EcoWorld is a manufacturer of enclosed, decorative environments. They are composed of a hand-blown glass sphere filled with water, one fish, and some aquatic plants. The fish and plants work together so that the system will continue as long as it has light. The spheres have become a popular holiday gift so sales skew towards November/December. EcoWorld, located in Seattle, Washington, wants to globalize its process. This year, the European country of Latervia, renowned for its cheap and expert glass blowing, has lifted its export tariff. EcoWorld has also identified another European country, Rombia, as a new market because it has no import fees. Raw materials will be transported via aircraft and the final product will be delivered by aircraft and then truck. You are hired by EcoWorld to assist them in developing a global manufacturing and distribution plan. Create a report that includes the following elements:
- Identify and assess the risks and benefits to moving the supply chain to a global market. Be certain to analyze both the supplier and the consumer ends of the supply chain
- Analyze the order winners and order qualifiers that can lead to competitive advantage.
- Explain how expanding the global supply chain network might affect the total quality management of EcoWorld. Compare possible changes against the principles of TQM and identify potential costs of quality.
- About 5% of delivered products are spoiled upon delivery with either the fish or plants dying, or both, due to sensitivity to changes in temperatures, which is a major financial and marketing problem for the company. Develop a brief Six Sigma plan to fix this issue.
- Discuss how globalization will affect the various modes of transportation. What are some strengths and weaknesses of each mode of transportation? How would a 10% increase in fuel prices affect EcoWorld’s globalization plans?
- Discuss how insurance costs will be affected by globalization and the use of multiple means of transportation across borders.
- How should EcoWorld adjust its manufacturing and distribution to take into account the product’s seasonality?
- What inventory valuation method should EcoWorld use? Identify some of the costs for creating and maintaining inventory of a final product. How will these costs be affected by globalization?