Supply Chain Management Report: Global Supply Chain Analysis

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This report delves into the intricacies of supply chain management (SCM), examining key concepts, principles, and processes as applied to product design, development, logistics, and distribution. It explores the integration of SCM to improve organizational efficiency and analyzes the importance of SCM from the perspectives of customers, suppliers, and distributors. The report further investigates cross-functional and integrated approaches within SCM, as well as the implications of interrelationships between SCM and other departments. Finally, it evaluates different SCM strategies to increase organizational effectiveness, including justifications and recommendations for improvement. The report uses Kellogg's as a case study to illustrate practical applications of SCM principles.
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Managing global supply
chains
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1) Explain key supply chain concept and principles and processes are applied to organisation
product design, development, logistic and distribution..........................................................3
M1) Examine integration of supply chain concept along with process and principle to
improving organisation efficiency..........................................................................................6
TASK 2............................................................................................................................................7
P2) Explain importance of SCM from perspective of customers, suppliers & distributors. . 7
M2) Critically analysis of importance of physical, information & financial flow management
in context of SCM..................................................................................................................8
TASK 3............................................................................................................................................9
P3) Examine the cross functional and integrated approach in the context of SCM. .............9
M3) Examine implication of interrelationship in between supply chain management with
other departments in organisation. ......................................................................................10
D1) Critically evaluate supply chain concept along with process and principal with their
interrelationship within organisation....................................................................................10
TASK 4..........................................................................................................................................11
P4) Evaluate different SCM strategies to increasing effectiveness of organisation.............11
M4) Critically evaluate supply chain management strategies to effectively performing
different functions of organisation. .....................................................................................11
D2) Justify & recommendation to improving SCM strategies.............................................11
CONCLUSION.............................................................................................................................12
REFERENCES .............................................................................................................................13
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INTRODUCTION
Supply chain management Refers to the global process in which there are supplying of
different product form one place to different place where there is use of those product either by
the customers or by other business units. This is there to achieve the organisational goal and their
objectives. This refers to the wider concept in which each and every company have their own
supply chain management that are there to provide their product to the seller that can be
processed further to full fill the requirement and demand of market. Aim of this report is to
understand the concept, principle and different process of company. In this report there is
discussion about the integration supply chain management. There is also discussion about the
importance of SCM from the prospective e of customers, suppliers and distributors too (Núñez-
Merino, 2020).
TASK 1
P1) Explain key supply chain concept and principles and processes are applied to organisation
product design, development, logistic and distribution.
Concept of Supply chain management
Supply chain management refers to the process in which there are many of the product
that is finished goods of the company that is ready for the sale are distributed to different places
that is able to sell the products. This is the one that can help to achieve the goal of organisation
along with their objectives for the satisfaction of their customers. This utilise different tools
along with techniques to get the demand of customer to fulfil accordingly their needs in order to
satisfy them.
Supply chain concept refers to wider concept that can develop network between company
along with supplier to produce & distribute specific products or services for their customers
(Bressanelli, 2019). It involves they are effective and efficiently connectivity regarding
activities, people, information and resources. Kellogg's is one of the leading organisation in
order to providing wide range of product and services as well as they are operating business
operations in many other countries. It involves they are developing effective network system
because product and services are easily reached to the customers. It is concept which refers to
including various activities, product development in order to providing final customers.
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Supply chain management process:
Organisation utilisation various supply chain management process to providing products
& services for customers. It involves they are numbers of process that are followed by
organisation to manufacturing product, product design and many others.
Strategic planning process-: It considered as various forms of strategic planning process
which are refers to
Strategic supply chain design process-: It is process which refers to supply chain
scheduled and design in order to applied the effective strategy as well as evaluation of different
supply chain tools and framework (Núñez-Merino, 2020). It involves proper planning,
organising and then execution of supply chain activity. In context of Kellogg's, it utilised various
measures and factor in order to product the services and different products which is there in such
a position that it can produce the product according to the demand of customer which is thee
eventuated by the analysis of market. It considered as location, transportation lanes resources
and products as well as many others.
Strategic sourcing process-: It is a process that refers to identifying different tools &
techniques in order to minimized strategic relationship with suppliers. Vendors purchasing raw
material from potential suppliers and effectively adapting strategic process.
