Analysis of FastGood Strategic Supply Chain Network Design

Submission Number 1
Analysis of FastGood Strategic Supply Chain Network Design
Existing Supply Chain Strategy
FastGood operates as an FMCG (Fast-Moving Consumer Goods) across South-East
Asia, as illustrated in the regions that supplies are made that include Indonesia, Thailand, and
Malaysia. The entity has been experiencing increased challenges in the management of its
business portfolio, which has a certain number of retailing representations located across the
supplying regions. For instance, the company’s associated policy and its supply chain
network design lacks support for the downstream and upstream stakeholders such as the
logistic providers and suppliers. Thereby, resulting in the general financial decline as
illustrated in the 52-week financial spreadsheet on supplies distributed to the main customers
of the four ingredients (Coffee, Detergent, Facial cream, and Shampoo) in Jakarta, Bangkok,
Surabaya, Medan, Bandung, and Khota Bharu. Furthermore, the company's physical supply
chain entails 13 distribution centers and 440 customers, and the company focuses on the
above best selling products to enhance their supply chain network across these regions.
Moreover, the above is also attributed to the product’s reasonable long-lead time and stable
market demand.
A clear example is illustrated with the general decline of supplies being undertaken
over time since one observes that in one week, a total of (893+505+277+333=2008) in
Jakarta compared to the 980 or 916 or 967 supplied to Raub, Kampong Pangkal Kalong and
Tual customers respectively. The five tons, when calculated with the above value one,
observes that a total of $80,320,000 (200/5 * $200,00) was used on the above sample data.
On the other hand, one finds that the other regions would also experience declining changes
in the total pays that were made to the different areas due to the decline in supplies. Another
significant aspect is transportation, where one observes that the regions that had low

Submission Number 2
quantities described above were located within the further latitude and longitudinal scales,
indicating that the 13 DCs that were located within the 1st leg, 2nd leg, and inter-site were
merely utilizing resources by covering other regions. Further indications point to their $100
shipment cost and $0.5 per kg/km product-distance based policy.
Moreover, the inventory carrying costs at the distribution center was 5% the product
selling price per case per month, indicating that (5/100 of $80,320,000=$816,000) was spent
on the initial week. The replenishment of the 3,500 cases per week was also included as an
inventory policy. Therefore, from the above analysis, the key challenges facing the
company's supply chain structure entailed inventory levels per distribution client, demand
fulfillment rate, transportation and distribution center costs, vehicle utility rates, number of
vehicle transportation utilized, and ELT (estimated lead time) by orders and products.
Recommended Supply Chain Network Design
With the rapid development of information technology, more and more diversified
and personalized customer requirements, and higher and higher requirements for delivery
time, market competition presents new characteristics: competition between enterprises has
transformed into competition between supply chains. And quality-based and cost-based
competition has transformed into time-based competition. Supply chain management based
on time competition has become the leading strategy of enterprises (Omar, et al 2012). The
responsiveness and response speed of the supply chain depend on the delivery time between
all links in the supply chain. Reducing delivery times has become the focus of supply chain
management and business operations. Examples of the operation of the supply chain show
that not all companies benefit from the reduction of delivery time, and many suppliers have
fallen into the trap of time because of excessive compression of delivery time. Regardless of
whether it is directly facing customers or downstream manufacturers or retailers, in a time-

Submission Number 3
based competition environment, how to adopt appropriate delivery strategies to increase
profits while responding to downstream demand has become an urgent issue for suppliers. At
home and abroad, the research on lead time is mainly concentrated in the field of lead time
management. Existing literatures have studied lead time management in terms of the impact
of lead time on supply chain performance, influencing factors of lead time, and lead time
decision-making, and have also proposed some important theories and methods (Rimiene &
Bernatonyte, 2013). However, these studies mainly focus on the analysis of the effect of lead
time length and fluctuation on supply chain performance and the factors affecting lead time,
and relatively few studies on lead time decision-making (Petridis, 2015). In addition, most
previous researches started from the profit maximization of the party with decision-making
power, but seldom considered the impact of lead time decision on the supply chain's supply-
demand revenue or the customer's waiting cost. The lack of supply chain-based model and
downstream buyer selection. The analysis of lead time decision analysis also lacks the study
of multi-delivery strategies (Otim, et al 2012).
One recommended supply chain strategy can be the application of Just-in-Time
program that entails just supplying the right amount of produce at the right amount of time
utilizing the right amount of resources and labor by ensuring that communication and
network systems are in place and working (De Bernardi, & Azucarl, 2020). Furthermore,
agility in mass servicing of supplies is another method that can be applied within FastGood to
hasten the process of their deliveries. From, the above analysis one observes that a
combination of both agility and Just-In-time applications would be the best method of
mitigating the challenges since the company will not have to rely on a single strategy to align
to the transport tariffs and market changes (Kumar, Garg, & Agarwal, 2019). As earlier
observed, the inventory policy and inventory levels per distribution client incurred the entity's
numerous revenues.