Application of Key Supply Chain Concepts, Principles and Processes

This study material discusses the application of key supply chain concepts, principles, and processes. It explores the difference between service and manufacturing supply chains and the principles of supply chain management. It also covers topics such as efficient resource planning, obtaining working capital, demand planning, and production scheduling.

Running head: SUPPLY CHAIN
Supply chain
Name of the student
Name of the university

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Author Note:
Table of Contents
Introduction......................................................................................................................................5
Part 1................................................................................................................................................5
Application of Key Supply Chain Concepts, Principles and Processes..........................................5
Supply Chain...............................................................................................................................6
Difference of Supply Chain between Service and Manufacturing Sector...................................7
Supply Chain Management..........................................................................................................7
The key principles of supply chain management........................................................................8
Use of lean supply chain principles to enhance competitive advantage......................................9

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Efficient and effective resource planning and management......................................................10
Obtaining working capital and investment in capital................................................................11
The relationship between demand planning and production scheduling...................................11
Incorporating project management techniques into the production process.............................11
Selecting the most appropriate strategy (e.g. make or buy)......................................................12
Flow management as a concept and technique..........................................................................12
Selection of the most appropriate location for establishing a manufacturing operation, including consideration of transport links and
costs...........................................................................................................................................13
The use of real time automated delivery notification systems..................................................13
Part 2..............................................................................................................................................14
Evaluation of the importance of effective supply chain management...........................................14
Relationship with Suppliers and Logistic Service providers.....................................................14
Management of Service Sector Supply Chains vs. Management of Manufacturing sector Supply chains 14
Management of customers and meeting their needs efficiently and effectively to build a competitive infrastructure 15
Benefits of effective Supply Chain Management......................................................................16

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Development of Procurement Strategies...................................................................................17
Demand Management (Forecasting and Planning)....................................................................18
Analysis of Supplier Landscape................................................................................................18
Price and Quality of the Product................................................................................................19
Time taken to Deliver................................................................................................................19
Place of the Supplier..................................................................................................................19
Ways to meet the anticipated Demand......................................................................................20
Vendor Relations.......................................................................................................................20
Part 3..............................................................................................................................................21
Evaluation of the interrelationships between supply chain and other areas of organization.........21
Supply Chain Integration...........................................................................................................21
Relationship Between the supply chain and other business functions......................................22
Factors influencing decisions to integrate the supply chain......................................................22
Supply Chain Logistics..............................................................................................................24

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Customization of Logistics Network to meet service requirements..........................................24
Customer Demand Planning and Product Life Cycle................................................................25
Holistic Approach to managing and Optimizing the effectiveness of supply Chain.................26
Balancing inventory...................................................................................................................26
Virtual supply chain modeling...................................................................................................27
Use of SCOR Model..................................................................................................................27
Recommendation for improvements to a supply chain strategy for an organization................29
1. Automatic Purchasing............................................................................................................29
Gain Data Insight.......................................................................................................................30
Real-Time Inventory Management............................................................................................31
Monitor Vendor Performance....................................................................................................31
Raise Cost Awareness................................................................................................................31
Improve Returns Management..................................................................................................31
Just-in-time (JIT).......................................................................................................................31

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Streamline Accounting..............................................................................................................32
Timeline.....................................................................................................................................32
Table 1: Timeline of the Supply Chain Action Plan..................................................................33
Figure 1: Gantt chart..................................................................................................................33
References......................................................................................................................................34
Introduction
Part 1
Application of Key Supply Chain Concepts, Principles and Processes
The application of key supply chain concept is one of the most important concerns of the management of the business
organization. The supply chain concepts are linked with the strategies of the business by following a number of steps. This includes;
a. Segmentation of the customers based on the service needs of distinct groups and the adaption of the supply chains that will be
utilized to serve the following segments.
b. Customization of the logistics network to the service requirements and ensuring the profitability of the customer segments.

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c. Differentiation of the products and services that are closer to the customer and helps in the conversion all across the supply
chain of the business organization
d. Adoption of a supply chain that spans the performance measures to gauge the collective success of the organizations
For example taking the case of Unilever the company has a large supply chain base which is divided into different types;

