Global Supply Chain Management: A Case Study of Kelvin Hughes Limited

Desklib provides past papers and solved assignments for students. This report analyzes Kelvin Hughes's supply chain.

GLOBAL SUPPLY CHAIN
MANAGEMENT

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Assignment......................................................................................................................................2
Executive Summary.....................................................................................................................2
1. Critically evaluate positive and negative attributes associated with the field in relation to
chosen case..................................................................................................................................3
2. Explore and critically analyze the gap between evaluation and implementation of supply
chain improvement......................................................................................................................6
3. Analyse multidimensional global supply chain issues and apply techniques that could assist
in either resolving or significantly reducing problematic supply chain issues within your
chosen sector/ industry................................................................................................................9
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

Introduction
Supply chain management refers to signifying process flows that aids in enhancing for delivering
goods and products to end users. The system focuses on involving manufacturers, intermediaries,
supplier, wholesalers, customers and retailers. The study will aim at arguing related to supply
chain management in reference to Kelvin Hughes Limited. The current report will explain about
managing supply chain in organisation by mentioning its strategies which are utilized for regular
activities for conducting operations. The report will explain supply chain network’s weaknesses
that impacts business activities. At last, study will focus on practising best methods of managing
supply chain that will dispense several benefits to organisation.
1

Assignment
Executive Summary
Supply chain management is determined as the vital element that aids in measuring external and
internal business success. Kelvin Hughes is known as British organisation that is specialized for
manufacturing and designing of surveillance systems and navigation that aids in supplying data
of navigation for government market place and commercial marine. It provides radar systems for
navies, coastlines, governments VTS installations and ports and it further provides radar for the
surveillance applications and land based security. It has employed 350 people that work in site of
manufacturing at UK by carrying 12 offices. It was established in year 1947 by becoming market
innovator for sensors and systems of radar (Christopher, 2016).
The information flow in firm to customers practises various mediums that depict supply chain
flow at Kelvin Hughes. The medium consist of order confirmation, invoices, quality review, the
equipment information and dispatch confirmation etc. Information flow in firm also goes through
consumers to organisation that enhances by requesting order note, quotation, complaint forms
etc.
2

1. Critically evaluate positive and negative attributes associated with the field in relation to
chosen case
Product delivery to consumers and raw material delivery taken from suppliers generally comes in
material flow list. The material flow in Kelvin Hughes is done by its own management of deals
and distributors. The organisation is highly active in initiating technical methods for supplying
goods and products to various parts. JIT is practised in managing and controlling material flow
by the supplier. It is determined as cost cutting method that minimizes stock of goods as well as
material amount. The stock balance is maintained by Kelvin Hughes through order of adequate
raw material from suppliers which becomes essential for completing orders of client in quality
manner.
The excellence of supply change management is crucial factors that matters the most (Hugos,
2018). In various cases growth gets slower, that can either break or make corporate
performances. From last 30 years, the theory of supply chain is regularly evolving. It was found
that manufacturing firm was having capacity of spending revenue up to 1.7% over technology
that majorly targets improved excellences in supply chain. Following are three reasons for
initiating best practises of supply chain management which are as follows:
Approach for Projects – It refers to practising multiple projects at simultaneous level. The value
will be added to organisation by initiating ROI. There are various firms in market that conducts
operations under several projects by aiming to achieve goals but sometime faces slow progress
for not aligning process of working based on project deadlines.
Insufficient corporate Understanding – The term supply chain refers to complex system that aid
in developing relationships with nonlinear and interwoven factors. The corporate finance focuses
on transaction backward looking and on other side supply chain method is approach of forward
looking that includes channel withdrawal, order flows, sourcing strategies and good availability
based on demand (Monczka, et.al, 2015).
Supply Chain Management Importance at Kelvin Hughes
Supply chain is term that enhances better paths and modes for reaching customers at various
parts of world by collaborating with suppliers of raw materials. Every organisation has its own
3

