Supply Chain Management

Running head: SUPPLY CHAIN MANAGEMENT
Supply Chain Management
Name of the Student
Name of the University
Author note

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Executive Summary
The report has assisted in analyzing the different kinds of issues in the distribution channels
of the Reitan Distribution Company along with analysis of both external and internal
influences. Furthermore, reduction of the delivery and lead time have been analyzed in which
this has helped in optimizing the logistic system in an effective manner. In order to meet the
buffering dates, this has been essential for the company in reducing the issues effectively.
The inventory management based activities of Reitan Distribution has also been analsed in
the report. The ways by which the company can improve its service levels have been
discussed in the report in a detailed manner. The report has been concluded by stating that
Reitan Distribution can improve its operations by the increasing the number of employees
and suppliers.

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Table of Contents
Introduction................................................................................................................................3
Problem Formulation.................................................................................................................3
1. Reduction of Delivery Time from 48 Hours to Less Than 24 Hours.................................3
1.1 Reaction on Change from Two Days Delivery to Daily Delivery and Lead Time in
Reitan Distribution.................................................................................................................4
1.2 Optimising Logistics System in Order to Meet Buffering Dates by Reitan Distribution 5
2. Issues in Reitan Distribution..................................................................................................6
2.1 External and Internal Influence on Reitan Distribution...................................................8
3. Types of forecasts to be made by Reitan Distribution for becoming more efficient.............9
3.1 Ways of using demand data to make forecasting...........................................................11
3.2 Forecasting method that is most accurate for Reitan Distribution.................................11
4. Ways by which Reitan Distribution can improve the service level.....................................12
4.1 Ways used by Reitan Distribution to manage inventory................................................13
4.2 Importance of seasonality to influence service level.....................................................15
4.3 Level of inventory..........................................................................................................15
5. Effects of current and future flows of value stream on internal and external view in Reitan
Distribution..............................................................................................................................16
5.1 Level of supply chain management currently and ways by which it can change in the
future....................................................................................................................................17
Conclusion................................................................................................................................18
References................................................................................................................................19

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Introduction
The report helps in the entire analysis of the internal and external value chain along
with logistical issues in Reitan Distribution Company. Furthermore, the current state of the
different operations is required to be analysed appropriately which will help in analysing the
different kinds of operations which are being undertaken by the company.
The formulation of the problem along with providing appropriate solutions is required
to be done which will help the respective distribution company in managing and reducing the
delivery time along with analysis of the issues of the distribution company effectively. Proper
improvement of the service levels is required to be analysed appropriately as to identify
current along with future value stream flows n external and internal view in Reitan
Distribution.
Problem Formulation
1. Reduction of Delivery Time from 48 Hours to Less Than 24 Hours
The delivery time can be reduced from 48 hours to less than 24 hours in the Reitan
Distribution by applying the following methods in an effective manner:
Proper usage of the domestic suppliers as this will help in automatically reducing the
lead time by more than two weeks. Proper increase in the number of suppliers for the
company will help Reitan Distribution in managing the demands of the customers and this
will lessen the potential kind of delays in the organization (Pagell and Shevchenko 2014).
This has been noticed that the customers in the market do not like waiting and this creates
frustration among the customers as well (Waters and Rinsler 2017).
Increase in the frequency of the order is the second element which can help in
reducing the delivery time from 48 hours to less than 24 hours. Proper total cost analysis is

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required to be done as this will help in determining the different orders which have been
placed by the customers in the entire market. The smaller number of products can be ordered
which will reduce the lead time and this will reduce the delays as well (Monczka et al. 2015).
Consolidation of the different suppliers is essential in nature which will help in
managing the different suppliers in an effective manner. The proper maintenance of the
relationships with the multiple suppliers in the market is essential in nature which will help in
handling multiple accounts and implementation of the management software will help in
streamlining the processes along with creating efficiencies as well (Simpson et al. 2015).
Creation of the proper incentive is essential in nature for Reitan Distribution
Company which will help in managing the different activities of the suppliers efficiently. The
lead time can be reduced from 48 to 24 hours by staying coordinated with the suppliers and
analyse the schedule of the production with the other projects effectively.
1.1 Reaction on Change from Two Days Delivery to Daily Delivery and Lead Time in
Reitan Distribution
In order to reduce the lead and delivery time, there can be different changes which
have to be faced by the company Reitan Distribution centre. There are different kinds of
implementation of changes such there will be:
Increase in the costs of the supply of the goods and services which are being
distributed from the company as there will be increase in the number of labourers in the
company and this will incur huge costs as the salaries and wages will be require d to be
provided to customers in an effective manner (Fernie and Sparks 2014).
There will be more sales of the company which a positive aspect of the company and
this will be will help the company in gaining more competitive advantage in the entire
economy (Stadtler 2015). Furthermore, this will help them in providing forecasts to the

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different suppliers relating to the different activities and the orders which are required to be
delivered to the customers within specified time.
Furthermore, the information will be automated along with the supply chain which
is being used by Reitan Distribution as this will reduce the lead time in an effective manner.
This has been seen that the process will be expensive in nature as there will be different kinds
of other expenses which are extra included in the process of the reducing the delivery time in
an effective manner (Carter,Rogers and Choi 2015).
1.2 Optimising Logistics System in Order to Meet Buffering Dates by Reitan
Distribution
The Reitan Distribution company can include different techniques which will help the
company in meeting the different buffering dates by the Reitan Distribution. There are
different kinds of analysis which is required to be done by the respective company which are
as follows:
Design of the process and development is essential in nature which helps the
company in introducing more cost-effective processes. The Reitan Distribution company has
to include the effective networks which will help in examining the operations in detail and
this will redesign the process of logistics (Carter,Rogers and Choi 2015)
Proper identification of the key drivers such as building multiple suppliers network
which will help in identifying the drivers for gaining outstanding performance effectively.
With the redesign of the process, this will help in optimization of the cost and the
opportunities can be increased to more than 25%.
Improvement in collaboration between suppliers and retailers for demand data
driven forecasting along inventory management is essential in nature which will help in
providing different kinds of opportunities for proliferation of data and this will help in proper