Introduction
Because of recent technological innovations and several breakthroughs, the concepts of communication and technology are nowadays inseparably connected to each other. Innovative information technology (IT) tools allow transferring necessary data within an incredibly short time, thus, boosting key corporate processes (Furman, Gawer, Silverman, & Stern, 2017). The specified opportunities are especially important for the maintenance of a global supply chain (SC), where timely delivery of required resources and transfer of important data define the quality of the end product (Lynch, 2018). Because of the necessity to manage the available inventory efficiently and enhance the communication process across the SC, thus, improving product quality, “Feets” will have to deploy the principles of Collaborative Planning, Forecasting, and Replenishment (CPFR) (Chopra & Meindl, 2012). The cooperation between the company and its partners across the global SC will allow maintaining product quality at the required high level by improving the quality of communication.
CPFR: Addressing Legal and Ethical Issues in the “Feets” Supply Chain
Apart from introducing a more sensible approach toward SC management (SCM), “Feets” also seems to suffer from an incoherent approach toward resolving ethical and legal concerns. For instance, the current framework for addressing legal issues does not delineate the agency of each participant. Particularly, the functions of partners, including suppliers and distributors, demand to be outlined respectively. After the duties and roles are distributed within the SC structure, SCM processes will occur at a much faster pace (Chopra & Meindl, 2012). The use of CPFR will allow making the process of data management more coherent across all outlets, as well as between “Feets” and its partners within the SC.
Moreover, ethical concerns need management in the organization. Although no major problems have emerged so far at “Feet,” changes must be made to the current ethical framework. For instance, the company must focus on producing goods of the best quality and strive to meet the demands of its customers. Furthermore, the needs of other stakeholders, such as business partners, suppliers, distributors, and other participants of the SC, must be met (Christiansen, 2015). CPFR, in turn, will help convey the corporate values to staff members and managers, thus, ensuring that they meet deadlines and control quality, respectively (Chopra & Meindl, 2012). The application of the CPFR principles will also help ensure that the firm’s partners comply with the established ethical standards. Consequently, an overall improvement in the management of ethical dilemmas within the company can be expected.
To encourage ethical decision-making in the context of “Feet’s” SCM, one will have to establish the principles of healthy decision-making. The identified step will require altering the approach to leadership by motivating employees and managers to accept corporate values and philosophy (Kluyver, 2015). It will also be necessary to ensure that the company staff members are provided with equal conditions, which is rather difficult given that “Feets” has expanded geographically (Chopra & Meindl, 2012). Therefore, the promotion of uniform values combined with regular audits and assessments will have to be considered a crucial change.
Offshore Vendors and CPFR Activities: Connection
Among the ethical challenges which ”Feets” is likely to encounter in the realm of the global market, preventing ethical issues in offshore activities from taking place is the most challenging one. Since it is particularly hard to establish tight control over offshore vendors, the firm will have to focus on maintaining the communication consistent and keeping all activities associated with offshore vendors transparent. The use of CPFR strategies plays a particularly big role in the process since they will provide “Feets” with a coherent information management approach (Chopra & Meindl, 2012). “Feets” will have to use the latest IT advances and tools for keeping the communication process consistent and avoiding any possible errors, misunderstandings, or misconceptions from occurring.
Furthermore, a rigid financial control will have to be established for the organization to avoid the associated risks. In this regard, the expenses associated with the inventory used by the organization and its offshore vendors will need to be addressed. At some point, “Feets” will have to replenish the inventory and resources consumed by vendors. Thus, the principles of sustainable use of the available resources and the concept of lean management will have to be deployed to avoid inventory shortage and the lack of raw materials (Dwivedi, 2016). The specified change will imply a transfer to a more advanced method of SCM. Specifically, “Feets” will use the principles of vendor-managed inventory (VMI), with the help of which a more sustainable strategy of using resources will become possible. As long as “Feets” coordinates its actions with its offshore vendors, the levels of waste will remain low.
Conclusion: Managing Current Issues at “Feets”
Despite massively positive changes that “Feets” has experienced, the company still needs a coherent framework for managing information and the existing resources. For this purpose, improvements in communication and product quality and, particularly, the use of resources are overdue. “Feets” will be able to manage its global SC as long as the firm has all available information at its disposal and can control key processes. Furthermore, “Feets” must learn to cooperate with its partners, including offshore vendors, distributors, and suppliers, to ensure that all deadlines are met, and products of the required quality level are delivered to customers. As a result, “Feets” will establish a positive presence in the new market.
References
Chopra, S., & Meindl, P. (2012). Supply chain management (5th ed.). New York, NY: Pearson.
Christiansen, B. (2015). Handbook of research on global supply chain management. New York, NY: IGI Global.
Dwivedi, A. (2016). Innovative solutions for implementing global supply chains in emerging markets. New York, NY: IGI Global.
Furman, J., Gawer, A., Silverman, B. A., & Stern, S. (2017). Entrepreneurship, innovation, and platforms (Advances in strategic management). Bingley, UK: Emerald Publishing Limited.
Kluyver, C. A. D. (2015). Strategic management. New York, NY: Business Expert Press.
Lynch, R. (2018). Strategic management (8th ed.). New York, NY: Pearson.