Analysis of Almarai's E-Supply Chain Management Strategies

This report provides an in-depth analysis of Almarai's e-supply chain management, focusing on the challenges faced in logistics and transportation, supply chain design, and customer satisfaction dynamics. It identifies key issues such as human resource management, transportation costs, informati...Read More

Running head: E-SUPPLY CHAIN MANAGEMENT
E-supply chain management
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Introduction......................................................................................................................................2
Challenges faced in logistics and transportation.............................................................................2
Supply chain design.........................................................................................................................3
Dynamics followed to satisfy the customer needs...........................................................................4
Risk mitigation technique................................................................................................................5
Recommendations for gaining advantage........................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
Almarai is the interconnected organization from dairy farmers to retail stores covering
their beverage and food products. Almarai limited business, a dairy firm in Saudi Arabia, offers
healthy food and drinks. Almarai is the world’s largest integrated dairy product corporation with
an unrivalled reputation for consistency within the gulf countries (Singh and Hagahmoodi 2017).
The main reason for success of the company is the significant supply chain. Therefore, this
reports aims to identify the logistics and transportation challenges faced by the organization. This
report also discusses the process in which the design of the supply chain helps in managing the
margins and constraints of the organization Almarai.
Challenges faced in logistics and transportation
The challenges in transportation and logistics faced by the organization are:
Human Resource
Having strong and professional human capital is a huge task and what is more of an
undertaking is maintaining and keeping them. Managers have a huge challenge at hand to sustain
a compassionate attitude towards the workers yet to hold the company and organisation interests
supreme.
Transportation Costs
Lower and fluctuating gasoline levels are adding to the constant growth in travel costs.
Inflations and wages are the other variables that often take a crucial role in the prices. Increases

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in fuel prices increase surcharges and advertising up to freight levels which reduce trucker’s
revenue (Juan et al. 2016).
Information Processing
Information is the secret to success with any successful company, and more so in the
logistics sector where managers have a ton of data to gather and analyze until they can shape a
ground plan (McFarlane, Giannikas and Lu 2016). Two of every manager’s main duties are ship
assembling, cross-checking of the route maps and maintaining the reliability of the logistics
operations.
Regulatory compliances
There are several regulatory guidelines and steps to be observed for a smooth logistics
flow and the main difficulty is that it varies from area to area, and from nation to nation.
Supply chain design
Margin-driven supply chain management of Almarai is a modern market strategy focused
on two main company priorities such as the need to offer higher-profit goods to consumers,
and the opportunity to avoid servicing low-profit buyers and items. The decision support method
in the supply chain quantitatively tells businesses which consumers of Almarai to represent and
what goods to manufacture to optimize income and profitability (Garcia and You 2015). This is
often easier said than done for the organisation Almarai, with complex supply chain operations.
Nevertheless, recent advancements in data access and modeling for optimization enabled an
increasing number of organizations to introduce more secure and reliable supply chain processes.

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Margin-supply chain management of the organization involves the ability to
the accurately measure the net produced expense for each commodity that a consumer purchases,
and accurately estimate the sum of sales from each transaction.
Knowing the thousands of trade-offs that a major producer may weigh when deciding the
distribution of inventory or customers is no simple feat. This is particularly difficult in
organizations that are either heavily used assets or widely underused assets (Jacobs, Chase and
Lummus 2014). Making a margin tradeoff to produce greater quantities and make efficient
utilization of production properties.
Dynamics followed to satisfy the customer needs
The dynamics that should be followed by the organization for satisfying the need of the
customer are:
 Customers need to understand their or requests concerns are important, and they will be
cared for. By initiating the call with a warm greeting and a positive tone of voice that
communicates a desire to help, workers will easily establish connections and recognize
consumer value.
 Customers will be conscious they have been noticed and recognized. How staff show
comprehension is key to ensuring excellent customer support (Lee, Han and Park 2015).
After the customers of Almarai describe their reason for calling, encourage staff
for paraphrasing what customers are saying and use words, which shows sympathy as
well as a sincere desire to help.
 Every consumer needs to be handled with dignity and deemed a very valuable individual-
not a question. How workers articulate replies and their tone of voice may render a

