Strategic Supply Chain Management and Logistics Report

This report provides a comprehensive analysis of strategic supply chain management and logistics, focusing on Ceva Logistics. It explores the importance of effective supply chain management in achieving organizational objectives, examines the link between supply chain management and other business functions, and identifies key drivers for an integrated supply chain strategy. The report further delves into the effectiveness of strategies used to maintain supplier relationships, the role of information technology in developing these relationships and integrating different parts of the supply chain, and the evaluation of procurement practices. It also discusses strategies for improving overall business performance and ways to overcome barriers when implementing supply chain improvement strategies. The report covers topics such as production, inventory, location, and transportation as key drivers, providing a detailed overview of supply chain management practices and their impact on business outcomes.

Strategic supply chain
management and logistics

EXECUTIVE SUMMARY
This project report contains importance of effective supply chain management in
achieving organisational objectives, link between supply chain management and other business
functions, various key drivers for the purpose of achieving integrated supply chain strategy. It
further includes effectiveness of strategies used by an organisation for the purpose of
maintaining supplier relationships, usage of information technology for formulation strategies for
developing an organisational relationship with its suppliers tactics as well as development of
systems for maintaining healthy relationships between organisation and its suppliers. Further, it
discusses about various ways in which information technology could assist integration of
different parts of the supply chain of an enterprise, contribution of information technology in
management of the supply chain, effectiveness of information technology in managing the
supply chain of selected organisation. In addition, it includes role of logistics, evaluation of
procurement practices, factors to be considered for the improvement of logistics as well as
procurement practices in business. It discusses about different ways supply chain improvement
strategies will benefit overall business performance, manner in which improvement strategies
will benefit overall business performance along with different ways to overcome barriers while
implementing strategies for improvement of supply chain management.

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
1.1 Importance of effective supply chain management in achieving organizational objectives. 2
1.2 Link between supply chain management and business functions in an organization............3
1.3. Key drivers for achieving an integrated supply chain strategy in an organization...............4
TASK 2............................................................................................................................................5
2.1 Evaluation of effectiveness of strategies used by an organization to maintain supplier
relationships.................................................................................................................................5
2.2 Usage of information technology for creating strategies to develop an organization’s
relationship with its suppliers......................................................................................................6
2.3 Develop systems to maintain an Organization’s relationship with it Suppliers....................7
TASK 3............................................................................................................................................8
3.1 Information technology could assist integration of different parts of the supply chain of an
organization..................................................................................................................................8
3.2 Evaluation of contribution of information technology towards management of the supply
chain of an organization...............................................................................................................9
3.3 Effectiveness of information technology in managing the supply chain of an organization
....................................................................................................................................................10
TASK 4..........................................................................................................................................10
4.1 Role of logistics in supply chain management in an organization......................................10
4.2 Procurement practices..........................................................................................................11
4.3 Factors considered when improving logistics and procurement practices in an organization
....................................................................................................................................................13
TASK 5..........................................................................................................................................14
5.1 Planning strategies for improving organisational supply chain...........................................14
5.2 Ways in which supply chain improvement strategy will benefit overall business
performance in an organization.................................................................................................14
5.3 Manner in which barriers will be overcome in an organization when implementing a
supply chain improvement strategy...........................................................................................15

CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18

INTRODUCTION
Supply chain management includes set of activities for the purpose of planning,
controlling as well as executing flow of products in cost effective along with streamlined manner
(Awudu and Zhang, 2012). It involves various activities from acquiring raw material till
distributing final product to end consumer. Strategic supply chain involves management of
procedures related to product development, manufacturing, logistics, customer management and
so on. It is adopted by several businesses where managers take supply chain decisions which are
of high level for betterment of success and growth. Such process facilitates movement of
products, goods along with services from manufacturer or producer to ultimate clients through
multiple stages. Logistics is related to formulating detailed complex operations and
implementing them in order to manage flow of products from point of origin to point of
consumption to meet customer requirements. It is a combination of organisational orders,
warehousing, packaging, transportation and inventory. They plays essential role in supplying
best offerings, achieving turnovers, capitalizing full potentiality of market, allocation of key
resources and many more. To understanding the strategic supply chain management and
logistics, Ceva Logistics is selected (CEVA Logistics, 2019). Chosen business performs various
operations in supply chain management and logistics by providing employment opportunities to
numerous people in multiple countries. Managers of such company deals with freight
management as well as logistics contract in order to earn revenues. Full service transportation
services are provided in order to deliver the products to end consumer from manufacturers.
Products are stored at warehouses and are delivered to various retailers as well as wholesalers to
sell them. Such company offers services through air freight, ocean freight, supply chain solutions
and many more in order to serve different sectors such as healthcare, technology, automotive,
industrial, aerospace and so on across countries.
This project report includes importance of effective supply chain management in
achieving organisational objectives, link between supply chain management and business
functions, key drivers for the purpose of achieving integrated supply chain strategy. It further
includes effectiveness of strategies used by an organisation for the purpose of maintaining
supplier relationships, usage of information technology for formulation strategies for developing
an organisational relationship with its suppliers tactics as well as development of systems for
maintaining healthy relationships between organisation and its suppliers. Further, it discusses
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about various ways in which information technology could assist integration of different parts of
the supply chain of an enterprise, contribution of information technology in management of the
supply chain, effectiveness of information technology in managing the supply chain of selected
organisation. In addition, it includes role of logistics, evaluation of procurement practices, factors
to be considered for the improvement of logistics as well as procurement practices in business.
Lastly, a detailed discussion on different ways supply chain improvement strategies will benefit
overall business performance, manner in which improvement strategies will benefit overall
business performance along with different ways to overcome barriers while implementing
strategies for improvement of supply chain management.
TASK 1
1.1 Importance of effective supply chain management in achieving organizational objectives
Supply chain management is related to management of various networks in
interconnected businesses which includes delivering products or services packages as demanded
by end consumer. It helps in maximising values as well as reducing total cost in production
process by focusing towards speed along with certainty of market response. In the changing era,
managers recognises needs for faster delivery of packed products in order to retain loyal
customers and improving position in competitive market. Faster product delivery helps in
increasing sales and earning more profits. Managers of selected organisation implements various
provisions in relation to manage supply chain which result in decreasing production cost along
with purchasing cost by improving financial position (Beske, 2012). Effective supply chain helps
in quick delivery of goods to potential clients and achieving organisational objectives in efficient
manner. It also helps in boosting customer services by delivering demanded products on
prescribed time period. Success of organisational objectives are dependent on the performance of
supply chain. Such chain management helps businesses to control cost, enhancing revenues,
satisfying customers, utilizing assets and resources in effective manner. It plays helpful function
in providing relevant information to all stakeholders for the purpose of effective as well as quick
decision making. Proper implementation in successful manner leads to balance customer
requirements, demands by achieving objectives of firm. Respective company performs various
operations with the objective to deliver products or services to ultimate customers by satisfying
them as well as generating maximum profits as possible. With the changes in environment and
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perception of customers, development of networks in supply chain becomes essential part.
Multiple supply chain networks helps in improving inventory control, enhancing distribution
system effectiveness, reducing holding costs and so on. With the help of such management
complex activities are arranged as well as managed in such manner to get effective along with
successful results (Christopher and Peck, 2012.). Management of supply chain as well as
logistics is important as it manages various activities in order to deliver maximum customer
values as well as achieving sustainable competitive position in multinational market. It involves
various tools which are helpful in garnering competitive advantages at local level along with
global level.
1.2 Link between supply chain management and business functions in an organization.
Supply chain management at Ceva Logistics can not accomplish its operations alone. It
needs to coordinate its activities with various other business functions such as human resource,
marketing, information technology, finance, operations and so on for contributing towards
success of company. Business functions of selected firm and their linkage with supply chain
management are as follows:
Marketing and supply chain management: Marketing focuses on understanding
customers and providing necessary information to organisational managers for the purpose of
increasing sales. It also plays important function in balancing procurements of raw materials
through providing necessary informations related to product demand as well as building healthy
relationships with multiple suppliers. It helps in improving communication channels,
collaborations along with increasing efficiency in activities of supply chain.
Finance and supply chain management: Finance is related to acquiring funds,
managing funds within departments as well as planning for further expenditures in acquisition of
