Significance of Supply Chain Management in Business Organization

This document discusses the concept of supply chain management and its principles and processes applied in different levels of supply chain administration. It evaluates the integration of supply chain concepts and processes to improve the efficiency of a business organization. The document also assesses the significance of SCM from the perspective of customers, suppliers, distributors, and retailers, and critically evaluates the importance of physical, financial, and information flow administration. It further explores the cross-functional and integrated approach of SCM with other areas of the business organization.

Supply Chain Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Demonstrate concept related to supply chain, its principles as well as processes applied in
different level of supply chain administration........................................................................3
Evaluate integration related to supply chain concepts, processes that improves level of
efficiency of business organisation........................................................................................6
TASK 2............................................................................................................................................6
Evaluate significance of SCM from perspective of customers, suppliers, distributors as well as
retailers...................................................................................................................................6
Critically assess significance or importance of physical, financial as well as information flow
administration.........................................................................................................................7
TASK 3............................................................................................................................................8
Assessment of cross functional as well as integrated approach related to SCM along with
another areas of business organisation...................................................................................8
Examine suggestion of interrelationship among supply chain as well as another functional
areas........................................................................................................................................8
Critically assess concepts related to supply chain, principles as well as processes and
interrelation with another areas of business organisation.......................................................9
TASK 4............................................................................................................................................9
Assess strategy related to supply chain as well as proposal of improvement........................9
Justify as well as recommend improvements related to strategy of supply chain...............10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Supply chain administration signifies network among organisation & supplier which offer
different material that is adopted by them in procedure related to manufacturing. The distributor
related to company is determined as a part of supply chain. The supply chain required to be
managed appropriately by organisation as it is used to handle cost and provide facility to achieve
competitive edge at marketplace. The appropriateness related to procedure of supply chain
assists organisation to make sure that availability of material on time. The company is taken in
this assignment is Kellogg's. It is an American international organisation who provides cereals as
well as convenient food to its user. It is international organisation that operates or conducts their
business in above 180 Nations with a wide variety of cereal goods. In this assignment, there are
various concept related to supply chain and process is also discussed. In addition to this, there is
an importance of appropriateness of supply chain and approach related to cross functional that is
determine or discussed in this report. Furthermore, there is a recommendation which is provided
to organisation that assist them to increase whole process related to supply chain in proper way
(Cooper, 2017).
TASK 1
Demonstrate concept related to supply chain, its principles as well as processes applied in
different level of supply chain administration
The supply chain is determined as a process that assists organisation to make sure that
availability of products related to requirement of customer to its manufacturing department. This
assists them to offer finished product to its user by producing it appropriately (Yuen and Thai,
2017). In procedure related to supply, there are different elements that are involved like
activities, resources and many more. In addition to this, for improving understanding level
related to supply chain concept that is considered or determined by Kellogg's that is going to be
given below:
Logistic management Logistic administration is determined as a part of supply chain
administration that assists them in appropriate planning in order to fulfil need of user. It also
provide facility to company in planning and executing as well as controlling the flow of product,
services and also information during particular phase of time period. It also involves
administration of resources in such a manner that help in meeting need of user. The Logistic

facility is also performed by company in order to outsource its product to service provider. In
addition to this, the Kellogg's possess own Logistic administration system that assists in
appropriately handle supply material. It also helps in satisfying need and wants of its user that
increases sales in future period of time. Herein, the Kellogg Company have its own logistics
administration system which aids assistance in properly managing supply material that aids
assistance in increasing efficiency level of company which will be helpful in taking effective
decision during particular phase of time period.
Distribution channel it provide support to Kellogg's related to movement of products and
services to its user. In addition to this, there are different kind of channel related to distribution
that is depend on company like channel that provide direction to organisation, to offer food to its
user. The traditional way adopted by different intermediaries that involve retailer, wholesalers as
well as many more. By using innovation, the procedure related to distribution of Kellogg's are
enhanced as both wholesaler and also retailer adopt flexible channel ability that help in satisfying
user during the period of time (da Silva, Kovaleski and Pagani, 2019). In addition to this, the
Kellogg adopt effective distribution channel that helps in providing effective delivery to its user
that helps in increasing profit margin in future period of time.
Value chain the value chain is determined as a concept that provides facility to company
to achieve competitive edge over rivalries at marketplace. In addition to this, this model involves
different kind of support that assists company in assessing process and requirement related to
change in process. Such kind of assessment assists in increasing profit margin and flow in
procedure related to supply chain that is assessed. In context of Kellogg, for managing supply
chain in an appropriate manner, there is a requirement of use of procedure related to supply chain
that is going to be mentioned below:
Plan in planning stage related to process of supply chain, there are different kind of plan
are executed by company for providing goods and services to its user according to their need. In
this level, Kellogg's adopt different kind of attributes like location, size and many more. This
level of process assists resource related to supply chain as they assess resources while executing
plan. In addition to this, the price linked with organisation like transportation cost, modelling
cost that is also assessed in an appropriate manner. There are different kinds of efficiency model
that is adopted by organisation for handling inventory in proper way.