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Figure 1: Supply Chain of Unilever
Source:(supplychainmovement.com/tag/unilever 2019)
Supply Chain
The supply chain is the system of the organization, activities, people as well as different kinds of the activities, information and
resources that are generally involved in moving a product or service from the supplier or the customer (Akkucuk 2016). The particular
network between the company and the suppliers is to produce and distribute a particular product and the supply chain represents the
different steps it takes to deliver the end product or service to the consumers. The supply chain of the American holding company has
only two specific drug distribution channels. This includes the OTC and the prescription. The Food and Drug distribution limited of
USA regulates both of these channels (Brindley 2017). The Company processes the raw materials and delivers the final drug at the
manufacturing unit. The management of the company generally stores the drugs in different central as well as regional warehouses.
Difference of Supply Chain between Service and Manufacturing Sector
There are a number of differences in between the Service and manufacturing supply chains of the industrial sector. The
differences are as follows;
Factors Manufacturing Supply Chains Service Supply Chains
Demand from the market  Changes slowly over
the passage of time and
 Cannot be measured
approximately because

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thus prediction can be
made accurately
it varies on different
kinds of factors. It is
important for service to
adapt to different
changes quickly and
react quickly
Number of Products  Few Products  Service can be of large
numbers. It can even
cover the entire
production history
Types of Products  Manufacturing supply
chains contain similar
kind of products
 Service supply chains
can be of different
types depending on the
nature of the industry
Channels of Distribution  There are different
kinds of distribution
channels for
manufacturing sector
 One network that
delivers a large number
of different services
Goals of Inventory  Speeding up the
movement of the
resources through the
process of production
 Contains the resources
and delivering the
resources at the right
time
Maturity in Technology  Highly developed
systems
 Technology is not
much applied in
service sector. It is still
in initial stages
Turnover of the Product  Large turnover  Medium turnover

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Supply Chain Management
According to, Akkucuk (2016) Supply Chain Management is the broad range of activities that are required to plan, control as
well as execute the flow of the product, acquire raw materials and also ensure production through the distribution to the final customer
in the most proper as well as cost effective manner.
The management of Walgreen Boots Alliance in USA uses fixed, regulator certified suppliers to acquire raw materials
(Christopher 2016). These raw materials and the finished products of the company are also stored in different warehouses of other
companies. The distributors and the suppliers of the organization receives the drugs and then supplies them to the different entities in
the retail segment like hospitals, clinics as well as pharmacy stores.
The key principles of supply chain management
The key principles of Supply Chain management for the organization are as follows;
 Principle 1-Segmentation of the customers of the products based on the service needs and the adaption of the supply chains to
serve the different segments in a profitable manner
 Principle 2- Customization of the logistics network to the service requirements and a profitability of the customer segments
 Principle 3- Listen to different kind of marketing signals and align the demand planning accordingly across the supply chain,
ensuring consistent forecasts as well as the optimal allocation of the resources
 Principle 4-Differentiation of the product closer to the customers and conversion of the speed across the total supply chain

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 Principle 5- Management of the supply sources in a strategic manner that helps to reduce the total cost of owning the different
materials and the services
 Principle 6- Development of the supply chain strategy by implementing technology which is capable to support multiple levels
of decision making and also presents a transparent and clear view of the product flow, services and information
 Principle 7- Adoption of the Channel Spanning performance measures to gauge collective success in reaching the end user
effectively and more efficiently
Use of lean supply chain principles to enhance competitive advantage
Lean strategies have been developed to eliminate or reduce waste and thus improve the different kinds of operational
efficiency in a manufacturing environment. The research of Arora Arora and Sivakumar (2016) suggests that Lean strategies have
been developed in order to speed up the production and also make the production more effective. In the case of the pharmaceutical
sector considering the case of Walgreen Boots Alliance in USA it has shown a willingness to simplify the business operations,
processes and reduction of costs by means of lean implementation. The management of the business enterprise follows the proper
manufacturing practices but there is a lot of scope for the implementation of the Lean management practices to improve the
operational efficiency (Fernie and Sparks 2018).
As said by, Ayers and Odegaard (2017) the implementation of the Lean principles helps the organization to support effective
quality management systems for the business organizations. These systems form an integral part of the organization as because it

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enables them to provide quality products. The strategy of the organization differs from the other organizations and mainly focuses on
data validation that helps to improve the quality of the drugs manufactured by them (Fredendall and Hill 2016). Following the core
lean aspects like Robust design, validated process helps the organizations to have a competitive advantage over their rivals in the
market.
Efficient and effective resource planning and management
The success of the acquisition of Boots UK by Walgreen Boots Alliance of USA will depend on the effective implementation
and the most effective use of the available resources. One of the most important elements of resource management is the management
of the resources on whether they actually work or not (Ayers and Odegaard 2017). In the following case the management of both the
companies have to utilize the resources in such a manner that it can achieve the objectives of the supply chain. Some of the main ways
that will be followed by the management of the companies to effectively manage the resources will include the likes of;
a. Using the people as effective resources- The management of the people will again be one of the most important tasks for the
organization. The effective management of the people in the company can help the organization to utilize the resources of the
organization in the most appropriate manner (Hugos 2018). Leadership, effective communication and emotional intelligence
can help the organization to motivate the team members of the pharmaceutical company.

