The main aim of this task is to provide a brief overview about the supply chain management of Sony. Sony is the largest Japanese company which renders various electronics devices such as laptop, mobile, play station and tablets. The paper depicts that how the firm faces various challenges in the Market. Operation issues, supply chain issues, integration, information and sustainability issues are being dealt by the company in today’s era. Furthermore, it explains that how the firm uses unique and strong supply chain management. Along with this, various improvement programs have been explained in the task. Further detail of the task has been explained below.
Sony is a Japanese multinational corporation with its headquarter is located in Konan, Tokyo. It provides various products such as electronics, gamming, financial and entertainment services to the people across the world. The firm is one of the leading manufacturers of electronics products for the customers and professional markets as well. The organization was incorporated in 1946. The firm employs approx 128, 4000 workforce in the organization.
Mission: The main mission of the company is to inspire and fulfill the needs, requirements and desires of the workers in the world.
Vision: The vision of the company is to use passion and efficiency for advanced technology, services and contents to render Kando in the marketplace. Furthermore, the firm wants to maximize its profitability and revenue in the global world.
Strategic goals: The strategic goal of Sony is to achieve long term mission and vision of the firm by evaluating and identifying the strengths and weaknesses of the competitors. Along with this, the organization wants to deliver unique and dynamic products and services to the customers across the world (Sony, 2018).
Sony products include television, computers, home audio, cameras, photo& video, car marine, portable devices, mobile, tablet, smart devices, and play station. Various supply chain issues are faced by the company in the global market. Supply chain issues are faced by the firm due to tsunami and earthquakes in Japan have influenced electronics firm Sony’s profits and revenue adversely. Along with this, restructuring of supply chain is one of the biggest issues that are being faced by the firm. Due to supply chain issue, there approx 16,000 employees have lost their jobs at Sony, which is a shock to the organization that prides itself on lifetime employment. Apart from this, the firm had to postpone some plants in Japan due to shortage of raw materials, power and other components (Beske &Seuring, 2014). In addition, supply china issues were occurred due to damaged manufacturing equipments (Carter, Rogers & Choi, 2015). It has a great negative impact on the goodwill and image of the firm in the international market. Moreover, the company pursues procurement of raw material, components and parts to be used in the manufacturing and production of its products in the market. These products and services are bought from various suppliers across the world. Sony maintains a general policy for maintaining multiple suppliers in the market. For example, LCD panels and memory devices that are used in various applications can affect the company’s performance when the prices of the product and components fluctuate substantially. Qik, Rentrak, Image entertainment, VINTEC, Duo Sense, Bio ware, Shaadi.com, Ubisoft and Devolver are the main suppliers of the company (Azadi, Jafarian, Saen &Mirhedayatian, 2015) .
The firm operates and manages its business activities in China, Hongkong, India, Indonesia, Japan, Korea, Singapore, Philippines, Malaysia, Thailand and Taiwan. Along with this, Sony customers include CIM, Hearst Corporation, Rovio entertainment, Wikia, Sky, MCE, ESPN, NBC and Netflix. Under demand forecasting techniques, the firm uses survey method and consumer’s survey method to analyze and evaluate the demand and needs of the customers in the market (Giannakis & Papadopoulos, 2016). Furthermore, the firm uses inventory management techniques such as regular auditing, manager relationship technique, fist in first out, and set par levels techniques to manage the appropriate inventory level in the stores. The operation management of Sony has become severe, with declined in demand and intensified pressure on pricing resulting from the hold of the global economy (Touboulic & Walker, 2015). It also declines Japan stock market. As a result, the firm has to bear operation and net loss as well in the international market. Along with this, the corporation is unable to fulfill the demands and requirements of the customers due to shortage of inventory. Earthquake also influenced the inventory management of the company negatively. On the other hand, Sony Corporation is unable to produce and design the products according to the desires and demand of the customers. It could affect the profitability and success of the firm in the marketplace. Code of conducts also is not maintained by the employees at the workplace so as they are failed to maintain good and strong communication with customers while selling the products and services globally. All these operations issues are being dealt by the organization in today’s competitive world that affects the sustainability and financial image of the firm (Dubey, Gunasekaran, Papadopoulos, Childe, Shibin &Wamba, 2017).
