THIS ASSIGNMENT IS DUE TODAY 2 MAR 19
Review the “Chapter Ten Case: ETSY” at the end of Ch. 10 of Business Driven Technology. Answer the following questions keeping in mind the scenario given on ThreeBirdNest: What operational issues do you see and how could an effective supply chain help with these issues? How can the four supply chain drivers help companies be more effective? What are the advantages and disadvantages of using ETSY to sell to the global marketplace and use its global supply chain? What strategy would you use to evaluate the success of SCM in ETSY?
Respond to at least three of your peers. In your response, address any thoughts you have on supply chain drivers and evaluating the success of SCM in an organization.
Students need to contribute three substantive posts in this discussion by the due date indicated. The substantive posts can be any combination of responses and replies.
Raise Output. Supply chain management (SCM) software is designed in way to improve communication, collaboration and coordination with vendors, transportation and shipping companies, Suppliers and raise bi-directional information flow. By Adopt a demand-driven planning and business operating model based on real-time demand insights and demand shaping. The right prediction and contingency planning tools will ensure a complete view and an effective response to risks such as suppliers going out of business, political upheaval, and natural calamities affecting manufacturing. Companies then can adjust pricing and promotions strategies to shape demand, move additional product quickly, drive revenue growth, or further expand margins for a high-demand product with limited market supply.
Also by using The demands on supply chain managers to rapidly respond to change and increase profitability are greater than ever. The good news is that effective strategies and solutions exist that support each one of the previous five strategies, and they can deliver immediate return on investment. The tools also exist. They have been battle tested, end-to-end, across some of the most valuable supply chains in the world. The way in which companies implement these strategies can mean the difference between success and failure. The tools they use should be low-risk and proven.
Some of the advantages an disadvantages of etsy:
The Pros The opportunity to sell your handmade crafts: Regardless of what type of crafts you sell, you can sell everything on Etsy including woodworking, paintings, crocheting, sewing, floral arrangements, and etc. You can sell craft supplies: You can sell craft supplies and help the crafters to buy the necessary materials to create their products. You can sell eBooks: Etsy allows you to sell eBooks and earn a lot of money at the same time. You can sell patterns, tutorials, and etc. Etsy has low fees: The reason why there are so many sellers on Etsy is because this platform has extremely low fees. For listing a new product you need to pay only 20 cents and your products will be listed for up to 4 months. Once the product is sold, you pay a fee of 3.5% to Etsy and the rest goes to you. Training Courses – If you are a beginner and new in the Etsy environment, you can use the training courses and learn everything you need to know about how to run you Etsy shop.
The Cons No Mass Produced Items – The only disadvantage is that you are not allowed to sell mass produced products.
On the manufacturing side of things, the biggest issue I see is the making sure you have enough raw material on hand to cover orders and being able to keep up with the extra not expected orders. Companies must have a fine balance between having to much on hand but not keeping to much extra. You would also have to have a way to get the material quickly if needed. This can be easily handled with SCM to ensure you do house to much or not enough materials.
On the Supplier side of things, quality of products, making enough material, cost and time for shipping. These can also all be handled by SCM. This will also allow for the price negotiation based on the product and quality of product.
Four supply chain drivers are Back Orders, Inventory Turnover, Customer and Inventory Cycle time. All these metrics help both suppliers and manufactures keep enough inventory on hand to prevent back order while making sure you will not loose any inventory from having to on hand. There is nothing worse than trying to order something and finding out during check out that the item is on back order.
Advantages of Etsy: Easy to setup selling, large customer base and community
Disadvantages of Etsy: Competition and loss of profit because of fees
What strategy would you use to evaluate the success of SCM in ETSY?
Use of KPI and CSF designed for SCM
Analytics and Business Intelligence
Baltzan, P. (2017). Business driven technology (7th ed.).
New York, NY: McGraw-Hill/Irwin.
What operational issues do you see and how could an effective supply chain help with these issues? Manufacturing Side Issue which can be easily handled with SCM – Plant Management makes operational decision to keep certain items in stock to ensure that production is not halted, this will increase inventory costs. Supplier Side Issue which can be easily handled with SCM – Management should make operational decision to negotiate with supplier to create a product with higher quality to ensure the quality of the finished product, if we do not have SCM in place then these decisions can cause lot of issues and loss of money.
How can the four supply chain drivers help companies be more effective?
Supply chain capabilities are guided by the decisions you make regarding the five supply chain drivers. Each of these drivers can be developed and managed to emphasize responsiveness or efficiency depending on changing business requirements.
What are the advantages and disadvantages of using ETSY to sell to the global marketplace and use its global supply chain?
Advantages – 1. Large customer base 2.Easy to setup shop 3. Strong community
Disadvantages – 1. Fees 2. Personalize of shop is difficult or not possible 3. Lot of competition.
What strategy would you use to evaluate the success of SCM in ETSY? Implement Scaled Agile Framework in SCM Implementation. Scaled Agile Framework ties and Organization or Business goals with the Delivery Data Analysis and Analytic Reports. Use KPI Metrics and Define CSF’s for SCM Delivery and Implementation.