Supply Chain Planning and Control

Supply Chain Planning and
Control

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Literature review for issues faced by supply chains, issues related to logistics networks and
distribution systems.....................................................................................................................1
Designing a distribution system for supply chain of “groceries” supported with technical
report............................................................................................................................................3
Managerial report for rationalising above created design...........................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Supply chain planning and control is a procedure of pre determining the path using which
goods will be distributed and supplied to their final destinations (Chaabane, Ramudhin and
Paquet, 2011). This process provides a groundwork to synchronise the production and
distribution of goods. The main aim of this report is to develop a logistics and distribution
network design for which supply chain of “groceries” is chosen. This report includes literature
review about issues related to distribution system and logistics networks which will lead to
identifying the gap in reviewed literature. A logistics network is then designed including models
and methods for issues in this network. Lastly, a managerial report will be created for
rationalising the developed network.
MAIN BODY
Literature review for issues faced by supply chains, issues related to logistics networks and
distribution systems
Supply chain is a broad term used for distribution or logistics systems of certain goods.
This procedure of supply chain has various issues which are faced at both domestic and
international level. According to Jacobs and et.al., (2011), supply chain is a critical activity at
which various at which issues such as increased cost and complexity is usual to experience. In
the case of domestic supply chain, the major and most influencing issue which is faced is
increased costs. Organisations pre determine their profit margins but in the case where supply
chain network results into higher costs, the margins get decrease which results in negative impact
upon profitability of the firm. The reason behind this issue of increase costs is the price rise of
fuels which enhancing transportation costs, increase in commodity prices such as raw materials
and high labour costs. All these reasons are the major contributors which increases the costs of
supply chain. Another issues which supply chain procedure faces in domestic territory is
environmental changes. When a product is being supplied to distributors, it is transported using
different vehicles and in the case where weather condition changes it will influence the supply
chain procedures. Changing weather conditions such as heavy rains results in road blockages
which can damage the perishable products as they have small span of life.
As per the views of Olhager, (2013), supply chain procedure is not only negatively
influenced in domestic territory, it is also highly impacted at international level as well. The
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major issue which is faced by supply chain while dealing at international level is the complexity
of multiple channel. In this contemporary world where globalisation plays an important role,
customers demand products from entire world using e-commerce websites. To fulfil the demand
of customers, manufacturers use multichannel approach to supply their goods. In this procedure
the issue of complexity arises as various third parties are involved which delays the supply chain
procedure. The contributors of this issue of complexity of multi channel are third parties and
legislations of foreign countries. Another issue which is faced by supply chain while operating in
international level is Volatility. This issue arises when a manufacturer of one country supplies its
products in other countries. This procedure creates the issue of volatility which refers to the rapid
changes in laws and legislations. If a product is being supplied to another country, then it must
be shipped through various countries. It should be noticed that every country has its own
regulations and laws for transportation and fulfilling all those regulations is important to carry on
a lawful business. This volatility is the most influencing issue which supply chain faces. The
contributors of this issue are on going changing in political parties of countries, rapid economic
changes and variations in transportation costs of every nation.
Apart from the above mentioned issues in supply chain, there are few issues which are
faced in distribution system or logistics network. From the view point of Myerson, (2012),
distribution system or a logistics network is a sequential flow of activities which are designed in
a such that a product can be appropriately supplied from a manufacturer to its end user or retail
user. The terms distribution system and logistics network can be used inter changeably as both
concepts include a network with various elements, which a product has to cover for effective
commute from the manufacturer point to end user point. The concept of distribution system is
different from supply chain as distribution system is just an element of entire supply chain
procedure. There are various issues which are faced by the distribution system while operating at
both domestic level and international level.
According to Jacobs, Chase and Lummus, (2011), the most influential issue which impacts
the distribution system at domestic level is poor infrastructure. Infrastructure is the elements
which allows to effective communicate and commute from one place to another. But due to poor
infrastructure facilities such as uneven roads, non effective telephonic lines and others. All these
factors contribute to the issue of infrastructure problems. It is important to have standardisation
for infrastructure so that this issue can be resolved. Another issue which challenges the activity
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