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b. Integrating Technology- Brindley (2017) suggests that the supply chain management of the pharmaceutical business has
largely improved after the arrival of the different forms of technological measures which includes automatic vending
machines, automatic medicine sorting machines and many more as such.
c. Transparency- The alignment of the different resources will be key to boost the transparency of the supply chain of the
organization. The better the transparency, the better will be the supply chain. (Mangan, Lalwani and Lalwani 2016)
d. Having an idea of the future requirements- The idea of the future changes in supply chain and the demands of the
organization will be key to the effective use of the resources. Such an idea can help the organization to stay ahead in the race
for supremacy in the market.
Obtaining working capital and investment in capital
The management of Walgreen Boots Alliance of USA has to be careful while searching for working capital in the market for
Boots UK. The management of the former have to stay alert on the amount of expenses incurred by the latter and the amount of debts
currently the company has in the market (Monczka et al. 2015). The management can ensure the creation of a line of credit or can
request for government grants and subsidies to ensure that Boots UK comes out from the current position that they are in.
The relationship between demand planning and production scheduling
Demand Planning is the process of forecasting the demand for a product or service so as to produce it more efficiently and
effectively (Brindley 2017). On the other hand Production schedule is the timetable that is used by a business to produce different

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kinds of goods and provide services. Though two of the elements differ from each other the two are quite well interlinked (Ptak and
Schragenheim 2016). The forecasting of the demand of the medicines that will be produced by Boots UK can only help to make the
schedule of the production in the most effective and proper manner.
Incorporating project management techniques into the production process
The incorporation of a project management technique into the production process of the organization can help change the
productivity of Boots UK. The different steps that are involved in the production process can therefore be divided according to a
proper and effective project schedule to ease the production process. Some of the most important such divisions include the likes of;
a. Designing a new product
b. Preparation for the production of new medicines
c. Management of a new supply chain process
d. Improvement in the production process of the medicines
e. Shortening of the time to market
Selecting the most appropriate strategy (e.g. make or buy)
The selection of the strategy in the particular case will depend on the market research of the other rivals in the industry like
that of Superdrug, Nordstrom and many more as such. However, as the main target for the company is to reduce the operational costs

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making will be the most appropriate strategy as it will help the organization to reduce the cost of purchasing medicines and other
products from other drug companies .
Flow management as a concept and technique
Christopher (2016) says that the global interconnected economy has led to the transformation of the market landscape and has
thus created a number of different challenges for the business organization accordingly. The strategic management of the business
enterprises must increasingly focus on the fundamental changes with respect to the markets, products and the services. The concept of
flow management thus supports this particular transformation and includes the likes of implementation of Workflow management as
well as business process management (Rostamzadeh et al. 2015).
Selection of the most appropriate location for establishing a manufacturing operation, including consideration of transport
links and costs
The selection of the location of the manufacturing plant is dependent largely on the presence of effective logistics and the
access of the company to different kinds of customer markets (Hugos 2018). Moving the manufacturing plant closer to the potential
customers of the drugs produced by Boots UK will be the primary criterion for the selection of the manufacturing plant. On the other
hand the management must build an end to end supply chain to facilitate the easy movement of raw materials to and from the new
manufacturing plant.

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The use of real time automated delivery notification systems
The application of barcode scanning, digital cameras and smart phones, etc. in warehouse operations can change the way the
management manages the supply chain management. Barcode scanning, use of cameras will ensure transparency and effective
management of the different employees in the business, whereas the use of computerized shipping can help the management to track
and invoice the drugs produced by the organization for effective logistics and distribution (Emmett and Crocker 2016). Lastly the use
of Software and cloud computing can ensure the real time updates on production scheduling and inventory (Monczka et al. 2015).
Part 2
Evaluation of the importance of effective supply chain management
Relationship with Suppliers and Logistic Service providers
An efficient and trusted relationship is one of the main demands for a proper supply chain management. Strategic and tactical
relationships in the supply chain can usher in a positive change in the supply chain management of the organization (Emmett and
Crocker 2016). Each function of the logistics are inter-related with the supply chain management of the organization. Therefore it can
be said that a positive relationship in between the suppliers and the logistics service providers will be utmost necessary for the

