Strategic supply chain management & logistics

We will discuss- Importance of supply chain management. Importance of effective supply chain management in achieving organizational objectives. The link between supply chain management and business functions in an organization. Key drivers for achieving an integrated supply chain strategy in an organization. Effectiveness of supply chain management strategies. Effectiveness of strategies used by Landmark to maintain supplier relationships. Utilizing information technology to create strategies to develop an organization’s relationship with the suppliers. The assistance of information technology integration of different parts of the supply chain of an organization. 

Running head: STRATEGIC SUPPLY CHAIN MANAGEMENT & LOGISTICS
Strategic Supply Chain Management & Logistics
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1STRATEGIC SUPPLY CHAIN MANAGEMENT & LOGISTICS
Table of Contents
1.0 Introduction................................................................................................................ 2
2.0 Discussion..................................................................................................................2
2.1 Importance of supply chain management...............................................................2
2.1.1 Importance of effective supply chain management in achieving organizational
objectives...................................................................................................................2
2.1.2 Link between supply chain management and business functions in an
organization...............................................................................................................3
2.1.3 Key drivers for achieving an integrated supply chain strategy in an
organization...............................................................................................................3
2.2 Effectiveness of supply chain management strategies...........................................4
2.2.1 Effectiveness of strategies used by Landmark to maintain supplier
relationships.............................................................................................................. 4
2.2.2 Utilizing information technology to create strategies to develop an
organization’s relationship with the suppliers............................................................4
2.3 IT in supply chain management..............................................................................5
2.3.1 Assistance of information technology integration of different parts of the
supply chain of an organization.................................................................................5
2.3.2 Contribution of information technology in the management of the supply
chain of an organization............................................................................................6
2.3.3 Effectiveness of information technology in managing the supply chain of an
organization...............................................................................................................6
2.4 Role of logistics in supply chain management........................................................7
2.4.1 Role of logistics in supply chain management in an organization.....................7
2.4.2 Procurement practices in an organization........................................................8

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2.4.3 Factors that must be considered when improving logistics and procurement
practices.................................................................................................................... 8
2.5 Strategy to improve supply chain management......................................................9
2.5.1 Strategy to improve an organization’s supply chain.........................................9
2.5.2 Benefit from supply chain improvement strategy overall business performance
in an organization......................................................................................................9
2.5.3 Overcome the barriers by implementing a supply chain improvement strategy
.................................................................................................................................10
3.0 Reference List..........................................................................................................11

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1.0 Introduction
Organizations uses supply chain management system in order to maximize their
efficiency and speed and optimizing the operational functionalities. Christopher (2016) stated
that organization value speed in business as customer always prefers fast service. However,
Stadtler (2015) argued that if an organization only considers on speed, the quality of the
business operation might get compromised and thus efficiency is equally important. Thus, for
maintaining both the speed and efficiency implementation of supply chain management system
is required. The main function of supply chain management process is the storage and
movement of both work- in- progress goods and final products fro manufacturing site to the
point of consumption.
In this business report, the supply chain management process and a plan for effective
SCM strategies will be discussed. The organization hat is taken into consideration is Landmark
Group in United Arab Emirates. The major operations of this group is retailing of apparel,
cosmetics, electronics products, footwear and other home improvements. In this business
assessment, the importance of effective supply chain management will be illustrated along with
the link between SCM and business functions, key drivers for integrated SCM strategy and
incorporation of information technology in the SCM. This business report will also address the
role of logistics in supply chain management and procurement practices in supply chain.
Effective strategies will also develop to improve the SCM and the benefit of overall business
performance will also be elaborated. Lastly, explanation for how a well implemented supply
chain improvement strategy will overcome the barrier of business functions will also be
addressed.
2.0 Discussion
2.1 Importance of supply chain management
2.1.1 Importance of effective supply chain management in achieving
organizational objectives
Jacobs and Chase (2013) stated supply chain management directly or indirectly fulfills
their demands and assure that they can get their products on time. Tayur et al. (2012) also
highlight that the major stakeholders in SCM are manufacturer, marketers, warehouses,
transporters, retailer and lastly the consumers. The prime aim of SCM is to maximize the overall

