Fender’s Supply Chain Management Essay

The orbits manufacturing leader buff Guitar Company which was established in 1946, the abounding name of off stop Musical Instruments Corporation. In the past 60 years, buffer zone has become one of the h every last(predicate)marks of the joined States. The contri exception of extension direct-headeds modern music maturation has already been spread in global and s coin bank continuing. Through the first to introduce the commercialization solid galvanizing guitar, produced the first electric mystifying and numerous classic speaker. The style of buffer store musical theater cocks includes jazz, pop, rock, country music and so on. Everyone from beginners to enthusiasts and even the military personnel-renowned performers all corporationister find the suitable musical operators for them. fender intends to position itself in the friend enthral not unagitated a revered music industry name, but alike a cultural icon (HREF 1). original Squier serial of guitar, bass, spe akers and separatewise returns combined with its full line of airplane pilot acoustic guitar considering the price for centre on musicians endurance offers a wide range of options.Long-term development by the inspired, cowcatcher created a complete mathematical product line of professed(prenominal)-grade guitar and bass speakers. buffer zone has a series of pro audio, including complete portable sound systems, superior-grade audio equipment. pilot excessively provides a wealth of accessories, including strings, standard fill-in parts, Fender logo strap, as sound as casual wear. Fender set the assembly political programt in Arizona Scottsdale California Cornona Tennessee, capital of Tennessee Mexico Ensenada London Germany Dusseldorf Paris, France and Gothenburg, Sweden. In North America dissemination centre, Fender is the exactly distributor of electric instruments in the unify States and Canada. They provided music equipment products from the main series to access ories. Fenders w behouse at one time ships to more than 1500 musical instrument dealers who located in the unite States and Canada.2Fenders return ambit get awaymentFrom 1946 till now, 60 years experience in business centering, fender has a very sophisticated communicate train management in its product parts procurement and sales activities. Although the structure of their egress compasss in stages updated and changed by the age development. However, from the international status of today of Fender in the guitar industry around of the world, which has already proven the success of come forth scope management in Fender and also clearly discover that the richness of doing supply fibril management in their business activities. I plan to analyze the typical aspects case by case of Fender in their supply twine management. It includes the international commercialise supply chain strategy, provider selection, node strategies, raw material supply chain management, sup ply chain partners.2.1 Fenders global supply chainFender positioned their products for the highest quality, high-quality, medium quality. The highest quality products manufacturing at corona factory in California. Ensenada factory in Baja California, Mexico is responsible for the mathematical product of medium to high-end guitar. Fender also developed their market to Asia. They contracted with the Asian guitar manufacturers to manufacture fender guitar. And also produce the cheap Squier guitar to meet the postulate of contrary consumers.Fender Guitar previously only popular in the United States, but since 1990, Fender guitar expanded the market into Japan and has achieved outstanding results. Fender was in its Ensenada, Mexico plant started to produce the guitar for the Japanese market, although only a small(a) number of output, but is a signal to enter the international market. Squier check off by Fender is a marketing tool to win the business. It also made the introduction o f the foundation for Sratocasterr series in international market. Gradually, Stratocaster ware become increasing popular in Japan, China, South Korea and Indonesia. Fenders supply chain management made successful in Asian.2.2 Fenders typical suppliersIn recent years, Fender Musical Instruments Corporation purchased a number of instrument from his supplier, these suppliers including the Guild Guitar Company, the Sunn Amplifier Company, and otherwise brands much(prenominal) as SWR hard Corporation (HREF 1). 2003 early, Fender made or so adjustment for its family of products Gretsch and started the production and distribution of new Gretsch guitars.2.3 Fenders new supply chain strategyFender plans to leaven their products eject be more clearly conveyed. They announced in Feb. 2007 provide be to produce a product guide with illustrations of replace the handed-down front-line journal of the year. This change in order to give publicity by its supply chain toll considerations, The traditional salute of printing, as well as the most trend copyright convenient substitute for cyberspace magazine, which can solve the printing, distribution, copyright issue of cost and time. The guide contains a set of new Fender product introduction and picture. The new Fender Frontline In-Home allow for be conveyed to customers the latest products of Fender, and the provision of mail to customers if they need and consume registered in the Fender website. This shows that the Fender was constantly improving its customer portion systems to optimize their supply chain management.2.4 Fenders Australia supply chainFender in Australia has a complete supply chain system, but it still has a few aspects need to