Importance of Successful Supply Chain Management for Regal Marine

Importance of Successful Supply Chain Management for Regal Marine

Supply chain management is the integration of the activities that procure materials and services, transform them into intermediate goods and final products, and deliver them to customers (Heizer and Render, 2008, p434). In this case study, Regal Marine has actively involved all the key suppliers and vendors as well as working with other boat manufacturers to create value in the supply chain so as to deliver the best value-for-money product for their customers.

The key to success involves mutual agreement on goals, establishment of mutual trusts and continues with ensuring compatible organization cultures. In short, the suppliers and vendors must be treated by Regal Marine as an extension of their company.

A successful integrated supply chain partnership involves more than simply contractual agreements between the suppliers and vendors with Regal Marine. For a start, the suppliers and vendors expect to be involved at some part in the design and production of the boats together with Regal Marine, and not just simply shipping the parts required. As the customer is the only party in the supply chain that is paying for the final product, Regal Marine has to work with suppliers and vendors in the supply chain to ensure that there is a mutual understanding of the mission, strategy and goals of each other. This will form the basis of an effective relationship that goes beyond that of contractual agreements.

Next, the suppliers and vendors expect that Regal Marine to have trust in them so as to be able share critical information that is essential to ensure good performance. There must be transparency and visibility of the information shared in the supply chain so that cost and risks can be minimized. The suppliers and vendors can expect Regal Marine to involve them in activities such as