Domestic Domain Research Paper Sample

BUSINESS AND SUPPLY CHAIN STRATEGY

Business and Supply Chain Strategy
BUSINESS AND SUPPLY CHAIN STRATEGY

Abstract

This paper presents the business strategy and supply chain management of Sony Supply Solutions, Inc. commonly called as Sony or the Sony Group. This company was founded in 7 May 1946 by Masara Ibuka and Akio Morita. To this day, it has tremendously grown into a multi-national company with overseas offices in the United States, United Kingdom, Malaysia, Singapore, Thailand and two branch offices in Shanghai, China and thirty (30) branches in Japan. In 2003, Sony changed its name to Sony Supply Chain Solutions, Inc. With Seiichi Kawasaki, President and CEO, the conglomerate had total sales of 35.7 billion Yen for the fiscal year 2013. Sony Supply Solutions, Inc. (SSSC) has well managed its logistics and supply chain which I am going to discuss in this paper with its four main business domains namely: domestic logistics, international logistics, IPO operations and the repair parts operations.
BUSINESS AND SUPPLY CHAIN STRATEGY
Sony Supply Chain Solutions, Inc (SSCS) is Sony Group’s core supply chain management company. Their goal is to attain their unsurpassed efficiency in all four business domains. Their business strategy is to exert all of their expertise with regard to procurement, logistics and repair parts in order to improve Group business performance. Sony’s basic philosophy is to continue to contruct the world’s most advance supply chain solutions in order to realized their unsurpassed global operations. In order to accomplish this goal, Sony is keen in maximizing their employees’ abilities and enthusiasm by cultivating and training them. In line with this goal Sony enhances their corporate image by complying with all the applicable laws in all countries and regions that they operate, protect the global environment and fulfill their social responsibility in all places they do business. These values are well pronounced in their domestic and international logistics domain.
Logistics deals with how resources are procured, manufactured, transported and stored along the supply chain. Sony’s platform supports and specializes in the procurement of materials, products distribution and repair parts services. Sony operates the best supply chain in a logistic process by effectively using their globally expanded network from ordering parts and materials required to manufacturing and delivery of products and parts to consumers. In order to attain customer satisfaction, Sony supplys parts and products in a quick and safe way in order to lower cost and continue to achieve their mission in providing the best solutions in response to customers’ needs. Seiichi Kawasaki, president and CEO of SSCS stated,“our mission is to provide value added logistics solutions.”

BUSINESS AND SUPPLY CHAIN STRATEGY
This business domain specializes in the conduct of logistics operations for factories and the sales company of Sony Group in Japan. Their task is to deliver components from domestic and international parts suppliers to the factories and to the production line. For the sales company, they support the transfer of end products from the factories to the warehouse or directly deliver to specified customers. For import overseas-made products, they facilitate and extend support in the preparation of paper works and the distribution of these overseas-made products to warehouses and customers as well. They keep close communications with manufacturing and sales sites in Japan in order to support logistics. The Domestic Domain team supports logistics by working closely with the manufacturers of parts, components and products and sales hubs in Kyushu, Chukyo, Tohoku, Hokkaido and Okinawa. The team makes sure that there is cooperation among these hubs.

International Domain

The International Domain serves as headquarters of Sony’s world wide operation. They handle the distribution of Sony products, devices, components we well as the deployment of staff to countries where their expertise is needed. The world wide hubs in Europe, US, China and Southeast Asia conducts operations regarding customs clearances, organizing transport of import/export products by seas, air and truck. Due to the presence of hubs in Europe, US, and Southeast Asia, Sony supplies products and components faster, less expensive and in a safe manner. Sony seeks to expand its market by trying to develop markets in emerging countries. Sony is very confident to succeed due to their know-how on logistics which they have obtained through richness in experience and by developing human resources.
BUSINESS AND SUPPLY CHAIN STRATEGY

IPO Operations

IPO operations takes charge of handling procurement for plants and Sony business groups worldwide. They deliver and supply parts needed for the manufacturing plants in Japan, Korea, China, Taiwan and Malaysia. The ultimate goal of the IPO operations is to procure the necessary parts at the best and lowest price and deliver them to customers in the most efficient way. This benefits the operation because it provides a one-stop solution from procurement to distribution. With a more efficient, low cost and quick delivery of parts, this strengthens Sony’s advantage in the industry.

Repair Parts Operation

This group handles logistics of repair of parts that are required for repairing of Sony products. In order to contribute to Sony’s customer satisfaction, they efficiently supply and deliver the repaired parts in a speedy, adequate and cost efficient way through its global network.
Sony Group has business operations globally. Therefore, SSCS needs to manage repair parts operations on a global scale. In order to attain this, they have established hubs in five repair centers internationally that is in Japan, China, Europe, Singapore and the United States. With the presence of these five repair centers, Sony can quickly and efficiently respond to the demands of its customers. In order to ensure satisfaction of customers, the Repair Parts operation has extended their services. They do not only repair parts but as well as accept faulty products and replace them with a new one, without repair.

