Supply Chain Networks in Operation Management: AIB Report Analysis

This report provides a comprehensive analysis of supply chain networks and operation management, using Woolworth supermarkets as a case study. It delves into the supply network planning process, encompassing areas like planning administration, data set up, model creation, and supply chain model setup. The report also explores release forecast data, defining planning methods and profile settings, and the supply network planning run. Furthermore, it examines operation management principles applied within the supply chain, such as adapting supply series to client needs, customizing logistics networks, aligning demand preparation, and product differentiation. Process design, including flow configuration and resource preparation, is also discussed. The report highlights strategies for optimizing supply chain efficiency, customer satisfaction, and overall business performance. The report concludes with recommendations for improvement.

AIB standard Supply Chain Networks in operation management
Student’s Name
Student number
SUPPLY NETWORK
Word Count: 2815
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Table of Contents
1 Introduction 4
1.1 Background 4
2 Supply network planning process: 4
2.1 The planning area administration: 5
2.2 data set 5
2.3 model creation 5
2.4 Supply chain model set up 6
3 Release forecast data to supply the network process: 6
3.1 Defining planning method and profile setting: 7
3.1.1 Interactive planning: 7
3.1.2 Release supply network plan and demand plan 8
3.1.4 Deployment runs 8
3.1.5 Transport load building: 8
4 Operation management principles applied in the supply chain network process
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4.1 Adapting Supply Series to Client’s necessities 9
4.2 Customizing Logistics Network 10
4.3 Aligning Demand Preparation along Supply Sequence 10
4.4 Differentiation of Products Adjacent to Client 11
5.0 Process Design locating 12
5.1 Process design flow configuration 12
5.2 Extensive term Dimensions Strategy 13
5.3 Entire Quality Managerial 14
5.4 Resource preparation mechanism 14
6.0 Conclusion 14
6.1 Recommendation 14
7.0 References 16
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Executive summary
This report explains Woolworth supermarket supply chain and supply chain network
which leads to the flow of goods and information from the organization to destination. Such
requires effective planning and packing of goods and services. Therefore, more focus has been
put to the innovation of product, automation of process and minimization of risk. As such, it
helps the company to meet its long term goals such as health customer relationship and good
reputation.
1 Introduction
Supply network recognized to be the process used by the organization to create high-
quality products and the delivery of the products to the consumer. Organizations link the supply
chain and supply network process to bring about the flow of materials and information to the
satisfaction of the consumer. Well, the material flow defined as the movement of raw materials
to the end-user while information flows have a way through which the organizations meet the
demands of the customer in the network. However, the report evaluates and describes the supply
network process to be applied to meet the proposed design of the end-user. Perhaps, operation
management principles and operation strategies processes are also discussed and analyzed
through this report. Finally, the supply network process featured in the digital world as proposed
by the consumer. Essentially, the goal of the organization assumed to be maintaining a good
reputation and the consumer for long term relations (Tolio, Copani, and Terkaj 2019)
1.1 Background
Woolworth grocery supermarket chain stores have turn out to be well known in Australia
due to the uniqueness of its products and innovativeness. Hence, anticipated and known to have
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many clients compared to direct competitors. The organization is well organized for it has taken
time to learn and implement the operation management. Supply chains have trained their
employees on good communications and good customer services. Supply internet chain store has
a competitive advantage over the uniqueness of its products and affordable prices. Additionally,
it had made it convenient for the consumer since they can shop at the comfort of their homes
through an online website. Despite the good reputation of the chain store, clients seem not
convinced and satisfied with the quality of their products. Scientifically it forces the Woolworth
chain store to offer a listening ear to their clients and meet their demands. Supply network
planning process is applied as follows:
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2. Supply network planning process:
Supply network planning process assumed to be used by the organizations to strategize
and adjust the flow of their products. Thus, it makes easy for them in terms of purchase,
inventory, distribution, and transportation to meet the consumer. Therefore, Woolworth grocery
being very aggressive can implement the following discussed process
2.1 The planning area administration:
Woolworth chain store must lay out a good foundation of the planning and the steps to
follow through the supply network planning. In addition, planning must take time to prepare and
to process. Moreover, the organization must point out all the weak joints that affect their
productivity. Woolworth wants to minimize the wastage of the raw materials in their
organization which seem to affect both the organization and the consumer. Thus, illustrated as
below which show supply demand
2.2 Data set up:
The information set up the most important process used in the supply network process to
satisfaction of the end-user. Thus, it involves all the information of the company in terms of
products, location, transportation, production process, etc. perhaps, good products of the
Woolworths chains are what make the supermarket maintain their competitive advantage.
