Designing a Supply Chain Network

Designing a Supply Chain Network
Author
Department, University
Course Code: Name
Professor
Date
Designing a Supply Chain Network
A supply chain network encompasses the linkage between different organizations together to serve end customers. It is made possible through the movement and flow of information and materials. The network describes a more complex structure in that organizations are interlinked, and some exchanges are two-way between them; chain explains a chronological and more straightforward set of links (Harland et al., 2001).
Companies need to have the appropriate suppliers since firms have to remain competitive by reducing their inventories. Consequently, there are specific criteria that should be considered when settling on suppliers. The capability of meeting current and prospective capacity required on the preferred delivery schedule, overall expenditure of dealing with the supplier, including the price of the material, the quality of the product being supplied, financial stability, inventory requirements, and the track record of the supplier on improvement in business-performance ("What is Supplier Quality Management? Supplier Selection Criteria | ASQ", 2021).
The choice for a distribution center will be informed by the size and magnitude of a project, thereby dictating the distribution center's investment level. There are two cost variables for settling on a distribution center and a retail store: labor and transportation (Thuermer, 2017). Having skilled workers is also instrumental in achieving the success of both the distribution center and retail stores. Location analysis is the criteria that are used in finding the perfect retail store. It is achieved by determining the number of people who get to that location, the accessibility of that area, and sufficient parking (Waters, 2019). The criteria for settling on a third-party logistics firm include service and information technology capabilities, strategic geographic location, reliability of that given firm, corporate culture and stability, cost, and finally, flexibility or scalability.
The supplier selection criteria will vary across different i...