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business organization to effect necessary changes in the supply chain management of the organization (Ptak and Schragenheim 2016).
The absence of any kind of support of the logistics team will make the suppliers of the company ineffective and will lead to a highly
unpredictable service.
Management of Service Sector Supply Chains vs. Management of Manufacturing sector Supply chains
The ultimate goal of the management of Boots UK is to provide quality products to the customers of the organization. The core
function of the supply chain management in such case will thus be to locate, obtain as well as to ensure obtain and transport the inputs
needed to do this accordingly (Fawcett et al. 2015). However, the service sector and the manufacturing sector have key differences.
Though a large portion of the cost of manufacturing labor is involved in procurement and transportation, the service industry on the
other generally manipulates information and develops relationships. In the case of Boots UK, which is a manufacturing industry, the
management focuses solely on moving physical material as a part of their logistics functions, whereas the service industry is totally
free from such kind of logistical functions.
Management of customers and meeting their needs efficiently and effectively to build a competitive infrastructure
According to Fawcett et al. (2015) the management of customers and meeting their demand will involve the implementation of
a number of strategies. First of all the company can adopt a demand driven approach and a business operating model to operate
properly and prepare itself for impending risks. Secondly the focus of Boots UK after the completion of the acquisition process will be
totally on the construction of an agile and integrated supply chain management. The old model was to wait until the end of the month

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or quarter to shift production and supply based on shipments and sales (Hugos 2018). The new model calls for more continuous,
dynamic supply chain adjustments to rapidly respond to market changes. This can minimize or even eliminate shocks across the
supply network. Therefore the following can help the organization to achieve success in the organization.
Importance of Supply Chain Management
The importance of supply chain management is as follows;
1. Supply chain management helps to ensure a better networking and communication in between the manufacturing units, storage
units and the point of sales
2. Presence of an effective supply chain management ensures the quality of the product
3. A better and well organized supply chain management helps the organizations to achieve a unique competitive advantage
4. Supply chain management helps to ensure the sustainability of the business in the competitive market
Evaluation of integrated supply chain management
There are different types of integration which are as follows;
a. Integration by function
b. Integration by process
c. Selection of the suppliers and the development process

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 Suppliers-The presence of an effective supply chain will help the suppliers as because the suppliers will be able to garner
profit and revenue by means of providing quality goods with ease (Fawcett et al. 2015). The presence of a proper
transportation system will also help the suppliers to supply goods to the end people as early as possible.
 Customers-The customers will be able to receive the best quality products within time in the presence of an effective supply
chain. The customers of the organization will thus receive the best products from the organization in the presence of an
effective supply chain management.
 Distributors-The distributors will be enjoying similar facilities like that of the suppliers as they will get enough scope and
opportunity to utilize the available resource to distribute different products to the sales points or the retailers.
 Retailers-The retailers will enjoy a high turnover as the increase of the supply chain demography will ensure the success of the
business in the market.
Benefits of effective Supply Chain Management
Some of the major benefits of effective supply chain management are as follows;
a. Improved product and material flow- As mentioned earlier, the improvement of the supply chain management can help in the
proper flow of the product to the end customers (Fernie and Sparks 2018). The less time taken for the goods to reach the
customers, the more efficient will be the flow of the product. The presence of an effective supply chain management is key to
the improvement of the product flow and also through the accurate demand and sales forecasting.

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b. Increased and effective financial flow- One of the most important benefits of the supply chain management is the increase in
the financial flow of the organization as because the improvement in the supply chain will lead to the financial inflow (Fernie
and Sparks 2018). The company will receive a number of invoices and payments in a given year.
c. Easy flow of information- Lastly the improvement in the supply chain can also lead to greater communication of the suppliers
and the management which will lead to easy flow of information in the organization.
Development of Procurement Strategies
The engagement of the Walgreen Boots Alliance with Boots UK will be one of the major boosters for the latter to change and
totally transform the procurement policy of the business organization. The management of Walgreen possesses the effective
knowledge and knowhow of the supply chain management field and has a clear idea about the different kinds of emerging markets and
the technological advancements in the business (Fredendall and Hill 2016). The company also focuses on building up a strong bond in
between the supply chain managers of Boots UK and the suppliers which can help the organization to easily carry smooth business
operations in the market (Rostamzadeh et al. 2015). Apart from this the management of the business needs to ensure the proper usage
of time, preparation and scheduling to effectively carry out logistics and supply the products to the end users of the products of the
organization.

