party service providers
3rd Party service providers are also easily available in the UK. This is because their services are needed by different categories of people. Some individuals may be interested in the assessing the quality of tyres or changing sizes of tyres. An example of a company that would provide such services is Ejelta. Another example of a company in Great Britain that can offer 3rd Party servicing is the Grip Tyre Softener Company. This company offers treatment of tyres and also offers to soften tyres thus rejuvenating old ones or making new ones stronger. There are also many other companies available in the UK industry scene and these would go a long way in enhancing the manufacturing process. (Houlihan, 2003)

Other 3rd Party service providers for the company include transportation companies, IT service providers and many others. IT suppliers will be instrumental to the company especially because they streamline the coordination of the supply chain. Transport service providers will also be crucial to the success of this supply chain.

Sourcing and procurement strategy
The procurement strategy will largely focus on product optimization. In other words the resources within the company will be committed towards a long term plan. This also means that the number, size and location will need to be taken into consideration when deciding what the optimum levels of resources truly are. This procurement strategy will largely be affected by the placement of the production facilities and the way the company’s stock pile is.

Planning and forecasting strategy
Here, the optimum number of order quantities will be determined and reorder points set out for the process. This will also be backed up by creation of stock safety standards at different parts of the stock points.

Inventory and management strategy
Inventory’s main purpose is to create a buffer in case of uncertainties that prevail within the supply chain. Management of this tyre manufacturer will set goals for the inventory. It is likely that the goals will revolve around the adoption of control policies within the company. Inbound and outbound transportation strategy
Transportation strategies within this company will be influenced by two major aspects. This will be the overall cost of the means of transport and also the levels of inventory that that means of transport will require. For this particular case, there will more emphasis on the optimum method; Air shipments are quite fast and convenient but they will be too expensive and this may not be the best option for the company. Rail may require too much inventory hence being a disadvantageous method. It should be noted that almost a third of the logistics section are made up of inbound and outbound logistics. In order to deal with these aspects adequately, then shipment sizes will need to be made in line with the strategy. In other words, consolidated bulk shipments will be transported. (Cooper, 1999)

Warehouse distribution center strategy
This strategy will influenced by the overall nature of the sourcing points to be used in aviation tyre manufacture. This also means that in order to provide optimal decision making, then due consideration should be given to the distribution costs, production limitations, tariffs and drawbacks that are likely to spring in the future.

Outsourcing/ third party logistics
Outsourcing of the supply chain has become a common concept among a number of companies. Since this company will largely focus on the manufacturing aspect, then certain logistics functions need to be outsourced. This will go a long way in ensuring that the company perfects or at least improves its core functions. This can be ensured through outsourcing the inbound logistics function of the supply chain. This will go a long way in propelling the business into success and may also promote greater levels of integration both vertically and horizontally.
Customer relationship management

Relationship management was initially thought as an aspect that is exclusive to the marketing sector. However, these days companies have realized that they stand to benefit from this strategy if all functions of the organization are dealt incorporated. Relationship management centers on the ability of a company to maintain its client base. The supply chain will encompass this strategy by optimizing on the inventory so as to meet consumer demand. Additionally, the supply chain will be run efficiently so as to ensure that logistics are available in the manufacturing process and that there are adequate commitment levels from all members of the team. This will definitely enhance the production levels within this tyre manufacturer. (Bilington, 1998)

Supply chain integration
In this particular paper, it has already been assumed that company premises are in existence. In order to improve on the level of production, distribution to clients, customer service levels offered to the clients and also the overall level of contentment amongst them, this aviation tyre manufacturer’s various departments will be well coordinated. Here, production schedules will need to fall in line with the scheduling on machines to be used in manufacture. Additionally, the quality control sector will also coordinate their activities with other parts of the organization. It should also be noted that the company will coordinate hand in hand with 3rd service providers who will then become part of the company.
Performance management strategy

Performance management for this company will largely encompass the use of a normative model. Here, there will be calculations of the raw material vendors and intermediate plants that will have met consumer needs. Additionally, product flows on an annual basis will be considered so as to assess the effectiveness of the process. Some of the elements associated with cost in the performance management system will be
• Duties
• Taxes
• Pipeline inventory
• Manufacturing purchasing
• Transport between sites

It should also be noted that time is another important element in assessing the quality of a particular manufacturing and distribution process. The two sectors that will be considered are; lead times and transit times. Through an examination of these pathways, then the organization will have gone a long way in ensuring that there are good guidance levels for various sectors of the supply chain. (Vollman, 1992)

IV. Next Steps
The first thing that will need to be done is setting up goals. The next issue will be choosing the location of warehouse sites. This will then be followed by production decisions. Inventory solutions will need to be sought alongside transportation challenges. Thereafter, there will be a need to look into the performance assessment mechanism in the supply chain.

V. Conclusion
Setting up a supply chain for an aviation tyre manufacturer would require incorporation of a wide range of issues. However, the overall purpose is to maximize the returns, reduce inventory wastage and optimize production.

VI. References

Ballou, R. (2001): Business Logistics Management; Prentice Hall
Cooper, M. (1999): Characteristics of Supply Chain Management; International Journal of Logistics Management, 2, 4, 13-24
Houlihan, T. (2003): international Supply Chain Management; Physical Distribution and Materials Management Journal, 1, 15, 38
Bilington, C. (1998): Supply Chain Management; Pitfalls and Opportunities; Sloan Management Review, 33, 65
Vollman, T. (1992): Manufacturing Planning and Control Systems; Homewood

The author of this article is a holder of Masters in Business Administration (MBA) from Harvard University and currently pursing PhD Program. He is also a professional academic writer. ResearchPapers247.Com>