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value generated so that the supply chain profitability can be enhanced. Monczka et al. (2015)
described that the difference in the amount paid by the customers to purchase the products and
the total cost incurred to formulate the product is known as supply chain profitability. One of the
major objectives that all organization desire to attain is looking for different sources of revenue
and cost. In case of Landmark group they have implemented multiple business operation which
ion incorporation with supply chain management attains the cost quality improvements and
shortening the time for order and deliver it to the end customer, thus, attaining maximum
profitability which on the other hand is a major organizational objective. Moreover, an efficient
SCM can obtain a good understanding of business characteristics and provides flexible planning
and control mechanism. SCM also reduces transportation cost or the resource that is given to
third party provides which increases the overall annual revenue- another organizational
objective.
2.1.2 Link between supply chain management and business functions in an
organization
The basic link between these two factors is that maintaining SCM is a working approach of
business function. Ahi and Searcy (2013) stated that the more effective is the SCM, the more
efficient will be a company to obtain its goal. Moreover, SCM engage an organization in three
levels- strategic, tactical and operational. Managing authority is liable to decide how the
implemented SCM will work, while; tactical approach shows what features to be included in the
SCM. Lastly, the organization also decides how the system actually works so that it can obtain
the desired organizational aims. Process of organizational function can be witnessed from
“product development”, where an organization plans for a new product launch when their old
products get unnoticed. In such cases SCM plays a crucial role to set new product in the
market. Sarkis (2012) furthermore includes that many company differential their other subsidiary
which also handled by SCM of the parent company. In such context, the SCM is closely related
to obtain overall business functions. Lastly, SCM is associated with the external business
environment and with the help of SCM; an organization can identify their position in market
competition (Agus and Shukri Hajinoor 2012).
2.1.3 Key drivers for achieving an integrated supply chain strategy in an
organization
Some of the key drivers for obtaining an integrated SCM strategy are procurement process and
customer service management process. Walker and Jones (2012) stated in procurement
process, the tactics with the supplier to maintain the manufacturing current management is

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required for new product development. In case of Landmark Group, it has an international
presence and thus, these manufacturing details have to be taken on an international basis so
that costumer demands and market competition in each territory can be identified. Monczka et
al. (2015) describes that in some cases, collaboration with suppliers from other nation should be
obtained so that they can take benefit from each other and the total time for satisfying the
consumer need can be reduced. On the other hand, customer service management process
refers to a situation where customer gets the real time information on product accessibility.
Landmark Group utilizes approaches like- preserving the customer relationship by providing
them accurate information regarding their products, verifying associated goals both for customer
and organization and lastly producing optimistic feeling for future association by attractive
product development.
2.2 Effectiveness of supply chain management strategies
2.2.1 Effectiveness of strategies used by Landmark to maintain supplier
relationships
Efficient management of the SCM is the important way to manage their suppliers.
Landmark Group implements sourcing strategies, the way they managed and the way they
exchange policies with other territories. Wisner et al. (2014) depicted that maintaining supplier
relationships is crucial for being the customer of choice, fosters partnership based on trust,
managing working capital and setting clear expectations and KPIs. It is also said by Chan et al.
(2012) that effective strategies of Landmark for managing supplier relationships improve supply
chain sustainability. Landmark Group understands the cost and value of the entire supply chain
system. They always share the information of cost involved in raw materials and final products
with the supplier. Johnson (2014) also highlight that the concerned organization also accepts
accountability and plan sufficiently in order to request orders from suppliers. The prime reason
for that is emergency handling of supplier management not always provide a positive result.
Landmark Group spend equal time aligning incentives and penalties to the suppliers on
achieving their goals and if they make any unnecessary halts.
2.2.2 Utilizing information technology to create strategies to develop an
organization’s relationship with the suppliers
Landmark Group utilizes many technologies which is used to develop relationship with
their suppliers and that are- analyze the actual information about the market trends sales and
orders. The managers also predict and respond rapidly changes in demand. All the suppliers