Logistics Technology

This is a special team/group. Their task is to develop technology in order to provide a more efficient transport, storage and loading by establishing quality information and network on a global scale. They promote innovation and improvement of logistics and improve its quality.
This includes the study and development of eco-friendly logistics systems in implementing CO2 or carbon dioxide reduction activities to save our environment.
As part of the innovation process, this team has succeeded in improving packaging of products in adequate module size carton and to adopt sizes of ocean containers or trucks in order to reduce logistics cost including transportation and packaging material costs. An improvement of 20% in loading of TV/Parts has help reduce the cost by introducing the Returnable Containers to reduce industrial wastes.

Sony’s Environmental Plan

Sony commits to society and the community as a whole by conducting environmental protection activities. By being a responsible company, SSCS has acquired the 14001 certification which it widely recognized. It means that Sony has complied with international standards. This is issued by the International Organization for Standardization. To manifest their concern for the protection of the environment, Sony supports and uses the Green Power and the whole Sony Group is working enthusiastically. Sony aims to reduce the emission of carbon dioxide by promoting tools with less environmental impact such as the returnable containers mentioned earlier. This is in line of Sony’s corporate social responsibility by protecting the environment.

Green Power

Sony supports the Global Environmental Management System of which they received the ISO 14001 certification for five years now. They have promoted the use of Green power. Green power is a renewable energy which includes the solar generated power, wind, biomass
BUSINESS AND SUPPLY CHAIN STRATEGY
which is made from organic resources such as wood, grass and other lives except fossil. resources. All of these mentioned above do not emit carbon dioxide. This is the reason why Sony has been issued the ISO14001 due to their activities and support for the protection of the environment. Sony purchases Green power energy every year and for the other sites under the GEMS (Global Environmental Management system). Sony aims to reduce emission of carbon dioxide by 14% in logistics of products for 2015.

Sony’s Supplier Code of Conduct

Sony wants to maintain their supremacy in the market. In order to realized their unsurpassed efficiency, Sony made it sure that suppliers understand their goals. The different suppliers of parts are made aware of Sony’s standard and must meet the company’s expectation.
Sony conducts assessment worldwide by and use the concept of risk appraisal for the purpose of determining any risk associated with the country or region these suppliers operate. They conduct studies and test to determine the risk level of all their suppliers. If any of the suppliers has violated, Sony continues to support the suppliers in the conduct of their business in a socially responsible manner and conducts follow-up measures. This Suppliers Code of conduct has been instrumental in improving and maintaining Sony’s excellent standards. Sanctions are also imposed on suppliers for continued violations.

Compliance

Because Sony operates worldwide, top management wants this company to operate like a good citizen. There are many laws to comply with regarding exporting of materials procured in Japan as well as overseas. When exporting materials coming from Japan, Sony has to comply
BUSINESS AND SUPPLY CHAIN STRATEGY
with the Foreign Exchange and Foreign Trade Act, the Import Trade Control Order, the Foreign Exchange order and all other laws. To make sure that laws are complied with Sony has set up two separate groups to work on the compliance of laws. One group takes care for export regulations while another group takes care for import regulations. This is being done in order to avoid any violations in the future. In order to avoid any delays in the procuring of materials, Sony has adopted the buy-and-pay regulation system. With this practice, they were able to save cost for the procuring companies.

SUMMARY

Although Sony is operating in many countries with different domains such as domestic, international, IPO operations and Repair parts operation, all of these countries support one another. Close communications is given much importance in order to synchronize all activities from procurement, manufacturing, delivery to warehousing. All departments are aware of the company’s goals. The outside suppliers are made aware as well in order to contribute and collaborate their efforts in maintaining Sony’s standards. The supplier’s code of conduct has been very helpful. One advantage of Sony is that they have their own transport system. The Sony Air Cargo Co. Ltd is already merged with the current operation. With the strict implementation of supply chain, Sony changed their name to Sony Supply Chain Solutions, Inc. There are thirty (30) hubs operating in Japan but all of them are working in cooperation and is the pride of Sony.
The close relationship between suppliers and Sony creates a bond which improves the working environment for everyone. Suppliers are supported by Sony in the conduct of their business too. Sony is preparing globally as it is trying to improve to expand to emerging countries. With the
BUSINESS AND SUPPLY CHAIN STRATEGY
innovations in packaging, Sony has help in reducing its waste. The use of the Green power is a remarkable effort in helping the environment’s eco-system by reducing the emission of carbon dioxide. Moreover, the expansion of Sony by outsourcing has help in the community by providing employment. By sending their expert staff to other locations, this allows training of new employees in the region and help them gain expertise as well. Sony is not only concerned in gaining profits but as well as provide customer satisfaction. The new service of accepting faulty products and replace them with a new one is remarkable. Some of these products are big like the TV. However, Sony wants to maintain customer satisfaction. Compliance with the law in paying taxes and tariff duties on imported and exported goods is helping the government. By establishing two separate divisions to handle compliance of laws in export and imported materials is a patriotic culture that Sony adopts in all countries and regions they operate worthy to emulate. Moreover, Sony has lived up to their image by providing value to logistics through collaborated efforts in all domains. Although Sony is a multi-national company, operations go smoothly due to the practice of supply chain management which has reduced cost, quick delivery of products and increased customer satisfaction.
BUSINESS AND SUPPLY CHAIN STRATEGY

References

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