Importance of Effective Supply Chain Management in an Organizational Context

PROJECT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Application of the key supply chain concept, principles and processes in an organizational
context-........................................................................................................................................1
Evaluation of importance of effective supply chain management (SCM)-.................................3
Interrelationship between supply chain and other areas of organization.....................................4
Critically evaluate the supply chain analysis...............................................................................6
Recommendations........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Supply chain can be defined as a network between organization and its suppliers so that
their products can be produced and distributed for the final buyer (Quarshie, Salmi and
Leuschner, 2016). This network includes various kind of people, information, activities,
resources and entities. SCM is a supply chain management process that focuses on flow of
goods, raw materials and services in order to make raw materials into final products. It is one of
the most important part of an organization in order to fulfil their customers demand, needs and
requirements. This assignment will lay emphasis on main key supply chain principles, concepts
that can be applied throughout stages of designing, development, logistics and distribution,
importance and effectiveness of supply chain management, interrelationship between supply
chain and others areas of an organization, improvements to improve supply chain strategy of an
organization. Organization that will be focused on in this assignment is Kellogg’s. it is world’s
leading breakfast cereal manufacturer that manufactures their final products in 19 countries and
sell their products in more than 160 countries. This assignment will also focus on case study of
how Kellogg’s manage their supply chain.
MAIN BODY
Application of the key supply chain concept, principles and processes in an organizational
context-
Supply Chain Management includes the key process and activities which can be
completed in the efficient and timely manner. If the supply chain management is not properly
executed and implemented in business then the product will not be available to consumer when it
is required or demanded by them. The Supply chain activity are not the responsibilities of one
company or one person. Multiple individuals should actively participate in team process for
making it work. From the start to finish of supply chain which range of department or agency are
involved. It also includes quality, research, sales, purchasing, transport and distribution. The
supply chain consists of three sectors that are Primary sector, secondary sector and Tertiary
sector. Whereas in primary sector provides raw material that can be sold immediately for
consumption further (Hugos, 2018). The secondary sector includes industry which form,
assemble and build product. Tertiary sector do not produce goods they render services like
retailing and banking. Kellogg's is the secondary sector business. It gets their raw materials of
corn, rice, wheat and sugar from the primary suppliers across globe. With the help of these
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materials they can develop various 40 breakfast snacks and cereals for selling their consumer by
tertiary sector. The process of the Supply chain management includes-
 Planning- The planning process focus on creating effective short and long range supply
chain strategies. The Kellogg's supply chain leader develop the SC strategies from design
to consumer demand prediction.
 Procurement-The purchase process of Kellogg's focus on buying of the needed
components, goods and raw materials. So consumer can easily purchase goods with
company.
 Production- The developing process involves manufacturing, assembling or conversing
of materials into finished goods and other product's parts (Copacino, 2019). Supply chain
manager of Kellogg render support to production and ensuring key materials are available
when it is needed.
 Distribution- Move procedure manage logistical flow of goods and services across
supply chain. Kellogg ensures that their goods are delivered safely and quickly to the
demand point.
 Consumer Interface- Demand process revolve across all of issue which are related to
consumer interaction planning, satisfying needs and demands of consumers and fulfilling
the order on time and perfectly.
There are various principles of supply chain management are as follows-
 Adapting Supply Chain to Consumer's Need- The supply chain and businesses
professionals understands the needs of consumer's. Customers are divided into various
groups which is known as 'segments'. The basis of profitability or sale volume, primitive
way for segmenting consumer is ABC analysis.
 Customize Logistics Network- After segmentation of consumer which is based on
various requirement the SCM manager of Kellogg have to tailor logistic network for
serving various segment. SCM manager has prioritized the delivery and making suitable
provision for quickly distributing products which are urgently marked.
 Align Demand Planning Across Supply Chain- Professionals of Kellogg supply chain
are trained for sharing data with their trading partner for avoiding unnecessary stock.
Demand data is utilized wisely by SCM manager.
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