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However, they need to solidify this good reputation by making sure that they are making
rectification where needed. Again, they need to do a follow up for the confirmation that the
needs are met as required
2.3 Model creation:
In the process, companies are required to come up with the most innovative ideas and
uniqueness in naming and designing their product in the most attractive way to meet the final
demand of the user. Essentially, Woolworths need to consider if they should improve their
packaging design to attract more customers since their products are of quality and well known in
Australia
2.4 Supply chain model set up:
Organizations are required to have full information on all the locations that products are
needed. Arrangements are made on transportation and good packaging is considered. Hence, the
Woolworth manager or the professional personality in charge of the supplies ought to be cautious
in transportation. Consequently, packaging and handling of their products should be favorable to
ensure that the product gets to the consumer as fresh as expected. Thus, the marketing charts are
shown bellows displays supply chain data
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3 Release forecast data to supply the network process:
Before the releasing of the predicted data to the supply network planning, the data is first
loaded in the demand planning area. In addition, data recognized must be with no restrictions by
production or the distribution. Essentially, the demand planner may decide to terminate the
planning. An organization must make sure the consumer’s demands are met. However,
Woolworth's demand planner analyze collected data from their planning staff and then decide if
the planning is relevant or relating to what the end-user demanded.
3.1 Defining planning method and profile setting:
The organization chooses the methods to use in their planning. Hence, methods can either
be supply and demand propagation, heuristic-based planning or optimization-based planning.
Again, before the supply network planning, the organization may decide to perform the
stocktaking plan. Profile settings are required in every method through which the organization
prefers to carry out and can edit this setting during the planning process. Additionally,
Woolworth supermarket chain store qualified personnel in the planning method should do
thorough research in the methods. Historically, methods are to be applied in the organization and
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then come up with the best profile which should not only attract the Australians but the world at
large (Song, et al., 2019)
3.1.1 Supply network planning run:
Historically, the companies have made a conclusion on the method to use; they can now
perform the supply network planning as a result of the methods mentioned in the planning
method and profile settings. Once the Woolworth has decided on the method to choose, they can
now have a clear picture of the supply network planning and what to expect as an outcome from
the end-user as illustrated in the chain below
3.1.2 Interactive planning:
In the process, the organization reviews the preferred plan for the organization.
Therefore, the plan to be carried out by the Woolworth groceries chain stores organization must
be very reliable for this organization itself and the world at large for future references
3.1.3 Release supply network plan and demand plan
The final supply network plan is assumed to be released to the demand planning for
comparison without restrictions. The similarity between the two plans could possibly predict the
outcome of the supply network planning. Consequently, one might automatically force the
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company to go back to the drawing board and re-plan or reconsider the results depending on the
demand of the user. Woolworth’s grocery chain store assumed to be the most famous
supermarket in Australia and without omitting with a good reputation. Serious measures are
needed to be carried out in the planning.
The figure shown below demonstrates the Planning Fundamental business stream steps:
Information Gathering
Data assemblage recognized to be the initial stage of the preparation business movement.
However, it might gather and change the information from numerous Vision Supply Chain
Managerial cloud presentations to the Planning Vital schema.