The bullwhip effect occurs when the demand order variabilities in the supply chain are amplified as they move the supply chain. By using bullwhip effect, the company has been able to update demand forecasting in the market. Furthermore, it also influences the order batching and price fluctuation globally. It increases swings in inventory in order to shift customer demands and needs (Pagell & Shevchenko, 2014). As the same time, it has put some negative impact on the supply chain. Due to bullwhip effective, it is difficult to forecast demand in order to maintain sufficient inventory level. Apart from this, the company uses cloud computing, social media, online conferencing system and enterprise content management in supply chain management to attract and retain more and more clients globally. IT technology includes computerized shipping and tracking, and RFID (radio frequency identification) that have a great impact on the supply chain management of Sony Corporation. RFID chips are placed on every item to track and handle the inventory. Due to increased visibility in RFID chip provide, they will improve and enhance the supply chain efficiency by reducing any order anomalies as they occur. RFID chip provide computerized product management, as they can reduce the potential for errors and simplify the supply chain with reducing operations cost at the marketplace. Along with this, the company cam reduce time spent shipping, tracking, compiling order data by using effective and unique IT technology within the organization. On the other hand, there are various information issues are faced by the company in today’s modern world. Sony Corporation is unable to provide right and appropriate information to the clients due to poor technology and software. There is a discrepancy between customers and employees in the firm. Along with this, the firm is unable to provide knowledge related to the E-commerce and E-learning (Martínez-Jurado &Moyano-Fuentes, 2014).
The supply chain map of Sony has been drawn below.
Framework for supply chain integration
(Source:https://www.prweb.com/releases/sustainable_business/white_paper/prweb4031404.htm)
Sony follows all the steps in the supply chain management to increase the number of customers in the marketplace. The firm uses all the steps to maintain enough inventories in the warehouse. The company has been able to follow unique and strong supply chain management with the help of integration framework within the organization. No company can survive its business activities and operations without effective and dynamic supply chain management. By using integration in supply chain management, Sony Corporation has been able to easily move in international market (Kozlenkova, Hult, Lund, Mena &Kekec, 2015). In this way, it maintains agility in the workplace and it can easily adjust in the new conditions and environment. Along with this, alignment can be done through integration in supply chain management. Apart from this, Sony Corporation is dependent on the manual processes to manufacture the products and services globally. It is time consuming process as it also requires more resources within the organization. Furthermore, the organization is not focused on potential interactions and scenarios. Therefore, it influences financial image of the company. Moreover, the firm does not provide training to the workers for understanding and identifying new integration supply chain system. It shall be noted that integration is major issues in front of Sony Corporation that could affect the sales and revenue of the firm. Due to integration issue, the organization is failed to fulfill the requirements and demands of the customers (Hazen, Boone, Ezell & Jones-Farmer, 2014).
There are various practices used by the company for key procurement and supply chain sustainability that have been discussed below.
On the other hand, various sustainability issues are being faced by Sony Corporation in the global market that could affect the long term mission and vision. In effective and poor technology and software are being used to manufacture and produce new and innovative mobile products. In addition, global warming may also influence the sustainability of the firm globally. All these are major challenges which dealt by the firm in today’s era. Along with this, the firm is unable to maintain and follow rules, regulations, policies and strategies that protect the image of the firm in the international market (Oelze, Hoejmose, Habisch & Millington, 2016). The company cannot grow its business without maintaining sustainability in the organization. The organization needs to focus on these challenges and issues to gain competitive advantages. Furthermore, the firm uses triggers model to evaluate the demand of the customers. Under external triggers, the firm analyzes the purchasing behavior of the customers. The organization evaluates and measures the satisfaction level of the customers. Various techniques and tools are used to evaluate that whether customer is satisfied for the products or not. It helps in maximizing the profitability of the firm. Under internal trigger, the organization identifies their own needs and requirements. It focuses on tools and techniques for attaining long term goals and objectives (Meixell &Luoma, 2015).
