COM-425 Week 6

In week 6, I have been asked to analysis Demon-Tweeks supply chain management.  The upstream supply chain is the dealing between the company and their suppliers.  Demon-Tweeks buy directly from their suppliers or in some cases through a third party.  The downstream supply chain of the company is the communication between Demon-Tweeks and its customers.  Products are often bought directly from the company therefore excluding the involvement of intermediaries.

The company use a pull approach in their supply chain management.  This method is market-research driven in order to enhance the quality of the service to the customer and also to enhance the quality of the product to the customer.  This helps increase customer satisfaction with the product and the service provided.

The characteristics of Demon-Tweeks supply chain management are very similar to a virtual integration chain.  Demon-Tweeks deal with their suppliers daily and therefore have built a close relationship with their suppliers.  The company also deal with third parties when buying specialised products.  It is also important that also have a good relationship with them in order to keep the price of products as low as possible.

A value network is important to Demon-Tweeks.  Value networks are in place in order to create good communication between the supplier and companies.  Demon-Tweeks could face some problems if its communications between the company and the supplier was poor.  The price Demon-Tweeks sell a product at is often determined by what price the supplier can provide the product.  If communication was poor, prices could be raised and could impact on Demon-Tweeks potential profits.

An example of efficiencies in Demon-Tweeks supply chain is the purchasing of products from the supplier before they have been purchased by a customer.  Products are purchased from the supplier and are stored in the Demon-Tweeks warehouse until there are effectively sold.  This helps improve the speed a product can be dispatched to the customer.  It can also impact on the customers decision to buy a product if they see that it is in stock and can have it at their doorstep the next day.