DRB - (Case style) DRB Electronic Services operates in a high labour cost environment in Western Europe and imports electronic products from the Republic of Korea, it re-brands and re-packages them as DRB products and then sells them to business and domestic customers in the local geographical region. Its only current source of supply is ISAS electronics based in a factory on the outskirts of Seoul, the capital of the Republic of Korea, DRB regularly places orders for ISAS products through the ISAS web-site and pays for them by credit card As soon as the payment is confirmed, ISAS automaticallye mails DRB a confirmation of order, an order reference number and likely shipping date. When the order is actually despatched, ISAS send DRB a notice of despatch e-mail and a container reference number. ISAS currently organises all the shipping of the products. The products are sent in containers and then trans-shipped to EIF, the logistics company used by ISAS to distribute its products EIF then delivers the products to the DRB factory Once they arrive, they are quality inspected and products that pass the inspection are re-branded as DRB products (by adding appropriate logos) and packaged in specially fabricated DRB boxes. These products are then stored ready for sale. All customer sales are from stock. Products that fail the inspection are returned to ISAS Currently 60% of sales are made to domestic customers and 40% to business customers. Most domestic customers pick up their products from DRB and set them up themselves. In contrast, most business customers ask DRB to set up the electronic equipment at their offices, for which DRB makes a small charpe DRB currently advertises its products in local and regional newspapers DRB also has a web site which provides product details. Potential customers can enquire about the specification and availability of products through an e-mail facility in the web site. DRB then e-mails an appropriate response directly to the person making the enquiry, Payment for products cannot currently be made through the web site Feedback from existing customers suggests that they particularly value the installation and support offered by the company. The company employs specialist technicians who (for a fee) will install equipment in both homes and offices. They will also come out and troubleshoot problems with equipment that is still under warranty DRB also offer a helpline and a back to base facility for customers whose products are out of warranty Feedback from current customers suggests that this support is highly valued One commented that it contrasts favourably with your large customers who offer support through impersonal off-shore call centres and a time-consuming returns policy. Customers can also pay for technicians to come on-site to sort out problems with out-of-warranty equipment Dilip Masood, the owner of DRB, has sent you the following email To: J.Kooper From: D. Masood Date: 17/06/XX Subject: Supply chain management HIJ I'm sure you're aware that DRB is planning to increase our product range and market share. We plan to grow from our current turnover of 5 million per year to 12 million per year in two years' time. I believe that DRB must change its business model if it is to achieve this growth. I believe that these changes will also have to tackle problems associated with: Missing, or potentially missing shipments Shipments can only be tracked through contacting the shipment account holder, ISAS, and on occasions they have been reluctant or unable to help. The trans-shipment to EIF has also caused problems and this has usually been identified as the point where goods have been lost ISAS does not appear to be able to reliably track the relationship between the container shipment and the Waybills used in the EIF system The likely delivery dates of orders, the progress of orders and the progress of shipments is poorly specified and monitored Hence deliveries are relatively unpredictable and this can cause congestion problems in the delivery bay I also recognise that growth will mean that the company has to sell more products outside its region and the technical installation and support so valued by local customers will be difficult to maintain, I am determined that DRB will continue to import only fully configured products. I am not interested in importing components and assembling them DRB will also not build or invest in assembly plants overseas or commit to a long-term contract with one supplier Bearing this in mind, I would be grateful for your thoughts on a number of key issues Firstly, I need you to draw the primary activities of DRB on a value chain Please comment on the significance of each of these activities and the value that they offer to customers Explain how DRB might re-structure its upstream supply chain to achieve the growth required by DR3 and to tackle the problems that I have identified Also, please explain how DRB might re-structure its downstream supply chain to achieve the growth required I need some briefing notes on this in the next 45 minutes as I am about to go into a meeting with our business advisors I look forward to your reply Kind regards Dilip Your task: Draft the briefing notes as requested by Dilip, Instructions: After you have completed typing in your response, click the "Confium" button to compare your answer to the correct response. 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