Supply chain management may be defined as the integration of network of suppliers, distribution, centers, manufactures and retailers through which raw material and items are obtained, transferred and delivered to their potential customers globally. The company has been able to develop and boost its supply chain management strategy which has played a vital role in the success and growth of the firm (Wang, Gunasekaran, Ngai & Papadopoulos, 2016). The firm has developed and designed its assembly plants to manufacture and supply products and services to meet the consumer demands and requirements and for electronic items (Brandenburg, Govindan, Sarkis &Seuring, 2014). Furthermore, the firm has incorporated a manufacturing center in the state of California because the area had all the significant elements that the firm needed to carry the business activities and operations successfully and effectively. Sony Corporation uses effective and strong procurement and supply chain management to save the time and capital in the organization. Sony works with its suppliers to address issue such as labor condition, human rights, health and safety and environmental protection throughout its supply chain (Schoenherr &Speier?Pero, 2015). The company’s supply chain sketches across the world. The company has its own electronics manufacturing and producing facilities in Japan, South Korea, Thailand, Singapore, China, Malaysia, the UK and Brazil. Approx 44% of the suppliers manufacturing and producing facilities are situated in Japan, while 6% are in the US, 25% are in the China, 3%are in the Europe and the remaining 22% are in the Asia pacific region. In this way, the firm has been able to maintain strong and effective procurement and supply chain management within the organization. By using an effective supply chain management, the organization is able to identify and analyze the demand of the customers in the global market. On the other hand, strong and dynamic procurement process is followed by Sony Corporation in the marketplace. Procurement may be defined as a process and tool by which items are bought and purchased from outside suppliers globally (Genovese, Acquaye, Figueroa &Koh, 2017). Furthermore, the firm manages order, review, and receipt in the market. Sony CSR group communicates with external stakeholders to control and monitor the trends and best practices for maintaining effective supply chain management. SGMO (Sony global manufacturing and operations corporation is responsible to maintain effective and unique supply chain management in the organization (Sitek &Wikarek, 2015). Moreover, the products and goods that supply the company have been estimated to be 120,000 hard to find factors and accessories which are initiated to develop and build Sony electronics products. The categories of good and product that bring business to the company include computer, laptops, batteries and remote controls. With the help of effective supply chain management, the company has been able to evaluate and identify the strengths, weaknesses, policies and strategies of the competitors in the market (Brandenburg, Govindan, Sarkis &Seuring, 2014).
It shall be noted that several supply chain management issues and challenges are faced by the Sony Group in the market. Now the company needs to focus on its activities and operations issues that are related to the integration, sustainability and supply chain. It should focus on the distribution and transportation system to address the issues and challenges. Green supply chain management system is initiated by the firm to satisfy the clients and consumers. It should focus on stakeholders to reduce and avert the sustainability issues at the workplace. It will also help to beat the competitors in the firm (Govindan, Sarkis, Jabbour, Geng &Trandafir, 2017). Innovative and advanced technologies shall be used by Sony to produce electronics products in the marketplace. To gain competitive advantages, they should appoint a auditor and foreign chairman to focus on the activities and operations of foreign market. In this way, the firm can overcome on the supply chain issues (Schaltegger & Burritt, 2014). Apart from this, resource based view theory is implemented by the company to optimize the resources effectively and smoothly. It is also working on the green environment to reduce the negative impact of it. It should also focus on the segmentation, targeting and positioning strategies to expand and explore this business globally. The company should adopt a business operating model to avert and reduce supply chain issues in the market. All these strategies help to build a good image in the market (Ellram & Cooper, 2014).
It shall be noted that Sony group can achieve its desired goals and objectives by focusing on the supply chain management. Supply chain management helps in increasing the revenue and outcomes in the international market. If the company is unable to follow unique supply chain then it will affect the mission and vision of the corporation adversely. On the other hand, the organization also monitors on the sustainability and information issues to gain competitive benefits globally (Silvestre, 2015). The firm cannot attain sustainability without analyzing and identifying the operations issues. Sony group makes unique strategies, policies and plans to deal with operation issues. It will help in attaining long term output and hit the competitors in the market. If the firm follows proper rules and policies then it can easily attain its vision and the company can make an effective goodwill in the international market. Dynamic integration model is used by the company to maintain sustainability and grow its business in the market. Furthermore, if the organization provides right and appropriate information to the clients and suppliers then it will help to improve and reduce the information issues within the organization. It helps in boosting and developing loyalty, and trust among the customers. It also increases and maximizes the satisfaction level of the customers globally. Along with this, the company protects the rights of stakeholders to carry CSR activities properly and smoothly. All these improvement programs help to accomplish the long term mission, vision and goals (Stadtler, 2015).
Conclusion
On the above mentioned limelight event, it can be concluded that Sony is one of biggest companies in the world. Various electronic products are offered by the organization to expand and flourish the business globally. Although, firm uses unique and strong supply chain management but still various issues are faced by the company in today’s competitive world. These issues include supply chain issue, operation issue, information issues, integration issues and sustainability issues. It is recommended that Sony Company should focus on the growth and corporate level strategies to gain competitive benefits globally. It will help to generate more and more revenue in the market.
References
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