Reference no: EM132353658

Question

Trésor Katembo, the CEO of OMWISI Energy, believes that the company can greatly increase its operating profit by implementing supply chain management. OMWISI Energy produces a variety of solar panels, inverters and provide renewable energy solution for the sub-Saharan market.

Trésor believes that OMWISI has already integrated its internal processes and is ready to proceed with external integration. However, he is uncertain as to which direction to take. Should the company work on integrating the suppliers or the distributors first? Currently, OMWISI Energy uses approximately 1 350 different components and/or raw materials in manufacturing its product line. Those components and raw materials are purchased from approximately 375 different suppliers around the world. In terms of distribution, OMWISI currently sends its finished products to a central warehouse that supplies 10 regional distribution centres (RDC); 6 are domestic, in South Africa to cater for the South African demand, and 4 are located outside of the South Africa. Each RDC supplies an average of 12 local distributors that each supply an average of 35 retailers.

Trésor is looking for some advice.

1. Briefly describe OMWISI's supply chain.

2. What are the advantages that OMWISI can gain by implementing supply chain management?

3. What would you recommend OMWISI attempt next? Should it work on integrating the suppliers or the distributors first?

Or should it work on both simultaneously?

4. What are your recommendations with regard to the external suppliers?

5. What are your recommendations with regard to the external distributors?