improve. Fender established more than 92 local authorized dealers in the Australia, 26 in NSW (HREF 2). Fender distributes Recommended Retail footing (RRP) information to all of its authorized Fender Dealers in Australia, but the retailers is no obligation to follow recommended price, so retailers can manage the price tractability in different regions.Fender in Australia also provides the dish uping of credit of guitars of customer own. Through the phone and internet application, customer can induce their guitar to retailer shop. In the sell precedent, Fender Australia does not sell directly to consumers. Customers need to find an authorized Fender Dealer to buy the product. It require Fender need to establish more enough dealers to satisfy the customers from different regions. I must give up some potential customer in small regions when Fender fate to cut cost for retail establish.In addition, Fender provides the service to customer to help them value their advantages of guitar choice. They are dealing with an established local business and provides warranty for local customer, and also customer can receive excellent advice from a professional from Fender.2.6 Fenders American supply chainFenders commitment to achieve customer satisfac tion, all the production lines in the United States must first be assigned to the Fenders California warehouse. Products must pass smashed inspection and quality control move to allow the shipment. Fender round inspect all equipment to ensure that the voices of debugging, interoperability, as well as the unload of containers from retailers.Fender use Barcode system to entry all products. The savings from shut code system impart be in the form of the excrement of running the said(prenominal) orders twice due to error (Joansson, 2008). Barcode system can efficiently locate and retrieve any given product in seconds by computer operating. Bar code also provides an important go by means of of the electronics and data, including price information, homunculus and serial number, transportation and receiving dates. It helpful convinced service to dealers.Before shipment, the products need to be inspected stringently again. Fender distribution piazza provide their dealers a varie ty of shipping way. The high quality ship and quickly delivery time by only 3-4 working long time from warehouse to United States and Canadian dealers.For Fenders supply chain management, the quality of product would be put in the heading mission. Fender insists that they can provide the high quality and also valued their electronic network of customers and dealers in order to efficiency distribution systems in the musical instrument industry (HREF 1)3. The value-add from Fenders supply chain partners3.1 Outsouring and supply chain integrationThird-party logistics is no stranger to Europe, as a business outsourcing industry has been in Europe several hundred years of history. Many well-known companies such as Schenker. They began to use such as the provision of transport, warehousing and other services.However, due to specialization aware of the importance of paying attention to outsourcing and as the rise of an industry was beginning from 80s, 90s during the 20th century in Unite d States (Weng, 2006). According to statistics, in 1992 the United States third-party logistics market turnover of 35 one million million million U.S. dollars, accounting for the logistics market, the total turnover of 2% -3% in 1996 has reached 50 trillion U.S. dollars, an increase of the total logistics market to 5% 6%, and third-party logistics in the United States in 1997 and 1998, the business growth of 40% and 15% respectively. Third-party logistics began to extend to all parts of the world from the United States, todays third-party logistics business world as a whole accounted for about one-third and also a 15% annual growth rate.(Li, Yu & amp Xu, 2006).Third-party logistics companies in the supply chain is a link, it will throughout the supply chain of other companies as its clients and customers. While in reality the demand for customer-oriented environment is bound to start with the strengthen communication between the logistics enterprise and the each member of the sup ply chain in order to know each other more than before(Li, Yu & Xu, 2006). To become effective organizers and managers of the supply chain, we must first discover the specific circumstances of the members, along with third-party logistics own familiarity with the logistics are far high than that of other members, so third-party logistics enterprise supply chain integration is of raceway an expert. It is for this reason that more enterprises are now seeking cooperation with third-party logistics companies to supply chain integration. For example, Fender collaborated with Global logistics company-UPS to integrate their supply chain and improve the performance.UPS distribution center in United Kingdom helps Fender to complete its process of flow lines and centralized so that the Fender Company in recent years to achieve sales in Europe doubled in the Scheme. UPS management from factories from all over the world on sea and visit purchase by a third party logistics companies to ma nage their inventory EDCs. EDCs inspection by the quality of the employees to view the inventory, distribution and retailers to meet orders, manage the delivery of multi-carrier. Fender can shorten the delivery time and rectify monitoring of the quality and delivery of orders. More importantly, before UPS ship the guitar to the retails. They will complete each of the guitar tuning to ensure that you can play guitar when retailers hire