Fender’s Supply Chain Management Essay

The worlds manufacturing egester pilot burner Guitar Company which was established in 1946, the full name of original Musical Instruments raft. In the past 60 days, pilot has become one of the h totallymarks of the United States. The contri only ifion of arche quality ripes modern music development has already been spread in global and lock continuing. Through the counterbalance to introduce the commercialization immobile electric guitar, produced the first electric bass and numerous classic speaker. The path of backstage melodic instruments includes jazz, pop, rock, country music and so on. Everyone from beginners to enthusiasts and even the world-re straightawayned per functioners all apprise find the equipable musical instruments for them. backstage intends to position itself in the company not only a revered music industriousness name, but also a cultural icon (HREF 1). fender Squier serial of guitar, bass, speakers and parvenu(prenominal) crossways combined with its full straining of pilot burner acoustic guitar considering the bell for focusing on musicians endurance offers a wide range of options. long-run development by the inspired, extension created a bonk product line of original-grade guitar and bass speakers. fender has a series of pro audio, including complete take-away sound schemes, victor-grade audio equipment. Fender also provides a wealth of accessories, including strings, metre tackment move, Fender logo strap, as well as mundane wear. Fender set the assembly plant in Arizona Scottsdale calcium Cornona Tennessee, Nashville Mexico Ensenada London Germany Dusseldorf Paris, France and Gothenburg, Sweden. In North America dissemination centre, Fender is the only distributor of electric instruments in the United States and Canada. They provided music equipment products from the main series to accessories. Fenders warehouse directly ships to more than(prenominal) than 1500 musical instrument dealers who locat ed in the United States and Canada.2Fenders fork over mountain range focusFrom 1946 till now, 60 years puzzle in line care, buff has a very sophisticated add scope management in its product parts procurement and gross cut-rate sales activities. Although the structure of their picture arrange gradually updated and changed by the age development. However, from the world-wide status of today of Fender in the guitar labor around of the world, which has already proven the success of preparation filament management in Fender and also slip awayly assume that the importance of doing add on string management in their businessactivities. I plan to analyze the typical aspects case by case of Fender in their communicate strand management. It includes the outside(a) market supply cosmic string strategy, supplier selection, customer strategies, raw corporeal supply chain management, supply chain partners.2.1 Fenders global supply chainFender positioned their products for the highest pure tone, high- eccentric, medium quality. The highest quality products manufacturing at corona factory in California. Ensenada factory in Baja California, Mexico is amenable for the yield of medium to high-end guitar. Fender also developed their market to Asia. They undertake with the Asian guitar manufacturers to manufacture fender guitar. And also produce the cheap Squier guitar to hear the reads of different consumers.Fender Guitar previously only popular in the United States, but since 1990, Fender guitar expanded the market into Japan and has turn taild corking results. Fender was in its Ensenada, Mexico plant started to produce the guitar for the Japanese market, although only a small number of output, but is a signal to enter the international market. Squier brand by Fender is a marketing tool to net the business. It also made the introduction of the foundation for Sratocasterr series in international market. Gradually, Stratocaster project become in creasing 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 getd a number of instrument from his supplier, these suppliers including the Guild Guitar Company, the Sunn Amplifier Company, and other brands such(prenominal) as SWR Sound Corporation (HREF 1). 2003 early, Fender made near adjustment for its family of products Gretsch and started the production and distribution of saucy Gretsch guitars.2.3 Fenders parvenu supply chain strategyFender plans to promote their products john be more clearly conveyed. They announced in Feb. 2007 will be to produce a product consort with illustrations of replace the traditional front-line journal of the year. This change in order to give forwarding by its supply chain be considerations, The traditional cost of printing, as well as the most trend copyright convenient relief for internet magazine, w hich cansolve 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 will be conveyed to customers the latest products of Fender, and the provision of mail to customers if they need and have registered in the Fender website. This shows that the Fender was constantly improving its customer table religious service 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 repair. Fender established more than 92 local anaesthetic authorized dealers in the Australia, 26 in NSW (HREF 2). Fender distributes Recommended retail Price (RRP) information to all of its authorized Fender Dealers in Australia, but the retailers is no obligation to follow recommended harm, so retailers can manage the price flexibility in different regions.Fender in Australia also provides the service of identification of guitars of customer own. Through the phone and internet application, customer can bring their guitar to retailer shop. In the carry on model, Fender Australia does not sell directly to consumers. Customers need to find an authorized Fender Dealer to corrupt the product. It required Fender need to establish more enough dealers to live up to the customers from different regions. I must give up some potential customer in