Significance of Supply Chain Management in 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.