resources in order to carry out day to day activities to meet objectives of any business. It plays
important role in improving financial positions along with profit leverages. It helps in reducing
and controlling supply chain costs, maximising profitability, improving organisational product
flow by minimizing expenses (Brindley, 2017). At Ceva Logistics, supply chain management
and finance are interrelated through certain functions such as financial planning, cost
management, procurement, budgeting and so on.
Human resource management and supply chain management: Human resource
management is concerned with managing employees at workplace. They helps selected firm by
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putting their efforts and delivering right products to right customers at right time. Employees are
most valuable resources in any business. They are provided training facilities, incentives,
guidelines to perform various activities in relation to supply chains. There are various human
resource in supply chain management which helps in attaining objectives of entity.
Information technology and supply change management: Information technology
coordinates activities related to order generation, taking, fulfilling, distribution of products or
services with supply chain management. It optimizes information as well as production
movement among processes along with partners in supply chain. IT department of selected
company restructures entire distribution system for achieving higher service levels, managing
supply chain costs, lowering inventory in efficient manner.
1.3. Key drivers for achieving an integrated supply chain strategy in an organization.
Key drivers are to achieve integrated supply chain strategy in Ceva Logistics (SCM
Globe, 2018). They are as follows:
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Illustration 1: SCM Globe, 2018
(Source: SCM Globe, 2018)
Production: Such driver provides flexible manufacturing as well as production
techniques which have excess capacity for the production of various items. Selected business
adopts this driver as it is responsible for production through small plants which are close to
market area and delivering goods to customers requires less time (Christopher, 2016). For
instance, if production efficiency is desirable then firm can acquire factories where little capacity
can give more desirable results as well as helps in optimising production for limited product
range. Production efficiencies can be improved by centralising large factory plants for getting
economies of scale.
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Inventory: Integrated supply chain strategies can be achieved by keeping stock of
inventory. Supply chain helps in providing stocks of products at different locations so that
products can be available to customers as and when demanded. Selected company manages its
inventory in different ways such as preparing spreadsheets, tracking inventory and so on for the
purpose of maintaining inventory system. Efficiency in management of inventory results in
reducing obsoleteness of stock of products, reducing variability, quality improvement, saving
costs along with enhancing economies of scale.
Location: This driver is related to emphasising location decision to establish
organisational plants which are close to customer base. There are some issues which are based on
where to set up plant, where to locate warehouse stores, how many stores to be constructed and
many more have significant impact on supply chain dynamics as well as affects the efficiency in
production. Efficiency can only be achieved or improved by centralizing activities to common
locations.
Transportation: Transportation is related to movement of products or services from one
destination to another. Various fastest and flexible transportation modes are used by chosen
business such as air planes, ships, trucks and so on. For instance, to deliver large stock of
inventory to retailers or wholesalers, managers uses transportation modes to deliver stock from
warehouses located at distinct areas at varied distance. Selected company operates its own
transportation services to manage high volume market as to fulfil customer desires.
Information: Information is shared at fast speed between organisation and customers
with the helps of technology as well as transportation systems. Power of such driver grows
deeper and stronger due to the technology for gathering along with sharing information is wide
spread, less expensive and easy to use (Coimbra, 2013). It helps in enhancing performance with
other supply drivers. Responsiveness is achieved when collected as well as shared information is
accurate and on time. Selected organisation collects information from manufacturers, retailers,
distributors in relation to customer demand, inventory level, production schedules and many
more. All such information helps in quickly responding towards situations for capturing new
market as well as retaining existing customers.
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TASK 2
2.1 Evaluation of effectiveness of strategies used by an organization to maintain supplier
relationships
All organisations plans and implement various strategies in order to maintain their
relationships with multiple suppliers. Some of the strategies along with effectiveness as the
following:
Proactive approach: Such approach helps in adding values as well as reducing wastage in entire
supply chain system. It helps in managing risks between organisation and multiple suppliers in
effective manner. This approach us used for identification of risk impacts in supply chain
management. Using such approach, selected company has achieved great improvements in
quality as well as in performance. High performance and quality are key components which are
delivered by various suppliers to organisational managers and it resulted in maintaining healthy
relationships between them. It also helps in reducing variability and at the same time enhances
visibility.
Strategic approach: Using such approach, organisational managers builds relationships
by contacting them even before starting agreement with supplier for ensuring competitive
advantage in long run. It is a forward focussed strategy which results in successful relationship
at early stages of contracts with multiple suppliers. Such approach is based on continuous
engagement with targetted suppliers and creating partnership contracts by considering
transactional relationships. This approach is effectively used for maintaining relationships by
building support ans well as increasing brand loyalty.
Thus, it can be evaluated that both approaches plays important role in maintaining
relationships with suppliers. They help in achievements of great improvements in quality along
with in performance. Proactive approach helps in identification of risks as well as sharing it
between company and suppliers in effective manner where as strategic approach is used for
continuous engagements with suppliers for improving positions in competitive market.
2.2 Usage of information technology for creating strategies to develop an organization’s
relationship with its suppliers.
Information technology plays significant role in formulation of strategies in order to
develop relationship with multiple suppliers. It is used for improving efficiencies as well as
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