Otto de Company. Free Essay Sample

Supply chain management in every company normally operates at three different levels. For example, at a strategic level, the management team usually makes the major decisions that are of benefit to the whole company. The decision made by the management team, it should cover vendors, product development, and customers (Laari, Töyli & Ojala, 2017). Otto de is an international company that buys goods from manufacturers and sells them to customers. Over the last few years, the company has been using a competitor's analysis as one of its strategic supply chain management. However, it improves its performance as well as maintaining its efficiency; the company should adopt other strategies of supply chain management. Therefore, this task will review different strategies of management in the supply chain of Otto De Company to improve its performance and efficiency.

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Short-Term Strategy

Otto De Company needs to apply some short-term strategies to improve the operation of its business. The short-term strategy is a marketing strategy plan, which only lasts up to one year. Most of companies normally use this type of strategy to improve its sales and services and to promote new products in the market (Gilad, Gallero, Groos & Helmchen, 2018). Also, this particular strategy helps the company to advertise its brand name to its customer.

To improve the performance of Otto De Company, the management team should take action plans by widening marketing communication. For example, they should develop different marketing platforms in social media, i.e., Facebook, Radio, and Television (Dias & Ierapetritou, 2017). This advertisement strategy will help the company to budget on its operation, and this will also help in understanding or estimating the expected profit that will be received after sales at the end of every calendar (McCormack & Johnson, 2016).

Some of these short-term strategies that Otto De Company should adopt to increase its marketing performance are; giving discounts to their customers, the prices of their products should be friendly and equivalent to the quality of the products (Carey, Dumaine, Useem & Zemmel, 2018). Also, the company should rebrand its products and holds campaigns as well as trade shows as a way of reaching its customers (Gopal & Priya, 2019).

The management team at Otto should engage their customers during decision-making so that they can give their opinion regarding the company's products. For example, customers should have a chance to express themselves on what they want and also give out feedback concerning the services and products provided by the company (Puckridge & Woolsey, 2017). Thus, company management will be in a position to understand which areas they need to improve or change. Lastly, the management should always remember that these strategies are also important for long-term success (Aghaei, Charwand, Gitizadeh & Heidari, 2017).

Mid-term Strategy

The type of strategy normally lasts from one to four years period. The main aim of a mid-term strategy is to ensure that there is accelerating growth in the company. In most cases, this type of strategy provides permanent solutions to all short-term problems (Pokorn & Čibej, 2018). The Otto De Company should apply this strategy to its workers or employees. For example, the management team should train their employees to deliver the products to customers at the required time, and this will solve the issue of prolonged delay during delivery (Semuel, Siagian & Octavia, 2017).

To the area of quality problems at Otto De Company, the quality response team of this particular company should highly revise as well as strengthen the quality control program. Lastly, the issue of machines and equipment during the operation of the company should be highly solved to ensure that the performance is running well effectively (Liu, Mi & Li, 2018). For example, in case the machine has a problem, it needs to be repaired to increase its productivity (Lane & Smith, 2019).

Long-term Strategy

The main aim of a long-term strategy is establishing brand awareness that can be effective for many years. The performance of this strategy may take time, i.e., years, as its main objective is to keep the brand of a company relevant and fresh (Lee, Yang & Pham, 2017). Thus, the company applying this strategy focuses on long-term benefits.

Otto De Company, being an international marketing company, should apply this strategy to ensure that its brand name and performance is fresh to its current and upcoming customers. Many individuals will know Otto Company due to the uniqueness of the services it provides to the customers as well as the quality products that its delivery (Conti, Gambardella & Novelli, 2019). There are different ways the company should practice to continue winning more customers as compared to its competitors. Some of them include; maintaining customer relationship, marketing content, and public relations. Otto De Company should maintain its relationship with its customers by ensuring that the products delivered are of high quality. If it's a human-consumption product, it should be free from contamination. This will help the customers to be able to trust the company, and they will continue buying their products with no fear (Lloret, 2016). Thus, the company will continue operating its business effectively.

Conclusion

The strategies of supply chain management are essential to all organizations. These strategies help the companies to improve their operations, and in case of any problem, the management can identify it and handle it effectively. Thus, every operating company should always apply different strategies to increase its productivity.

References

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McCormack, K. P., & Johnson, W. C. (2016). Supply chain networks and business process orientation: advanced strategies and best practices. CRC Press.

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