Demand planning process-: It is tool which refers to proper planning of demand in order
to forecasting, life cycle planning, promotion and many others. In relevance of Kellogg's, it
considered as effectively implementing forecasting process in order to using various methods
like statical, casual analysis and human judgement. It is is essential forecast statical method
effectively due to performance management and accuracy analysis. In the demand planning
process including life cycle planning process refers to proper planning about the product life
cycle (Yadav, 2020). It involves various stages such as launch product and services for
customers. Organisation accordingly formulating planning process in order to attracting large
numbers of customers as well as utilising various tools such as digital marketing and social
media platforms.
Supply planning process-: It includes supply planning process proper safety stock
planning process, distribution planning, network planning outsourcing as well as coordination
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between the supplier and customers. Safety stock planning is essential in order to proper storage
of raw material and finished products reached at specific location. It includes outsourcing of
manufacturing products as well as including third party. Kellogg's effectively establishing
distribution network in order to determine fulfil the demand supply as well as stock are restored
at specific location. Most of organisation maintain effective network within supplier and
customers which refers to retain customers for longer period of time.
Procurement process-: Procurement plays important role in supply management process
such as involves various activity such as purchase order processing, recipe confirmation and
invoice verification (Aslam, 2020). Purchase order processing is method which refers to direct
procurement such as sourcing and confirmation of purchasing product orders as well as receipt
confirmation processing is process other department of organisation received the receipt and
confirmed quantity of ordered goods and services.
Manufacturing process-: Manufacturing process refers to proper production planning for
goods and services and scheduling manufacturing. In relevance of Kellogg's, it includes proper
and detailed production planning in order to proper scheduling process such as assigning
production order and many other activities are involved.
Warehousing process-: It considered as two kinds of warehousing process which refers
to inbound and outbound process. Inbound processing refers to involves external procurement
process in order to revived goods as well as outbound activities used ship in order to preparing
goods and revive proper destination. Kellogg's stored products and services as specific location
such as warehousing.
Order fulfilment process-: Order fulfilment includes the major two activities which
refers to sales order processing in order to proper entry, pricing, scheduling and many others. It
considered as billing process which refers to issuing the invoice such as make payment.
Transportation process-: It includes involvement of two process and activities such as
transportation planning process and execution (Gao, 2017). In reference of Kellogg's, it includes
effectively planning of transportation process such as used which kind of transportation and
many more. It is considered as execution process which refers to monitor and controlling
shipment as well as freight costing process are involved.
There are ample numbers of principle supply chain management which are mentioned
below.
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Know the customers-: It is essential to understanding customers needs and demands to
fulfilling customer requirement. Supply chain management effectively implement on the basis of
this principles because to know about the customer taste and preferences. In context of
Kellogg's, it includes conducting market research to know the market trend and customer
preference and accordingly serves the products and services (de Oliveira, 2017).
Adopt lean philosophies-: It is theory or model which are adapting most of organisation
in order smoothly conducting supply chain functions. It help to managing inventory as well as
reducing work and implementing just-in-time delivery approach are used so worked are
accomplishing within specific period of time. Kellogg's manager are effectively applied this tool
as well as trained the employees in order to effectively performed the business activity.
Create supply chain information infrastructure-: This principle refers to effectively
developing infrastructure to smoothly run supply chain activity and function. In context of
Kellogg's used this kind of infrastructure in order to smoothly flow of supply chain activity
(Birkel, 2020).
M1) Examine integration of supply chain concept along with process and principle to improving
organisation efficiency.
Integration of supply chain management concept, principle and process to increasing
administration effectiveness in order to smoothly conducting supply chain management
activities. It considered as all are interlinked in order to Kellogg's are used this because
effectively and efficiently run the business operations (Gu and Huo, 2021). It is essential because
increasing competition and developing differentiation between the brand at marketplace. It
includes supply chain concept, process and principle all are essential in order to work
accomplished within specific period of time and minimum cost as well as minimized the wastage
of time and material. It considered as organisation utilising proper product life cycle such as
utilisation various resources and infrastructure in order to manufacturing product, delivery,
warehousing and transportation. It considered as horizontal and vertical integration in order to
minimizing the issues and challenges of supply chain management.
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TASK 2
P2) Explain importance of SCM from perspective of customers, suppliers & distributors.
Supply chain management is important process in order to effectively adapting by
organisation so it is beneficial for customers, suppliers and distributors, it considered as
Kellogg's used effective supply chain in order to final products are easily reached for customers
as well as formulating some new strategy to targeting large customers base. There are various
important SCM from the perspective of customers which are mentioned below.
