Across The Globe Supply Chain Solutions - Console Delivery

Introduction

Video game consoles have been developed from a cartridge kind of the consoles to the disk kinds and pre-loaded and internet-connected type devices since introducing the first ATARI and Magnavox releases in the 1970s the 1980s (RUSHTON & WALKER, 2007). A console is a video game consisting of a customized computer system and displays signals on a video-display. A console is used with a displaying device such as the screen used to display the game on a video. I intend to give an appointed supply chain consultant a suitable recommending strategy for a major manufacturer company of consumer electronic goods based in the Netherlands. This company has already developed a revolutionary new games console that tends to replace its existing and marketing leading model. The company intends to sell the console in a large number around the world. My report will give the board of directors for this manufacturer company an insight into the proper strategies that will be adopted in the effort to transport the consoles from the factory to retail outlets globally. The product life-cycle for these consoles is anticipated to be around two years, where there will be a huge demand during the early stages of the introduction of the consoles. In the past, I trust that this industry has struggled to meet the global market for the newly launched models; I trust that this report will play a significant role in the board of directors. Therefore, various recommendations will be outlined on the main modes of transport that the company will adopt to ensure a smooth and proper distribution of the consoles.

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Recommendations for the Main Modes of Transporting Consoles

Proper modes of transport need to be adopted by the industry to ensure that the consoles are distributed globally. This implies that the primary distribution of the consoles from the factory to distributors in Asia, North and South America, Asia, Europe, and Africa will only be facilitated by a suitable mode of transport, especially during the early distribution stage. The factory anticipates that there would be massive demand during the introduction phase of the consoles. After that, there will be a period of stability and culminating in a steady decline in sales before introducing a replacement model. The company should maintain a stable cost for the consoles while making the distribution and maintaining acceptable customer service levels. The supply chain usually dwells on the efficient management of the logistics and assets to get raw materials. When a particular company is sending products worldwide, it is essential to consider the right transport mode. As a supply chain consultant, I will explore various transportation modes in the supply chain; give my recommendations to the console industry on how they can use these modes and why they matter.

According to RUSHTON and WALKER (2007), transportation is a fundamental logistic function of the supply chain, helping to run from the producer to the customer or stores. Therefore, for the transportation strategy to be effective in supply chain management, it should fit the products' movement to the corporate supply chain. During the transportation of consoles from the factory to retail outlets on all continents, I would recommend the company undertake several strategies. I recommend that these strategies should recognize the segment. In this case, not every shipment should have the same priority. This implies that the suppliers, products, and customers are likely to affect the merits of the urgency of the consoles' transportation. Therefore, the strategy should not be one-dimensional and, hence, it should be segmented to reflect on the consoles' urgencies.

The transportation of the consoles should also recognize the customer requirement strategy. It means that the supply chain entails continuous and effective consoles from the vendor to the manufacturer to the intended customer. Hence, the transportation program needs to reflect and meet the needs of the customers. Additionally, the time and the service aspect regarding the transportation of the consoles are vital. Nevertheless, there is a need for shipments to move timely. It means that customers’ demands their consoles be delivered as they are required, and on time the carrier preferred needs them. Therefore, the company should adopt a transportation program that can provide customer satisfaction and place the company at a competitive advantage. The company should adopt a proper mode selection strategy to facilitate the transportation of the consoles. The industry needs to outline how the product will move either by air, road, or water transport. Therefore, it is good to establish what roles transit time contributes to the supply chain.

Another recommendation is that the industry considers carrier mergers, alliances, and closings strategy. This is a critical and significant issue that the company needs to consider during the consoles' transportation across all continents. The manager of the industry needs to understand what is happening within each mode and align the strategy. The best mode of transport that the company needs to adopt, especially during the early stages of the consoles' transportation, is air transport. This mode is faster and will facilitate faster distribution of consoles from the factory to the entire world within a very short time. However, the company needs to complement air transport with other transport modes such as water and road transport. This means that the company will not incur more transport costs; thus, the company will likely realize a huge profit in return. The manager needs to consider that transportation is a fundamental logistics function and is crucial to supply chain performance. Therefore, for the industry to meet the supply chain's rigorous requirements, the transportation strategy adopted should be dynamic.

