Considering the various challenges faced by ABC in the supply chain and current information systems, this report will be conducting a detailed analysis of the issues using several different strategic frameworks. The strategic frameworks selected for analysing the issues are Cause and Effect Model, Value Chain Model, and Porter’s five forces model. Based on this analysis of the issue, this report focuses on providing strategic recommendation to ABC for establishing competitive edge in its supply chain by the use of information management technology. Providing benefits and justification for the strategic recommendation, this report will draft a brief plan for the implementation of these strategic solutions. Hence, the key objective of this report is discussing the key issues faced by ABC in terms of supply chain management to establish its competitive advantage by the use of information systems.
Vemi-compost, manures, organic fertilizers and bio- fertilizers have been serving as substitutes of fertilizers.
There is lack of effectiveness in the natural fertilizers when compared to chemical fertilizers.
Manure from animals does not provide appropriate suitability for the purpose of commercialized production.
The industry functions under the strong regulations of the government.
There is provision of subsidies by the government on pricing.
Private players have been putting in significant efforts for the improvement of its supply chain by the network of retail.
The industry has started to experience utilization of high capacity already but the competitive rivals do not suffer due to under-utilized capacities.
Uniformity of prices throughout the industry further resulting in mutual indirect cooperation.
For ensuring that the supply chain flows steadily, there are several supporting activities critical to the success, in addition to the performance of core activities. Some of these are as follows (Wagner and Neshat, 2010):
Generation of power for being consumed by the plant
Management of Forex to hedge for averting the risk involved in the volatile prices of raw material
Management of human resource with training and recruitment
Department for measures of environmental protection