Swift Tyres has a very complex supply chain operations which is not lean or agile but somewhere in the middle and not planned for the future. It is complex in its sense of uncertainty and poor synchronisation between the processes and the manpower inputs at the required connections. The company is recommended to study the health of its supply chain operations and understand the performance leakages that occurs within it. In the process it can assess the performance of each function of the supply chain right from where it starts from the vendors of international countries.
The above pictures shows how the supply chain has two facets of materials and information flow which effectuates the movement of goods, materials from one end to the other. The movement of information is vital for the supply chain which is observed to be weak in case of Swift Tyres. This is because it does not have an information sharing practice with its vendors except the order history and the orders themselves. This does not lead to effective management of product movement in the supply chain because the demand and supply of the tyres and the bikes need to be factored in when preparing all the relevant information to be converted into important data and b provided and shared with the vendors to work coherently to deliver the demand generated in the market.
It is highly recommended that Swift Tyres starts building an alternative option for the international vendors in the local economy of New Zealand, where it will have more control over negotiations, lead times, and cost control. The uncertainties that follows the movement of materials from international markets can be eliminated when local production is optioned and implemented. They can search for local dealers, or decide to get into the preparation of the materials which are sourced internationally. The purpose is to reduce costs, enhance lead time delivery of products, work in collaboration through relevant information sharing, and meeting each other’s targets by remaining principally and objectively aligned.
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