Strategic Issues Facing Alpha Toiletries Limited and Strategic Options for Improvement

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Alpha Toileries Limited is a company that deals in the development, marketing and manufacturing of toiletry products. The company is seen as a successful one with a growing turnover and good relationships with its customers. However, it is faced with some strategic challenges which revolve around its supply chain. Delivery performance is considered as one of the order winning factors in the market where the company operates. According to Slack & Lewis(2008) “order winning factors are things that directly and significantly contribute to winning business. They are regarded by customers as key reasons for purchasing the product or service”. The other business winning criteria for Alpha are their product development capability and the quality of their materials and products (Williamson, et al, 2004). They are however considered to be doing well in them since they handle them in collaboration with customers in a continuous process but their delivery process is a poor one.
The poor delivery process of the company posed negative consequences for the company as it was a two faced problem. Alpha’s delivery performances to its customers as well as the delivery of materials from its supplier are both described as “not good”. According to Williamson, et al, (2004, p. 224) “the worst delivery performance for materials was associated with new product launches”. The weakness of the company’s supply chain has brought about lack of visibility in the internal business planning, production schedules and the operations. This has indeed put the company in a difficult situation in meeting the needs of its customers in terms of deliveries of orders. It also creates not well planned inventories which mostly are to be sold at highly discounted prices thus causing loss of revenue for the company and which also cause the overstock of the warehouse in an unplanned manner. This problem is strategic in nature and therefore required a strategic solution which has to be approached through the... Read Full Essay

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