BRUYNZEEL KEUKENS: MASTERING COMPLEXITY Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

BRUYNZEEL KEUKENS: MASTERING COMPLEXITY Case Study Help

Advantage of new value chain system

The purpose of production systems in the retail business is to prevent the spoilage and obsolescence of products. Consumers’ tastes change and the technology advances. Holiday-specific packaging and season collections may be obsolete before they even hit the shelves. New technology can make older models less popular, and the same can happen with older models of electronics. With this in mind, it is important to implement an efficient and effective system in order to keep up with the consumers’ frequently changing demands.

Aside from keeping the track of seasonal fluctuations; production systems can also improve the supply chain management. By using an economic order quantity formula; the businesses can determine the optimal level of inventory to order and they can minimize their costs by ordering and holding inventory. This formula takes into account factors, such as: demand in units, ordering costs and holding costs. It is best to use a system that allows the employees to work as efficiently as possible without sacrificing on quality. For example: if a warehouse is undergoing a seasonal change; this strategy can help it make better decisions.

Information process flow encompasses the invisible aspects of a Production System. It involves the capture, transmission, and utilization of data. It is often used in industries with high volume and low variation. The information process flow is usually based on a single piece or assembly line. A continuous production system is a digital system that leverages the economies of scale and reduces handling and shipping costs. It allows for accurate and reliable data management.

Kraljic matrix

This framework is a strategic tool used by supply chain managers. It includes four quadrants that identify the most critical and strategic purchasing decisions for companies. These quadrants help the companies in identifying the most important components that impact their overall business and supply conditions. The components in the lever, strategic, and critical quadrants are those which have a high business impact. In the bottleneck and non-critical quadrants the suppliers are of low economic value and have a little impact on the company.

The Kraljic matrix is based on the lean manufacturing concept, and can be applied to products or services. For instance, an airline may need engine parts from one supplier and incur high expenditure. This product would fall under the critical quadrant. A stationary company would purchase stationery from several suppliers but incur a low amount of money and be classified as routine. The model applies to both products and services, and will be useful to any industry.

The Kraljic matrix is a useful tool for assessing the risks associated with suppliers. It helps the companies in identifying which suppliers are important and which are not. It also helps the organizations in understanding how they can reduce the impact of risk on their businesses. Ultimately, the matrix is a valuable resource for improving the supply chain. So, it is essential to develop a comprehensive strategy for the procurement of materials. There are many factors that contribute to the success of a business.

Based on the analysis of Kraljicmatrixwe; we found that the suppliers from bottleneck quadrant can be avoided because the quantity ordered was small. So, Bruynzeel Keukens should avoid these suppliers. For Retail market Segment; the company should maintain its relationship with suppliers and avoid the suppliers which come under bottleneck. The company should use few sources to make strong relationship with them and manage long-term contracts with the suppliers.

How Kraljic matrix is helpful

A Kraljic Matrix is a useful tool to determine if you are maximizing your supply chain's benefits. It forces the organizations to think strategically about the products and services they procure and focuses efforts on the areas that can yield maxim unprofits. The model is also easy to understand and use, but the axes are vague. The definition of supply risk and how to differentiate between high and low risks is unclear.

The Kraljic matrix enables organizations to dedicate their resources to the areas of greatest profit and minimization of risks. It forces the organizations to think strategically about their suppliers and focus their efforts on the areas where they can generate the most profit. The system is easy to use and implement, but it is not perfect. The only downside to the matrix is that it is vague. The factors that constitute high and low risk are not clearly defined....................

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