Source in this level of a process of supply chain, there are different kind of supplier assist
in order to provide superior quality to them. It helps in making appropriate distribution channel
in order to assess reliable supplier and they focus on providing superior quality goods.
Executing this level of process of supply chain, the procedure related to manufacture is
undertaken in order to satisfy its user as the goods are improved according to need of its user.
The management team of Kellogg's focuses on scheduling activity that helps in completing its
activity in timely manner.
Deliver this level is linked with delivery of goods to its customers by using appropriate
distribution channel. The management team of Kellogg’s adopt distribution channel in order to
make sure that availability of goods and services to final user in timely manner.
Return this is determined as last stage of process of supply chain in which defective
product are provided back to producer.
The supply chain provide material in timely manner for business organisation there are
different kind of principles that is used by organisation in order to manage supplies and
administration in an appropriate manner. In addition to this, there are seven principles that are
adopted by company that is given below:
Adopt supply chain as per customer needs according to this principle, the market is
categorised in different segments to increase their understanding regarding target market and
according to that, they execute plan. In addition to this, it help organisation to distribute finished
products appropriately as they increase their understanding need of user during the period of time
(Ivanov, Tsipoulanidis and Schönberger, 2017).
Customise logistics network according to this principle, the network related to logistic
required to customise by organisations that help in providing services in an appropriate manner.
This help in taking decisions that increases profitability in future period of time.
Link demand planning approach across supply chain through this principle, the
organisation plan for providing quantity of product as well as services according to need of
customer at marketplace.
They differentiate their product according to need customer the product that is offered
by organisation must be differentiated from other products. Therefore, it helps them in providing
unique product in context of designing and improvement.

Outsourcing strategy this strategy is applicable on distribution and logistics is
outsourcing for purpose of improving process at it assists in reduction of cost for organisation.
Develop IT which provide support to multilevel decision making this principle provide
suggestion that IT procedure like basic software that help in managing inventory of organisation
appropriately.
Adopt both services and financial metrics these activities are depending upon cost can
be used by company that assists in assessing procedure as well as profitability of user.
All these processes related to supply that assists organisation to plan different stages like
resourcing, product design as well as distribution and many more. There are different kinds of
technique that must be followed by organisation such as just in time, Six Sigma and so on. This
makes sure that it is necessary to timely delivery goods and services of organisation also reduce
or decrease price related to operation.
Evaluate integration related to supply chain concepts, processes that improves level of efficiency
of business organisation
By use of different concept related to supply chain, the organisation appropriately
considered activity that is undertaken to increase procedure that helps in achieving goal. In this
concept, there are different kind of principle which is followed by Kellogg's that help in making
sure that focuses on producing and delivering goods at low level cost and facilitate appropriate
management. The management team focuses on managing delivery of goods in timely manner by
using Logistic network according to need of its user (Kshetri, 2018).
TASK 2
Evaluate significance of SCM from perspective of customers, suppliers, distributors as well as
retailers
The supply chain administration possesses different significance for company as they
provide facility to reduce price through different procedure for achieving objectives.
Furthermore, it will assist them in increasing satisfaction level of user as products will deliver to
its user in timely manner. In addition to this, the appropriateness related to procedure of supply
chain increases flow of products and services, cost as well as significance of SCM. The
appropriateness in supply chain administration from different perspective such as customer,
supplier, distributor as well as retailer that is going to be mentioned below:

Effectiveness in supply chain administration from point of view of customer
the products are delivered and services are handled by distributor as they focus is on
making delivery in timely manner and this increases satisfaction level during particular phase of
time period. It can be adopted through maintaining appropriate relation with supplier in order to
take product in timely manner (Leon and Uddin, 2016). This result in appropriate
communication through which they focus on reducing cost and make sure that they get product
in timely manner according to need of its user. It increases sales and profit margin of company in
future period of time.
Effectiveness in supply chain administration from retailer perspectives
Through supply chain administration, the Kellogg makes sure that adequate inventory is
provided to retailer in order to increase sales in future period of time. Furthermore, it reduces
price of organisation as the appropriateness related to procedure of supply chain decreases time
and also decreases whole cost during the period of time.
Effectiveness in supply chain administration from the point of view of supplier
The appropriateness of supply chain administration possesses different aspects that
impose positive effect on company. Due to appropriateness related to procedure of producing as
they provide product to manufacturing department in timely manner. In assistance of this, they
appropriately supplies and administrates organization by using different supply methods and
select one that is suitable or appropriate for them. It increases confidence level of supplier and
make sure that the organisation conduct their operations in an appropriate manner (Meredith
Shafer, 2019).
Effectiveness in supply chain administration from point of view of distributor
The appropriateness in supply chain administration focuses on making appropriate
communication and increases understanding that is based on IT software. Through this process,
they assess inventory level and provide product according to need of its user during the period of
time.
Critically assess significance or importance of physical, financial as well as information flow
administration
The appropriateness in supply chain results in proper flow related to physical resources,
information flow as well as financial resources. The focus is on a making appropriate
communication in order to understand supplier, distributor and many more. Due to movement of

