Supply Chain Management Research

This assignment focuses on research within the field of Supply Chain Management. It emphasizes quantitative models used for sustainable supply chain management, highlighting key developments and future directions in this area. The research also explores concepts like risk management, sales forecasting using big data, and proactive approaches to mitigate supply chain disruptions. Finally, it examines best practices and trends shaping the future of supply chain management.

RUNNING HEAD: LOGISTICS AND SUPPLY CHAIN MANAGEMENT PRINCIPLES OF AMCOR
LOGISTICS AND SUPPLY CHAIN MANAGEMENT PRINCIPLES OF AMCOR
AMCOR

LOGISTICS AND SUPPLY CHAIN MANAGEMENT PRINCIPLES OF AMCOR 1
Contents
Introduction:................................................................................................................................................2
Real World Situations:................................................................................................................................3
Principles and Accuracy of Supply Chain Management:.............................................................................3
1. Accept supply, chain based on service requirement of every client segment...................................5
2. Customize Logistic Network:..........................................................................................................5
3. Align Mandate Planning Through Supply Chain:............................................................................5
4. Differentiate Products Close to Customer:.......................................................................................6
5. Outsource Strategically....................................................................................................................6
6. Improve IT sector, that Support Multilevel Decision Making:........................................................6
7. Accept Both Services and Economic Methods:...............................................................................6
8. Know the Customer:........................................................................................................................6
9. Create a Supply Chain information infrastructure:..........................................................................6
10. Integrated Business Processes:.....................................................................................................7
Supply Chain Management Structure..........................................................................................................7
Supply Chain Organization Structure of Amcor:.........................................................................................8
Supply chain management interest:...........................................................................................................10
Clarity and completeness:..........................................................................................................................10
Conclusion:...............................................................................................................................................11
Future recommendation:............................................................................................................................11
References:................................................................................................................................................12

LOGISTICS AND SUPPLY CHAIN MANAGEMENT PRINCIPLES OF AMCOR 2
Principles of supply chain management of Amcor:
Introduction:
AMCOR- A Global Leader in Packaging Services. Amcor is Australian-based packaging
association. Company mainly produce, flexible and stiff plastic packing services. Organization
give their packaging services, in various sectors like food, refreshments, liquors, tobacco, etc.
Amcor Headquarter office located at Zurich, Switzerland. Further, the head office of the
organization is in Melbourne, Victoria, Australia. Organization also conclude various global
stock marketplace indices DOW jones maintainability Asia pacific Index, Carbon Disclosure
authority Index and the FTSE4GOOD Index. Present CEO of the company is Ron Delia.
On May, 1986 Australian Paper Manufacturer’s has turned into Amcor Limited. After words,
Amcor has become a well- known packaging services throughout the world. And company is
known as world largest packing services organization.
Packaging services of the company:
Amcor has two mainly packaging services:
 Packaging from Rigid plastic: This is the variety of plastic, and rigid plastic is used for
packaging in food, liquors, packaging of medicines, and home & personal care products.
Amcor is “The world largest producers of PET bottles (Waters, and Rinsler, 2014).
 Flexibles packaging: Flexible plastic is used in packaging for the medicines, hospital
supplies, boxes of food, and drink. Amcor is also manufactures, the paper of Tabaco
items, and caps & cover for the products.
Nowadays, Company is known as worldwide leader of packaging services in packaging
industries. For enhancement in the product quality, Amcor is using some new technologies and
innovation and making the company products cost effective for their supplier and clients and
eco-friendly for the environment.

LOGISTICS AND SUPPLY CHAIN MANAGEMENT PRINCIPLES OF AMCOR 3
Real World Situations:
Controversies: Although Amcor has an effective supply chain management system, even though
company has faced many controversies in past years. In 2001, organization was fined by EPA
Victoria, A$10,000 for the pollution (Van, 2006).
Engaging in Cartel Practices:
CEO of the company, Russell Jones has been given the resignation, on the appeal of board
members of the company. The Media report revealed after the investigation of Australian
Competition and Consumer Commission (ACCC) that, company has been found engaging with
Cartel Practices, in December 2004 (Tang, and Musa, 2011).
Cartel Practices are the serious break of the corporate law of Australia. Further, after the
resignation of company CEO, investigation report came in front of everyone that company has
been sued five former managers, in an attempt to protect them for providing and documents to
the related regulator (ACCC report).
On 2 October 2006, a biopic film in the TV show Four Corners titled The A Team was
communicated, covering controversial techniques utilized by Amcor to influence ranger service
strategies (Stadtler, 2015).
The another controversy Of Amcor organization was, In 2008 Amcor was condemned by
Heidelberg magistrates ‘court for freeing oil into the Yarra Rive from the company plant and
fined $80,000 (Norrman, and Jansson, 2014).
To overcome all the disadvantages and controversies Amcor should use an effective supply chain
management. Supply chain management can be effective more if the organization work
accordingly the seven principles of supply chain techniques. The principles will help to enhance
the growth and quality of company products and will help to overcome form all controversies
which are organization is facing.
Principles and Accuracy of Supply Chain Management:
There are basic 7 principles, of supply chain management system, Amcor can use:
1. Adapt supply chain based on service needs of each customer segment.
2. Customize Logistic Network
3. Align Demand Planning Across Supply Chain
4. Differentiate Products Close to Customer
5. Outsource Strategically (Monczka, et al., 2015)
6. Develop IT that Support Multilevel Decision Making
7. Adopt Both Service and Financial Metrics
8. Integrate Business Processes
9. Create a Supply Chain Information Infrastructure
10. Know the Customer