products from t he box.3.2Fender also value their partnerFender and BestBuy established a collaborationism relationship in 2008. in July 28,2008, BestBuy announced they will open up 2500 square feet of Music centers in its 85 stores for sale include Fender, Gibso and other well-know brands, including more than 1000 kinds of ordinary accessories, music high guitar, bass, DJ equipment, musical instruments of professional products and provide enthusiasts gathering irrigation discs, musical training services(Rudnick,2008).Faces to about 80 billion a year U.S. musical instrument market, as was the same as BestBuy Mobile carry throughation, BestBuy and Wal-Mart can share the music game market from now on. However, it has a highly requirement for supply chain management of suppliers. Accordingly, Fender reduced the delivery time for 1 week through outsourcing logistics management companys entire system of UPS, and also diminish by almost 10% of distribution be (HREF 3). It not only meets the fast delivery request from BestBuy, but also reduces the total cost ownership of Fender.4. Supply Chain Operation Reference (SCOR) model in FenderThe basic elements of the SCOR model are4.1 Planning in Fender Supply ChainIn the cooking phase, fender first plan resources. They are planning the parts of guitar, the commentary of the demand for production and purchase. For special materials, such as the type of wood to a strict screening, different corresponding and heterogeneous types of woods are produced for different types of guitar s eries, even take up some wood seasoned for several years, this is a long-term resource planning process.Secondly, Fenders production team is not only has the professional production skills, but also the production of each staff is professional guitar enthusiasts. In this making planning stage. The need for a clear definition of the blueprint and need to be aware of the guitar development at this stage and clear understand the needs of the consumer. People always say that guitar is a culture, for the designers, the experience of this culture for the guitar production is very important.Thirdly, delivery work in the sales process is particularly important. Fortunately, Fender made strategy with 3PLs which brought a large advantage in the issue of product shipments for them. Faster, reduce costs and ensure security is the best result in the SCOR model implement in Fender.Finally, in the return planning, it can be defined as the return of commodity and return of get ahead. Fender has d eveloped its product travel of after-sales service system, including maintenance, replacement and the responsibility for risk protection. Fender makes the return of profit have more capital to develop new sales markets, the design of new products and increase the welfare of employees.Source from Lee Styger, 20094.2 Make to line of merchandise & Make to orderWhatever in selling online or retail sales, Fender is trying to maintain adequate stock to meet the needs of customer. Absolutely, in the framework of a reasonable forecast, Push (make to stock) model can help Fender improve sales performance, as well as Fender can rapid response capability. However, over storage, high inventory level will lead to cost increased. In addition, many customer want to buy a special appearance and type guitar from Fender.Therefore, Fenders Custom Shop was established to meet those needs. They use Pull (make to order) model when customer release the order to them. Design and produce the specif ically product to customer. However, it is also has some limited by Pull model, timeless will be a biggest challenge for Fender production line. Thus, keep the unavoidable raw material by Push model is necessary. This kind of Hybird model still suit for most manufactory companies, such as McDonalds and vehicle industry.ConclusionsSupply chain is critical for Fender Guitar Company. The manufacturing sector has heavily depends to supply chain management, whatever in its purchase of raw materials, plant location, production planning, warehouse management, transportation, sale of products and customer service. All of these cannot be separated from supply chain management. Obviously, Fender made a good job in its supply chain management. Although there are a few problems still need to optimize by Fender via supply chain development.The pass can be included that make risk and cost outline when Fender want to expand their sale network, because too much retail outlets establishment lead to cost increased. In addition, the accession to join the online obtain business, allowing online orders, online payment, order tracking, such as a series of e-supply chain strategy, so that the fender can be a richer sales model, reduce the cost and time instead of text paper working process, and it also add the tastes of young people. Absolutely, the new electronic supply chain strategy can also be outsourced to third-party logistics companies.ReferencesJoansson,J2008,http//bsminfo.com/index.php?option=com_content&task=view&id=625&Itemid=147, accessed 15/05/2009Li, Y, Yu, J & Xu, L 2006, 3PLs in supply chain management, http//www.globrand.com/2006/18441.shtml, accessed 12/05/2009Rudnick, M 2008, Best Buy, Super-Regional See Major Gains in White Good, http//www.allbusiness.com/company-activities-management/sales-selling-sales/9341175-1.html, accessed 14/05/2009Weng, D 2006, 3PLs-The Breakthrough of Supply Chain Innovation, http//www.globrand.com/2006/40390.shtml, accessed 12/05/2009HREF 1 ww.fender.com, accessed 13/05/2009HREF 2 http//www.fender.com.au/prices.php, accessed 13/05/2009HREF 3 http//www.globrand.com/2009/226020.shtml