OSM 5122 Module 6 Assignment GSB900873.docx - Running head...

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Running head: SUPPLY CHAIN DESIGN AT CRAYOLA Mangala Collins ZimbaSupply Chain Design at CrayolaOSM 5122 / Global Operations ManagementNovember 2019[Dr. Danielle Babb]12thJanuary, 20201
SUPPLY CHAIN DESIGN AT CRAYOLA 2Supply Chain Design at CrayolaSupply chain management is a very significant aspect within the business operation to ensure that an organization is able to operate and meet the marketing demands. “A key part of supply chain management is supply chain design, which seeks to design a firm’s supply chain to meet the competitive priorities of the firm’s operations strategy” (Krajewski, et al. 2015, p. 506).Therefore, this paper endeavours to look at some of the aspects of supply chain design at Crayola—an organization whose plants and its products have their own unique supply chains because of raw materials, suppliers and requirements all differ. First of all, the intention is to describe the four external and internal pressures on supply chain design as they relate to Crayola’s supply chains for ColorWonder and Washable Deluxe Painting Kit. Secondly, the task is to review the strategic implications of supply chains as described in the case of Crayola and anassessment will be made as to whether the organization has efficient or responsive supply chains or both. Finally, comparison and contrast will be done on the design of the Washable Deluxe Painting Kit supply chain on the strategy of next-shoring in Asia or retaining an existing networkthat involves the assembly of the kits in the US from the perspective of the decision factors and pitfalls for outsourcing. Four external and internal pressures on supply chain designKrajewski, et al. (2015, p. 505) posits that creating an effective supply chain involves the recognition of external competitive pressures as well as internal organizational pressures from groups such as sales, marketing, and product development. They further state that these pressures are dynamic sales volumes, customer service and quality expectations, service/product proliferation, and emerging markets. Dynamic sales volumes. It can be inferred from Crayola’s case that the organization experiences dynamic sales volumes on its ColorWonder product that consists of pens that only write on the special paper they are packed with for sale. Dynamic sales volumes are generated
SUPPLY CHAIN DESIGN AT CRAYOLA 3through customer complaints about pens in the kits lasting longer than the paper. As the organization creates a separate paper pack to address the problem, the demand for markers and full kits decreases. The organization’s supply chain responds by creating separate paper packets so that consumers may purchase just the paper after the initial pages in the kit are used. The result of this action has had a ripple effect on the demand for markers, which is now lower since consumers are buying fewer full kits but more ColorWonder books causing the supply chain and production to adjust hence exerting pressure on the supply chain design.

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