Brandname: Evertech
Company Name: Evertech Electronics Ltd
 
Management Function Analysis
Product promise and assurance is the most important factor in the security business and the company has been able to incorporate this factor in their business operations through technological expertise, strategic alliance with suppliers, effective quality assurance measures and tailor-made one-stop customer service.

Of significance is the company's development of strategic alliance with its suppliers to better manage the whole supply chain. Supply chain management is a series of activities for managing the internal and external components of the supply system, including material flow, cash flow and information flow in a supply chain. Supply chain management helps to link up suppliers (including both internal and external suppliers) and end-customers through managing the quality throughout the entire supply chain in order to ensure the effectiveness of material, cash and information flow.

Studies point out that companies spend more than half of its sales turnover (about 50-70% of the cost of goods sold) in purchasing materials, components and services from their suppliers. Performance of suppliers have effectual impacts on product quality, production costs, time of delivery, and technology innovation and development of a company. The ability to manage the supply function significantly influences organizational competitiveness and profitability. In this case, the supply quality is improved through conducting strategic alliance with critical suppliers.
 
Implications for SMEs
Supply chain management should be high on the agenda of SMEs as an attempt to ensure quality of their product or service, thereby retaining or gaining competitive advantage. SMEs should also take note of the types of strategic alliance that they can foster with suppliers and the legal implications for each type of alliance.