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are connected through digital technology like e-mails and spreadsheet via networks. However,
the real-time data are not available with all the suppliers and thus in recent times; the
technology of cloud is considered. This technology also allow the organization to forecast
systems or inventory planning, enterprise resource planning (ERP) systems and online
analytical processing systems in order to analyze history sales performance. Priem and Swink
(2012) stated that the advantage of ERP system is that connecting order and purchasing
system is easily achieved and thus all the suppliers can place and track their orders. All these IT
allow the Landmark Group to develop an effective relationship with their suppliers.
2.3 IT in supply chain management
2.3.1 Assistance of information technology integration of different parts of the
supply chain of an organization
Golicic and Smith (2013) stated that role of IT plays a crucial role in integrating different
parts of the supply chain within the organization. The working departments where the IT
technology integrates the business is as follows:
2.3.1.1 Allocation network strategies
Wieland and Marcus Wallenburg (2012) stated that allocating resources denotes the
planning of the technology for maintaining the supply chain process. Landmark Group on the
other hand use the technology for allocating resources to warehouses and retailer.
Implementing of the IT in allocating resources and maintaining details not only make the
process fast but reduce the total holding and logistics costs.
2.3.1.2 Formulation source strategy
The two major components of the SCM that are logistics and production costs are
integrated through this IT system. Prajogo and Olhager (2012) depicted that retailer like
Landmark Group make some production line so famous that they produce that production line to
such an extent that the total cost for production gets reduced and they do not have to include
new technology by investing extra financial resources. Stadtler (2015) argued that the heavy
production on the other hand results in greater transportation cost but the production in small
batches related to the high fixed but the balance between the two selected process.
2.3.1.3 Evaluation source strategy
The IT system that is incorporated in this context is inventory control system that stores
the information of the stock, economic order quantity and other details like weight of the

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products, manufacturing and expiry dates of the edible products. This technology allows
Landmark Group to reduce the holding and ordering costs and also helps in avoiding the
adversity of over stocking and under stocking of products.
2.3.2 Contribution of information technology in the management of the supply
chain of an organization
Jacobs and Chase (2013) stated that the information technology helps in maintaining all
the real time details and then maintain the data accurately without any redundancy. However,
the information technology helps in rapid procedure to information and provides customer
service. The IT system manages all the detail of the customer and their orders that helps in
fulfilling their demands in time. Fawcettn et al. (2013) also stated that it leads to the reduction in
use of paper and manual work. All the automation technology helps the Landmark Group to
maintain the files and track the orders effectively. Thus, there is an increase in productivity as
due to automation technology all the order reached to their customer before time. Baltzan
(2012) also stated that implementation of IT results in improved tracing and expediting approach
also leads to reduce in cost. Moreover, implementation of IT results in competitive advantage
through the POS system where all the billing and weighting process scan be attained
automatically.
2.3.3 Effectiveness of information technology in managing the supply chain of
an organization
Sarkis (2012) stated that information technology offers many opportunity like it is
comparatively less capital intensive which means that it saves lot of financial resources which
on the other hand increases the annual revenue. The IT technology is also clean and
environmental friendly which on the other hand enhance the CPD rating of the organization.
Dyckhoff et al. (2013) on the other hand argued that electricity consumption might raise the
problem of global warming but in this case also Landmark Group introduces the green IT
technology system. Another benefit of IT technology is that the process can be maintained
without bounding to a particular geographic location. The maintenance of IT technology does
not need expensive infrastructure facilities and thus, not much cost is required for implementing
IT system. It technology helps in obtaining better control on inventory at different level of supply
chain management system. The IT system also keeps better utilization of manpower and avoids
the process of stealing from inventory. Krajewski et al. (2013) depicted that with the help of IT
technology; details about different supplier can be found from any corner of the world and then
select a reliable supplier for business. Incorporation of the IT in SCM also results in reduction of

