Beta Widget Maker Company’s Supply Chain Model

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Business becomes one of the main moving forces of the modern world. The fact is that nowadays various international companies have the level of incomes that exceeds the budget of some states and these organizations contribute to the development of the country and society greatly. The models according to which they are organized are different, however, the efficient supply chain is necessary if a company wants to evolve and guarantee stable incomes.

Additionally, in the course of evolution, a company needs more and more human resources and it has a great positive impact on the community. Various stages of the supply chain demand different specialists perform certain activities. With this in mind, it is possible to analyze a certain supply chain model on the background of the case study connected with the activity of Beta Widget Maker. The given analysis will help us to obtain a clear vision of the given issue.

Starting the analysis, it is vital to describe the basic business process of Beta Widget Maker (BWM) to understand how the company functions and the goals it wants to reach. Nevertheless, BWM is the company that “manufactures and sells “widgets” directly to the public throughout the continental USA” (Engemann & Henderson, 2011, p. 251). The orders are received with the help of the Internet. At the moment the company provides work for 430 individuals who work in its various departments which are very interdependent and their efficient functioning promotes the increase in the level of performance of the whole company. BWM is located in central Iowa and the local community considers it to be a good place to work. It should also be said that the company manufactures its products and, that is why has a complicated supply chain which consists of a great number of stages which are very important for the final result.

Thus, analyzing the supply chain of the given company, it is vital to admit several important aspects. The figure shows that the stage of manufacturing is part of the supply chain and is a very important part of the whole process. Moreover, it is almost the very beginning of the supply chain and, that is why some problems on this stage might result in the collapse of the whole process. Analyzing this aspect in terms of outsourcing, which is rather popular today and is said to have a great number of benefits, it is vital to say that it could also introduce some problems connected with the business continuity of the given project.

There are several reasons for this statement. First of all, the issue of outsourcing implies the fact that some activities or processes are given under the control of another company for it to perform various functions (The Risks and Benefits of Outsourcing Supply Chain Management, n.d.). Thus, if BWM loses control over the Manufacturing or Fabrication stage, it will introduce some problems. The first risk will be the loss of independence as another company will control the very important part of the supply chain which determines the general performance of the company. Secondly, business continuity might suffer because it will be much more difficult to plan the whole functioning of the company (Strokey, 2011).

A great number of external factors connected with the functioning of the company which controls these stages should be taken into account to create the new efficient model. Finally, in case of an emergency BWM could also have great losses because of the absence of control over these stages. The supply chain will be destroyed and the company will slacken.

Resting on the above-mentioned information, it is possible to suggest several possible risk treatments that will be able to protect BWM. First of all, the company should introduce the contract which will regulate the terms of outsourcing. Another company should not be able to introduce some significant changes and corrupt the independence of BWM. Moreover, the planning strategy should not suffer from the new conditions. That is why it is vital to introduce consultations between companies and determine the terms and main aspects of the cooperation. Finally, there should be some plan of the actions in case of some emergency for the supply chain not to be destroyed and the company will continue its functioning (Determining When to Outsource Supply Chain Management Services, 2008).

Nevertheless, analyzing the issue of outsourcing, it is vital to mention the fact that the introduction of outsourcing might also raise several new concerns. First of all, the approach towards strategic planning should be reconsidered as the new conditions will be created. Additionally, the supply chain should also be reorganized to fit the new requirements and be able to promote the further development of the company.

With this in mind, it is possible to make a certain conclusion. The necessity of the creation of an efficient supply chain becomes obvious as it helps to improve the final performance of the company. Moreover, the changes in some elements of this chain can lead to the appearance of new concerns and problems which should be discussed in terms of outsourcing and its main concepts.

References

Determining When to Outsource Supply Chain Management Services. (2008). Web.

Engemann, K., & Henderson, D. (2011). Business Continuity and Risk Management: Essential Elements of Organizational Resilience. Brookfield, Connecticut: Rothstein Associates, Inc. Web.

Strokey, I. (2011). Operational Risk Management and Business Continuity Planning for Modern State Treasuries. Web.

The Risks and Benefits of Outsourcing Supply Chain Management. (n.d.). Web.

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