DB assignment due by Thursday-24 by 5:00pm CST
Please explain how CPFR would reduce or eliminate ethical and legal problems in the supply chain of Feets. Many of the Feets vendors are offshore. How would that affect any CPFR activities?
See the Feets scenario A below.
SCM645 Scenario A
Feets is a chain of retail athletic wear stores. The company headquarters is located in Sacramento, California, near the western warehouse. There are seven geographically dispersed warehouses to serve the needs of Feets’ 400 stores. Tedra Grav, supply chain vice president, had this to say about the Fashion Squared store, a new location in Sacramento.
“The product mix in the Fashion Squared store is new to Feets. There are many new products and many new vendors. Our western distribution center is set up to serve the set of stores in California. It was not set up for all these new products and new vendors. This has caused us problems because of the small quantities of some of these new products, which are not used in any other store. All of this may cause us problems in the upcoming summer sports season. I have informed the rest of the management team of the nature of these problems.”
Feets uses third-party logistics firms to move the goods from warehouse to store. With the exception of the Fashion Squared store’s daily shipments, the stores receive orders twice weekly. Feets uses a small package carrier to make transshipments between stores.
Tedra feels efficiency as opposed to responsiveness in the Feets supply chain is important. As is common in retailing, buyers forecast trends, determine how those trends affect demand at the stores, and order from vendors accordingly. Efficiency is important, so vendors ship large quantities to the Feets warehouse relatively infrequently. The warehouse has a computer program to help team members determine where to store these large quantities of goods as they are received.
A buyer specializes in one or more departments depending upon volume, allowing the buyer to be familiar with the products. This allows for better identification of customer demand and utilization of supplier’s manufacturing practice knowledge.
Feets’ business is very fashion oriented. Each year, 80% percent of the product that comes into the distribution center is new. Even if the product is very similar to one ordered last year, it is considered new. Customers demand new colors and styles; product is normally not replenished. Instead, a particular item is purchased, distributed to the retail stores, and sold. As a result, determining the amount to be purchased can be difficult. The buyers can look at how a similar product sold last year. However, that may be misleading due to changes in taste.
The normal lead time quoted by a supplier is 6 months even though it only takes 2 to 3 months for the company to produce the product. The buyer is faced with anticipating what will be in demand 6 to 12 months into the future. These
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