Vodafone – Effective Chain Management Methods and Theories to Overcome Barriers to Success
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BUS 2153: Business Management Case Study 2: Effective Chain Management Methods and Theories to Overcome Barriers to SuccessTheory of Constraints (TOC)According to the theory of constraints (TOC), every system in any profit-making firms will have at least one constraint and barriers that limits the system from getting whatever it strives for (Hokey Min, 2015). In this case, Schultz should be aware that any of these constraints will bring an affect to his firm and will cause a distortion in achieving a maximum efficiency. Schultz must take note of any form of constraints and barriers according to this theory.Benchmarking Current PerformanceIt is important for the managers of a certain inventory network to know what level of performance is achievable (Tom Davis, 1993). Detlef Schultz should, in this case, acknowledge the possible level of performance of his supply chain management and should set rather achievable and realistic targets. Through this, the supply chain management can perform up to its level and can help in minimising loss and wastages throughout the entire process. Controlling UncertaintyTom Davis further explained that a company can achieve great strides by understanding the relative impact of different sources of uncertainty in the system and by then working to tackle and reduce the impact they have. Which in this case, Detlef Schultz must identify any uncertainty that may occur within the supply chain management of his firm, Vodafone. With this, any form of weakness and vulnerableities within the management of the supply chain can be identified and further actions can be planned to overcome the uncertainties.
Planning ChangesIt is possible, with the right tools to study in advance the benefits or costs of implementing changes in the inventory network (Tom Davis, 2003). Through this, the new policies and practices may lead to great reductions in cost and delivers improved performance. Through the application of this theory, Detlef Schultz can ensure that many opportunities and advantages can be enlisted and obtained just through initial planning. Apart from that, this can help the organization to be more cost-effective as well as being able to reduce any unnecessary cost.Modern TechnologyWith the current reputation and position Vodafone is currently at now, Detlef Schultz must ensure that any form of equipment in forms of technology is at top notch and up to date. This can be implemented to make the management of the supply chain to be efficient and accurate. Besides that, resource planning systems and supply chain analytics systems can be used to improve efficiency, control and assist managers to make critical decisions.(University of Western Sydney, 2015)Inventory ManagementInventory management is a very important part of the overall management of the supply chain. The management of inventory consists of 3 main components which is production, storage and distribution of stocks and inventories. Through inventory management, Detlef Schultz can make sure that there is always sufficient inventory available to meet the demands of the customers. He should also keep in mind that keeping and retaining excess stock is costly and should be avoided or minimized.