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positive conversation or ruin it. Customers typically have fewer experience about good or
service than staff. Be sure your workers use the best words to define goods or services,
and reiterate directions as much as possible to maintain consumer loyalty.
Risk mitigation technique
By making the following techniques in the process of the business the organizational
risks can be reduces.
Efficiency and Innovation in contracting management
What a contracting department manages the administration of contracts sets the tone for
insightful risk control (Benn, Edwards and Williams 2014). Streamlining contracts is an evolving
phenomenon which is the product of a deeper perception of the significant cost of formation
which negotiation.
Strategic manufacturer compensation standards and exposure limits
Each foreign provider of services and products, whether upstream or downstream, needs
an evaluation of possible vulnerability to liability (Hill 2017). Through arrangement will comply
with the protections such as risk restriction, reimbursement and manufacturer benefits. The last
one needs extra managerial care, which is frequently understaffed.
Provider redundancy and optimization
ERM guidelines can be included as part of original competitive procurement and
acquisition of vendors to insure there is no undue restructuring within the supplier group.
Financial stability visibility of supplier

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The supplier's financial Stability report defines and prioritizes the most important
financial concerns that the organization Almarai can query their vendors and external parties. It
sets out the financial viability appraisal issues in a succinct way as a reference for the financial
evaluation.
Recommendations for gaining advantage
The company used different methods such as capacity preparation, resource control,
supply chain architecture, and quality management to calculate the efficiency of quality, volume,
versatility, reliability, and expense for achieving the competitive edge. Ability preparation is
beneficial in predicting a company's spending to support the existing activities which to fulfill
the corporate targets (Wagner III and Hollenbeck 2014). As a consequence, Almarai will set the
price of the goods on the basis of the projected expenditure, and can increase the quality factor.
The power readiness is effective in determining potential resource requirements. It in essence
would increase an organization’s efficiency. It is able to track the structure of the cost of the
products generated.
Management of the supply chain is the network which can transfer the commodity from
one point to another. Therefore, this will increase the organization’s client support. This can also
be assumed that Almarai sought to enhance the organization's customer support by providing the
goods to the consumers during the date planned. The pace component should then work
effectively in order to achieve an organization’s strategic edge (Saeidi et al. 2015). It can be
suggested that Almarai adopt certain related marketing dynamics such as speed, quality, cost,
dependability and flexibility, which may benefit the business's competitive advantage.

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Conclusion
Supply chain management is used as a method for improving their cumulative output in
multiple organisations. Increasing income by reducing expenses and pleasing end-customers is
often beneficial. By following the strategies and approaches, the organization Almarai can
enhance their supply chain and logistic by gaining the competitive advantages and satisfying the
needs of the customer. This report significantly discusses the process in which the design of the
supply chain helps in managing the margins and constraints of the organization Almarai.

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References
Benn, S., Edwards, M. and Williams, T., 2014. Organizational change for corporate
sustainability. Routledge.
Garcia, D.J. and You, F., 2015. Supply chain design and optimization: Challenges and
opportunities. Computers & Chemical Engineering, 81, pp.153-170.
Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing function.
Macmillan International Higher Education.
Jacobs, F.R., Chase, R.B. and Lummus, R.R., 2014. Operations and supply chain
management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Juan, A.A., Mendez, C.A., Faulin, J., De Armas, J. and Grasman, S.E., 2016. Electric vehicles in
logistics and transportation: A survey on emerging environmental, strategic, and operational
challenges. Energies, 9(2), p.86.
Lee, S., Han, W. and Park, Y., 2015. Measuring the functional dynamics of product-service
system: A system dynamics approach. Computers & Industrial Engineering, 80, pp.159-170.
McFarlane, D., Giannikas, V. and Lu, W., 2016. Intelligent logistics: Involving the
customer. Computers in Industry, 81, pp.105-115.
Saeidi, S.P., Sofian, S., Saeidi, P., Saeidi, S.P. and Saaeidi, S.A., 2015. How does corporate
social responsibility contribute to firm financial performance? The mediating role of competitive
advantage, reputation, and customer satisfaction. Journal of business research, 68(2), pp.341-
350.

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Singh, A. and Hagahmoodi, S.O., 2017. Performance Measurement of Almarai Products and
Customer Satisfaction. International Journal of Management Science, 4(1), pp.1-12.
Wagner III, J.A. and Hollenbeck, J.R., 2014. Organizational behavior: Securing competitive
advantage. Routledge.