choices to select best suppliers for satisfying customers and clients without interruptions. There
are several key points that describe need of supply chain in organisation which are as follows:
Improved Consumer Services – The conditions are prepared according to consumer expectations
from which materials are ordered from suppliers. The system of supply chain aids in delivering
correct product to right customer at correct timings that dispenses consumer satisfaction. There
are several customers that have desires to receive products as well as after sales services so that
money has been invested in correct manner. In relation to SCM it supports various firms after
sales services (Mangan, et.al, 2016).
Boost Competitive Advantage – The organisational functioning and operations plays significant
role in conducting of activities related to supply chain management that manufactures products
and goods. The best supply chain in organisations provides competitiveness that directly aims to
develop relationships with consumers. Thus, it is essential for Kelvin Hughes to maintain such
standards of managing supply chain to focus on customer oriented nature that will aid in helping
competitive advantage.
Profit and Growth Enhancement – The flow of information and material helps to boost process
of businesses at variety of locations. The business processes will increase will boost growth and
profitability. The main positioning plans of Kelvin Hughes are in location of Middle East. Their
specific objectives and aim is to dispense quality services at borders of Middle East by providing
facility and security protection (Fredendall and Hill, 2016).
Vertical Distribution – The organisation aims to initiate own distributors and dealers for giving
the products and goods to potential customers. The retailers and wholesalers sources have zero
roles to play in Kelvin Hughes in context to vertical system of distribution. There is positive use
of distributor and dealer in organisation as it aids in lowering product prices because the path has
low intermediaries in number. The firm is also indulged in outsourcing of various products by
other firms that provide extra knowledge and experience related to product or service. The firm
has external key partner that is related to firm named as “Freshfield”. It is expert and specialized
in supplying and manufacturing transceiver for product family of sharpeye. It has several rivals
and competitors such as Raytheon, TRANSAS etc that focuses for outsourcing goods and service
4

by Kelvin Hughes. The best service that is provided by organisation is offering contracted work
as key constituent (Stadtler, 2015).
5

2. Explore and critically analyze the gap between evaluation and implementation of supply chain
improvement
Current Model and Theories at Kelvin Hughes
The firms with strong supply chains practises and implements several models and theories that
aids in securing market positioning by giving technical and essential services to clients based on
time, quality and consistency. In context to Kelvin Hughes, different models have been practised
in businesses that helps in giving effective quality to customers related to protection and security
at borders. Following are the key models that in practised in organisation which are as follows:
Lean Manufacturing – The method is aimed at reducing and eliminating waste from resources
and raw materials (Sanders, et.al, 2016). The method or step is practised in firms minimizing
activities that do not add value to products that aids in making time effective and lowers cost of
manufacturing. The step is very beneficial for organisations as quality is being first priority of
products and services. As, the firm provides protection and safety products, it is extra important
for focusing on quality and quantity measures of goods. The points below describe the
constituent of lean manufacturing that includes the following:
 Kaizan – The term explains regular or constant improvements. It is best strategy that is
used by employees to conduct operations by obtaining incremental improvements within
working processes. The collective talent will aid in working and combining common goal
in organisation.
 JIT – It is also known as just in time that focuses on developing inventory level through
ordering in sufficient manner that provides timely completion and delivery of products to
customers by using quality materials. This method is beneficial as it minimizes stock and
raw material cost for warehousing and securing (Cherrafi, et.al, 2016).
Kanban System – It is determined as pull system that conducts work according to signals. It aims
to suggest placing an order for product or service when signal is observed. The card of signal is
developed for indicating requirements of materials and goods. It is best strategy for reducing cost
of inventory that further helps in managing inventory process in much easy manner.
6

MUDA – The method aims at eliminating wastes that is primarily aimed by strategy of lean
manufacturing. It is important for monitoring seven constituents of waste reduction that includes
inventory, transportation, waiting, motion, over processing, defects and overproduction.
MURA – The method is known as variability elimination. The waste is created by unevenness
that is present in working process which is come from non uniformity methods of working.
MURI – This is initiated for minimizing difficulty that comes under working that is caused due
to overburdening. This is used in firms when management pressurizes and stresses processes and
employees for completing tasks. It initiates five “S” that aids in managing way of working that
minimizes non value added operations by employees. The five “S” comprises of set in order,
sort, standardize, sustain and shine (Alefari, et.al, 2017).
Weak Aspects at Kelvin Hughes by Supply Chain Management
The organisation is practising lean manufacturing method that prepares firm to order expensive
resources at requirement time. It might face issue of product late delivery when resources that are
purchased have some kind of defect that might affects product quality. The method of lean is not
beneficial for bespoke equipments as such products and services need effective guidance, time
and assistance. The organisation has another issue or weakness that is known as transactional
leadership within parties. The leadership style helps in establishing relationship within end users,
company and supplier that restricts business commitment for long term time. The practises of
supply chain management in Kelvin Hughes are initiated based on business type with variety of
drawbacks by making supply chain apt.
In earlier times, system of supply chain management has various activities by including material
management and physical distribution (Yang, et.al, 2015). Based on earlier timings following are
a function that was practised for managing supply chains which are as follows:
 Inventory management
 Material handling
 Transportation service procurement
 Transportation operation management
 Inbound transportation
7

