SWOT Analysis of the Logistics Process of Shun Yue Cement Company Limited

Summary of Case Study 1 From the case study which titled “SWOT Analysis of the logistics process of Shun Yue Cement Company Limited”. Shun Yue Company Limited is a middle-size firm in China that focusing in the logistic, transportation and also marketing and sale of cement. However, recently the development of technology is growth rapidly in the different region of the logistics industry. As a result, it actually will bring more unlimited challenges and more complex situation to the company. So, Shun Yue Company Limited should concern with this issues and find the way to focus on its management and processes to overcome the challenges of logistics manufacturing business in the future. In China, the real estate industry and infrastructure amenities are developing at a high speed, cement production constantly retains a great growth rate as well. As an overview, in 1996 the cement construction in China improved from 491 million tons up to 1240 million tons in 2006 and the annual growth rate increased from 3.15 % grow to 16.98 %. Logistics is a portion of supply chains, it also describe as a process of intentionally handling the procurement, storage and movement of raw materials, request part and also finished stocks from suppliers. It requires right merchandise in the right location at the right period for the lower cost. Shun Yue Company Limited is one of the successful cement businesses in China. This is because they have their own techniques and strategies to control and plan their inventory effectively and efficiency. To make sure purchasing and ordering process going smoothly, the organization need pay enough attention on provide the raw materials to suppliers and essential services for the customers, make inventory as well as investment expenses at a minimum level and improve the logistics operation as the goal, fulfill the customers need and demand, Just-in-time (JIT) purchasing needs purchasers and suppliers to build relationships long lasting. On the other hand, selecting suppliers is one of the most significant considerations before doing purchasing and ordering activities company should use a typical registering system to regulate the data that suppliers offer and categorize all potential suppliers for stuffs being purchased. Besides that, a company that cans success because of they always keeps a real partnership with suppliers and customers. Both parties need to negotiate or discuss the price as well as quantity and quality of the inventory to satisfy each other’s to gaining win-win situation. Furthermore, information system is also as a logistics system. Information during logistics process can be used, collected, evaluated, removed, stored and handled by an individual or a computer. It can understand the connection and collaboration among all links in system and influence the final objective of logistics activities. For example, the order processing system, company records, industry data and management data help Shun Yue Company Limited to maintain and control the inventory system. Modern logistics industry needs to concentrate regarding customers’ demand at current and in the future growth. They attempt to fulfill consumers, repute them as a focus and do well in marketing task. Shun Yue Company Limited has a good relationship with other shareholders such as customers, suppliers, investors and the others in a supply chain. They are dependent of each other’s and have a mutual interest or benefit. It will increase and generate values and better the competitiveness of the whole supply chain. In conclusion, with the systematic controlling and planning of the inventory and better management of purchasing activities can lead to increasing profitability. Shun Yue Company Limited successfully continuous development will be a forever lasting objective for the maintainable improvement of logistics industry. SWOT Analysis Strengths Shun Yue Company Ltd always pay attention on provide the raw materials to suppliers and essential services for the customers, it make the inventory as well as investment expenses at a minimum level and improve the logistics operation. To fulfill the customers need and demand, the company able to implement Just-in-time (JIT) operation strategy to satisfy the purchasing needs of purchasers and suppliers. The company able to produce the high standard of cement quality and its was located in the suitable geography area which is in Anhui Province. Shun Yue Company Ltd was able to keep a real partnership with its suppliers and customers. It always got the feedback from the customers. The good relationship help the company can ensure their quantity and quality of the inventory and both of the parties will achieve a win-win situation. Weakness Shun Yue Company Ltd has a very high amount in its inventory to avoid the lack of good mainly through safe stock. This also leads to the high logistic cost of the company. Under the condition of the changes of market demand, sometimes, the quantity of safe stocks will increase to more than a half than inventory of other manufacturers. This directly increase the add amount in consumer’s price. Consumers have to afford the high price of the product. Next, the consumers’ satisfaction and their loyalty have been influenced due to the late information sending. Normally, all the customers dislike accepting any accident on the delayed delivery. Lastly, the company’s Logistics department also failed in controlling the risks and the employee was lack of experience in system integration. Opportunities Nowadays, online business is become more common way for the consumers when purchasing their products. Since Shun Yue Company Ltd already owned his own website in publishing news, introducing the products, displaying different kinds of colorful activities, informing modern related new technologies of cement logistics and keep in touch with its target customer groups. Shun Yue Company Ltd should continue to manage and improve its online business and it may lead the company become more effective in managing their customer orders. Hence, there is a needs for the company to increase their company’s market share in China. A cooperation with China Construction Group may help the company achieve competitive advantage compare to the others competitors which do not have its own website. Threats There are some high risks and threats in the future development of Shun Yue Company Ltd. Due to the main product of the company is cement, the environmental pollution such as