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Copy of Somerset Furniture Company's Global Supply Chain

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Divya Shah

on 14 May 2014

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Transcript of Copy of Somerset Furniture Company's Global Supply Chain

Somerset Furniture Company's Global Supply Chain
Company Profile
Somerset Furniture Company (SFC) was founded in 1957 in Randolph County, Virginia.

Traditionally, SFC manufactured large, medium-priced, ornate residential home wood furniture.

SFC close down its entire manufacturing facility in the United States and outsource all of its manufacturing to suppliers in China in the year 2000.
Existing Supply Chain Model (China)
Statement of the Problem
What tactical and strategic changes would the Somerset Furniture Company employ to its supply chain model to address the supply chain variability, quality and warranty issues, and inventory in order to stay competitive?

It is suggested that Somerset Furniture Company should take Alternative Course of Action 1 in order to meet the objective of the case study.

To rectify or improve Somerset Furniture Company’s supply chain and logistics practices by finding solutions to the following problems brought about by the organization’s current supply chain model:

Supply Chain Variability
Quality and Warranty Issues

Alternative Course of Action
ACA 1 – Modifying the existing supply chain model

Shipment of Raw Materials
Supply Chain Variability
Product Quality and Warranty Issues
Effective Inventory Management
ACA 2 – Near-shoring (Mexico is the new China)

Low-Cost Manufacturing
The Quality and The Practice

Modified Supply Chain Model (China)
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