After watching the video on British companies sourcing from China and the logist
ID: 379064 • Letter: A
Question
After watching the video on British companies sourcing from China and the logistics coordination that is needed to maintain quality and throughput and reading the comments of Mark Richardson of the OSI Group in Refrigerated and Frozen Foods article, answer the following questions:
1.What role does the sourcing agent play in the 4Ps of marketing?
2.How does the outsourcing approach challenge the requirements of supply chain management? What are specific challenges are faced by different industries such as Food, Toys, Auto parts, etc.?
3.How can outsourced companies overcome supply chain demands from globalization?
4.Does outsourcing the 4Ps and using sourcing agents to do so create value?
5.Which is more important in today's globalization: a market orientation or a relationship orientation?
Video Transcript:
>> Reporter: Are British companies at home in China? Certainly, it looks like home, in this curiously British housing development in Shanghai. But what's it really like, doing business here? It's funny, really. Just as a Chinese property developer pays homage to classic British style, the classic British way of doing business is being transformed by China. The whole nature of companies is changing. No longer is it about having a office and factory in Sheffield. It's about finding a sourcing agent and logistics supplier in Shanghai.[ Background sounds, talking ]The supply of cheap labor in China means that for British companies, more than ever, business is about contracting out, or outsourcing. Even small firms can do it. Number one is your sourcing agent, a kind of matchmaker.>> Suppose I came to you, then, and said, look, I want 60,000 of these little pins.>> Reporter: Your sourcing agent finds someone to do it for you.>> To do the tooling would be 30 days, and then get out -- there would be a sample in 40 days. And mass production would be 30 days after that.>> Reporter: But it's not always straightforward.>> Problems in that would be the coloring and the lettering. Lettering always has problems. The i will be too big, or the -- the t won't have a cross on it.>> Reporter: The good sourcing agent goes out and finds the perfect partner, taking you to stop Number 2, a contract manufacturer -- a company, large or small, old or new, willing to make things to spec. Here's one, two hours out of Shanghai.>> Contract work benefits both countries that [inaudible]. Everybody wins.[ Background factory sounds ]>> Reporter: It's easy to make stuff. The tricky business is getting it from factory to shop shelf. But hey, you can contract that out, too. So partner Number 3 is your logistics operator. You might want 50,000 of these tins sent to Britain each week.>> Is that something you would be able to handle?>> Well, certainly. It will be simple enough, if you tell me it's 50,000 each week. What happens in real life is that it could be 50,000 today. It could be 200,000 the following week, 10,000 the week after. And so, that's the challenge.>> Reporter: Challenges there are, but in China, help is available. Even the smallest British company can now buy in its own products.>> There are many companies today that actually just affix a trademark on a product, and everything is outsource.>> Reporter: The results of all this is, of course, that we end up buying container-loads of goods from China. But there's still plenty for British companies to do, because with manufactured goods so cheap, the real money is to be made in management, marketing, and design. Evan Davis, BBC News, Shanghai.
Global sourcing presence-Refrigerated & Frozen Foods
OSI Group's supply chains can be described as agile, adaptable and aligned. However, it's the company's global sourcing presence that makes it an ideal supply chain solution for both retail and foodservice. Refrigerated & Frozen Foods chats exclusively with Mark Richardson, senior vice president of supply chain for the Aurora, III., meat processor to learn just how OSI's safe supply chain operations function and grow.Refrigerated & Frozen Foods: Summarize OSI's approach to supply chain and logistics, both domestically and internationally?Mark Richardson: OSI supply chains can be described as three As--agile, adaptable and aligned. Our supply chain solutions focus on having strong local, in-market resources combined with the strategic vertical integration required to creatively deliver against quality and assurance of supply expectations. OSI will continue to have a sourcing presence in countries and regions that are important to global supply.Refrigerated & Frozen Foods: How is OSI's foodservice supply chain differ (or the same) from its retail supply chain?Richardson: OSI's supply chain is universal. Whether the product we are making is for foodservice or retail distribution, it is sourced with the same high standards for the raw material. This enables us to provide the highest quality product to all of our customers.Refrigerated & Frozen Foods: OSI received Refrigerated & Frozen Foods' 2014 Refrigerated Foods Processor of the Year award (January 2014 issue). How has OSI grown since with regards to executing safe supply chain operations?