air pollution and water pollution will exists and become more serious day by day. The energy consumption and cross infection has become the big challenge for the company in order to survive last longer. Besides, in construction field, the biggest competitor for Shun Yue Company Ltd is Anhui Conch Cement Co. Ltd. Traditionally the majority market share and international exports was gained by the larger competitors. Summary of Case Study 2 From the case study which titled “Operations Management Toyota Motor Corporation”, Toyota Motor Company was established by Kiichiro Toyoda, a Japanese in 1937. Toyota Motor Company is one of the leading and well known automobile manufacturers in the world. There are a lot of Toyota plants around the world and Toyota Motor Company have a presence in more than 170 countries. Besides that, Toyota Company have over 300,000 of employees worldwide and they have profit earnings of about 16 billion US dollar per annual. Toyota Motor Corporation had using a various kinds of the most advanced operations management techniques in the production and distribution of its products in order to pursuit for the success of the business. For example, Toyota company had first implemented the just in time inventory control system in the early 1930s. At the same times, when the Just in Time system of the operation was launched in full scale. The Toyota company started their operations at its Honsha plant in 1938.However, The Toyota company has recently facing with the problem of faulty cars, which they has to calls back the several million of Toyota cars around the world. The company has been engaged in law suits from the U.S. Government focusing on the weaknesses in the manufacturing the cars which was blamed for a number of accidents and deaths within the U.S. As according to the case and accidents of the Toyota Company, they are facing with the serious financial problem and also lost their publicity image in the automobile industry. And thus, they was losing their position as the leading automobile manufacturer in the world. The Toyota Motor Sales company limited was established separately from the Toyota Motor Company in year 1950’s as following the financial crisis facing by the Toyota. However they are merged to become Toyota Motor Corporation in year 1982. Today, the Toyota company headquarters is located in Japan. And they are running their operation across the global market. The success of the Toyota Company is bringing by the efficient of the company operation strategies and it may involved the lean manufacturing techniques and Just-in-time inventory management system. Lean manufacturing and Just-in-time inventory management system assists the Toyota company to creating the cars with the elimination of the expenditure of resources which does not add value for their customer. The production cost of the car is reduced along with the reducing of the waste of the resources. Besides that, the Toyota company is needed to manufacturing the cars only when the time there are order or demand from their end customers so that the Toyota company has low or even zero inventory in their warehouses. Therefore, the Toyota Company can reduce the cost of holding input and output. This two management ways is aim at manufacturing and delivering the kinds of quality for the end customers in a quick and efficient condition. In conclusion, the Toyota Company had done well in their inventory planning and controlling system, such as the lean manufacturing and Just-in-time inventory management system. And all of this have brought the Toyota Company from the difficult time of the financial crisis that they facing to become success today and are one of the well-known automobile Company in the world. Besides, it also recommends that Toyota Company should improve their cars quality check process in order to long lasting their success in the market. SWOT Analysis Strengths Toyota company was able to reduce the cost of production by avoid the waste in their resources. Indirectly, through the cost reduction, the company was able to generate high revenue. Toyota company was implemented their own marketing strategies and techniques to identify and fulfill their consumers needs and satisfaction. Toyota Company used the lean manufacturing and Just-in-time inventory management system which help the company to create the cars with the elimination of the expenditure of resources and it does not increase any add value for their customer. This efficient manufacturing approach assists the company to maximize its profit and help to ensure the growth of the product. Furthermore, Toyota Company has achieved a very low or even zero inventories in their warehouses, that is one of the reason why Toyota Company can reduce the cost of holding input and output. Weakness In the automobile industry, Toyota was lost their publicity image due to the problem of faulty cars, which the company has to calls back around 8 million of Toyota cars around the world to correct the driver’s floor mat. Toyota failed to assure their cars quality check process and the safety of the car. Due to this failure, Toyota also met a serious financial crisis when the government started to relate the number of the accident and death towards the quality of Toyota cars. Indirectly, Toyota was losing its position as the leading automobile manufacturer in the world. Opportunities According to the corporate responsibility, Toyota Company is tending to become more environmental friendly. This provides an opportunity for the company to keep clean engine emission. In order to keep the environment clean and reduce the pollution, the environmental group work that conduct by the company may help to improve and create the image for the public. Besides, the innovation capabilities on automobiles of the company in the existing situation also will become an opportunity to gain the competitive advantage from the competitors. Toyota was suggested to invest in solar energy which may help the company to get a chance to regionalize and specific their worldwide operations. Threats In the automobile market, Toyota faces a very tight competitive rivalry with others car manufacturer. Due to the entry of new entrants from others country such as Korea and China, the overall position of Toyota in worldwide industry will drop due to the high competitiveness. Besides, the increase in price of the raw materials also will impact the financial of the company. As all the competitors was facing the same threats, Toyota have to come out more strategies in order to enhance