Now Kompan has a flexible production platform - modular product architecture, which is suitable for a large number of product variations . It enables the mixing of different components and creating different end-products, making the customization easier. A great advantage of this type of product architecture is not only the fact that it leads to reducing inventory costs, but it also gives a field for innovation. It is easily achieved, as the different components are not interdependent, so changes to one can be done without having to change the whole product. This is how the company constantly provides their customers with innovative solutions.
The modular architecture gives possibilities for outsourcing because the components are not dependent on each other. This is why outsourcing from different sub-suppliers around the world is an essential part of Kompan's supply strategy . Considering the new acquisitions not only in Denmark, but also in other markets, the supply network can be extended even more. Apart from the bigger variety of supplies it provides, it can also be vital in case of a supplier's failure to deliver – a substitute can easily be found.
[...] Having better dynamic capabilities 1.Increased chance of having 2. Further strengthened distribution efficiency problems channels 2.Impaired upstream communication 3. Increase the number of activities 3. Internal communication issues. that are being done internally 4. Conquer more geographical areas as well as customers 5. Allow them to have better insight of customer demand on each market while strengthen the global concept. Opens up more opportunities for innovation 1 Benefits 1. [...]
[...] This conclusion is made on the basis of Kompan's use of modularization. Having a production line of standard components is a sign of lean thinking, but using these components as a base of customized finished goods with the help of outsourcing production makes the company more agile approach follower. The acquisition of other businesses seems to be Kompan's step forward, consciously or not, to what Prahalad thinking[8] suggests. In the business nowadays adaptation and innovation are processes of critical importance. [...]
[...] Basically the demand drives the material flow. The findings on the case present insights showing that the company is managing its processes with high level of flexibility. Surprisingly enough, considering the characteristics of lean “vs” agile, puts Kompan under lean categorization, as well as agile. The wide customer choice is created by keeping source, make and deliver processes as simple as possible. Kopman aligns its operations by redesigning the flow of goods, information and management practices, achieving “virtual organization” in which, groups of supply chains agree on common rules and on working with each other. [...]
[...] Kompan: Supply chain Table of Contents 1. Introduction Interpretation of Questions Scope Models and theories Answers to the questions Changes in the Supply chain Benefits and Challenges Benefits Challenges Innovation in the Supply Chain Bibliography 9 Introduction 1 Interpretation of Questions Question We need to find out what effect the acquisitions had on Kompan's supply chain, and split them into benefits and challenges Scope Striving for the image of innovative industry leader[1] on the market for outdoor playground equipment and playgrounds, Kompan pursues a growth strategy. [...]
[...] Prahalad, M.S.Krishnan KOMPAN's Annual Report 2011, p [2]The pyramid of key factors that underpin JIT KOMPAN Outline Case p [4]SSMK, Chapter Innovation management in supply chain KOMPAN Outline Case p [6]SSMK, Chapter 7 Innovation management in supply chain [7]Logistics, management and strategy, Harrison &Hoek The new age of innovation, C.K. [...]
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