University Report: Supply Chain Management for Sunny Days Ice Cream

This report examines the outsourcing strategies for Sunny Days, an ice cream enterprise planning to outsource its production. The report recommends outsourcing various operations including sales, marketing, and finance to reduce costs and enhance focus on core competencies. It suggests utilizing social media for marketing, small agencies for sales, and partnering with bookkeeping firms for financial management. The report emphasizes the importance of managing seasonal demand effectively, particularly during the summer, by analyzing market trends and maintaining adequate stock levels. It concludes that adopting an outsourcing policy is crucial for the start-up's sustainability and that managing market demand is essential for establishing the brand and generating growth. The report references several academic sources to support its findings.

Running head: SUPPLY CHAIN MANAGEMENT
Supply Chain Management
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1SUPPLY CHAIN MANAGEMENT
Peta and Daniel have plans to open an ice cream enterprise under the brand name Sunny
Days and have plans to outsource their production function.While moving ahead with their plan
to outsource the production process, it is important that similar is considered for other operations
involved. The key purpose of this report is recommending the operations that are involved in the
proposed business venture besides making suggestion of way for managing the seasonal demand
effectively.
According to Lacity and Willcocks (2013), for undermining the value of the revenue
generated by the business, costs involved with this start-up should be high enough. The expenses
revolve around costs related to sales, stock management, production, packaging and others,
professional costs (trademarks, copyrights and accountant fees), technology and administration
costs, product marketing and employee emoluments. Outsourcing, usually contract based, is the
ideal policy of survival in primary days by a start-up through which a firm can seek services and
products from other smaller market players.
According to Cosenz (2017), since the ice cream company’s owners have already
planned of outsourcing the production, by opting the same for the other operations involved is
increasingly feasible. Below mentioned are ways Sunny Days can assimilate outsourcing with all
its operations.
Sales and Marketing Outsourcing: according to Kwayu, et al., (2018), the ice cream company
can choose different social media platforms, which is economical to market the brand and its
products. Managing of sales and marketing can be outsourced to small agencies, organizing and
maintaining its sales figure.

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Finance Outsourcing: the company diverging from conventional practices involving
engagement of certified employees can partner with small firms like Perth Bookkeepers or
freelancers offering accounting services at nominal costs Stcpartners.com.au (2019).
In its initial days the company needs to consider the factors that are discussed above
which will eventually help the owners to focus more on their creative potential and expertise
further helping them to offer more variety of delicious ice creams to their customers to build
competitive advantage.
Sunny Days being venturing into ice cream business will mainly function during summer
season for assured increased demand. The analysis of the target market trends will be
advantageous for Sunny Days owners thus helping them further to cope with the seasonal
demand due to better and exact interpretation of the situation during the peak time. This
understanding will help Sunny Day’s owners accordingly manage their product stock. Besides,
having safety stock will contribute in coping with sudden rise in demand, which is likely during
summers.
It has been observed that businesses which ensure to take care of the fluctuations in
demands by taking into account the seasons favourable for the sales of their products are more
likely to position their brand and their products appropriately in their respective target markets.
This kind of approach may often help the businesses in gaining popularity besides ensuring that
they open more outlets and franchises in newer markets for expanding their reach to customers
and secure business growth. Hence, the conclusion that can be derived from the above study is
that for sustaining the business in initial days, the start-up Sunny Days should consider adopting
a policy that enables outsourcing. Additionally, it is equally important to take care of market

3SUPPLY CHAIN MANAGEMENT
demand to ensure that the brand and its products get established in market by the next season
strongly to generate better growth and profits.

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References
Cosenz, F. (2017). Supporting start-up business model design through system dynamics
modelling. Management Decision,[Online] 55(1), 57-80. Available:
https://search.proquest.com/docview/1858619841?accountid=30552 Accessed on 4 Feb 2019
Kwayu, S., Lal, B. and Abubakre, M. (2018). Enhancing organizational competitiveness via
social media - a strategy as practice perspective. Information Systems Frontiers, [Online]20(3),
439-456. Available: http://dx.doi.org/10.1007/s10796-017-9816-5 Accessed on 4 Feb 2019
Lacity, M. C. and Willcocks, L. P. (2013). Outsourcing business processes for innovation. MIT
Sloan Management Review, [Online]54(3), 63-69. Available:
https://search.proquest.com/docview/1323896927?accountid=30552 Accessed on 4 Feb 2019
Stcpartners.com.au (2019). Perth Xero Bookkeeping - STC Partner Perth Accounting Firm.
[Online] Stcpartners.com.au. Available at:
https://stcpartners.com.au/services_bookkeeping_xero.html [Accessed 3 February. 2019].