Improving Relationships and Reducing Costs in Supply Chain Management

This project analyzes the ways in which the relationship of supply chain can be improved, including better communication, understanding contracts, establishing roles and responsibilities, and maintaining honesty and ethics. It also explores the use of information systems for cost reduction, such as space utilization, automation, efficiency in order process, customer demand analysis, and proper packaging. Additionally, it discusses the importance of procurement and outsourcing in supply chain management, as well as the significance of sustainability in the context of Tate & Lyle Plc.

SUPPLY CHAIN
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Relationships in supply chain......................................................................................................1
Use of information system for reduction of cost of supply chain................................................3
Procurement or outsourcing ........................................................................................................5
Sustainability ...............................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Supply Chain Management of a company contains its process of management which is
utilized for the transformation of raw materials into final products. These activities can be used
in streamlining of different supply part for the business in order to maximize the value of the
customers and developing a competitive upper hand in the business. This project will critically
analyse the different ways in which the relationship of supply chain can be improved. In this
project with the mitigation of risk which is involved in supply chain information system will be
utilized of reduction of the costs of the supply chain. In this project it will be understood how
the organization is trying to improve its sustainability in its supply chain. In this project the
chosen company is the Tale & Lyle Plc. This company started as the manufacturer of sugar but
eventually this company diversified and now produces multiple food and beverage products.
MAIN BODY
Relationships in supply chain
The aim of the supply chain management is to make sure that all the various operations
of the company are done in the correct way. The relationships between the supply chain of a
company plays a very important role. In the supply chain of Tale & Lyle Plc the most important
role is of the employees which have to deal with the suppliers. This is important because the
employees are the ones which have the skills of management of their relationship with the
company (Patchett, 2019). These things provide the company with great benefit as it increases
the total strength of the supply chain and serves both the customers and suppliers. For this
company whose supplies come from farms which produce sugar cane it is important to follow
certain rules which are made for the farmers of the country. Different way in which this
company is successful in development of supply chain are,
Daily efficiency in communication :
The business of this company is or sugar manufacturing and production of other food
and beverages thus the suppliers of this company are the raw sugar cane which is provided
from the farms. Thus, the company needs to develop a good relationship with the suppliers as
they will provide fresh and better raw materials to the company which will improve the
1

company's product. This company can show regular interest on the farms of their suppliers with
efficient communication. This will show that the company is worried about the suppliers which
will develop good relationship (Zhang and Cao, 2018).
Understanding the obligations of contract :
For this company is it very Important to understand the agreements and contract which
are made between the suppliers and the company. It is important for the services takers and
shareholders to understand the contract. This provides confidence to both suppliers and the
company to know that the other party is following the actions which are mentioned in the
contract. Positive actions of the suppliers of the company gives it confidence and develops
positive relationship between the company and supplier (Geng, Mansouri and Aktas, 2017).
Roles and responsibilities establishment :
Tale & Lyle Plc is very important for some customers which are dependent on its
products, failure of production in this company can stop the market of the company by
affecting its customers. This makes the suppliers of the company very crucial and their role in
the whole process very important. It is important for the company to tell the suppliers how
important their role is in the entire process. This will increase the belief of the suppliers and
ultimately improve the relationship with them.
Honesty and Ethics :
For the development of relationship maintaining trust with the suppliers is very
important for the company. The business of the company depends over the trust which it has
with the suppliers and the suppliers depend on them. Thus, the company should not hide
anything from the suppliers. In the scenario when the company is producing a new product or
stopping the existing product its is important the company share these important information
with its suppliers for developing of relationship. Other ethical behaviour of the company can
also improve the relationship with the suppliers (Nimeh, Abdallah and Sweis, 2018).
Monitoring risk and helping the suppliers :
For any manufacturing company the suppliers plays a very important role for the
business. Thus, it is important for a company like this which produces sugar to help the farmers
of sugar cane when ever they need it. This not only develops good relationship between the
2

company and the supplier but also improves the CSR of the company. With this monitoring of
risk for the suppliers the company can improve relationship with them (Kim and Nguyen, 2018).
Use of information system for reduction of cost of supply chain
The strategy of the organization is tactically operate the information system in supply.
This will impact the delivering, planning and sourcing. Information system is utilized by the
company for acquisition of the products and goods delivery. The other services of the
information system is to integrate with the supply chain of this company. The information
system is used by this company in the following way for reduction of cost in the supply chain,
Space utilization :
The information which the company generate about the space it needs for the storing
the raw material, application or the machinery or storing the finished products is used by the
company to analyse the total capacity of the company. This information can be used by the
company for finding ways to develop more and more space which can be used by the company
for increasing its production size. The storage space of the company cost the company rent thus
maximum utilization of that cost will benefit the company (Taak and Kumar, 2019).
Automation :
The process of automation is the introduction of machines which helps in the
functionalities of the company and its warehouses. Machinery are very important for a
manufacturing company which wants to increase its efficiency and the cost of labour. With the
help of new machine the company also help its supplier in production of raw material. It can
also be used for transportation of the raw materials fast and in larger quantity which will
automatically reduce the total cost (Tönnissen and Teuteberg, 2020).
Efficiency in order process :
With the help of softwares and websites the company can develop a system which can
efficiently calculate the required raw material. Information system in this process will be helpful
for both the supplier and the company as it will help them to understand which product is
needed and which is not needed. New and more advance technologies can now provide these
results automatically and with calculation of any data. These systems will provide efficiency and
3

