Introduction
The increasing need for high expectations on supply chain performance is forcing organizations to reinvent with an aim of reducing the costs, increasing customer service, and lowering lead time with an aim of gaining a competitive advantage. The need to pursue the best network of manufacturing or production, supply and distribution facilities in relation to the market is propelled by different factors making it one of the highest priorities that managers have to address concerning supply chain management (Fabbe-Costes, 2009). The major role is mandated on supply chain planners towards offering sufficient and feasible plans. Through advanced planning systems (APS), the study proffers need to redesign and adjust the global supply chain network at Montreal Based Cirque du Soleil. This is aimed at offering a competitive global network that reflects a rapid increase on global transportation and the global climate change on how to avert such changes. Economic fluctuations and unprecedented political changes are threatening the effectiveness of organizations especially those venturing into the global environment. The estimated rise of global transportation by over 20 percent in the next six months depicts the marginal loss that the organization is likely to incur if essential interventional plans are not integrated. Streamlining global supply chain in Cirque di Soleil can largely avert such losses through reducing lead time and the total logistics costs. The preceding report offers a detailed analysis on essential approaches that the company needs to undertake to streamline their global supply chain.
Analysis
Organizations are largely embracing Advanced Planning Systems (APS) that assist on different areas in supply chain management such as tactical supply. It offers approaches enabling organizations adapt logistics and supply chain principles while also reducing on cost through streamlining the supply chain systems. The growing international competition and different challenges such as costs have made organizations discover the need of supply chain efficiency. According to Jahre, M. & Roussat, (2009) the essence of streamlining supply chain stems from the ever increasing customer demands on high quality products at lower prices and the high expectations on accurate deliveries plus customer services. Through the use of Advanced Planning System (APS), offers significant tool on meeting the ever increasing demands in relation to effectiveness which puts pressure on the need to shift and developed efficient plants and controls on supply chain (Attran, 2007). The currently, Cirque di Soleil global network on supply chain requires an APS system to support production and distribution planning as offered in the preceding analysis.
Cirque di Soleil based in Montreal current global networks and supply chain system reflects a risky and costly structure with the projected changes likely to undermine the organizational effectiveness. The current organization’s network presents inefficiencies that depict need for redesigning the structure to accommodate the projected trends. The current organizational structure is stipulated in the preceding analysis hence the need for redesign:
Montreal, Canada hosts Corporate Headquarters which is not movable, the region also hosts; logistics headquarters, costume manufacture, training and HR planning, global planning centre, tent, stage and facilities manufacturing, miscellaneous manufacturing, widespread with operations which are located in Shenzhen, China, Montreal, and Seoul, S. Korea. Show design and creative engineering is established Orlando, Fla., and USA. The Technology, software and special effects located in San Jose, Calif. The availed structure presents a centralized approach full of inefficiencies hence the need to redesign the structure. The structure presents a scenario where the company has grown organically having been designed and engineered in Montreal with the manufacturing and assembly operations being outsourced to other foreign companies and corporate offshore operations. The layout and entire structure is done in an uncoordinated manner limiting effectiveness on distributing their products to the customers spread across the globe. The fact that the company mainly uses shipments apart from the distribution center where the products are shipped using courier in numbers requested, the company experiences delays, and increase in lead time and other costly expenditures.
Streamlining the current global system while ensuring that some of the regions are integrated, the company needs to integrate APS model where some of the commonly deployed solutions categories are offered. These categories used to streamline and ensure effectiveness is offered in the preceding analysis: They are: Production Planning or Scheduling, Demand Planning, Transportation, and Supply or Master Planning. These categories are integrated with the current organizational structure hence offering solutions on a competitive system where resources are effectively utilized, lead time reduced, and overall logistic cost reduced. They present essential aspects relative to supply chain redesigning and restructuring the current system.
Cirque di Soleil needs to reduce the current sites of operation by consolidating some of their areas of productions to reduce lead time and the total logistics costs. The current scenario on their global networks creates a situation where if the company needs to train and hire employees it has to use Montreal facilities even if the employees are to work in Orlando or Seoul. The same notion can be traced where the organization needs to use technology; software and special effects on their products hence need to transport them to San Jose, California hence causing high transportation cost to the company and lead time. Through effective planning, control of material flows, and the production processes, the company can be able to set a key to success on the manufacturing process.
However, the consolidation on the respective sites towards reducing the costs and lead time requires extensive research and resource utilization while ensuring environmental factors both on the external and internal operations are needed. Developing and designing successful approaches plus the methods for manufacturing planning and control, encompasses different entities within an organization. The support of every employee and other stakeholders is essential towards ensuring the success of the entire global networks. Dynamism in technology reflects changes in production methods and approaches hence the need for the strategies that aligns with these changes.
Based on the detailed research conducted examining the external and internal environmental factors in relation to integrating and consolidating some of the production and assembly areas, the main headquarters of the company should host some of the respective sites. This is based on the favorable infrastructure in Canada, attractive national trade policies and Int’l agreements and FTZ’s support from the government (Cirque di Soleil, 2012). Canada interest’s rates have been stable only fluctuating during the previously experienced global recession (Cirque di Soleil, 2012). The historical currency exchange rates in the country have been stable facilitated by the strong leadership and massive productions in the country. Based on the fact that country hosts some of the biggest departments and production sites, the shipment costs incurred in transportation will be marginally reduced, reduce the lead time and hence reduce the total logistics costs. The preceding table depicts the APS system application based on the capabilities in relation to the company effectiveness and efficiency after consolidating the respective departments. ‘
Source: Adopted from (Set et al, 2008)
Relating the model to Cirque di Soleil Company, the planning phase forms the most essential aspect. This is based on the fact that it presents a scenario where the company’s supply chain partners will be able to develop collaborative initiatives and the agreements among themselves. Cirque di Soleil partners are distributed across the globe dealing with different products while others are involved in manufacturing of their products at different production phases. Consolidating the stipulated sites into one common region in Montreal Canada, where the global planning networks are located, presents a more effective and systematic administrative approach. After effectively integrating the respective sites through dynamic plans that embraces projected changes, the company can be able execute the preceding plan which are operational and largely depends on the principles enacted under the planning phase. The model largely uses the respective common tools and the processes towards improving the supply chain via improved information flow within an organization. The preceding analysis stipulates the model in relation to Cirque di Soleil Company scenario and how the company can be able to create a competitive advantage in the market.
Figure 1: The CFPR Model, source secondary sources
Integrating and reflecting the model structure on Cirque di Soleil Company, the demand and supply management where sales forecasting, order planning or forecasting is done, the company is projected to increase the sales by 20 percent. This is attributed by the information sharing and effective administration through the collaborative approach created. This will enable the company create a competitive advantage in the market, avert the projected rise in transportation cost and hence reduce on total logistics costs.
Conclusion
Cirque di Soleil based in Montreal Canada has the capability of creating a competitive advantage in the market through streamlining their global networks and supply chains. Embracing the stipulated aspects above through ASP and CFPR models, the company can be able to integrate and consolidate some of their workstations to selected location (Montreal, Canada). This will effectively streamline the supply chain and global networks reduce lead time and lower total logistics costs. Involving all the stakeholders while making the changes is essential towards ensuring success on the newly developed supply chain and global networks. Detailed research on consumer demands and projected outcomes is essential during the implementation, evaluation and control of the new system hence creating a competitive edge in the industry.
References
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- Cirque di Soleil, 2012 Annual Report