Appropriate Methods for Forecasting Demand for the Consoles

There is a constant need regarding the demand forecasting of the consoles. Therefore, the manager should consider appropriate methods to predict the demand for the consoles. Having in mind that the company is developing a revolutionary new game console to replace their existing models, the company should use appropriate methods in projecting the demand of consoles since this is a new commodity in the market.

Trend Projection Method

This suitable method can be used in forecasting the demand for the consoles. The method is suitable for projecting the consoles' demand since it is simple and in extensive and due to the time series data that usually display a persistent growth trend. The method assumes that the past rate of change of the forecasting variables will be continuing in the future (BENTON, 2013). The assumption offers proper safe outcomes until the time series displays a continuous tendency to move in the same direction. Therefore, with a proper forecast for the demand of consoles, using this method will give a good projection of the demand, especially in the early phase of the introduction of the consoles and the future.

SalesForce Competitive Method

This method implies that the salesperson of the commodities needs to be near the customers to judge their mind and market as well. The company manager should ensure a close relationship with the customers to get the customers' reactions concerning consoles and establish their sales trends. This method's advantage is that it is useful, especially for the sales of the new products in the market since it has the salesperson's judgment (BENTON, 2013). The method is simple since it does not involve any computations, and hence, the manager will be able to get first-hand feedback on the consoles.

Suitability Lean and Agile Supply Chain Strategies throughout the Product Life Cycle

Today’s global economy is vibrantly dynamic; this poses a big urge for the company to operate a supply chain, which is both lean and agile (COOKE, 2010). A combination of these two is known as having an apt hybrid supply chain strategy. A lean supply majorly focusses on value addition to customers, least identifying and fully eliminating anything i.e., waste that is of no value addition. Observing an agile chain on the same note incorporates being responsive. The supply chain adapted can continually handle unpredictability and a staunch stream of innovative products with flexibility and speed. This company consequently need a lean supply chain drawn from the need of introducing a new gaming console model, an improvement from the previous version for customer needs value addition; the chain adopted too should have an incorporated factor of agility in it: a factor that gives the supply chain the backbone of being responsive i.e., chipping inability to deal with market dynamics on the newly innovated gaming console. This hybrid supply chain must be forthcoming to the console's demand, with the capability of utilizing information as some degree of substitute for inventory via affiliation and integration with core customers and suppliers of the company's consoles.

In this situation, the company is an electronics manufacturer should incorporate a hybrid strategy using flexible distribution and manufacturing model. The companies will get relieved of some services, which would be provided by subcontractors who would provide distinct manufacturing processes in separate physical locations suitable for target customers. This approach gates a virtual network of the company's manufacturing partners and requires a responsive, flexible, information-driven sourcing, manufacturing, and distribution of functions in vast ways with an indoor need of shifting processes in-house. The console life cycle having a boom of demand during the introduction phase is another factor agitating into assumption to hybrid supply. This would adequately resolve supply short during this introductory phase by boosting the supplies globally through a network of third parties. Selecting global partners e.g., Sony for the gaming console CPU and well-reputed ATI for a graphic chip(GPU), ATI would receive a fee for chip designing. At the same time, this company wholly owns the design allowing it to select any quality global chip producer it needs.

An agreement for a Chartered license in this production for the initial phase would curb the company's strains during this boom period (COOKE, 2010). A hybrid supply chain contrary to agile and lean independently would easily stage an Enterprise resource planning (ERP) solution that would mean the company logistics better and grow an Internal Business Integrated and Intelligence (IBII) solution (COOKE, 2010). This IBII will create a data exchange between the ERP and contracted manufacturers and sub manufacturers worldwide in the supplier's systems. This system would cut across the market, making the availability of design and spare parts of the console at close reach for consumers, creating a feeling of the community thus attracting a higher number of users using utmost casual games, which are simpler at low development cost while being downloadable directly by users. This would massively jolt up sales at least favorable prices via the internet and dimmish piracy and queer development risks. This centrally managed supply chain would maximize sales on each marketing channel e.g., GameStop, Walmart, Amazon, etc. (SCHECHTER & SANDER, 2002). This would not only look at the firms "downstream" that sell the consoles but also "upstream" at convenient suppliers and "sideways" at potential firms to come into partnership with.