Strengths And Weaknesses Of Supply Chain

explanatory Essay
532 words
532 words

Generally, as figure 1 shown that the Strengths for this supply chain is good for short run production and hard make mistake. It could avoid the lack of materials and make materials mixed together.
However, the Weaknesses for this supply chain is complex which are much labor spending and low work efficiency, especially that new staff needs spending long time to adapt to the job.
Certainly, X1 also knows the disadvantages for their supply chain and makes some special change for the disadvantages and reduces those problems effectively. Therefore, this is their Opportunities for supply chain to become better than before.
The main Threats by supply chain from X1 during these years are summarized as below.
1. Risk of supplier finance. It mainly refers to that a supplier goes bankrupt or closes its production lines due to bad financial conditions.
2. Risk of regional calamity. Calamities in an area cause supply failure, such as volcanic eruption in Iceland, Europe, and earthquakes in Japan, etc. Natural hazards happen rarely but cause immense damages.
3. Risk of supplier quit. It mains...

In this essay, the author

  • Explains that x1 knows the disadvantages of their supply chain and makes special changes to reduce those problems effectively.
  • Summarizes the main threats by supply chain from x1 during these years.
  • Explains that the risk of supplier quit refers to that a supplier exits the market, halts production and supply due to such causes as the supplier’s strategic change or business loss.
  • Explains the risks of supplier reliability, quality risk, and environmental and administration risk.
  • Explains the risk of global scarcity. some raw materials used for light source are rare metals or elements, such as heavy use of rare earth element.
  • Explains that the risk of single source is a pretty common risk. when the component or material is supplied exclusively, the purchaser will be dominated and accompanied by such problems as rise in price, irregular delivery and insufficient sources of goods.
  • Explains that headquarters' strategy is contradictory to that of a subsidiary corporation, which will cause harm to the daily operation of the subsidiary.
  • Describes the ten risks that constitute a risk source for x1.
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