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Demand Management (Forecasting and Planning)
Demand Management is one of the most effective steps that has to be completed by the business organization to avoid any
kind of loss from demand planning. The importance that demand forecasting brings with it makes it one of the most essential
component of the supply chain process for Boots UK. The research of, Fredendall and Hill (2016) says that the forecasting of the
demand for both the raw material as well as the finished products can facilitate the purchasing manager to release the timely purchase
plan of the suppliers. Boots UK can also use their limited resources most effectively and efficiently to gain success in the market and
attain a competitive advantage. Lastly the organization can also use the large number of warehouses of Walgreen Boots Alliance to
easily balance the inventory levels and negotiate the transport options of the organization.
Analysis of Supplier Landscape
The suppliers of the organization are generally the different kinds of the people who supply different types of raw materials to
the company to produce the end products. To become competitive in the pharmaceutical industry, Boots UK has to take the help of the
suppliers of Walgreen . Taking the help of the supplier of Walgreen can ensure the increase in the bottom line of the business
organization. The profitability will occur from continuous cost cutting rather than the top line growth of the organization. The
company has to ensure the presence of a proper and efficient supplier landscape to meet the targeted production of the organization
and also to satisfy the demands of the customer (Ptak and Schragenheim 2016). The management of Boots UK must ensure that they
perform business transactions within a reasonable price.

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Price and Quality of the Product
The new products that may be delivered by Boots UK in new markets must be priced at a reasonable rate (Genovese et al.
2017). A price less than the other substitute products can ensure market growth. Apart from this the company must guarantee the
quality of the product to ensure a healthy growth in the existing as well as the new market. Ensuring the quality of the product as well
as the quality can help the organization to be both successful as well as sustainable in the market.
Time taken to Deliver
The selection of the suppliers for Boots UK will have time of delivery as one of the most important clauses. As mentioned
earlier, the management of the company must ensure the shortest time in the supply chain (Giannakis and Papadopoulos 2016). The
management must select the suppliers who will be able to deliver the raw materials within a short time and also deliver the end
products of the organization to the end users. According to, Holzbaur Ross and Rothrock (2016) the time taken to deliver is thus one
of the most important elements that have to be considered by the organization.
Place of the Supplier
The management of Boots UK has to ensure that the operational location of the supplier is within the vicinity of the
manufacturing plant of the business enterprise. The presence of a large number of warehouses and logistical support centers close to
the manufacturing unit of the organization will help the organization to ensure easy facilitation of transportation and movement of raw
materials to the manufacturing unit of Boots UK.

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Ways to meet the anticipated Demand
The management of Boots UK will have to select the suppliers who are capable of meeting the demands of the organization.
The selection of a cost-efficient, functional system can help in the development of the business which can help in the management of
the costs and improve operational excellence. Some of the main steps to anticipate the demands are;
a. Adoptions of a well tailored business stream- Boots UK tend embrace a one-size problem that relates to different types of
problem. The most used model for the organization is the sale of the high margin products.
b. Proper usage of time- The proper usage of time can help to anticipate the demand of the company and also help to select the
best suppliers.
c. Implementing a flawless transport- A flawless and efficient transport can help save time and help to reach the raw materials to
the manufacturing unit of Boots Uk within the correct time. The selection of the suppliers with an efficient transportation
system is thus considered to be one of the basic concepts to meet the demands of the company.
d. Implementation of a proper communication tool- The selection of a proper communication tool can help to anticipate
demands. The selection and maintenance of a communication like that of a secured online application to be used by the
management of both the companies can work wonders as a proper communication can ensure success for the organization.

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Vendor Relations
As said earlier, the management of Boots, UK has to ensure a proper and efficient relation with the different kind of vendors
with whom they do business. The presence of an effective vendor relation can help change the organizational productivity and most
importantly change the supply chain management system of the organization.
Part 3
Evaluation of the interrelationships between supply chain and other areas of organization
Supply Chain Integration
The creation of the most integrated approach to supply chain management involves the start of the creation of an alignment
across the different kinds of business processes and throughout the application suite of the supply chain (Hsu Tan and Mohamad
Zailani 2016). The following environment requires that the supply-chain planning and supply-chain execution processes and
applications are tightly coupled where planning activities and execution activities are interrelated (Hugos 2018). Ultimately, the idea is
that the flow of material and information throughout the supply chain becomes a unified process. Most of the key points that need to
be considered to build the integrated approach are as follows;