 Warehousing management
From above activities, it was found that there are various activities and operations that needs to
be considered in today’s time which are as follows:
 Customer service or order processing
 Monitoring performance of consumer service
 Budget forecasting for supply chain management
In today’s time activities mentioned above plays important role (Maskell, et.al, 2016). The
organisations now-a-days are aiming to paying attention for contract services. From that time
onwards, supply chain has improved and modified according to current trend.
Supply Change Management Future
It was found that managing supply chain is vivid. The firm can focus on creating improvements
and changes according to market demand that helps in obtaining successful results and growth.
The new features of supply chain include consumer service and information technology. The
supply chain is not limited up to material and information flow but it impacts organisational
activities. Thus, it is essential for management to initiate various functions and activities that
helps in improving system of supply chain management. Following are areas of opportunity for
dispensing improvement in Kelvin Hughes which are as follows:
Shipment Consolidation – It refers to joining various orders from various vendors that helps for
delivering the product or service. Under this, all small shipments are combined for creating one
consignment at one load. Thus, it is essential for focusing on such activities.
Optimization of Distribution Network – It results in identifying location related to configuration
setting, facilities, and carrier selection. Monitoring network efforts will help in facilitating best
carrier selection and locality. It was found that distribution network optimization aid in bringing
cost advantages that ranges from 20 to 30 percent for organisation.
Cross Docking – It refers to material supply that has storing products and goods in warehouses.
The method has chances for developing easy material handling plans and focuses on minimizing
shortage of cost inventory (Upadhye, et.al, 2016).
8

3. Analyse multidimensional global supply chain issues and apply techniques that could assist in
either resolving or significantly reducing problematic supply chain issues within your chosen
sector/ industry
The term supply chain integration is determined as coordination within various activities that are
related to supply chain management. It can be integrated through conduction of contracts from
selected suppliers as well as vendors that helps in making information process flow much easier.
It is essential factors that are to be checked by Kelvin Hughes as firm lacks in commitment with
suppliers about their relationship (Dubey and Gunasekaran, 2015). It has become mandatory for
firm to bring improvement in various operations for obtaining effective results. It can be done
using following method.
Agile Manufacturing
The term agility refers to flexibility. The methods aim for getting quick response for consumer
demands. It is determined as best strategy of supply chain that carries flexibility as its nature and
dispenses several benefits for firms that manufacture product by surviving in volatile as well as
dynamic market. It is used for availing all consumer products on correct place and timings. It
works according to manufacturing and information technology to interact purpose that has made
it competitive advantage by establishing agile manufacturing. It initiates various analytical ways
for taking correct management decisions which is handled by computer systems. In this, support
system for taking decisions helps to evaluate data by developing model for unstructured issues.
The concept is widely used for developing supply chain methods and manufacturing process
(Gunasekaran, et.al, 2018). For initiating agile manufacturing in Kelvin Hughes it is essential for
understanding its four aspects which are as follows:
Integrating Telecommunication Networks – It determines that organisation has to use methods
for improving communication factor within various internal departments. The investments must
be done for developing and creating networks of computer for making interaction purpose much
easier. It will provide wide path for activity aligning while manufacturing products and services.
The information system can be handled by improving information flow in firm and outside.
9

Service and Commercial Support – The method of agile aims to gives services after sales. In
context to Kelvin Hughes, it always prepares plans to manufacture products that also provide
services after selling of products that helps in consumer satisfaction (Sadik and Urban, 2017).
Multimodal Transportation System – Using of agile strategy needs to have prepared plans that
must aim to provide necessary responses and answers to global customers that can be achieved
using multimodal transportation system. Thus, the organisation must focus on selecting seaports,
highways, rail systems and airways for delivering timely products to potential consumers.
Knowledge Centres – While using agile technique it becomes essential for Kelvin Hughes for
maintaining attention for establishing department of research and development as agile needs
detailed data analysis and necessary information related to process of manufacturing.
The organisation has approached for lean step for dealing higher demands by conducting mass
production. According to changed preferences of consumers it becomes essential for shifting to
agile manufacturing from lean. The organisations needs to obtain competitive edge by producing
at mass level after which they require dynamic surrounding for surviving in market based on the
changed consumer preferences (Ghobakhloo and Azar, 2018). The purpose can be completed by
agile method that will help in giving customized goods and services that cannot be compromised
with cost benefits and leading time. Following are key needs of agile techniques that include the
following:
 Skilled employee
 Flexibility in manufacturing technology
Steps for Agile Manufacturing
Research – The practise used in agile should be properly researched and understood before
initiating in organisation. It will include research related to cost, processes and task that will play
essential role in initiating new techniques. The researches becomes by targeting firm that is using
it which will dispense merits and demerits of methods.
Task Force – The process is time consuming method. The task force is essential to recruit that
helps in process smooth functioning. (Venugopal and Saleeshya, 2019) There is people’s group
10