Proposal Plan for the Supply Chain of Sadafco

Added on - 21 Apr 2020

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Running head:PROPOSAL FOR THE SUPPLY CHAIN OF SADAFCOPROPOSAL FOR THE SUPPLY CHAIN OF SADAFCOName of the StudentName of the UniversityAuthors Note
1PROPOSAL PLAN FOR THE SUPPLY CHAIN OF SADAFCOTable of ContentsIntroduction......................................................................................................................................3Framework for determining the suitable supply chain for Sadafco.................................................3Optimization of some aspect of supply chain of Sadafco................................................................5Proposal plan for implementing the new supply chain to Sadafco..................................................7Financial implication of supply chain, investment in plant and equipment, finance sources andmeasures of financial performance of Sadafco..............................................................................10Recommendation on control policies for the items of stock.........................................................11Conclusion.....................................................................................................................................11References......................................................................................................................................13
2PROPOSAL PLAN FOR THE SUPPLY CHAIN OF SADAFCOIntroductionThe purpose of this report is to analyze on the supply chain issues for developing theproposal for supply chain for Sadafco. Saudi Arabia and Foodstuff company ( Sadafco) has beenone of the market leader in Milk Market (UHT) in Saudi Arabia. This company captures half ofthe UHT milk market and near about one third of the total milk. Even this organization alsoproduces different products other than UHT milk that includes Ice-cream, Cheese, Ketchup ,Butter etc. The company’s mission is to develop, manufacture and market nutritious food foreach age groups as well as create high shareholder value through their teamwork. The supplychain refers to the system of companies , activities, resources and information that are involvedin distributing the goods from the suppliers to buyers (Ayağ, Samanlioglu & Büyüközkan, 2013).The activities of supply chain involves in transformation of raw materials or natural resources tofinished goods, which is then delivered to the buyers. The study also elucidates on theframework that is used to determine suitable supply chain for this company. One of thechallenges that the company faces is to incorporate supply chain in appropriate way in order tobenefit their customers and maximize profit (Badri, Bashiri & Hejazi, 2013). The aspect of thesupply chain of this organization that should be optimized is also discussed in this study. Theenvironmental impact on the supply chain that affects this aspect of chain is also illustrated inthis report. The study also focuses on the proposal plan for implementation of new supply chainto this company. The financial implications of supply chain, sources of finance and the measuresof financial performance of this firm are also explained in this study. The recommendation ofcontrol policies for the items of this company is also highlighted in this study.Framework for determining the suitable supply chain for SadafcoIn current changing marketplace, as the competition among the companies has been fierce,Sadafco expands their business focus on encompassing the supply chain in order to gaincompetitive advantage against their rivals. In present decades, the companies implements newbusiness framework that is based on their customized production as well as relationship with thesupply chain members (Bilgen & Çelebi, 2013). Historically, there are three basic stages ofsupply chain including- procurement, manufacturing and distribution that the organization triesto manage it in effective way. Increase in competitive pressures as well as globalization in the
3PROPOSAL PLAN FOR THE SUPPLY CHAIN OF SADAFCOmarket forced the organizations in developing supply chains, which facilitates them in quicklyresponding to the requirements of the customers. Supply chain integration procedure throughinvestment in technologies as well as cooperative arrangements aids in strategic ranking of theorganizations (Brindley, 2017). The conceptual framework helps in emphasizing the nature ofsupply chain management (SCM) within the organization. The SCM model mainly consists ofinterrelated elements that includes-a)The network structure of supply chain – The organization participates in the supply chainas the relationship at various points varies between the firms and networks. However, themanagement of the organization focuses on choosing the partnership level that has beenappropriate for that specific supply chain.b)The business processes of supply chain- Successful SCM mainly need change fromsupervising the functions of individual to incorporating activities into processes of supplychain (Estampe et al., 2013). The business processes mainly requires flow of informationthat in turn aids in creating the flow of best commodity.c)The management components of supply chain- There are nine components of SCM thatincludes-management procedure, company’s structure, planning and controlling,leadership structure, goods flow structure, reward structure, structure of work, businessculture, attitude of employees and information flow framework.
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