inventory level invoices, they can easily share with one another that help in making improvement
during the period of time. All such assessment assists organisations to handle finance flow
through which shortage of finance as well as mismanagement of finance can be managed
appropriately.
TASK 3
Assessment of cross functional as well as integrated approach related to SCM along with another
areas of business organisation
The company focuses on integrating functions that assists in reducing costs and use
resources in an appropriate manner. There are different function which is adopted by Kellogg's in
addition with their supplies and administration that increases process related to managing
material information, products and services as well as many more (Quarshie, Salmi and
Leuschner, 2016). It will assist them in taking appropriate decisions that is completely depend
upon action of overall department. Therefore, the integration of different department related to
Kellogg's along with another sector that is going to be mentioned below:
Integration of SCM along with finance department the finance sector collect finance
for organisation according to estimation for immediate need of fund in addition with this they
use different analysis that assist them to handle cost of goods and services that is offered by
them. Based on such kind of information, they execute budget and maintain plan in an
appropriate manner.
Integration of SCM along with production department the production sector of
organisation produces goods as they provided to its user. In addition to this, the SCM provide
direction to them for requirement of goods according to demand or need at marketplace. Through
such guidance, they focus on manufacturing products and services according to need of its user.
Integration of SCM along with distribution department the distribution sector focuses
on providing product to its user in different or various locations according to demands.
Therefore, the in context of Kellogg's, it aids assistance in handling flow of products and services
appropriately by using different techniques like just-in-time approach that helps organisation to
handle inventory in proper manner. There are different approaches adopted by company in order
to reduce error and executing various tasks in proper way (Queiroz and Wamba, 2019).

The SCOR model for supply chain management is adopted by business organisation and
the central focus is on five areas related to supply chain that is given below:
Plan demand as well as supply planning and administration are involved in first step. The
elements involved balancing resources along with need and assessing communication in addition
with whole change. The plan also determine organisation rule to increase efficiency of supply
chain. The Kellogg Company adopt this to make appropriate plan that is necessary for smooth
running of company.
Source this level provide description regarding outsourcing infrastructure as well as
material acquisition. It also provides explanation regarding how to handle inventory, supplier
network, supplier performance in an appropriate manner. In context of Kellogg’s, they follow all
steps for increase efficiency level by managing inventory in an appropriate manner.
Make the manufacturing as well as promotion emphasize on this level. In process of
manufacturing involve promotion activity, packaging staging, product and many more.
Therefore, the organisation focuses on making product according to need and wants a user that
increases efficiency level in future period of time.
Deliver it involves receiving order or taking order from user and invoices them once the
goods has received. Therefore, the administration of finished stock as well as reporting
requirement is done through this stage.
Return: the organisation prepared to handle return of packaging, defective products and
many more. Thus, the Kellogg focuses on follow return policy in order to satisfy need and want
of user during particular phase of time period.
Examine suggestion of interrelationship among supply chain as well as another functional areas
The integration of supply chain with another function of company has different advantage
for them. By using interrelation, the price is managed as well as control and Kellogg's focuses on
utilising resources appropriately and conduct different function in proper manner. There are
different kind of technique that is adopted by organisation like total quality method, just in time
approach and many more. All this assists organisation to make sure that they deliver goods and
services to its user and to manufacturing department. It saves efforts as well as contribution of
individual person in order to conduct different activity in an appropriate manner (Singh and
Teng, 2016).