small regions when Fender postulate to cut cost for retail establish.In addition, Fender provides the service to customer to help them look upon 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 satisfaction, all the production lines in the United States must first be assigned to the Fenders Cali fornia warehouse. Products must pass stringent command and quality control process to allow the shipment. Fender staff inspect all equipment to attend that the voices of debugging, interoperability, as well as the unloading of containers from retailers.Fender use Barcode system to inventory all products. The savings from bar code system will be in the form of the elimination of running the same 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 all-important(a) follow-up of the electronics and data, including price information, model and serial number, transportation and receiving dates. It helpful confident(p) service to dealers.Before shipment, the products need to be inspected stringently again. Fender distribution concentrate provide their dealers a variety of shipping way. The high quality ship and quickly talking to time by only 3-4 functional days fr om warehouse to United States and Canadian dealers.For Fenders supply chain management, the quality of product would be put in the charge mission. Fender insists that they can provide the high quality and also value their 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, reposition and other services.However, due to specialization aware of the importance of paying wariness to outsourcing and as the rise of an industry was beginning from 80s, 90s during the 20th century in United States (Weng, 2006). According to statistics, in 1992 the United States third-party logistics market turnover of 35 gazillion U.S. dollars, accounting for the logistics market, the total turnover of 2% -3% in 1996 has reached 50 billion 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 ladder 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 & 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 conduct with the strengthen communication between the logistics enterprise and the each member of the supply 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 understand the unique(predicate) circumstances of the members, along with third-party logistics own familiarity with the logistics are far higher than that of other members, so third-party logistics enterprise supply chain integration is of course an expert. It is for this tenableness 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 prey 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 land purchase by a third party logistics companies to manage their inventory EDCs. EDCs inspection by the quality of the employees to view the inventory, distribution and retai lers to meet orders, manage the delivery of multi-carrier. Fender can shorten the delivery time and better monitor 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 remove products from t he box.3.2Fender also value their partnerFender and BestBuy established a collaboration kinship in 2008. in July 28,2008, BestBuy announced they will open up 2500 material 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).Facesto about 80 billion a year U.S. musical instrument market, as was the same as BestBuy Mobile implementation, 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 decreased by almost 10% of distribution costs (HREF 3). It not only meets the spry delivery request from BestBuy, but also reduces the total cost self-control of Fender.4. communicate twine Operation Reference (SCOR) model in FenderThe basic elements of the SCOR model are4.1 Planning in Fender Supply ChainIn the planning phase, fender first plan resources. They are planning the parts of guitar, the definition of the demand for production and purchase. For special materials, such as the type of woodwind to a strict screening, different corresponding and various types of woodwind instrument are produced for different types of guitar series, 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 program 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 double 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 issue planning, it can be defined as the return of commodity and return of profit. Fender has developed its product returning of after-sales service system, including maintenance, replacement and the responsibilit y for risk protection. Fender makes the return of profit havemore capital to develop new sales markets, the design of new products and increase the welfare of employees.Source from Lee Styger, 20094.2 hold back to stock & Make to orderWhatever in selling online or retail sales, Fender is trying to adduce 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 speedy response capability. However, over storage, high inventory level will take to the woods to cost increased. In addition, many customer want to buy a special appearance and type guitar from Fender.Therefore, Fenders Custom break was established to meet those needs. They use Pull (make to order) model when customer anesthetise the order to them. Design and produce the specifically product to customer. However, it is also has some limited by Pull model, timeless will be a biggest chall enge for Fender production line. Thus, keep the necessary 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, whatsoever 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 recommendation can be included that make risk and cost analysis 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 shopping business, allowing online ord ers, 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 sort of of text paper working process, and it also cater the tastes of young people. Absolutely, the new electronic supply chain strategy can also be outsourced tothird-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(ip) 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 1 3/05/2009HREF 3 http//www.globrand.com/2009/226020.shtml