Somerset Case Analysis

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The furniture company Somerset needs to retain its customer service record and remedy any of its global supply chain issues before it has an adverse effect on the brand and start losing customers. With a frequent change in the product catalog, keeping an excessive inventory will cut its profit and some of the product may become obsolete even before the furniture hits the retail outlet stores. In order to achieve profit and success, business employee many strategies and the supply chain strategy are one of the operational management techniques that use analytical decision making process to achieve the company goals and provide tools to effectively compete in the market (Taylor and Russell, 2014). The first step towards the Somerset 's global…show more content…
The company was an innovator in manufacturing furniture and applying quality management. The profit of Somerset diminished with an increased foreign competition and high labor within the U.S. Like many other companies, Somerset outsourced manufacturing many of its products to China and reducing domestic workforce and closed down its U.S manufacturing facilities. The global supply chain variability is causing customer delivery delayed by around 40% and also experiencing quality problems that is introduced by the humidity difference between the locations of Chinese manufacturing plants. Moreover, it is taking much longer to deliver products, and the spare parts preventing any timely customer services. The goal is to come up with a faster product delivery and product cycle employing strategic and tactical changes that might improve supply chain problem and address the quality and increase customer…show more content…
In the competitive environment, it is necessary for moving products involves reception of products at an intermediate location, store, repackage, clear customs and transport to final destination. The other factor in the supply chain logistics is speed given information flows fast in the internet era. The customer expects everything quick accustomed to the instant status access to the information. With the real time inventory, customer expects the location of the product, it is next scheduled movement and the final delivery schedule. Assessment of the existing supply chain management It is suggested for any organization to review, reassess any existing supply chain management or any delivery techniques, before developing a new supply chain method so that any exposure to high risk of failure is reduced. Somerset as a company taken advantage of outsourcing and transferred it product manufacturing to China leveraging low cost labor and raw material. The labor cost and other cheap material reduce Somerset overhead cost, but there is always the risk of not delivering product on time due to the foreign country political climate, change in tax and tariff and local

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