The distribution strategy of Freedom Riders Supply Chain is that of centralized operations control where customer orders are received electronically through a central business website. Orders for supplies of motor parts for scooter manufacture are made online through the company website. The delivery scheme of the Freedom Riders is direct delivery of scooters to clients after payment for orders has been made. The mode of transportation is motor carrier in trucks and railroad. As the business expands to other countries, direct shipment and air freight will become necessary. Transportation control is owner operated through a contract carrier. Since the Freedom Riders deals with rental and sale of scooters, delivery of the motor bikes to the renting clients must also be effectively managed.
The aim of the supply chain is for effective coordination of supply, manufacture, distribution, storage and delivery of scooters to clients with the lowest possible logistic cost to maximize profits. This is achieved through a well-structured website for an excellent electronic supply chain management. Full truck loads are used in distribution of the motor bikes because they are economical compared to less than truck load tradeoffs. Freedom Riders need to import 15 different motor parts needed for manufacture of scooters from China. Therefore the supply of the motor parts must be well coordinated to reduce the costs of supply.
Information flow is very important in supply chain designs to ensure efficiency and increase of profits, (Cusack & Rowan, 2009, p 12). The integration of processes in the Freedom Riders Supply Chain ensures that valuable information is shared within the supply chain. Information on demand signals, inventory, forecasts, potential collaboration and transportation is important for the Freedom Riders Supply Chain and this is made available through online communication of information through its website. Information flow among the suppliers, manufacturers, distributors and clients is made possible through the company website. The promotion of the company products is also possible through the website’s online advertising making the company to reach many clients, (Mentzer, 2001).
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Figure 1: Information Flow in Freedom Riders Supply Chain
For success in order fulfillment to be achieved in any supply chain, inventory management is important to ensure proper management of inventory in terms of quantity and location, (Greene, Carter, Frederick & Hackney, 2010, p 5). The management of raw materials of Freedom Riders manufacturing is possible through the production management. The work in progress is managed effectively so that the finished products are distributed to clients with speed and at required quantities. Successful supply chain execution means proper coordination and management of the movement of information, materials, and funds across the supply chain and this flow should be bi-directional, (Hong, Tran & Park, 2010). The Freedom Riders cash flow arrangements involve payment terms and also the methodologies for exchanging funds across all entities within the supply chain.
The initial assembly and sale of the motor bikes is based in New Zealand but as the company expands offshore options in motorbike manufacturing must be considered. The manufacturing site of the company needs to be evaluated to ensure that the supply chain is as cost effective as possible. The manufacture of the motorbikes needs to consider all important features that will ensure that supplied parts will result to lightweight, powerful and reliable scooters so that the order specifications of clients are met.
The management of the Freedom Riders supply chain should consider setting up small divisions in the supply chain such as marketing and sales, support and maintenance, assembly of imported parts and a division to manage rental scooters. The management of the supply chain will require thoughtful planning and careful management of inventories because the business may be seasonal.
FREEDOM RIDERS WEBSITE
The Freedom Riders expect to distribute the motorbikes through bike shops but selling directly to clients through the internet is a very attractive option. Therefore there is need to develop a company website with an appropriate structure to provide adequate and clear content in order to meet the requirements of the customers, suppliers, staff and the management. A good website structure of the company should provide a 3 tier website layout that contains the homepage, main sections and subsections of the supply chain as illustrated in Figure 2 below.
Figure 2: Website Structure
The homepage is the first tier of the website structure that will provide and index and links to the main sections of the Freedom Riders website. The appearance of the website homepage must be attractive because it will create the first impression of the company among the viewers of the site, (McEwing, 2011, p 17). The main sections in the structure provide the site index of the website. The Freedom Riders website should identify its main sections such as sales, rental section, distribution, payment and delivery. The subsection is the third tier of the website where the main content is found. The content of the site should include all divisions of the supply chain, activities and what is offered by the company. The content of the website must define its purpose and enable viewers know what they expect to get from the company through its website.
The three tier structure of the website will enable it to be usable by the visitors of the site through provision of a search facility. The structure will also promote easy navigation through the website pages, from the main sections to the subsections that have adequate information to answer all questions of the website viewers, (McEwing, 2011).
For the website to meet the requirements of the customers, suppliers, employees and the company management, the website must be made available through the Internet. The website should be accessible through subscription or creation of user accounts. In addition, it should be easy to navigate through the website from the homepage to the content through the main sections. The Freedom Riders Company should be able to answer customer questions such as procedures of placing an online order, renting procedures, means of payment and modes of delivery. The content must also provide enough information of all motorbike categories the company manufactures with attractive illustrations and the associated costs. What is new in the company should also be communicated. The customers should be able to communicate with the company management through the website via feedback tools, (Mentzer, 2001). The suppliers should also be able to give bids through the website. The management will be able to supervise all sections of the supply chain through effective information flow in the company website.
CONCLUSION
The Freedom Riders deals in sale and rental of its manufactured motorbikes hence there is need for good management of all sections of its supply chain to ensure efficiency in the flow of information among the suppliers, the manufacturing team, distributors and its customers. This will reduce the logistical costs of a growing supply chain, increase the customer base and hence make more profit. To enhance information flow and efficiency in the supply chain, the company needs to implement a three tier website layout that has the company homepage, main sections and subsections with sufficient content.
REFERENCES
Cusack, J., & Rowan, J. (2009), The supply chain: Benchmarking for success, Management
Quarterly, 50(3), 12-12-23.
Greene, C. M., Carter, L. E., Frederick, K. E., & Hackney, M. T., (2010), Supply chain
management: Case study - 1st tier automobile manufacturer supplier. IIE Annual Conference Proceedings, 1-1-6.
Hong, P., Tran, O., & Park, K. (2010), Electronic commerce applications for supply chain
integration and competitive capabilities, Benchmarking, 17(4), 539-539-560.
McEwing, C. (2011), Making your website effective. Professional Adviser, (17433339), 17-17
Mentzer, J.T. (2001): Defining Supply Chain Management: Journal of Business Logistics,
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