Valkyrie Lighting faces challenges in expanding its supply chain due to issues like high competition, low margins, and inflexibility. Its current push production system is unresponsive to market needs. The new supply chain manager identifies key issues like lack of legal supplier contracts, mismatch in production planning, and high inventory and logistics costs. His proposed solutions include establishing assembly centers in Taiwan and Netherlands to adopt a pull production system and address global supply chain barriers. This would make the supply chain more flexible and responsive to changing demands, while reducing costs and strengthening market position.

1. Global Supply Chain Management
Valkyrie Lighting
By:
Siddharth Khandelwal

2. Case Facts
 Leading Lighting & Fixture manufacturer in the US
 Primary manufacturing plant in Denver, USA
 Technological & Aesthetic competitive advantage
 Problems within its current operations
 Rob Brown-Newly employed supply chain manager.
 Faces a challenge to expand and improve its current supply chain management
system

3. Supply Chain Problems Categorized
Industry & Market
Issues
Supplier Issues Manufacturing Issues Sales & Distributions Issue
• Highly Competitive
(SE Asia & Europe)
• Low Margin & High
Overhead Cost
• Push Supply chain
Concept
• No legal contract with
suppliers
• Mismatch of Production
planning
• Lack of communication
(EDI / Information System)
• Stock pilling due to back
order delivery (Inbound)
• Technical disadvantage
• Inflexibility
• Global Supply Chain
Barriers (EU Custom
Rules)
• Double Logistics for SE
Asia
• Single Manufacturing
Unit (High Cost of
Distribution)
• High inventory carrying
cost(Outbound)

4. In a nutshell..
Sunshine’s Batch
Production
Tapered
Product
Variation
Valkyrie’s
Push
Production
System
Unresponsive
to changing
market needs
Loss of
Market
Share
No
Flexibility
to change
in
Technology
Low Profit
Margins
Affecting Valkyrie’s
Market Strength
Distribution
Issues:
• No Assembly
Line in Europe
• High Logistics
costs to SE Asia

5. Supplier Issues
Sales & Distribution Issue
Manufacturing Issue
Industry & Market Issue
Stock
Pilling
Lack Of
Communi
cation
Legal
Contract
Push
Concept
Priorities

6. Supplier Issues
Sales & Distribution Issue
Manufacturing Issue
Industry & Market Issue
Technical
Advantage
Inflexibility

7. Supplier Issues
Sales & Distribution Issue
Manufacturing Issue
Industry & Market Issue High
Inventory
Carrying
Cost`
Single
manufact
uring
Double
Logistics
SE Asia
Global
Supply
Chain
Barrier

8. Supplier Issues
Sales & Distribution Issue
Manufacturing Issue
Industry & Market Issue
Low Margin
& High
Overhead
Highly
Competitive

9. Key Requirements of Supply Chain
Supply
Legal Supply Contract – Consistent delivery of products; No supply to Valkyrie’s
competitors
Batch Production system  Just In Time Manufacturing (Dedicated Assembly Line)
Implementation of a proper communication using an IS – Solves Inventory and
production planning issues
Other potential suppliers in South East Asia and Europe
Automatic shipment update system

10. Manufacturing
Push  Pull production system
Establishment of Assembly & Distribution centers in Taiwan – Reduced supply lead
time for exports to SE Asia
Establishment of Assembly unit in Netherlands – Resolves Europe Union Trade rules,
Cater to the local market needs
Investment in R&D for product design for market needs outside the US

11. Distribution
With Assembly in Taiwan, 3PL can be used for exports to SE Asia
Outcomes:
Reduction in logistics costs (Double logistics), helps strengthening market share against
low cost Asian competitors, more responsive to local demand
Establishment of Distribution Centre in Netherlands along with a assembly line nearby
Outcomes:
Resolution to Europe Union Issues, gain market share against local competitors, cater to
local market needs, reduction in costs

12. Taiwan
Denver
Netherlands
PROPOSED GLOBAL SCM

13. Thank You