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a. Breaking down the organizational silos- The end to end supply chain of the business enterprise must operate as a unified
entity to achieve an integrated approach in the business.
b. Alignment of the business processes- The alignment of the business processes requires the management to integrate a cross
functional approach to design the business process accordingly (Jahre 2017). Starting at a high level and mapping out the
supply-chain flow with the goal of creating an end-to-end mapping of the business process will help to complete the business
process.
c. Defining the organizational objectives-The description of the organizational objectives to the suppliers of the business will
make the suppliers aware of the demands of the organization and will thus enable them to deliver the products needed by the
Company at the perfect time, thus avoiding any delay.
Relationship Between the supply chain and other business functions
There is an effective relationship in between the supply chain and other business functions of the organization. Boots, UK can
use the help of the supply chain to analyze the views of the customers in a proper and organized manner. With the help of the contracts
and survey results, the company will be able to manage the customer service in the best possible manner. Apart from this the supply
chain helps the management of the business organization to gain a transparent knowledge of the external business environment that is
helpful for the company to analyze the business of the organization in different markets (Jahre 2017). A healthy relationship in
between the organization and the suppliers can also lead to the generation of an effective customer service management process. The
presence of an effective customer service management process provides the real time information on arrangement and accessibility of

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the product through the different interfaces with the manufacture of the organization and the distribution operations of the business
organization.
Factors influencing decisions to integrate the supply chain
The integration of the supply chain in the company basically depends on a number of different factors. Some of the main
factors are as follows;
a. Size of the business- The newly formed Walgreens Boots Alliance in United Kingdom is one of the largest alliances of UK in
the health and beauty sector. The following alliance is termed as one of the best companies in terms of revenue. With the
presence of around 2500 stores, the organization has to integrate a large-scale supply chain to gain success in the market.
b. Structure of the business- The organization has established itself as one of the most trustable organizations selling medicines
as well as different kinds of beauty products (MacCarthy et al. 2016). These products include retail, non--retail as well as
clothing, food and drinks. The multi themed structure of the business organization is another major reason for the integration
of a good supply chain.
c. Geographic Location of the Business- The Company has its headquarters in Nottingham, England and operates in few other
places like South Korea, Ireland and Bahamas. Therefore the management of the organization needs to integrate a global
supply chain in order to carry on the business in a successful manner.

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d. Target Market of the Business- The target market of the business will include a list of marked patients and the age group of 18
to 40 when it comes to beauty products. The target market of the business needs a tested supplier to manage the problems.
e. Competitors of the business-Some of the major competitors of Boots in the different markets it operates are Super drugs
(MacCarthy et al. 2016), Morrison’s and many more as such. The following competitors of the company have a competitive
advantage in the market because of some wrong strategies of the organization. The first problem is the low cost of the products
which perceives people to believe that the products are of low quality. Therefore the company has to integrate an effective
supply chain management in order to ensure a competitive nature of the business.
Supply Chain Logistics
The Boots Company in United Kingdom was opened at the same time as that of Apple. The company has a large stores service
center or warehouse located in Nottinghamshire, UK. The huge Boots store was totally switched from a manual to automated round
the clock operation 10 years ago, with the staff picking and sending out large number of products to all of its 2500 stores and in the
process to effectively manage the revenue and decrease the expenses (MacCarthy et al. 2016). The pricing of the company is generally
higher than that of the market previously however; this has allowed the management of the company to take up the costs out of a
particular area of the business and back into the customers. The huge warehouse was opened by the business organization after closing
down 20 different smaller ones including the ones in Nottingham’s London Road, llkenston, Sandiacre and Stapleford.

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The new warehouse measures around 850,000 square feet as it stocks and handles each and every of the single non-pharmacy
product that it sold in the Boot Stores and online (MacCarthy et al. 2016). The introduction of a dynamic picking system and a new
management program that is fully computerized are the most important features of the business organization. The system of the supply
chain in Boots, UK is highly systematic and scientific in nature
Customization of Logistics Network to meet service requirements
According to, Mangan Lalwani and Lalwani (2016) the Managers of Boots UK are increasingly finding themselves assigned to
the role of the rope in a very real tug of war - pulled one way by customers’ mounting demands and the opposite way by the
company’s need for growth and profitability. Many of them have discovered that they can keep the rope from snapping and, in fact,
achieve profitable growth by treating supply chain management as a strategic variable. These savvy managers generally recognize two
important things;
1. First, they think about the supply chain as a whole – All the different types of links that are involved in the management of
the flow of the products, services and the information from the suppliers to the customers which are the
2. Secondly they integrate the tangible outcomes of the business – The total business is based on the revenue growth, utilization
of assets and cost utilization.
The Rejection of the traditional view of Boots, UK and its component parts as distinct functional entities, these managers
realize that the real measure of success is how well activities coordinate across the supply chain to create value for customers while