OSI's supply chain is universal. Whether the product is for foodservice or retail distribution, it's sourced with the same high standards for raw materialsExplanation / Answer
1.
One reason it's so difficult to get your foot in the entryway is all the terrible work out there. Organizations are overwhelmed with inadequate and ineffectively instructed portfolio bearers requesting time to demonstrate their work. There is dependably a gauntlet to go through; a secretary who knows minimal about what you do yet who still should decide whether you're justified regardless of the time, or an urgent generation craftsman who is the base of the rung and sees each consultant as rivalry. These people are stopgaps in a major office's edgy push to contribute the base measure of time swimming through an ocean of hopefuls. On the off chance that you are skilled and your work is certainly justified regardless of their opportunity, you should endure the wreckage that has been made by the mass of wannabes and expectation your abilities are unmistakably obvious. It pays to be pleasant to everybody, even those whose activity it is to keep you out. Some of the time, you may not get seen and that is the genuine bad form of the framework. Play the amusement, be relentless and dependably do occasional development; including dropping off late examples with your business card and a note joined. Something as straightforward as "Simply off the press—needed to refresh you on my current work. Call me on the off chance that you require some assistance." This won't work if your portfolio is loaded with messy, amateurish, or uncertain work.
Is the value right or is it outside of anyone's ability to see? In the best of universes, item dispatches are attentive, work escalated hazard bringing wanders with promoting techniques immovably set up. Before putting resources into another wander, the four key showcasing factors are deliberately characterized. Get any of these wrong, and results will be not as much as stellar. Regardless of whether it's gadgets, shopper merchandise, or expert administrations, knowing the 4Ps will enable you to accomplish most extreme outcomes with least exertion.
Morals ought to be a piece of estimating, however that isn't generally the case. Here's an illustration; genital herpes is an agonizing, intermittent, and incapacitating ailment that still has no cure. At the point when a harsh specialist for the sickness was found, a showcasing group utilized concentration gatherings to choose cost. Polls asked, "What amount would you pay for help from this condition?" Respondents replied "$100 a day," and, "All that I have." The survey proceeded with value ranges, understanding the market for what amount is excessively and what the market would bear.
How about we talk about the place. An unmistakable comprehension of the procedure behind place (or situating) is all you have to influence it to work for you; regardless of whether it's simply to see through the fog a few advertisers use to mist up observing customers.
I worked with an Englishman and I looked forward each day to hearing his smooth elocution dribble like sweetness from a superbly ready honeydew melon. Having a dreary Midwestern inflexion influences me to acknowledge anybody with a touch of provincial character. He contended with me about what the 4Ps implied; I didn't have the heart to disclose to him that situating had nothing to do with promotion position on a page. Here are a couple of cases of situating. Perceive how you can utilize situating further bolstering your good fortune either for yourself or your customers.
Chindoya road entertainers used to be a given while advancing the opening of another pachinko parlour. Pachinko is a prominent arcade diversion in Japan, and on the off chance that you know the guidelines, you can make gobs of cash by trading in for cold hard currency your little steel balls for the correct premium. Advancements pull in consideration, regardless of whether it is only the button and wear hints of a Chindoya band's instruments. Observing between a showcasing advancement and outlining limited time materials is every now and again an issue for in-house corporate originators. "I am the showcasing chief, hence, I control everything about this item, particularly the advancement, and that incorporates promoting outline." Whoa, horsey. Administration gives careful consideration to showcasing administrators and too little regard for isolating individual inclinations from proficient decisions while figuring item parameters. You realize that old Stan Freberg tune, "Betsy Ross and the Flag: Everybody Wants to be an Art Director," well, a portion of the verses go, "Everyone needs to be a workmanship chief, everyone needs to make major decisions." Art executives and architects join together: Only you have been satisfactorily prepared to settle on choices concerning style, so don't give your showcasing administrator a chance to get wired with control with regards to advancement. You're not doing him or her or your organization any support by moving over and playing moronic while promoting calls the stylish shots. Advancement isn't tied in with picking typefaces, working up ideas, or planning promotions. Advancement alludes to the program used to invigorate interest for an item.
