Supply and Distribution System Assignment

Running head: SUPPLY AND DISTRIBUTION SYSTEM
Supply and Distribution System of Sadafco
(Supply chain management)
Name of the Student
Name of the University
Author’s Note

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SUPPLY AND DISTRIBUTION SYSTEM
Topic- Supply Chain Management of Sadafco
Introduction
The following report is based on the warehouse design and supply chain management of
the organization Sadafco. The report discusses about how the organization deals with its supply
chain network and import the products from another country. Sadafco is located in Saudi Arabia
and the organization wishes to import milk products from New Zealand. The purpose of report is
to derive an understanding about how supply chain management and warehouse design helps the
organization to run its logistic operation. Supply chain management is the active management of
supply chain activities to increase the customer value and accomplish sustainable competitive
advantages. According to (Christopher 2016), it represents a conscious effort by supply chain
organizations to improve and operate supply chain in the most efficient and effective manners
possible.
Furthermore, supply chain activities cover everything from the product development,
sourcing, production and the information systems required to coordinate the activities. Beske
(2012), mentioned that the first is that practically every product that reaches an end-user
represent a significant amount of effort of multiple firms and these organizations are referred to
collectively as the supply chain. Hence, Best (2012) commented that whole supply chain
activities have existed for long time and most of the organization have only paid attention to
what were happening within the four walls. The following report discuses the purpose as well as
the use of warehouse. A critical analysis has also been provided on the significant factors in
warehouse designing.
Discussing the purpose and the use of warehouse including different types of warehouse

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SUPPLY AND DISTRIBUTION SYSTEM
Purpose of using warehouse:
Warehousing remains as the set of activities that are engaged in receiving as well as
storing goods and preparing them for the reshipment. It has been identified that warehouse and
the storage remains as an act of storing as well as assorting the finished goods to generate
highest time utility at lowest possible cost. Here, the need for storage arises for both raw
materials and the finished goods. Therefore, when this storage is done on a large range in
particular manner, it is called warehousing. Nonetheless, in this context, Fredendall and Hill
(2016) commented that many private organizations are turning into distribution centre instead of
constructing the warehouse. Such definition and concept of warehouse is the key part of the
supply chain network. The aim of the warehouse management is to control the movement as well
as the storage materials within a warehouse. In addition to this, it is also identified that such
system of warehouse management directs and optimizes stock, with the help of real time
information about the status. Such system involves the physical warehouse infrastructure,
tracking systems as well as the communication between the product stations (Ahi and Searcy
2013). Moreover, it is also observed that warehouse is not only concerned with the storage
facilities but also involved in different activities such as receiving, identifying, holding,
assembling, and preparing to meet the growing demands. In addition, warehouse helps to store
the surplus good as well with the help of which the business experts can focus in maintaining a
balance between customers’supply and demands. Sadafco in order to maintain the entire supply
chain management process properly has focused to store their product to warehouse so that
customers can be delivered necessary products and services properly.
Types of Warehouses:

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SUPPLY AND DISTRIBUTION SYSTEM
Private warehouse:
It has been identified that the private warehouses are owned as well as operated by the
large manufacturers to meet their own storage needs. In this context, commented that goods
manufactured or purchased by the owner of the warehouses have a limited value or the utility
because the businessmen generally might not be able to make use of them due to the large
investment required in the construction of a warehouse. A large manufacturer might have a
network of its own warehouses in different parts of the nation.
Public Warehouse:
Public warehouse is the form of specialized business establishment with the help of
which people in general can store their products in certain charge. Generally a specific
cooperative society tends to operate the entire process of public warehouse. People in general
who do not have enough flexibility in maintaining and establishing a warehouse are the primary
users of public warehouse. In order to run a particular public warehouse the operators have to
maintain specific government regulations and acts. Especially, this kind of warehouse is used for
maintaining and storing agricultural products.
Bonded Warehouse:
Bonded warehouses are used for the purpose of accepting imported goods for storage. I
order to run and operate bonded warehouses the operators need to have license. In order to use
bonded warehouse the operators have to follow a particular bond. In this particular bond goods
cannot be removed without taking a specific consent of the custom authority. Therefore, the good
cannot be withdrawn without taking the consent of custom authority. This particular warehouse
is very much beneficial for both importer and exporter. If an importer and exporter is unable to