its profitability and reduce the high risk when price increase. Case Study Summary 3 From the case study with the title “IBM Inventory Management Program and Control Techniques” we know that IBM is a multinational and consulting corporation which held by an American. The IBM head quarter is located in New York, United States and it was founded in year 1911. They are including in a wide range of activities such as manufactures and markets computer software and hardware, provide consulting services and offers infrastructures. Currently, IBM has research and developing a new method or approach call “Impact” which is helpful to assist distribution company in controlling their inventory about how much and when the time to make purchases. IBM company always required that their company purchase or keep as low as possible of the inventory on their hand. In management function, a company’s internal operation stability is based on their inventory. It is better and possible to keep low inventory in the warehouse or on hand by purchasing with a small and sufficient amount frequently or by using JIT system, purchasing the inventory according to the demand from the customers. At the same time, the purchasing or keeping of lower inventory on hand may increase the risk of failing to fulfill the customer demand and orders. Furthermore, the access of a large number of small amount orders to the vendors will cause the disruption of the business operation. On the other hand, if the amount of the inventory is larger it may be making the business operation to be much more smoothly, the one condition is the capital investment should allow. The IBM total inventory management system is made up of three important subsystems and all of this may include ordering, forecasting and reviewing systems. The ordering system related to how much amount to order and balance the cost to find the minimum cost strategy for each item. Meanwhile, the forecasting system is to know when to order, have an idea bear in mind about when the item is going used up. As following to the forecasting system, we need to forecasting and planning the quantity or usage rate of an item. This forecasting system helps to set order points and maintaining sufficient inventory in the account. Finally, the reviewing system is to look for the quantity send from the ordering system and then is sending to the customers who make the order for approval. These three important subsystems are running continuously in order to making the inventory management system of the IBM Company to become efficiently and effectively. On the other hand, the IBM also have a well-planning on their warehouse storage. They needed to make decision on whether to establish or rent an additional area or space to deal with the increasing inventory or rent out and use the space for warehouses that are more saved on the costs when the inventory is reducing. In addition, there are certain inventory or items that is critical to the IBM company that need special care or handling in order to avoid damages, pilferages or either to follow the law set by government. In conclusion, a well inventory management system that including planning and controlling of the company inventory is important for the business operation success. A well inventory management helps the organization to reduce the cost of holding extra or large amount of inventory on hand or cost of warehouse storages. Besides that, it also helps to increasing the efficiency of the business to produce the product with high qualities and timely to meet the customer order and demand. IBM corporation had carefully planning and controlling their inventory for the used, and thus this is main reason the IBM corporation are now the well-known and best global brand around the world. SWOT Analysis Strengths A new method called “Impact” which is helpful to assist distribution company in controlling their inventory about how much and when the time to make purchases. IBM also have a well-planning on their warehouse storage. They needed to make decision on whether to establish or rent an additional area or space to deal with the increasing inventory or rent out and use the space for warehouses that are more saved on the costs when the inventory is reducing. BM is the leading systems integrator. IBM is able to forecast long-term warehouse capacities. Weakness IBM only produces the expensive service and software solutions for the enterprise. Enterprise will involve in buying hardware, software and services from IBM If they want to build a reliable IT infrastructure in their companies. At the same time, it became the high cost expenses for all enterprises. This is the reason that infrastructure investment is always postponed in times of uncertainty or slowing economy growth.IBM only paid attention on providing the customized solutions for large and medium enterprises. It only capture a small share in the market although is a very profitable business model. Opportunities To increase the opportunities in balancing the fluctuations in different economies, IBM should improve in the globalization. The important key factors that will help IBM outstanding in the market and maintain its competitive advantages are the innovation. In the market that always having changes, a corporation with some IT related companies will help IBM to create and design the new products and they can use the patents to generate more profit. There is various types of services and enterprise solution provided by IBM, in order to ensure the higher profit margins and develop a better growth, IBM should try to focus on several part which may bring more benefits to the company. Threats The threats from the hackers which may explode the confidential information outside the company may cause IBM facing a financial crisis. IBM should strengthen the protective software to avoid the threats. The high competitive rivalry in cloud computing market also will affect the growth of IBM. This is because there is a lot of growth potential inside the market. Due to the high profit, many new entrants will be attract to enter to cloud computing market and threaten to take the market share from the IBM. Case Study https://www.theseus.fi/bitstream/handle/10024/34241/Chen_Jia%20ni.pdf?sequence=1 https://www.ukessays.com/essays/marketing/operations-management-toyota-motor-corporation-marketing-essay.php https://bitsavers.informatik.uni-stuttgart.de/pdf/ibm/generalInfo/E20-8105_IMPACT_Inventory_Management_Program_and_Control_Techniques_1962.pdf

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