2.
Supervising production network administration (SCM) can be a requesting assignment and a genuine time drainer. That is the reason a few organizations outsource their SCM and abandon it to an outsider association. While this isn't for everybody, it can be appropriate for some organizations. Here are a portion of the inborn dangers and advantages of outsourcing SCM to enable you to choose if it's appropriate for you.
The Risks
Unforeseen Costs
At first look, the enhanced proficiency and budgetary reserve funds may look engaging. The issue is that there is dependably the potential for concealed expenses en route when leaving this procedure in the hands of an outsider. Issues like expanded dispatching costs for pulling cargo and related assessments can put a damper on cost projections that at first seemed promising.
Potential for Setbacks
Despite the fact that outsourcing SCM will frequently look extraordinary on paper, it can be an intricate procedure with a lot of chances for inconveniences. On the off chance that the outsider you pick makes impossible courses of events all through dispersion, it can prompt a large group of issues. One situation could be stock not being gotten on time, which implies shopper request wouldn't be met. Thus, this could prompt income misfortune and further glitches inside the production network.
Reconciliation Difficulties
Once your business has been completely coordinated with an outsider, operations should run generally easily. The issue lies in the progress procedure, which requires a lot of money related support and a significant time speculation from the two gatherings. Indeed, even a minor absence of correspondence can bring about accidents and postponements.
Quality Suffers
At the point when the association you enlist for inventory network administration needs involvement in your industry, the nature of your items may lessen. On the off chance that the association compromises, utilizes less expensive materials, and doesn't completely evaluate dangers, it can be inconvenient for your organization. Deals can diminish alongside your image value, and contenders will probably excel.
3.
While there are a lot of dangers with outsourcing, there are similarly the same number of points of interest. Expecting you perform enough research and unite with an expert association, your business can succeed.
Concentrate on Other Business Aspects
Since different people will deal with supply and circulation, you can invest more energy in additionally constructing your business. SCM can without much of a stretch consume valuable hours, so you can utilize those spared hours for promoting, setting up client connections, and growing new thoughts. This should make your organization more gainful and help your long haul achievement.
Limit Overall Costs
By enlisting an expert association, you can utilize their ability, learning, and associations with diminish your general costs. They will chip away at coordinations and with other asset suppliers to build up the most financially savvy design conceivable. This may incorporate rolling out improvements like getting more affordable materials, transportation enhancement, and better stock administration. On the off chance that the association chooses to go seaward, this can support your reserve funds considerably more.
Take care of Customer Demand
On the off chance that your business has leveled because of absence of assets, you may just have the capacity to supply your clients with a limited number of items. At the point when this is the situation, it can be about difficult to develop and fabricate your image value. Outsourcing can help you in this division in light of the fact that an association will find a way to get the amount of items your clients need. This can be the impetus for significant development and push your business into what's to come.
Greater Flexibility
By working with an outsider association, you approach their assets, which implies you'll have help in making a more broad foundation. Thusly, you can pick and pick who your organization works with and make alterations en route.
Like in most different zones of business, with chance comes compensate. In case you're ill-equipped and haven't considered every contingency, outsourcing inventory network administration can mess up your plans and hurt your general productivity. Then again, doing your examination and procuring the correct association can do ponders for your organization. It can make your life simpler, decrease stretch, and enable you to accomplish more things. It can likewise raise consumer loyalty, drive higher overall revenues, and fuel development.