Critically assess concepts related to supply chain, principles as well as processes and
interrelation with another areas of business organisation
The supply chain administration provides facility to organisation to handle flow of
production services. In addition with information flow and resources are handled in appropriate
manner, there are different kind of concept that is adopted by company in order to increase
whole supply chain. They offer appropriate strategy that can adjust them to handle distribution of
goods and their process of manufacturing. Through production process of organisation they can
produce goods in timely manner according to demand of its user. It increases experience level of
customer towards goods and services provided by company. The business organisation focuses
on providing unique products and services to its user for satisfying their need. It aids assistance
in increasing sales as well as profitability level in upcoming period of time.
TASK 4
Assess strategy related to supply chain as well as proposal of improvement
By assessing above given case, it has been analysed that supply chain is adopted by
organisation to offer better facility to its user. By reducing cost of goods, it is simple for
company to conduct their task in an appropriate manner. In addition to this, it is adopted by
administration to complete work according to administration strategy that help in increasing
brand during particular phase of time period. The chosen organisation creates trust among goods
by assessing brand name during the period of time (Tiwari, Wee and Daryanto, 2018). Apart
from this, Kellogg's also focuses on operating organisation in order to satisfy need of its user and
also the company implement agreement related to FDS that results in reducing harmful gases in
atmosphere like CO2, hydrogen as well as many more. In assistance of this, the primary aim is to
use gas as well as water resources in order to increase quality related to goods and services that is
provided by administration. In addition to this, the company is capable to reduce whole
production price. There are some points that are going to be mentioned below:
 The company possess option in order to collaborate directly or interact with its suppliers so
that qualitative product is provided to its user at low cost.
 TQM approach is determined as a best approach that helps company to maintain quality of
goods.

 There are wide ranges of platform that assists company to approach its user directly without
any kind of network channel (Wamba and Queiroz, 2020).
Justify as well as recommend improvements related to strategy of supply chain
An appropriate strategy related to supply chain is determined as a most appropriate tool that
signifies company to produce goods according to quality standards. It aids assists its organisation
to perform work on regular basis. Apart from this, the strategy also help organisation to reduce
actual price that is connected to supplies and change of company. It is simple for organisation to
enhance brand image by offering superior quality goods to its user at lower price.

CONCLUSION
On basis of above given strategy, it is assess that supply chain administration signifies
network among organisation & supplier which offer different material that is adopted by them in
procedure related to manufacturing. The distributor related to company is determined as a part of
supply chain. The supply chain required to be managed appropriately by organisation as it is
used to handle cost and provide facility to achieve competitive edge at marketplace. The
appropriateness related to procedure of supply chain assists organisation to make sure that
availability of material on time. In this assignment, there are various concept related to supply
chain and process is also discussed. In addition to this, there is an importance of appropriateness
of supply chain and approach related to cross functional that is determine or discussed in this
report. Furthermore, there is a recommendation which is provided to organisation that assist
them to increase whole process related to supply chain in proper way.

REFERENCES
Books and Journals
Cooper, R., 2017. Supply chain development for the lean enterprise: interorganizational cost
management. Routledge.
da Silva, V.L., Kovaleski, J.L. and Pagani, R.N., 2019. Technology transfer in the supply chain
oriented to industry 4.0: a literature review. Technology Analysis & Strategic
Management, 31(5), pp.546-562.
Ivanov, D., Tsipoulanidis, A. and Schönberger, J., 2017. Global supply chain and operations
management. A decision-oriented introduction to the creation of value, 2.
Kshetri, N., 2018. 1 Blockchain’s roles in meeting key supply chain management
objectives. International Journal of Information Management, 39, pp.80-89.
Leon, S. and Uddin, N., 2016. Finding supply chain talent: an outreach strategy. Supply Chain
Management: An International Journal.
Meredith, J.R. and Shafer, S.M., 2019. Operations and supply chain management for MBAs.
John Wiley & Sons.
Quarshie, A.M., Salmi, A. and Leuschner, R., 2016. Sustainability and corporate social
responsibility in supply chains: The state of research in supply chain management and
business ethics journals. Journal of Purchasing and Supply Management, 22(2), pp.82-
97.
Queiroz, M.M. and Wamba, S.F., 2019. Blockchain adoption challenges in supply chain: An
empirical investigation of the main drivers in India and the USA. International Journal
of Information Management, 46, pp.70-82.
Singh, A. and Teng, J.T., 2016. Enhancing supply chain outcomes through Information
Technology and Trust. Computers in human behavior, 54, pp.290-300.
Tiwari, S., Wee, H.M. and Daryanto, Y., 2018. Big data analytics in supply chain management
between 2010 and 2016: Insights to industries. Computers & Industrial
Engineering, 115, pp.319-330.
Wamba, S.F. and Queiroz, M.M., 2020. Blockchain in the operations and supply chain
management: Benefits, challenges and future research opportunities.
Yuen, K.F. and Thai, V., 2017. Barriers to supply chain integration in the maritime logistics
industry. Maritime Economics & Logistics, 19(3), pp.551-572.
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