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Introduction
The Indian sports retail sector is growing very fast due the presence of potential customers and changing lifestyles. The existing regulation compels foreign companies to source around 30 percent of their products locally. Decathlon has the potential to succeed in this market if it starts new stores and pursues evidence-based business practices to maximize performance. This paper presents the best supply chain management insights and initiatives that Decathlon can undertake to become a leading competitor in this industry.
Supply Chain Design
Decathlon needs to design the most appropriate supply chain that is informed by the existing market trends and the demands of the targeted customers. The first process should be to make evidence-based decisions regarding the size of warehouses, plans, and workforce. The existing legal frameworks also require that Decathlon identify several supplies that operate locally. The selected partners for inexpensive basic-style T-shirts should be able to deliver quality products in a timely manner. Such clothes should also be fairly priced to ensure that this organization records attractive profits.
The move to consider additional companies producing such items locally will make it possible for Decathlon to become more competitive. For the Scuba diving gear, this company can identify foreign manufacturers or suppliers who are capable of delivering quality and focusing on the demands of the targeted final users. Such partners should meet the outlined thresholds for quality and customer satisfaction.
Inbound logistical operations revolve around how companies acquire finished products from suppliers to their stores. An effective design needs to be characterized by proper transportation networks across India and beyond. Warehouses situated in various strategic locations or towns will ensure that unavailable materials are delivered in a timely manner to every outlet. This model will be essential for both the scuba diving gear and the inexpensive T-shirts. Distribution centers are critical because they make it possible for retailers to acquire supplies from different companies and deliver them to different stores within the stipulated period.
The decision to outsource such a centre is essential since the company has the relevant resources and support systems. The approach will make it easier for Decathlon to maximize its profits. Inventory management needs to be considered throughout the supply chain. The leaders will take the issue of stocking options seriously to cater for supply and demand, prepare distribution stores and suppliers for potential uncertainties, and reduce lead-time. The power of the proposed inventory management is to ensure that the required finished products are available to all customers at the right time.
Supply chains are useful tools for companies that want to maximize performance and record additional corporate social responsibility (CSR) scores. Decathlon can engage in various initiatives that will make the supply chain admirable, including the use of sustainable logistical processes that do not pollute the environment. Warehouses and packaging departments need to wrap items using recyclable materials. The company can go further to purchase additional products from local manufacturers in regions where each store operates.
This move will ensure that such suppliers receive timely guidelines to improve the quality of their items and eventually make it easier for them to employ more people in their respective communities. This example reveals that CSR can be implemented at the local level. The company can go further to entail the use of modern technologies to reduce the impact of the supply chain on the integrity of the natural environment. These aspects reveal that such initiatives will support the companys local and international logistical systems.
Bullwhip Effect
The bullwhip effect is a phenomenon that explains the potential inefficiencies that might arise from the forecasts in a given supply chain. Decathlon should expect this kind of outcome in its future supply chain since it is currently planning to add more stores and become a leading competitor in Indias market. The nature of the industry can also trigger such an effect since the customers are unaware of the existing products and how they can meet their demands. The main area where this can occur is in the customer feedback section. The company might take long to interpret the demands of the Indian customer and deliver the same message to the identified suppliers. The result is that a bullwhip effect will occur and threaten the sustainability of the established supply chain system.
Garmin GPS Watches
The nature of the Garmin GPS watches explains why there is a need for this company to consider a superior supply chain model that can support the needs of different customers. Since the product has a short lifecycle and expensive, an online-based model is attractive whereby individuals can place their orders after which the existing system will be used to deliver them in a timely manner. This new model will reduce the chances for loss, damage, or malfunction. This new model is unconventional but capable of maximizing the level of profitability for Decathlon. All employees involved in the supply chain process will have to be updated about the nature of this product and the intended goals.
Contingency Plan
The uncertainties recorded in the world today are affecting the performance and long-term objectives of many companies. The occurrence of a massive earthquake or the emergence of a global pandemic can disrupt operations and make it impossible for corporations to meet the demands of their customers. It would be appropriate for Decathlon to have a backup model or plan that can drive performance for a period of six months.
Using the information or data gained from the inventory management department, this company can identify specific products that move fast and deliver profits. This knowledge will ensure that such items are warehouses and availed in various distribution centers. The companys large stores can also be redesigned to hoard more items that might be in demand. Such a practice will ensure that this company continues to be in business been after its supply chain process is disrupted.
Cross Docking in India
Cross docking is an evidence-based practice whereby materials from incoming trucks are loaded directly to outbound vehicles. The outstanding benefit is that such a method can work effectively to reduce storage time and maximize delivery. The model is capable of minimizing losses and improves the process of delivery. This company will find it easier to acquire inbound materials from foreign countries and streamline its business operations. However, the model might be costly for Decathlon and even overwhelm the available warehouses. The fact that some of the suppliers are local manufacturers will make the entire process meaningless.
The company will be required to acquire additional trucks that might stretch the capabilities of the entire logistical and supply chain systems. The managers should, therefore, consider these issues in order to make informed decisions and eventually make this organization more successful.
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