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increasing the portability of every link in the chain (McCormack and Johnson 2016). The analysis of initiatives to improve supply
chain management by more than 100 manufacturers, distributors, and retailers shows case many making great progress, while others
fail dismally. The successful initiatives that have contributed to profitable growth share several themes. They are typically broad
efforts, combining both strategic and tactical change.
Customer Demand Planning and Product Life Cycle
It will be quite demanding for the organization to forecast demand for the introduction of the product because of the absence of
the historical data. The demand for a typical product introduction starts slowly and generally accelerates as and when the promotion
kicks in and the product becomes more widely known (McCormack and Johnson 2016). It is quite difficult to predict as to how fast
the following process is going to take place in the business organization. The product stage will be dependent on the product life cycle.
The life cycle of the product has three different stages. They are;
a. Growth-The growth stage of a product life cycle follows product introduction. You can identify it by the linear growth pattern
that follows the increasing demand curve of the introductory phase.
b. Maturity-During the mature product stage, growth in sales levels off. You can tell when this stage starts, because the steady
rate of increase in sales seen during the growth phase starts decreasing (Monczka et al. 2015). When a 30 percent per-week
rate of increase continues to slow more and more, the market for your product is reaching maturity. Instead of projecting a
steadily increasing demand, you have to switch to a forecast that predicts a more gradual increase.

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c. Decline- Boots, UK can prolong the mature stage of a product's life cycle with new packaging, improved features and different
promotions, but sales eventually decline. You know the product has reached this stage when the steady sales or slight sales
declines of the mature stage start decreasing more rapidly.
Holistic Approach to managing and Optimizing the effectiveness of supply Chain
Balancing inventory
Most companies have the same objective: improve profitability while keeping inventory levels at a minimum to reduce costs.
That delicate balance is difficult to achieve. Too little inventory doesn’t allow you to ramp up production to meet demand for a
popular product. Too much inventory results in unnecessary storage costs and perhaps additional waste. Supply chain officers across
the industry were recently surveyed about the biggest barriers to effective inventory management (Pan et al. 2015). The number one
response was “Can’t optimize network holistically.” When inventory decisions are the last item in the supply chain to be considered,
companies aren’t able to make the strategic decisions that allow them to function efficiently. The second-biggest barrier to effective
supply chain management cited was “demand volatility.
Virtual supply chain modeling
Fortunately, companies have a tool that allows them to digitally envision supply chain models and see the impact of various
inventory levels without experimenting in the costly real world. Models enable companies to have a holistic view of the
interdependencies of each variable in the supply chain and provide true data-backed decision support (Pan et al. 2015). The virtual

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model takes into account all of the considerations necessary for inventory strategy development: manufacturing network, distribution
network, transportation network, customer demand, store operations and merchandising. For example: Many companies find cycle
stock to be a missed opportunity (McCormack and Johnson 2016). Companies are overlooking money saving adjustments by not
considering the impact on cycle stock. Rebuilding inventory decisions can help alleviate seasonal demand spikes without increasing
production capacity.
Use of SCOR Model
The SCOR model used by the management of the organization is generally carried out on three different types of the principles
namely; modeling, re-engineering and the measurement of the proper practices carried out by the business organization. The SCOR
model is comprised of 5 different modeling building blocks. This includes the likes of;
1. Plan: Plan relates to the different kind of processes which relates to the planning of the demand and the supply. Proper
standards are required to be chosen and then the present standards must be improved in order to effectively measure the
efficiency of the supply chain.
2. Source: Source is the second step in the SCOR Model. The sourcing step involves the procurement of different kinds of goods
and services by the management of the organization which is in demand (Giannakis and Papadopoulos 2016). The acquisition
of different materials and the infrastructure needed to source these materials are examined in a proper manner to determine the
process of managing the global network of the suppliers..

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3. Make: The third process is one of the most important steps in the SCOR Model as because it involves the assembled raw
materials to be transformed and provide the status of a finished product. The transformation is carried out on the basis of the
demands of the business enterprise. The making part of the process involves the like of the activities related to production,
management of the facilities and the management of the equipments.
4. Deliver: Different types of ways and processes that involve the likes of getting the product out from order management and
the warehouse to the process of transportation and distribution to the different types of stores which publicly displays and sells
the following products (McCormack and Johnson 2016). The delivery step in the SCOR model also involves the likes of the
customer service and providing finished assets and different requirements.
5. Return: Return is the final step in the SCOR Model and thus this step concentrates on the different types of the processes that
relates to the products that are returned or received. The different kind of organizations must be prepared to handle the return
of the different kinds of defective products and also defects in different types of packaging or containers. The process in which
the goods are returned are strictly carried out according to the different types of rules and regulations set by the management of
the business organization.
Recommendation for improvements to a supply chain strategy for an organization
Different types of the organizations that has a major supply chain globally must consider the implementation and integration of
a strategic left hand along with its operational right hand. The involvement of both the hands makes the organization much stronger