LOGISTICS AND SUPPLY CHAIN MANAGEMENT PRINCIPLES OF AMCOR 4
Seven principles of Supply Chain Management in Amcor

LOGISTICS AND SUPPLY CHAIN MANAGEMENT PRINCIPLES OF AMCOR 5
1. Accept supply, chain based on service requirement of every client segment:
Both organization employee and supply chain experts are qualified to focus on the client’s
requirements. In order to recognize the clients better, clients are separated into various segment,
which is known as “segmentation”. The very easy to divide the customers in segments is ABC
analysis, these group of customers are based on the revenue or profitability. Apart from these,
division also can be done by dividing the products, industry and trade network. It is being
suggested that customers should be divided according to the service requirements: Sales
Importing requirements and Order Fulfillment requirements (Lee, 2008).
In the case of Amcor organization, company should also focus on the clients need, but only these
strategy is not enough to overcome the all disadvantages. The purpose behind that, customers
might not know their needs, until and unless the rivals offer something changed. For e.g. in 2011,
the shopping website amazon introduced an app called, Amazon Prime in which Amazon offers
to their customer, free two day delivery and discounted one day delivery. In result, now a day
people are still does not able to understand the profitability of this Amazon Prime offer.
2. Customize Logistic Network:
When a customer is being segmented, based on the service requirements, Amcor might have to
adjust, the another logistic system to provide different section (Hill, and Fredendail, 2016).
However, this segmentation principle does not success in all situation. Because Amcor is a
global packaging services, it provides their packaging service in different countries, let’s take an
example of China, there will be different logistics system for different clients. Every customers
in the Australia may have already controlled the resource of raw ingredients, and might ask
company to supply devoted manufacture lines. So, logistic network determined mainly by the
clients.
3. Align Mandate Planning Through Supply Chain:
In Amcor, the supply chain expertise are trained to tell the demand sharing data with trading
companions of the company, so that nobody able to keep the extra and unnecessary stock (Lu, et
al., 2015). In reality only the Amcor is the only logistic company which is actively showing and
sharing their demand data with company trading partners. For example: there are many
interesting proposal paper, According to Williams and Waller “-Down Versus Bottom-Up
Demand Forecast: The Value of Shared Point-of-sale Data in the Retail Supply Chain”.
If company make the request forecast which is centered on SKU, using the company past order
data is more correct than by using, the POS data company get from the traders (Khan, 2015).
These method of implication applied only when, neither the demand sharing is present nor
needed badly. But if the company, got demand sharing data from its partners, company must use
it in legal way.

