Improving Relationships and Reducing Costs in Supply Chain Management

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
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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
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