ECOM 402 Assignment 1: Almarai Case Study - Supply Chain Challenges

This case study analyzes Almarai, a large integrated dairy and food company, focusing on its logistics and supply chain management. It addresses challenges like high operational costs due to perishable goods and an over-reliance on transportation, examining how supply chain design helps manage constraints and margins. The study explores strategies for satisfying customer needs, including the implementation of the SAP software, and maintaining quality standards. It also discusses risk management practices, such as the risk management committee and the company's focus on quality to reduce organizational risk. Finally, the case study provides recommendations for gaining a competitive advantage, emphasizing operational areas like quality, flexibility, dependability, and cost, while highlighting the importance of speed, technology, and capacity management.

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What are the challenges faced in logistics and transportation?
The transportation operation determines the efficiency in terms of the moving product
and the progress in the techniques as well as the principle of the management however the
progress technique as well as the management also improves in the supply delivery speed ad well
as service quality operational cost and the usage facilities and in terms of energy saving (Shahin
and Jaferi 2015). Therefore transportation is an essential part of the manipulation of logistics.
The sin challenge that is faced by the Almeria is the high operational cost as there is an over-
dependence of diary and juices, and the products are perishable. It depends on a lot of
importance. Therefore, the lack of efficient transportation facility is playing a significant role in
the process. There is an increase in the operational cost of the firm, and the major factor for this
is the increase in the transportation cost of Almeria is huge in terms, as discussed before it solely
depends on the important from various countries. The company had nearly 1300 trucks and 1400
cold trailers. The farming division of the company has nearly 600 trucks as well so it has a huge
expenditure is maintained, what makes it more challenging is that the company does not
outsource from the other companies and manages everything on their own. The maintenance of
nearly 3000 employees; it looks after the transportation facility is a huge burden in the
companies infrastructures. As the company deals with the perishable product, they have to
strictly bind into the time frame making it more challenging.
How the supply chain design helps to manage the constraints and margins?
It is important for an organization to frame an efficient supply chain as it was extremely
beneficial in managing constraints as well as margin. The business constraint is anything that
comes in between the profit of the company, thereby increasing the profitability would require

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the company to remove the constrains. The main purpose of the supply chain network is the
capability of the company in order to access the program of the company and to accomplish the
long term strategic goal of the organization. This is especially effective in the case of al marai,
which is a food distribution company. The entire basis of the organization is depended on the
effective design as well as the implication of the supply chain. Several organizations are
implementing the margin-based supply chain management, which on the basis of the two
priorities, namely the desire to generate a more profitable product to the consumer and secondly
to stop serving the customers and the products which have low-profit yield (Azad et al. 2014).
Therefore optimizing the supply chain would be beneficial in the contains and the margin. By
following the market and the sourcing strategies can create an optimal financial performance,
which will help al marai to earn higher profits. The two factors that should be kept in account
while designing a supply chain are the risk in demand as well as supply, which are required for
the organization in designing the supply chain framework. With proper implementation of supply
chain management, it is observed that the supply chain design the opportunities to increase the
profit, which can be identified.
What are the dynamics followed to satisfy the customer needs?
For an organization to succeed in the industry and race ahead of the competitor, it is
important for an organization to satisfy the customer's needs. The need to of the customer need to
be acknowledged effective feedback system should be followed in order to attain the customer
quarries and satisfy any complaints regarding the same (Ji,et al. 2016). The second important
thing is that the customer needs not only to be listened to, but they should be understood. In
terms of the almarari nature, it is important for the company to satisfy the need of the customer.

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It was observed that in the attainment of the customer al marai was lagging behind (Crainic. and
Laporte 2016).. The manual workforce of the company caused inefficiencies as well as accurate
data in handling the excessive delay in responding to the customer and also in managing the
request of the employees as well as managers. They have introduced the SAP software, which
has automated the H.R. process and has helped to reduce cycle times as well as costs and to
increase the satisfaction of the employees. secondly, the customer can be attainted by
maintaining the quality and the organization, which will satisfy the customer (Monczka, et al.
2015). The core value of the company is to supply fresh food, and the temperature control feature
and the scheduling is thus maintained. The company's strong screening process is also one of the
major points in meeting the standards at every age which should be passed. Therefore to meet the
requirement of the customer the supply chain should be strong and efficient
Which is focused to reduce the organizational risk?
Organizational change is something that every organization experiences. Then
organizational change is an important factor and is changing the strategy and co-creation. The
first step is to identify the risk in the early in the organization. There should be proper
communication about the risk in the organization. After identifying the opportunities and threats,
it should be accessed and prioritized. In case of this organization, there is an effective risk
management committee which oversees all the potential risk management system as well as
assessing the effectiveness of the company and thereby determine the monitoring of the risk
which will threaten the company in order to determine the effectiveness of the risk management
in that particular area. The risk management communities will periodically for nearly six months
and usually access the risk. If any potential risk is identified (Christophe 2016), the committee

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usually investigates the threat. It is important to determine the risk before the threat. The
organization has mentioned that the quality order to enhance the competitive advantages in the
organization. As a consequence, it should be stated that in this organisation there is a targeted
audience for the consumer. Additionally it can reduce the manufacturing of the goods. However
it should be mentioned that the speed aspect it should be delivered to the consumer more swiftly.
The aspect of this offer an improved consumer service which is focused on the sales service.
Therefore it must be mentioned that the organisational risk can be reduced in the company.
5.What are the recommendations for gaining competitive advantage of the business
A competitive advantage which differentiates it from the other competitors. This
contributes to the higher process and cater to more customer and also affect brand loyalty. In the
establishment of the advantage, this is one of the important goals of the company. In today's
contemporary world, this is a major factor in the success of the business. In terms of the
concerned company, their operational areas are critical for the competitive advantage on the
organization. There are mainly operational areas that have gained the competitive advantage of
almarai. These areas re quality, flexibility,dependability, and cost. The quality can act as a factor
for the completive advantage in the organization (Hugos 2018). Therefore the speed act as a
contributor for enhancing the competitive advantage. Therefore the marketing dynamics of
speed, dependability, flexibility, cost, and quality can act as a completive advantage. If the
organization would not able to deliver to the organization, then the good of the organization
would be declined. The firm has planned to sort set the price accordingly, thereby making them
affordable. The updated modern technology as well as the technique in the manufacturing
process. The result is that the inferred quality in the product would act as a sign of improvement.
It would be helpful in the competitive gain in the competitive e advantages in the organisation.

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Therefore in this respect, it can be stated that the organisation has a competitive advantage in the
diary and manufacturing of the level of the product. The capacity management can also act as a
competitor in this respect and helps in the productivity and the service quality if the organization.

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References
Azad, N., Davoudpour, H., Saharidis, G.K. and Shiripour, M., 2014. A new model to mitigating
random disruption risks of facility and transportation in supply chain network design. The
International Journal of Advanced Manufacturing Technology, 70(9-12), pp.1757-1774.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Crainic, T.G. and Laporte, G., 2016. Transportation in supply chain management: recent
advances and research prospects. International Journal of Production Research, 54(2), pp.403-
404.
Hugos, M.H., 2018. Essentials of supply chain management. John Wiley & Sons.
Ji, X., Wu, J. and Zhu, Q., 2016. Eco-design of transportation in sustainable supply chain
management: A DEA-like method. Transportation Research Part D: Transport and
Environment, 48, pp.451-459.
Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and
supply chain management. Cengage Learning.
Shahin, A. and Jaferi, F., 2015. The shortest route for transportation in supply chain by
minimum spanning tree. International Journal of Logistics Systems and Management, 22(1),
pp.43-54.