Customer satisfaction-: The measure benefit for customers refers to increasing customer
satisfaction because delivering product at time as well as fulfil the needs and demands of
customers (Sajjad, 2020). In relevance of Kellogg's, it involves effectively formulated the new
strategies regarding supply chain management in order to developing transparency regarding
whole process. It involves supply chain management process so most of organisation used
promotional tool such as social media in order to providing information regarding products and
services. It considered as generating awareness about the product and services.
Price and delivery-: This two major concept so SCM are important for customers in
order to products are available at proper price and on time. In context of Kellogg'sIt process
refers to utilisation effective service tool to beat competitor on retail price as well as enhancing
profitability & productivity of company.
Right after sale support-: Most of organisation after the sale of product and services
providing support for customers, in relevance of organisation, it includes effectively customer
care department support customer regarding complaint and problem which are facing by
customers. Customer care team providing best solution regarding products and services as well
as enhancing customers satisfaction. It involves developing strong network for customers and
retain for longer period of time (BOONYANUSITH and JITTAMAI, 2019).
From the perspective of suppliers and distributor:
Decreasing purchasing cost-: It includes suppliers and distributor plays vital role on
SCM process in order to effectively and efficiently sale the expensive product and services
because they are minimized the cost of inventories in order to storage for longer period of times.
In context of Kellogg's, it is effective SCM system so their supplier and distributor effectively
reducing purchasing cost to providing products & services for customers.
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Decreasing production cost-: It includes suppliers and distributor are used proper
infrastructure of SCM process in order to properly delivering of raw material and assembly
effectively in order to avoid shortages of material as well as supplier and distributor effectively
distribute products and services. Kellogg's is one of the leading firm so using various tools and
techniques and their supplier decreasing production cost in order to minimizing wastages of
storage material (Kusrini, 2020).
Decreases total supply chain cost-: It considers as retailers, suppliers and distributor are
depends on supply chain manager of company because they effectively design the SCM system
and network in order to satisfy the customers needs and demands. In context of Kellogg's, it
includes establishing effective SCM system in order to beat their competitor at marketplace. It
design in that way in order to reducing the total cost of SCM. It includes they are effectively
managing inventory as well as reducing wastages of raw material which refers to achieving
organisation goal and objectives.
M2) Critically analysis of importance of physical, information & financial flow management in
context of SCM.
Supply Chain Management is important concept and tool from the perspective of
customers, retailers, supplier and distributor. It includes various tools and techniques in order to
smoothly flow of SCM function and procedure in an organisation. It includes the two flow which
are focused by organisation in order to discussed below (Al-Aomar, 2017).
Physical flow-: Physical flow is important process SCM in order to movement of goods
from suppliers to customers. It is process which are including supplier, manufacturing,
distributor, wholesaler, retailer and customers. It is process which refers to flow or movement of
goods and services to customers in order to satisfy needs & wants of customers.
Financial flow-: It's important activity and flow which refers to cost and investment are
two major perspective in order to flow of funds. It includes cost and investment moving forward
in SCM process. It is essential tool and techniques because organisation investment in different
function of business as well as analysis the ROI.
Information flow-: Supply chain management is process which refers to effectively
information flow from various aspect such as bills of product data, material, description and
pricing, customer, inventory level and order information, delivery scheduling, title of goods,
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distributor information & many others. It is essential to effective communication and
collaboration with supplier, distributor, transportation vendor, and others.
TASK 3
P3) Examine the cross functional and integrated approach in the context of SCM.
It is process which refers to supply chain management utilisation cross functional and
integrated approach to effectively assessing customer wants and requirement as well as smoothly
conducting business operations. In context of Kellogg's, it is process which are utilising for
different function of organisation in order to various functions such as sales, marketing, finance,
operations and many others. All the business function has own field and specialization in order
to various way to effective planning. It considered as customers has different need, preference,
expectation so accordingly meet the demand with supply. It is utilisation of different tools &
techniques to cross functional efforts are enhancing profitability & productivity of company.
Most of organisation utilisation the two integrated approach of supply chain management in
order to effectively and efficiently applied the cross functional efforts. This kinds of approaches
which are discussed below.
Information sharing in supply chain integration-: It is process which refers to smoothly
flow of information in organisation structure. Most of companies conducting various function
such as marketing, finance so essential flow of proper information. It is tool and technique which
are utilisation in the flow of information from one place to another. There are various other
stages are follow.
Baseline-: It is first stage in order to effectively implemented SCM process in each and
every functions of business (Tang, 2018). Most of organisation using soiled approach in order to
effectively managing issues and challenges regarding information.
