Supply Chain Management.

Supply Chain
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Application of supply chain concepts, principles and processes at all the stages of resourcing,
product design and development, logistics and distribution..................................................3
Integration of supply chain concepts to improve organisational efficiency...........................5
Effective logistics in Kellogg's...............................................................................................6
LO 2.................................................................................................................................................6
Effective SCM from various stakeholder perspectives..........................................................6
Importance of physical information and financial flow management in supply chain..........8
Importance of demand management and procurement policies.............................................8
LO 3.................................................................................................................................................8
Cross functional and integrated approach of SCM with other areas of organisation.............8
Implications of interrelation of SCM with other functional departments............................10
Supply chain concepts, principles and processes and their interrelation with other departments
..............................................................................................................................................10
LO 4...............................................................................................................................................10
Evaluation of supply chain strategy and recommendations on improving it.......................10
Justification on the supply chain strategy.............................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Supply chain management relates to managing the flow of goods and services through all
the stage from their conversion from raw materials to the final products so that they can be made
available to customers which can help in their satisfaction and the company can gain a
competitive advantage in the market. Supply chain management is an important concept which
needs to be managed in an efficient manner so that the cost of supply of products and services to
the final customers can be reduced (Copacino, 2019). In this report Kellogg's is taken which is an
American multinational food manufacturing company established in 1906 and is headquartered
in Michigan, US. The company manufactures cereal and convenience foods and markets its
products under the brand name Corn Flakes, Special k, Pringles, Eggo etc. in this report the key
concepts, principles and processes of supply chain which helps the company in improving their
efficiency will be discussed along with the importance of effective SCM. Further
recommendations on improvements that can be done in SCM will also be given so that the
strategies related to supply chain can be improved.
LO 1
Application of supply chain concepts, principles and processes at all the stages of resourcing,
product design and development, logistics and distribution
Supply chain management relates with managing all the stages through with the raw
materials are converted into final products so that supply can be made as cost efficient as
possible. The concepts of supply chain management include raw materials, components,
manufacturer, retailer and consumer. All the concepts help in acquiring the right kind of raw
materials so that these can be sent to the manufacturer who will convert them into final products
which are then supplied to the wholesalers or retailers so that finally the products reach to the
end consumers. There are 7 principles of supply chain management which are described as
follows : Apply supply chain based on customer needs : This can be done by segmenting the
customer based on ABC analysis which is based on sales volume or profitability that is
linked to the customer segments (Christopher, 2016). Customize logistics network : This means that different logistics networks need to be
applied to serve the needs of different segments.

 Align demand planning across supply chain : This means that the inventory must be
maintained only as per the requirements of products in the market so that storage costs
can be reduced. Differentiate products close to customers :This means that the company products need to
be differentiated from other products so as to attract more customers to the products. Outsource strategically : It means that outsourcing should only be done if the company
cots gets reduced because of it like labour cost, cost of storage and transportation etc. Develop technology to support decision-making : This should be done so the decision-
making can be made cost efficient (Fredendall and Hill, 2016).
 Adopt both service and financial metrics : This will help the companies in making their
supply chains cost efficient so that customers can be provided with supply of goods and
services on time.
The supply chain management includes the following steps :
Stage 1 : The first stage of SCM is procurement of raw materials from the suppliers. For this the
best suppliers are chosen so that quality materials can be procured at best prices which will help
the company in providing high quality goods to its customers. Kellogg's obtain its raw materials
of wheat, corn, cocoa and sugar from primary suppliers around the world.
Stage 2 : After procuring raw materials the final products are manufactured, designed and
developed sop as to be delivered to the customers. Kellogg's largest manufacturing plant is in
Trafford Park in Manchester.
Stage 3 : After production the company supplies its raw materials to the distributors so that the
products can be available to customers through retailers. Kellogg's collaborates with TDG which
is a logistics specialist and helps the company in managing its logistics so that timely supply of
goods can be done.
Stage 4 : The last stage of SCM are the retailers who finally make the goods available to
customers. Kellogg's provide its products in shelf ready units so that the products can be
effectively displayed to attract the customers to make purchases of Kellogg's. Customer relationship management : It means building long-term and strong relations
by maintaining, controlling and assessing customer interaction and data. Customer service management : It means providing products and services to customers
according to their needs and wants (Supply Chain Management Processes .2019).