A supplier park as a location of various suppliers close to manufacturers usually supports firms’ activities, improving the quality of services and product delivery. Specific components of the supplier park enable companies to improve the efficiency of the supply chain and to engage suppliers’ resources to achieve goals. Thus, a supplier park is an important tool used by companies to manage their supply chain operations.
The main components of the supplier park are companies, suppliers, customers, suppliers’ suppliers and manufacturers, and distributors. The main processes related to the company’s interaction with the supplier park include planning, production, delivery, and quality control. Firms are responsible for planning, which includes reviewing and analyzing customer needs, forecasting product consumption, and developing delivery and production plans. Production is associated with coordinating manufacturing plans with suppliers and suppliers’ suppliers (Venkataraman & Demirag, 2022). Delivery involves the delivery of products by a supplier to the company and customer within the specified timeframe, and quality control includes assessing manufacturers and testing products.
The advantages and disadvantages for the supplier park participants depend on the type of activity and the supply chain elements they influence, and they need to be discussed with reference to the SCOR model. Basic advantages include improved supply chain efficiency, cost and time savings, and improved product and service quality. Companies can benefit from the supplier park because of increased product choice, lower purchase cost, and fast delivery (Venkataraman & Demirag, 2022). In their turn, suppliers and suppliers’ suppliers benefit from more efficient planning, regular orders, and control of deliveries.
However, the supplier park also has disadvantages, which include high support system costs and high requirements for suppliers and manufacturers. Companies may experience some disadvantages when processes are not coordinated effectively, such as lower product quality or late delivery of goods (Venkataraman & Demirag, 2022). Furthermore, suppliers may also experience some disadvantages when participating in the supplier park, such as long delivery times because of product returns and high product prices set by their suppliers.
In conclusion, the supplier park is important for a company because it provides the opportunity for more efficient management of supply chain operations. It is important to note that the supplier park helps companies improve supply chain efficiency and increases service quality. However, disadvantages should also be taken into account, and companies should carefully assess them to improve the impact of the supplier park on operations.
Reference
Venkataraman, R. R., & Demirag, O. C. (2022). Supply chain management: Securing a superior global edge. SAGE Publications, Incorporated.