Functional integration-: It is next stage in order to organisation operating business
activity with many other department such as all are linked together. In reference of Kellogg's, it
considered as organisation smoothly run the business operation so all the functions are internally
linked in order to effectively and efficiently achieving organisation goal and objectives.
Internal supply chain integration-: Internal integration in supply chain management is
refers to all the department of company are connected with the same system. It effectively flow
of information and IT department used different tools & techniques to all department work
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together. It involves coordinated with other department because it helps to smoothly flow of
business activity (Shekarian, 2020).
External supply chain integration-: It is final stage which refers to external vendors are
linked with the organisation to properly fulfil the need and neediness of customers. In reference
of Kellogg's, refers to vendors are involved in different business function because it helps to
generate the best possible outcomes.
M3) Examine implication of interrelationship in between supply chain management with other
departments in organisation.
Supply chain management utilisation various tools and models in order to smoothly
conducting business activity. It includes they are internally linked with other functions of
business. Logistic department of companies plays vital role in order to performed effectively.
There are different relation in between the supply chain management and the other department is
that when there are manufacturing needs others department to do the work that can help to
proceed for finished goods and then to sell out the finished good there is need for the supply
chain management to sent the product to the seller to earn profit.
Purchasing department are linked with the SCM in order to manufacturing products as well as
coordinating external partners. It considered as synchronized activities in order to internal
business functions are performed effectively. It is essential to maintaining positive relationship
with procurement department and smoothly flow of information. Similarly, sales department are
linked with the SCM function in order to managing inventory cost. It includes supplier and
distributor are linked with sales department to increase the sales target that can help to achiever
the organisational goal along with objectives. All the functions are linked together in order to
smoothly run the business operations of company.
D1) Critically evaluate supply chain concept along with process and principal with their
interrelationship within organisation.
There are different evaluation which are there to evaluate the processes different
principles of the organisational function in which there are many of the funcation work with their
ability to accomplished their work with better quality. Supply Chain Management involves
concept, procedure and principal in relation to they are effectively implementing in an
organisation in order to achieving company goals along with objectives. It is broader concept in
order to utilisation various tools and techniques because developing effective network between
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the supplier as well as analysed the needs and wants of customers and accordingly serves the
product on time. It includes different process which refers to utilisation by organisation on order
to manufacturing product, procurement and many others. It is process that refers to organisation
utilisation various framework in order to serves product and services for final customers. It
involves organisation used various principle to adapting effectively as well as analysed the needs
and wants of customers. Supply chain management department formulating various strategies in
order to increase profitability & productivity of the company. All the functions are internally to
achieve organisation goal & objectives.
TASK 4
P4) Evaluate different SCM strategies to increasing effectiveness of organisation.
Supply Chain Management refers to organisation utilisation different tools and
techniques to increasing efficiency and effectiveness of organisation. There are various strategies
which are discussed below.
Customer centricity-: It is process in order to organisation implementing SCM so used as
digital technology in order to improving business activity as well as proper forecasting. In
context of Kellogg's, It is utilised the digital platform and with social media to promoting
products and services.
Predictive business-: It includes organisation formulating strategies in order to SCM
faces various issues and challenges such as fixing machine, adjusting shipments and relining
manufacturing to effectively produce products & services.
M4) Critically evaluate supply chain management strategies to effectively performing different
functions of organisation.
Organisation formulating various strategies in order to used various machines in order to
producing products as well as effective network are establishing between the supplier and
company. It involves used digital technology as well as automation in order to utilisation proper
transportation and shipment activities.
D2) Justify & recommendation to improving SCM strategies
It is process which refers to organisation used ample numbers of strategies as well as
various other strategies which are discussed below.
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First recommendation is smart automation in order to organisation used robotics
techniques in SCM process which refers to delivering goods and services for customers. It
considered as manufacturing is leading and motivated in order to move mass production as well
as customization regarding products (Roy, 2020).
Second recommendation refers to organisation rethinking regarding design,
manufacturing, procurement as well as whole process of SCM. It is essential to utilisation
transformation process in order to continuous production process.
CONCLUSION
From above report, it can be concludes that supply chain management is effective
process in order to most of organisation formulating various strategies because increasing
effectiveness of organisation. It includes SCM concept, process and principal as well as
importance. It involves cross-functional and integration of SCM with the different function of
organisation. It considered as SCM formulating ample numbers of strategies to increase
effectiveness of organisation.
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