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lead times of the material supply and retrieval time of the documented information as sharing of
information can be attain instantly.
2.4 Role of logistics in supply chain management
2.4.1 Role of logistics in supply chain management in an organization
Traditionally, SCM is understood to be a process that involves in the process of
transportation of products from one place to other. However, in recent times, Landmark Group
utilizes the SCM for material management, channel management and distribution of the
products.
2.4.1.1 Material management
The SCM allows the organization note all the required information that is needed for the
management of products like the storage of the products and how many items are present in
every slot of shipments. Ross (2016) stated that this is also known as management of
warehouses, where the organization can acquire and arrange the store supplies, manage
warehouse functions, ensures and updating goods receipt and record keeping for all material
issues, returns along with the damaged products.
2.4.1.2 Channel management
SCM plays a crucial role in channel management where marketing channels for the
promotion of the developed products is considered. The channel management also refers to
the strategic partnerships with the suppliers and retail customers through effective
communication technology. The channel management also contains technology leveraging in
order to increase efficiency through cooperation of all parties, automatic order systems that
furthermore decrease delivery lead times.
2.4.1.3 Distribution of the products
Winter and Knemeyer (2013) stated that the distributed management refers to
movement of goods from supplier or manufacturer and fulfils the approaches of packaging,
inventory, warehousing, logistics and supply chain. The SCM process should check the
availability of the resources whether or not they are able to fulfill all the customer demands and
then the product is transferred to one place to another. Incorporation of technology like
barcodes and RFID technology, tracking of all the packages can be attained successfully.

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2.4.2 Procurement practices in an organization
The Landmark Group follows procurement and Supply Chain (PSC) policies in order to
support the approaches in the SCM that they are following. The prime objective of the
organization is to produce and market food products that can fulfill the demand of customers
and consumer prospect. Landmark Group opted for two kind of procurement strategies- Pre
competitive and Competitive.
2.4.2.1 Pre-competitive strategy
This strategy deals with the association that Landmark Group developed with other
nations. The concerned organization collaborated with local farmers so that they can get raw
material not only in low process but also can get the fresh item for their hospitability. Moreover,
they also developed partnership with local stores in order to offer their products to end-
customers.
2.4.2.2 Competitive strategy
Landmark Group follows this strategy in order to attain the leading position in UAE. The
competitive strategy deals to encourage the sustainable SCM practices for effective supply and
mounting privileged contractor contracts.
2.4.3 Factors that must be considered when improving logistics and procurement
practices
The important factors that ensures the civilization of logistics and procurement practices
are- inventory management, warehouse, transportation, effective order processing, material
handling and effective information system.
Inventory management- The action of controlling ordering, storage and delivery of the products
from storage system is known as inventory management. The availability of stock is evaluated
in this process and thus, better management of stock leads to improve logistics and
procurement practices.
Warehouse- The effectiveness of the product and information flow in between the supply and
beneficiaries results in better warehouse management which on the other hand improving
logistics and procurement practices in Landmark Group.
Transportation- Landmark Group uses a combination of different transportation modes like- sea
freight for transporting their products to other nation, roads based on the feasibility of the used
cargos. The company also have several distribution points nearly located to the final location

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like regional distribution centre (RDC), origin consolidated freight stations (CFS) and central
distribution centre (CDC).
Effective order processing- Implementation of IT system allow the organization to get the order
from customer in real time and then fulfill the order through the effective transportation system.
This process will also enhance the logistics and procurement practices. It can also be said that
the information technology also enhances the quality of the SCM.
2.5 Strategy to improve supply chain management
2.5.1 Strategy to improve an organization’s supply chain
Some strategies that Landmark can use to improve their supply chain management are:
Reduction in cost: All the process should be selected optimally so that the overall production
cost can be reduced. Taken for instance, rather than hiring a third party provider for IT team in
SCM they can also formulated in-house IT department, who can handle all the operational
functionality of supply chain.
Reduction in time: All the SCM operations should be implemented in such a way so that the
total time for accomplishing all the tasks need lesser time. Regular and updated information
should be communicated to each supplier so that they can collaboratively obtain al the
organizational policies and objectives.
Enhancement in quality: All the quality of the products should be enhanced and use of greener
technology should also be incorporated so that people can prefer their brand compared to all
other brands. The Landmark can also conduct customer survey so that exact demand can be
identified.
2.5.2 Benefit from supply chain improvement strategy overall business
performance in an organization
There are several reasons through which supply chain improvement strategy can
improve the business performance. The improved strategy results in reduction in inventories
that results in when the demands of customer arise, the organization produces the products..
This also leads in reduction of wastage of inventory. The improved system enhances the
information sharing among the partners due to updated technology. The strategy also improves
the customer service as everyone gets their required demand in time. Moreover, trust among
partners can also be attained, which improves the partnership and both of them collaboratively

