Udo Inc., is a producer of office furniture, office equipment and warehouse products with customers
in Europe, USA and Asia. The main market is Europe with the Nordic countries and Norway as the
largest single markets. In Norway, the turnover was approximately 440 million NOK in 2021. Move
has its head office, assembly plant and main warehouse in Norway, located in southern Norway. The
main warehouse is 53 000 square meters (25 000 sqm for assembly, and 28 000 sqm for warehouse).
The number of employees in Norway is 40 (all working at the head office), while approximately 300
employees are distributed between the different companies abroad (which together consist of 6
foreign companies).
They sell to different markets and buy stock products from China. The rest is sourced primarily from
local suppliers. In total, the supplier portfolio consists of 300-325 suppliers with 67% of suppliers
located in Europe, 10% in North Africa and 23% in Asia. Udo Inc., has 5 wholly-owned production
facilities in Europe, with one by their main warehouse, incl. a receivement-hub in Europe and they
purchase from a wholesaler in Asia. Today it is cheaper to produce in Europe than in Asia because
large parts of the production are automated. Wage costs are now a much smaller part of
expenditure than in the past.
Products are sent to the assembly factory in southern Norway from the European receivement-hub.
The products for Move are sold to wholesalers who in turn sell to retailers. All orders are therefore
entered by the wholesale customers via the order portal in the ERP system for Udo Inc., The orders
are processed at the head office in southern Norway, which plans the order processing, production,
purchasing and transport for all the production plants, the receivement-hub, the assembly unit and
the main warehouse. Each plant has goods in stock. When the orders are ready, they are sent from
S.Norway to the wholesalers' main warehouse, where the goods are then stocked until the
wholesalers receive orders from their customers
Question : Illustrate the current supply chain of Udo Inc., and describe the main features.
