Supply Chains

Time for a new marketing post! Even it is still November, I can feel the Christmas spirit all around me.The weather is getting colder which makes me think of home. Maybe, it is because of all the Christmas decoration in the big stores, but i have the feeling that Christmas is tomorrow and i have to bake cookies and buy presents for my friends. Anyways, this post will be about something different. It will be about a celebration which i am sure all of us know. As people say this is the most romantic day of the year. Well, according to me everyday can be special and romantic if you make it like that, but yes, i am talking about Valentine's day. This special 14th of February when all people go insane buying flowers and chocolates, trying to impress their 'better half'. A lot of people will look at it, as a symbol of love and affection, but I, as a Sauder student, will look at it as one of the most profitable day of the year. Yes, I was provoked by the movie we watched in class, and I think many people would be surprised of how much work and finances people put into the preparation of this single day. The factor I would like to discuss is the supply chain and how it can actually help the business in this particular moment. From the video we watched, we saw that the process of delivering the roses to the consumers was long and filled with many agents among the way. The roses were transported from South America to Europe, then sold on the market, delivered to retailers and then to consumers. One factor that will be probably positive for the consumers is that the quality of the roses was very good and they were delivered on time. But the probability of those events occuring is not always 1. Among with the advantage of using cheap labor and wide range of territory, sending roses from another continent can be very risky. There could be many unfavourable events at the land where they have been grown. For example, the quality could be low, because of change in temperature, the shape of the roses could be different because of lack of attention from the workers and agents, the delivery could happen later than expected. If roses arrive late, there will be huge loss for both producers and retailers. If you cant find a rose from one store, you will go to another and thus the first store will lose its profits. There could be another risk as well. A lot of people will find it funny, but it is an important factor. In all those South American countries, the level of crimes is very high and subject of such unfortunate events could be a very expensive rose delivery.As a conclusion, I could say that the risk of having such a long supply chain is very high and you should be very careful when determine how to produce and sell your product. Sometimes a short supply chain can be more expensive but it can also be very effective and less risky. Take for example the Sauder company. They use one company to fully replace all the different agents among the road of producing furniture. They cut, produce and buy their products. Using such a supply chain, they cut all the necessary expenses and operate quickly. Another important factor is that ( i will quote my accounting professor now) 'money goes from one pocket to the other'. The company uses different divisions within the company instead of using the service of other external companies.
Here, I gave you an example of two different supply chains. I personally think that having a short supply chain will satisfy the needs and values of customers more effectively and in a shorter period of time.