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work for attaining the organizational objectives. Thus, all the approach increased the
organizational profitability.
2.5.3 Overcome the barriers by implementing a supply chain improvement
strategy
Effective supply chain management system creates stronger connection with customers
as the organization emphasizes on customer satisfaction. Warehouse and inventory
management updates the required orders and then manufactures the desired order to fulfill the
customer needs. The strategy also overcomes the barrier of complexity reduction as all the
procedure is transparent with all suppliers and production will be done in a concise way.
Moreover, it can also be said that by implementing the suggested supply chain improvement
strategy, the organization can also attain improved internal collaboration as it provides
incentives and other benefits to their suppliers for obtaining the organizational goals. The SCM
strategy also offer practical interdependencies with the product design, supply chain
management along with the sales, marketing and finance.

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3.0 Reference List
Agus, A. and Shukri Hajinoor, M., 2012. Lean production supply chain management as driver
towards enhancing product quality and business performance: Case study of manufacturing
companies in Malaysia. International Journal of Quality & Reliability Management, 29(1), pp.92-
121.
Ahi, P. and Searcy, C., 2013. A comparative literature analysis of definitions for green and
sustainable supply chain management. Journal of Cleaner Production, 52, pp.329-341.
Baltzan, P., 2012. Business driven technology. McGraw-Hill/Irwin.
Chan, H.K., He, H. and Wang, W.Y., 2012. Green marketing and its impact on supply chain
management in industrial markets. Industrial Marketing Management, 41(4), pp.557-562.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Dyckhoff, H., Lackes, R. and Reese, J. eds., 2013. Supply chain management and reverse
logistics. Springer Science & Business Media.
Fawcett, S.E., Ellram, L.M. and Ogden, J.A., 2013. Supply Chain Management: Pearson New
International Edition: From Vision to Implementation. Pearson Higher Ed.
Golicic, S.L. and Smith, C.D., 2013. A meta‐analysis of environmentally sustainable supply
chain management practices and firm performance. Journal of supply chain management,
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Jacobs, R. and Chase, R., 2013. Operations and supply chain management. McGraw-Hill
Higher Education.
Johnson, P.F., 2014. Purchasing and supply management. McGraw-Hill Higher Education.
Krajewski, L.J., Ritzman, L.P. and Malhotra, M.K., 2013. Operations management: processes
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Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and
supply chain management. Cengage Learning.
Prajogo, D. and Olhager, J., 2012. Supply chain integration and performance: The effects of
long-term relationships, information technology and sharing, and logistics integration.
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Priem, R.L. and Swink, M., 2012. A demand‐side perspective on supply chain management.
Journal of Supply Chain Management, 48(2), pp.7-13.

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Ross, D.F., 2016. Introduction to e-supply chain management: engaging technology to build
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Sarkis, J., 2012. A boundaries and flows perspective of green supply chain management.
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Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and
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Tayur, S., Ganeshan, R. and Magazine, M. eds., 2012. Quantitative models for supply chain
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Walker, H. and Jones, N., 2012. Sustainable supply chain management across the UK private
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Wieland, A. and Marcus Wallenburg, C., 2012. Dealing with supply chain risks: Linking risk
management practices and strategies to performance. International Journal of Physical
Distribution & Logistics Management, 42(10), pp.887-905.
Winter, M. and Knemeyer, A.M., 2013. Exploring the integration of sustainability and supply
chain management: Current state and opportunities for future inquiry. International Journal of
Physical Distribution & Logistics Management, 43(1), pp.18-38.
Wisner, J.D., Tan, K.C. and Leong, G.K., 2014. Principles of supply chain management: A
balanced approach. Cengage Learning.