LOGISTICS AND SUPPLY CHAIN MANAGEMENT PRINCIPLES OF AMCOR 6
4. Differentiate Products Close to Customer:
“Standardization” is the reverse polarization of “Differentiation”. This the principle that Amcor
can consider in their supply chain management policy (Jüttner, et al., 2013). For e.g. in the
manufacturing of home and personal care products (cosmetic products), company can formulate
goods, and choose a wrapping and labeling which meet the necessities, with the guideline of
multiple countries. One Stock keeping unit (SKU) can be used in 15 countries rather than 1 SKU
per country. Amcor can drive the cost down significantly, by using the principle of
Standardization. So, the principle of Standardization is very essential factor for every company,
for maximize the profit.
5. Outsource Strategically
This is a principle, which takes stand at the hard time of the company, the logic after this
principle is never outsource the core competency of company.
6. Improve IT sector, that Support Multilevel Decision Making:
To prevent from many cyber-attack, Amcor should use the effective ERP model for their IT
management system. An IT plan should not be done in the separation, business procedure
reengineering (Jacobs, and Chase, 2013). These are the things which should be done, before
applying an IT project. These strategy will help into determine, that what kind of technology
company really required.
7. Accept Both Services and Economic Methods:
According to the researcher, it is being suggested that, to control the client’s and customer’s
effectiveness, company should apply the Active Based Costing (ABC) policy on their finance
decisions. However, there are many interesting concepts of the Activity Based Costing model.
Activity Based Costing was defined by the Robert Kalpan and W Bruns in 1987 in the book
“Accounting and Management: A field study perspective”. But in practically it is hard to keep
maintain an ABC model to replicate the variations in actions, procedures, goods and clients in an
organization. After that Author introduced the sorted concept which is called “Time Drive
Activity Based Costing”.
8. Know the Customer:
Amcor is known as- A global leader in packaging service. Know the customer is essential factor
for every company (Harsoor, and Patil, 2015). Without understanding the requirements of
customer, supply chain cannot be made effectively. One must concept, an information
arrangement to capture client’s transaction data, collect the data, and investigate the data of
customer from an operational viewpoint. This objective is to capture a clear report of the client’s
requirements. A supply chain can vary according to the demand, requirements and location of the
customer.
9. Create a Supply Chain information infrastructure:
To achieve competitive advantages, an active information infrastructure is necessary, which
includes both intra and inter- organization. Now a days with the help of internet B2B
collaboration more easier for supply chain traders to share timely demand data, products stock

LOGISTICS AND SUPPLY CHAIN MANAGEMENT PRINCIPLES OF AMCOR 7
position, daily capacity usage necessities, developing marketing strategies and plans, products
and procedure designing changes, and logistics necessities.
Integrated Information System and Business Processes
However for good collaboration a true planning of inventory and production strategies is
needed. Only sharing the data among the partners of the company does not justify the exact
economic potential of relationship (Giunipero, and Aly Eltantawy, 2014).
10. Integrated Business Processes:
Business process of the Amcor must be recognized both intra- and inter- logistically to support
the supply chain system.in given above figure these whole procedures, attached with the
infrastructure, which support the well-organized flow of material via the supply chain
management. It is essential to build inter-organizationally process to influence and increase the
company partner’s capability. These process of inter and intra-organizational procedures must be
planned as such, to take benefit of the enhanced information that motivate daily supply chain
decision.
Supply Chain Management Structure:
Supply Chain Management structure of any company includes basics 6 points which is given
below.

LOGISTICS AND SUPPLY CHAIN MANAGEMENT PRINCIPLES OF AMCOR 8
 Integration and information sharing (Christopher, 2016)
 Product Development:
 Procurement and Manufacturing:
 Logistics:
 Customer Services:
 Performance Management:
Supply Chain Organization Structure of Amcor:
1. Root Organization: the organizations have the hierarchy followed from the very past
years in developing the organizations. The site administrators perform the role of root of
the structure.
2. Default organization: no item placed in the default organization (Chase, 2017).

LOGISTICS AND SUPPLY CHAIN MANAGEMENT PRINCIPLES OF AMCOR 9
3. Supply Chain Management organization: Amcor organization has the following child
organization units:
4. Supplier Hub organization: This child organization is developed by the suppliers.
Administrators keep the supplier’s hub utilities as well as supplier’s hub organization.
 Asset Store Organization: Asset Store is formed to own all assets, that are used to make
stores for retailers.
 Supplier Organization: To own all of the retailers in supply chain, supplier chain
organization is formed (Brandenburg, et al., 2014).
 Supplier organization A, B, C: A, B, C are the child organization of the supplier
organization. Supplier organization is the parent organization, for each supply store there
are parent and child supplier organization always present in the structure.
 Buyer Organization: All customers are owned by the equivalent buyer organization.

LOGISTICS AND SUPPLY CHAIN MANAGEMENT PRINCIPLES OF AMCOR 10
Supply chain management interest:
Supply chain management play a very important role in an organization activities and also an
essential factor to operation effectiveness which can be implemented to client’s satisfaction and
organization success. Supply chain management is the back bone of a successful organization,
which mange all the serious situations of the organization such as fast growth of multinational
companies, Global expansion and ecological concern directly affect the corporate strategy. Some
important benefits of supply chain management are given below:
 Reduces product stock price.
 Provide a good connection for sharing the data information between the company
partners.
 Improve the customer services and the satisfaction level (Ballou, 2007).
 Maintain a good relationship and trust between the company partners.
 Provide a good manufacturing method.
 Increase the process combination.
 Recovers the bottom line, by reducing the fix resources in supply chain.
 Enhance the cost flow.
 Enhancement in the product quality and provide the higher revenue margin to the
company.
 Supply chain system offers many tools and techniques, which helps the business to
analyze the glitches and also give the answers to these interruption around the
atmosphere of business. It also play a vital role in transferring the products faster to their
endpoint. To win the business competition, supply chain system perform a very vibrant
role in the organization. With help of the effective SCM, Amcor Company can beat its
rivals in the packaging industry. Todays, Supply chain management becomes more
critical business discipline around the global.
Clarity and completeness:
In today’s era there are many on-demand consumers, giving information about the goods, so it
can be easily available. This feedback give the positive point to the retailers and seller for the
growth in market (Amcor, 2017). The companies which maintain the transparency among the
customers: they are able to make the lifetime relationship with their customers.

