Integration

Executive summary

This report provides an analysis and evaluation of the current challenges faced by S.A Paints Company in their supply chain process. It also suggests ways to overcome these problems so that S.A Paints can remain competitive into the future and therefore increasing its market share.

S.A Paints offers products for the decoration market. The “China Lacquer” product belongs to the category of glycerine-based paints and constitutes one of the company’s oldest product lines. It is a top of the line product whose distribution is reserved for specialised markets such as pottery and customers of traditional chemists. S.A paints is enjoying a good market share and tending to increase its market share in the future despite competition, thanks to its policy of innovation and the quality of its products and services.

Results of the findings show that S.A Paints are currently using a speculation strategy in order to anticipate demand from the customer. This is causing vast amounts of inventory to be held in stock thereby costing the organisation some money. With growing consumers expectations and organisations less keen to hold inventory because of its high carrying costs, organisations and market leaders are struggling to find new ways to improve efficiency while remaining agile enough to respond to changes in the marketplace.Lack of integration between departments is another area of concern which is making it extremely difficult for members of the supply chain to work together efficiently.

The report finds the prospects of the company in its current position are not positive. The major areas of weakness require further investigation and remedial action by management. Recommendations discussed include:

• Adopting a manufacturing postponement strategy.

• Build up strong and trustworthy relationships with all partners in the supply chain.

• Integration between departments.

• Share information to have visibility....