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and also provides ample scope to the enterprise to be one of the best in the market. The combination of business strategy along with
the strategies of the supply chain management is essential for the business organization as because it is able to ensure a competitive
edge for the organization in the market.
The management of the companies achieves an efficient supply chain strategy through proper and effective communication
between the higher supervisors and the planners of the supply-chain, which reduces the time to implement the strategy while allowing
each group to pursue its forte: senior managers formulating strategy to maximize shareholder value; supply-chain planners running
optimization models to minimize total supply-chain costs.
1. Automatic Purchasing
The continuous monitoring of the stocked inventory generally takes a large amount of time. The implementation of the new
models of the ERP system with Supply Chain Management functionality is generally characterized by Automatic Purchasing. This
generally means that the ERP software can be transformed which can help the organization to easily place order with the vendors at
the time of the decrease in the stocks of the inventory level. Therefore Automatic Purchasing will help the employees free to focus on
other kinds of important tasks.
2. Standardize

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The standardization of the processes is central to the success of different kinds of supply chain strategy. The presence of a
proper and effective ERP system will help to increase the efficiency and also lead to savings of time and money. Apart from this the
employees of Boots, UK will also be available to share a standardized system of tools that helps to increase accuracy and encourage
communication and teamwork.
3. Increase Transparencies
The presence of waste and different types of frauds and sabotages are considered to be the permanent issues existing in Supply
Chain strategy operations. This kind of problems can be easily fixed by the proper use of the ERP system software. The presence of
the effective management of the waste thus through the use of the ERP system helps the business to ensure success in the retail
market.
4. Gain Data Insight
Making smart and accurate decisions for the selection of the strategic supply chain is utmost essential for different kinds of
business organizations. The presence of real time data all the time will help to formulate a better supply chain strategy. The use of the
ERP software helps to manage the inventory and the purchasing and production process accordingly.

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5. Real-Time Inventory Management
The use of the traditional inventory management system generally involve the use of excel and checklists. Modern ERP
systems are totally different from their traditional counterparts and are involved in providing real time data of the inventory and stock
levels for the goods of the organization. The characteristic of unending flexibility also makes the ERP system an easy choice for the
business organizations.
6. Monitor Vendor Performance
The vendor performance must be monitored on a regular basis based on a proper schedule in order to ensure the supply of the
proper and resources and also to be provided of different benefits. The data can be maintained through the ERP systems and this data
can be used during data negotiations.
7. Raise Cost Awareness
The awareness of the cost of the materials supplied by the vendors must be present amongst the employees in order to ensure
perfection.
8. Improve Returns Management
The improvement of the return management is another major recommendation. Each and every supply chain strategy of the
different business enterprises requires a well formulated and efficient supply chain strategy. It will be important for the manufacturers
to effectively handle returns in order to quickly process and re-process the entire system accordingly.

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9. Just-in-time (JIT)
The just in time manufacturing and the just in time inventory management work in the most effective manner with the help of
the ERP systems. This will result in the decrease in the overhead costs and an increase in the turnaround costs of the inventory. Apart
from this the other benefit will be the integration of the best communication system.
10. Streamline Accounting
The use of the ERP system is favored by the management of the organization as because it helps to ensure the reduction of
paperwork and invoice mi-ups. Apart from this the integration of ERP with Electronic Data interchange process also makes the
process much faster and reliable in nature.
Timeline
Task Name Duratio
n
Start Finish
Project Supply
Chain
149 days Thu
1/31/19
Tue
8/27/19
Meeting in
between
management of
the two
companies
2 days Thu
1/31/19
Fri
2/1/19
Decision to
select the
suppliers
1 day Mon
2/4/19
Mon
2/4/19

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SUPPLY CHAIN
Start of the
tender process to
select suppliers
45 days Tue
2/5/19
Mon
4/8/19
Closing of the
tender process
1 day Tue
4/9/19
Tue
4/9/19
Request For
information from
the suppliers who
submitted bids
20 days Wed
4/10/19
Tue
5/7/19
Scrutinizing the
bids
60 days Wed
5/8/19
Tue
7/30/19
Selecting the
best supplier
20 days Wed
7/31/19
Tue
8/27/19
Table 1: Timeline of the Supply Chain Action Plan
Source: (As created by the Author)

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SUPPLY CHAIN
Figure 1: Gantt chart
Source: (As created by the Author)
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