Case Analysis Global Value Chain Strategies Essay

In this case analysis I will provide the most appropriate solutions to the issues raised in the following from the perspective of global value chain strategies regarding ISOL +. A recommended solution would be to build a new manufacturing facility close to the firm s southern European market. Since there is a large percentage of sales increase expected in Italy and Spain this will help facilitate production levels. Also with this location it will also facilitate shipments and minimize transit times which ultimately will help get product faster to the customer. With the current plant capacity of 3,000,000 m^3, if there were to be an increase in the market of an additional 1,000,000 cubic m the facility will not be able to meet the additional demand. The two changes proposed to the logistics setup are a decrease in the delivery time to 48 hours, and the other is to cut the minimum order possible to the equivalent of four pallets. Both these proposals will lead to substantial increas e in the logistics costs. It is forecasted that during the next five years, 47% of the sales in France will be of the size of four and six pallets. This makes it imperative that the minimum pallet size be decreased from the current eight pallets to four pallets. Moreover, if the delivery time is to be reduced to 48 hours, then production to order has to be abandoned. This reduction would mean incurring costs of holding inventories of finished goods. Both these proposals would mean anShow MoreRelatedSupply Chain Sustainability ( Scs )1505 Words   |  7 PagesSYNOPSIS This report focuses on the importance of supply chain sustainability (SCS) and the what are the benefits the sustainable supply chain can bring to the relevant stakeholders. The final section of the report illustrates how to developing and implementing a sustainable supply chain strategy in business environment. 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