Strategic Supply Chain Management for Wesfarmers: Issues, Significance and Strategies

Strategic supply chain management

Strategic supply chain management
Table of Contents
Introduction.................................................................................................................................................3
Issues identification.....................................................................................................................................3
Significance of the supply chain management.............................................................................................6
Strategies to resolve the supply chain management issues..........................................................................8
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11
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Strategic supply chain management
Introduction
The primary objective of this task is to outline the supply chain issues that are entertained
by Wesfarmers while functioning and operating. It is continuation part of the assignment 1. In
previous assignment, factors and issues of the supply chain had been explained. Now it also
discusses the various other issues of supply chain in briefly. Along with this, effective strategies
have been explained in the task to eliminate the supply chain issues. Wesfarmers faces ample of
issues while implementing the business globally.
Wesfarmers is a conglomerate company that was formulated in 1914 by the Australian
farmers. It is one of the biggest listed companies in the Australia (Wesfarmers, 2018). The
company is having employee’s approx 220,000 who are performing effective roles. The
company provides energy, fertilizers, chemicals, and industrial and safety products to the
customers across the world. It is one of the biggest private sector employers. The main motive of
the firm is to satisfy the needs and demands of the customers through the provision of the goods
and services on a professional and competitive basis (Wesfarmers, 2018).
Issues identification
It has been found that supply chain management plays a significant role in each and every
company. As the same way, it also plays a vital role in Wesfarmers. The supply chain
management is the wider range of activities and operations required to plan execute, and control
a product’s flow, from acquiring raw material and production through distribution to the final
customers in a cost effective way (Christopher, 2016). The supply chain management helps in
optimizing the efficiency and speed in a hassle free manner. Along with this, it also increases and
improves level of satisfaction of the customers. After the various researchers, it has been
identified that ample of issues are faced by Wesfarmers while implementing the business
activities and operations in a large extent. All these challenges may hamper the success and
performance of the company adversely (Tayur, Ganeshan & Magazine, 2012). It has been
highlighted that Wesfarmers faces many challenges or issues due to poor quality of raw material.
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Strategic supply chain management
It is stated that raw material issues reflect the company’s significant social and environmental
impacts that could affect the decision and assessment of the stakeholders. Apart from this, it also
observed that rate of child labor in the company has also increased simultaneously. It could also
affect the efficiency and financial image of Wesfarmers adversely in the global market. It is very
complex for Wesfarmers to manage and control the key problems and issues related to global
supply chain management. It has been studied that stock does not turn over in a short time period
in the company. It produces significantly less profit as compared to the needs and requirements.
Therefore, it may affect the overall revenue and outcomes of the firm. On the other hand,
Wesfarmers is facing a harsh and intense competition from the various other brands that has a
formulated supply chain process which leads to threat. Another issue that faced by the company
is lack of professional skilled worker (Marucheck, Greis, Mena & Cai, 2011). The organization
has failed to appoint high skilled and talented staff at the workplace due to high employee
turnover rate. This could also hamper the goodwill of the firm in the international market. Proper
maintenance of transportation tool is one of the significant key issues in front of the top
management. Due to lack of effective maintenance of transportation tools and techniques, the
overall performance and sustainability of the company could be hampered. Transportation is one
of the vital parts of supply chain management. Without transportation, supply chain management
can be effective and successful (Fernie & Sparks, 2014).
As stated by Carter & Liane Easton (2011) that poor delivery system also affects the long
term mission and vision of the company negatively. Due to lack of delivery, the organization is
unable to provide retail products and services to the customers across the world. In this way,
delivery is major concern for Wesfarmers that should be improved. Supervision and control
another issues that are occurred in the organization. Due to lack of monitoring and supervision,
Wesfarmers has failed to maintain proper inventory level in the workplace. In this way, many
challenges are faced by the company (Ahi & Searcy, 2013). It has been analyzed that
Wesfarmers faces ample of challenges and issues due to poor and ineffective communication.
Due to lack of effective communication, the company is unable to maintain proper
communication and collaboration with customers. Technology is also a serious concern that is
dealt by the company while maintaining an effective and unique supply chain management at the
workplace. It has been found that employees at Wesfarmers uses traditional and old technologies
therefore, they are unable to increase and enhance the productivity and efficiency (Tang & Musa,
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