Solution:- 1. For developing partnership within the supply chain like Regal Mari

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Solution:-

1. For developing partnership within the supply chain like Regal Marines did, ethical relationships are a must within the supply chain. Ethical relationships here refer to decisions and measures that help the company and the suppliers both. As the measures taken by regal are benefitting Regal in maintain low inventories and developing a lower costs modular design for its luxury boats, suppliers are also benefitting by the partnership, as their inventories are also decreeing to avoid obsolescence, and the demand they receive form Regal is aligned to their expertise, as they have participated in the designing process, and hence, are aware of what they are expected to do, hence it helps the suppliers also to align their processes and technology to that of the Regal Marine’s demands.

2. The most important reason Supply Chain Management is important to companies like Regal because of the product they offer. Regal offer luxury boats, which is a product with high cost raw material and requires up to date technology and design. Supply chain management enables companies like Regal maintain the latest technology and design requirements by helping them to reduce their inventories hence reducing the risk of obsolescence. Also, less inventory implies less amount of capital being stuck in the raw material, hence more working capital for the company.

3. Supply chain integration offers many opportunities like partnership formation between the supplier and the customer, better prediction of demands due to real time information sharing, decrease in inventory levels, hence lower inventory management costs, and improve flexibility for the company.

Regal’s efforts to develop partnership within the supply chain by involving the vendors in their product development and the designing process, sharing market research, use of modular processes to enable mass customization, minimizing inventory not just at Regal but all at the vendor’s end to minimize the risk of material obsolescence, and aggressive investment to reduce the development lead time triggered the above listed opportunities in the supply chain.

no, we can not. we should understand the market exactly and then only we can plan for right approaches of supply chain practices. right from the first step identifying the right order and delivering the product to customers by following different moves and method of transportations.

when there is market demand for products, particularly the customers at various levels and various places, it is important to know where they exactly and deliver the product to them in right time. other wise they loose their market to competitors and hence becomes a bad player in market

Explanation / Answer

Chapter 11 deals with Supply Chain Management. As firms become increasingly focused and specialized, the supply chain performance grows in importance. Money spent with suppliers represents a huge portion of most firms' revenues. This is the case at Regal Marine where suppliers are relied upon not only for quality components delivered on time, but for up-to-date technology and innovation. Regal expects members of its supply chain to be full partners. Suppliers are expected to join Regal in providing the customer not just quality and on time delivery, but performance and image. Luxury performance boats require no less. At the same time, Regal expects value. Vendors meet with Regal's designers to discuss changes to be incorporated into new product designs. Regal's strategy of differentiating itself by building luxury performance boats means that suppliers must participate in this ongoing effort. You will notice on the right hand side of Table 11.2 in the text the characteristics expected of suppliers when the strategy is one of differentiation. These include: Share market research; jointly develop products and options. Select primarily for product development skills. Use modular processes that lend themselves to mass customization. Minimize inventory in the chain to avoid obsolescence. Invest aggressively to reduce development lead time. Use modular design to postpone product differentiation for as long as possible. These characteristics are high on the list of issues between Regal and its suppliers and lead to the concept of 'partnering'. 'Partnering' extends from jointly developing components, to modular designs at suppliers and at Regal, to rapid delivery and low inventories. These techniques allow innovative products to be rapidly and economically included in Regal's boats. Regal has also developed special arrangements with suppliers who maintain shop floor components for Regal. In some instances title transfers when the item is used, and in other cases title transfers when items are delivered to the property. Both approaches help Regal reduce total inventory and the related costs. Additionally, Regal's membership in the American Boat Builders Association allows it to participate in lower costs because of the combined purchase strength of the association. Finally, Regal works with an Orlando personnel agency to outsource part of the recruiting and screening process for employees. In all of these cases, Regal is demonstrating creative approaches to supply chain management that help Regal and the end user.

1. Can you practice effective supply chain management without ethical relationships in the supply chain? Why or why not?

2. What do you think is the MOST important reason why supply chain management is important to Regal and firms like it? Why?

As you answer, note briefly what action(s) on Regal's part you chose and the corresponding opportunities in managing an integrated Supply Chain described in your text.

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