LOGISTICS AND SUPPLY CHAIN MANAGEMENT PRINCIPLES OF AMCOR 11
Amcor Product description
The companies which are capable to give, the product information in a way, customer wants,
they have opportunity to win the customer lifetime loyalty.
Conclusion:
Conclusion of this report, there are various principles of supply chain management which are
capable to recollect their relevance over time. It is important to accept that, an effective supply
chain management helps in the growth of revenues of the company (Waters, and Rinsler, 2014).
There are many strategy which are authoritative to the success of SCM involving differentiation,
economic, technological based, interactions based and worldwide strategies. Differentiation
strategy of supply chain, is needed to create a particular organization and its supply chain as
being exclusive and different.
Future recommendation:
Here, it is recommended that Amcor should use an effective supply chain management with
advanced techniques for demand sharing among the partners of the company. Amcor should use
the CPFR (Collaborative Planning, Forecasting and replenishment) model to design an effective
supply chain managements for the business growth. A good company can enhance their growth
by using the supply chain principles. And also the supply chain key flows: And the Information
flow is one of them that, can be enhanced by applying the CPFR model.

LOGISTICS AND SUPPLY CHAIN MANAGEMENT PRINCIPLES OF AMCOR 12
References:
Amcor, 2017, Amcor around the globe, viewed on 25th October 2017,
https://www.amcor.com/investor-relations/about-us
Ballou, R.H., 2007. Business logistics/supply chain management: planning, organizing, and
controlling the supply chain. Pearson Education India.
Brandenburg, M., Govindan, K., Sarkis, J. and Seuring, S. 2014. Quantitative models for
sustainable supply chain management: Developments and directions, European Journal of
Operational Research, 233(2), pp.299-312.
Chase. 2017. Operations Supply Management. Tata McGraw-Hill Education.
Christopher, M. 2016. Logistics & supply chain management, Pearson
Giunipero, L.C. and Aly Eltantawy, R., 2014. Securing the upstream supply chain: a risk
management approach. International Journal of Physical Distribution & Logistics
Management, 34(9), pp.698-713.
Harsoor, A.S. and Patil, A. 2015. Forecast of sales of Wal-Mart store using big data applications.
International Journal of Research in Engineering and Technology.
Hill, E. and Fredendail, L.D. 2016. Basics of Supply Chain Management, CRC Press.
Jacobs, R. and Chase, R. 2013. Operations and supply chain management, McGraw-Hill Higher
Education.
Jüttner, U., Peck, H. and Christopher, M., 2013. Supply chain risk management: outlining an
agenda for future research. International Journal of Logistics: Research and Applications, 6(4),
pp.197-210
Khan, O., 2015. Supply chain risk management..
Lee, T.Y.S., 2008. Supply chain risk management. International Journal of Information and
Decision Sciences, 1(1), pp.98-114.
Lu, L.X. and Swaminathan, J.M., 2015. Supply chain management.
Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and
supply chain management. Cengage Learning.
Norrman, A. and Jansson, U., 2014. Ericsson's proactive supply chain risk management approach
after a serious sub-supplier accident. International journal of physical distribution & logistics
management, 34(5), pp.434-456.
Stadtler, H. 2015. Supply chain management: An overview. In Supply chain management and
advanced planning (pp. 3-28). Springer Berlin Heidelberg.
Stadtler, H. 2015. Supply chain management: An overview. In Supply chain management and
advanced planning (pp. 3-28). Springer Berlin Heidelberg.

LOGISTICS AND SUPPLY CHAIN MANAGEMENT PRINCIPLES OF AMCOR 13
Tang, O. and Musa, S.N., 2011. Identifying risk issues and research advancements in supply
chain risk management. International journal of production economics, 133(1), pp.25-34.
Van Wassenhove, L.N., 2006. Humanitarian aid logistics: supply chain management in high
gear. Journal of the Operational research Society, 57(5), pp.475-489.
Waters, D. and Rinsler, S., 2014. Global logistics: New directions in supply chain management.
Kogan Page Publishers.