Contents

• Introduction 3
• Supply Chain Management and Logistics 3
• Presto Limited – A Case Study 4
• High retail margin and lower profits 4
• Lack of standardization in the ordering process 6
• Inflexible Contracted Manufacturers and High Manufacturing Costs 7
• Lack of Quick Response and efficient Customer Service 9
• Suggested Measures to Mitigate the Challenges 10
• High retailer margins and lower profits 10
• Lack of Standardization in the ordering Process 11
• Inflexible Contracted Manufacturers and High Manufacturing Costs 12
• Lack of Quick Response and Efficient Customer Service 13
• Conclusion 14
• References 15

Description

Supply chain management and logistics are integral components of a business. While logistics is part of supply chain management and involves in the flow and storage of materials and flow of information between the source point and the consumptions point, supply chain management also includes identifying and managing parties involved in the supply chain. Presto Limited, s supplier of finished garments to retailers is a typical case of a company that is experiencing lower profits partly due to market trends and partly due to inefficient supply chain management. Some of the pressing problems faced by Presto are reduced profit margins, increased retailer dominance, high manufacturing costs and non-cooperation of the manufacturers etc. While Presto can do little to contain the dominance of retailers, which is determined by the market forces, it can cut costs by adopting efficient supply chain management. The paper suggests some of the measures to improve supply chain management such as moving manufacturing operations to Italy where manufacturing costs are lower and the quality is high due to the use of advanced technology, setting up of customer service system to reduce lead time and to ensure efficient flow of information etc. The paper recommends the overhauling of supply chain management of Presto to mitigate its major concern of lower profit margins.