Supply Chain Design Practice For Company R

Long tail economy which is composite with abundant small markets is becoming more and more popular in the 21st century, it is essential for each company to build a proper supply chain strategy which can match their competition strategy and product style in terms of development and expansion under this situation.This dissertation describes that how company R defines and designs the supply chain strategy base on the competition strategy, customer expectation and the product style. Herein I also analyzed and compared the value of efficient supply chain and responsive supply chain, and initiated the proposal for the supply chain strategy implementation.Company R designs efficient supply chain and responsive supply chain respectively to match the different service levels, different sales conditions and market status for the same kind of product. The design practice concludes that company R can get higher percentage of profit from responsive supply chain with more rapid customer response, if the responsive supply chain can match the certain pricing and sales strategy; and efficient supply chain can gain more customers with a lower cost level. For the enterprises whose business are being upgraded, regulated or remodeled under the situation of global economy, incremental raw material cost and labor cost, the conclusion of this dissertation can be a good reference of some certain points in their supply chain design.