accuracy to the supply chain of the company. It will result in the company always having the
resources when required.
Customer Demand :
With the help of the information system the company can understand the customer
demand of their specific product. This will allow the company to purchase what is needed for
the production of demanding products. Thus, the decision of both the company and supplier
will be influenced. This will also result in less production of waste material and the company will
not be left over with additional stock. The suppliers will also benefit as they will not produce or
deliver access of the raw material (Vijayvargy, Thakkar and Agarwal, 2017).
Proper Packaging :
Information about the products will help the company to understand which product will
need more safety of packaging and which can be sold without proper packaging. This company
sells food products which it has to sell with proper packaging. Different food have different
expiry period thus the company will understand which food product needs preservatives and
which does not. Better packaging will result in safe product this will reduce the risk of loss and
save the cost for the company.
Measuring performance :
With the help of the information system the company can measure its performance and
understand the area which needs to be improved for saving more cost of production. This also
helps the company from the suppliers point of view.
Procurement or outsourcing
Tate and Lyle have invested more in technologies while for making the high impact over
their customer. Along with this taking much advantage from the big analytics data and having
new expansion in market. While through which they are must be required for making their
business expand with having the high tech technology and make sure about the customer
needs with their tastes in food products (Moon and Phillips, 2021). Supply chain management
while manage their credential new suppliers and managing the compliance for having the
proper regulation. Furthermore, this might be also include the improving suppliers with having
fast and flexible services from their organization.
4

Procurement in the organization make sure about those thing which might be important
for them in having their proper operational thing towards their working condition. While
through which the business that they can run and make sure clear chain of custody must be
required. Tate and Lyle facing many more challenges in having the many opportunities towards
the procurement, supply chain management for having the better competitive advantage
(Rainville, 2021). Therefore, the procurement or outsourcing that can have much benefits from
the direct and indirect for purchasing from the valuable flow while not losing any single request
from the various organization.
While in Tate and Lyle not all outsourcing agreement is going smoothly and making
much sense while for having their better development. Alongside this might be also important
in knowing about the various kinds of thing that could be much important in having the
organization with food and beverages (Gupta and et.al., 2021). Tate and Lyle having the large
manufacturing to the globally business and also make sure about the high impact over their
various customer. Hence, this might be also important for them in having the better technology
usages and making sure about the valuable things that could be important for them.
Tate and Lyle have the manufacturing organization in which the study have been found
out that often 6% to 15% of revenue have been taken through procurement outsourcing
(Procurement Outsourcing: 10 Things Companies Need To Know, 2017). This organization can
easily take much benefits from the outsourcing from the production variety for their products
in various ways. Gradually, it has been also seen that most of the companies have taken the
outsourcing process for making their organization while by having the much better
development. Along with this also important for knowing about the large number of benefits
for which the company can make their brand image.
Supply chain management must be important while for knowing about their suppliers
and how they can supply their products and services towards their customer (Aslam and et.al.,
2021). Outsourcing can also help for improving the financial services and try to make sure about
the increasing cash flow for the better development and make the market position. Tate and
Lyle procurement have become more mature in supplying of the manufacturing while through,
the relative outsourcing challenges can become lower and make their much benefits.
5

Sustainability
Sustainability in Tate and Lyle have their impact over the economies for the organization
and also trying to adhere the government guidelines or might be reacting to the customer
preferences. Hence, this might be also important for having the proper estimation in which they
can easily make sure about those thing which play the important while for having the better
development (Dombroski,2020). Along with this make sure about their growth in having the
better food and beverages for the customer. In many of the countries more than 60% of the
people make sure about buying the eco-friendly products. In Tate and Lyle organization they
care about their customer while by providing them with having the better healthy diet food and
beverages for their customer. While through which they can easily make sure about the high
impact over their consumer towards their products.
The majority that can be said that having the sustainability in the organization that
might be also lead for having the better development and easily make sure about the various
kinds of things. Therefore, this could be also important for having the food and beverages for
the sustainability from the various sources (Badu, 2019). Transforming food production that
could also lead for gaining visibility for more complexity in better supply chain and make sure
about more engaging for the sustainability journey in keeping their impact. The majority for
emission in the proper value chain that might be also include while for having the better
associated land stock for the organization.
Reducing resource while for taking the intensity in which the organization can make
sure about the high stream for their future aspects. Along with this Tate and Lyle organization
must be having their better sustainability for which they can attract more customer and make
their large customer for knowing about their products things (Gonera and et.al., 2021). Hence,
this might be also important in taking much advantage in which the business and make sure
about those things which could be important for them in knowing about their employee and
make their products for their better customer. While by having the proper identification and
implementing their more opportunities which might be also lead them for saving their much
resources. In having the better sustainability activities in the organization that might be easily
6

