REPORT

The most successful businesses have a common denominator; an efficient supply chain in place which coordinates its independent parts so that they work together as a cohesive unit to produce the desired product for a profit. Altius Directory (2006-2013), “The ultimate purpose of supply chain management is to have a steady flow of inputs into the production unit, reduce the problem of excess inventories and reduce the cost of production errors (Supply Chain Logistics Management, Current Trends section). However, prior to implementing a successful supply chain, it is necessary to determine which strategy is best for your particular industry. A. Recommend with sufficient support, one of the following strategies: a Keiretsu network, a virtual company, a vertical integration, or a different supply chain strategy A Keiretsu network is a Japanese strategy where a group of members in the chain work together to ensure the success of all of its parts. This strategy relies on collaboration from its members to make a long term commitment to its members. The suppliers and manufacturers form a type of partnership where they work together to gain advantages and a competitive edge in the market. The underlying agreement is that the suppliers are willing to form a longterm relationship with each other. The keiretsu network is integrated horizontally and vertically. They are organized around their own banks and trading companies. In some instances, they are capable of controlling nearly every step of the economic chain in a variety of industrial, resource and service sectors. This strategy usually involves large manufacturers and its suppliers of raw materials and components. The relationships established can be beneficial and stable; however, they can also cause a company to be in a position where it is unable to have the flexibility needed to respond to technology,