lead for having the better estimation for their cash flow and make sure about their proper
financial system.
This can be also happen while by having the developing zero road map in which only
14% of the food and beverages organization can meet over their sustainability objective and
goals. In engaging the more suppliers for their products and services that could also play the
important role in having their better sales performance for the organization (Tomaszewska and
et.al., 2021). Hence, this might be also important for taking the much sustainability products
and services for their customer and make sure about those things which might be important for
their customer. While investing more towards the sustainability that can easily lead for making
more products and providing more services.
CONCLUSION
With the help of this project it can be concluded that Tale & Lyle Plc needs to maintain
proper relationship with their suppliers which will eventually help the company to reduce its
cost and bring efficiency in its production. This company should use information system for
finding ways of cost reduction in its supply chain. This project discusses different ways of
relationship development in Supply chain. With the help of this project risk mitigating
information system can be utilized for cost reduction. It also helps in the reduction of supply
chain risk with the aid of supply chain outsourcing. For improving the sustainability of supply
chain this project suggests the company with some new ideas and steps.
7

REFERENCES
Books and Journals
Aslam, J. and et.al., 2021. Journal of Innovation & Knowledge.
Geng, R., Mansouri, S.A. and Aktas, E., 2017. The relationship between green supply chain
management and performance: A meta-analysis of empirical evidences in Asian
emerging economies. International Journal of Production Economics. 183. pp.245-258.
Gonera, A. and et.al., 2021. Moving Consumers along the Innovation Adoption Curve: A New
Approach to Accelerate the Shift toward a More Sustainable Diet. Sustainability. 13(8).
p.4477.
Gupta, S. and et.al., 2021. Procurement with Cost and Noncost Attributes: Cost-Sharing
Mechanisms. Operations Research.
Kim, S.Y. and Nguyen, V.T., 2018. A Structural model for the impact of supply chain relationship
traits on project performance in construction. Production Planning & Control. 29(2).
pp.170-183.
Moon, S.K. and Phillips, G.M., 2021. Outsourcing through purchase contracts and firm capital
structure. Management Science. 67(1). pp.363-387.
Nimeh, H.A., Abdallah, A.B. and Sweis, R., 2018. Lean supply chain management practices and
performance: empirical evidence from manufacturing companies. International
Journal of Supply Chain Management. 7(1). pp.1-15.
Rainville, A., 2021. Stimulating a more Circular Economy through Public Procurement: Roles and
dynamics of intermediation. Research Policy. 50(4). p.104193.
Taak, A. and Kumar, R., 2019. Supply Chain Issues and Challenges for Cement Industries of
India: A Case Study. In Advances in Industrial and Production Engineering (pp. 297-
302). Springer, Singapore.
Tomaszewska, M. and et.al., 2021. Estimation of the Scale of Food Waste in Hotel Food Services
—A Case Study. Sustainability. 13(1). p.421.
Tönnissen, S. and Teuteberg, F., 2020. Analysing the impact of blockchain-technology for
operations and supply chain management: An explanatory model drawn from
multiple case studies. International Journal of Information Management. 52.
p.101953.
Vijayvargy, L., Thakkar, J. and Agarwal, G., 2017. Green supply chain management practices and
performance. Journal of Manufacturing Technology Management.
Zhang, Q. and Cao, M., 2018. Exploring antecedents of supply chain collaboration: Effects of
culture and interorganizational system appropriation. International journal of
Production economics, 195, pp.146-157.
Online
Badu, M., 2019. Sustainability in the Food and Beverage Industry [Online]. Available through:
<https://journal.businesstoday.org/bt-online/2019/sustainability-in-the-food-and-
beverage-industry>
Dombroski, S., 2020. 8 Reasons Sustainability is Critical in Food and Beverage Manufacturing
[Online]. Available through: <https://foodsafetytech.com/column/8-reasons-
8

sustainability-is-critical-in-food-and-beverage-manufacturing/>
Patchett., L, 2019.Tate & Lyle investigates stevia supply chain. .[Online] Available trough:
<https://www.cips.org/supply-management/news/2019/february/tate--lyle-partner-
up-to-spread-sustainability-best-practice/>
Procurement Outsourcing: 10 Things Companies Need To Know, 2017. [Online]. Available
through: <https://omniprocurement.com/insights/all/16-general/23-procurement-
outsourcing-10-things-companies-need-to-know>
9