Demand Planning
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3.1.4 Deployment run
However, the processes are implemented by the organization after the finalization of the
production method. Organization uploads their entire inventory in their systems to make it easy
in their positioning. Woolworth chains opt to be on the lookout in the process since it’s a large
organization and their products are perishable. The production should be estimated to avoid
wastage and accuracy in their systems. Graphs are shown below displays a network supply chain
illustrated in terms of durations as from 2016 to 2019 (Rohmer, Gerdessen, and Claassen, 2019)
3.1.5 Transport load building:
In the final process, the products are moved in the required premises and measures must
be carried out in shipping the products. Considering that the Woolworth has followed the supply
network planning and now they have their products ready. The organization must have full
details of their stocks and in case of any movement and shipping or even damage; the
organization can easily trace
4 Operation management principles applied in the supply chain network process
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However, the study offers a lecture on the present exploration of processes administration
of both logistics and supply series. Consequently, the initial clarify commencement of both
logistics and supply sequence managerial in the study tries to describe the range of associated
and linked exploration papers. Therefore, there are seven Principles of supply sequence
managerial which have been explained as follows
4.1 Adapting Supply Series to Client’s necessities
Both company’s individuals and supply series specialists are competent to emphasis on
client’s requirements. Historically, in order to recognize the client better, it is necessary to divide
clients into diverse assemblies which termed as “segmentation”. Therefore, the greatest primitive
approach to divide client recognized to be ABC breakdown that sets the client built on
transactions capacity and effectiveness. The breakdown might also be completed by invention,
business, and trade network. Earlier on, Anderson et al recommended that consumer should be
segmented built on facility necessities, termed, “connections and transaction want” and “order
self-actualization desires”. A huge number of the individuals finally came into an arrangement,
in which all individual emphasized on customer’s necessities but does not appear to be sufficient
nowadays
4.2Customizing Logistics Network
Segment client built on service necessities might have to modify diverse logistics
networks which assumed to be essential in serving diverse segment. Though, the principle does
not hold factual for entire situations. For instance, if someone bond constructor in China, he
recognized to be having diverse logistics networks for dissimilar clients. Every consumer in US
or EU assumed to be in a position of control basis of raw materials, in which you might be held
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accounting in providing loyal production lines, recommending 3pl businesses and air/sea
transporters (Pérez-Fortes, Laínez-Aguirre, Bojarski, and Puigjaner, 2014).
4.2 Aligning Demand Preparation along Supply Sequence
Supply series specialists are educated and skilled to segment demand information with
transaction associates so nobody has the mandate to retain redundant stock. In common, the
standard grasps factual. But in realism, simply Wal-Mart was vigorously and aggressively
allocating and sharing demand information to trading associates.
 when making demand estimate built on SKU/Consumer-level while employing the
use of own chronological order information turn out to be more correct than making use of
POS information you might acquire from retailers
 When making demand estimate built on SKU/Supply chain level, through
employing the use of POS information you might acquire from traders/dealers believed to
be more precise and correct than by means of your personal historical order information
Therefore, the inference in which lack of demand allocation assumed to be not essentially
wicked. But when attaining demand information from transaction associates, one should employ
the use of it, in the correct manner. Demand allocations are always essential during supply chain
management (Medina-González, Espuma, and Puigjaner, 2018).
4.3 Differentiation of Products Adjacent to Client
However, Dell is known to be very essential in supply chain management via keeping
constituents and assembling them simply after the client places the order in direction to rise
product diversity. Therefore, the standard primarily assumed to be factual, but, there is another
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norm that must be considered all the time. “Adjustment” is in the contradictory polarity of
“Diversity”. For instance, certain cosmetics creators articulate goods and engage in choosing to
package and marking that conform to rules of numerous nations across the world. Consequently,
they simply generate single SKU that could be traded in 15 states as an unconventional of 1
SKU/Country. Therefore, controlling product appropriately could drive value downwards sternly
due to the budget of balance.
Outline situation regarded to be essential especially in mandatory with every method via
which the association chooses to carry out and editing the situations during the preparation
procedure. Therefore, Woolworth superstore chain stock recognized to be competent with
qualified workers in the outsourcing planning technique which believed to done thoroughly via
extreme study in the methods (Mahmoodian, Jabbarzadeh, Rezazadeh, and Barzinpour 2019).
5.0 Process Design locating
Many high ranking managers nowadays are destructively trying to change their firms,
like Mckinsey looking for fundamentally to increase performance by exchanging conduct and
abilities through the business. Unluckily, greatest leadership clusters lack a confirmed technique
of thinking around the encounter. Ask the managerial group about what a decent trade strategy
appears like, and one could perhaps discover the close arrangement. A CFO could claim on
generating new economic actions; a processes VP, involve in installing an excellence database;
an HR professional, on studying recompense, training; promotion decision-making, on attaining
everybody to be further customer attentive (Hoseini, Shekarabi, Gharaei and Karimi 2019).
5.1
Persuasive customer involvements have developed from a nice-to-have to a requirement
in numerous businesses. Champions practice standout know-hows to entice and preserve
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business whereas decreasing servicing outlays and criticisms. Therefore, rewards might be
considerable, but accomplishment recognized to be complex, demanding a wide-ranging
reinvention of client trips and supporting developments. Fundamentally the though it might
sound reinvention if no overstatement, since digitizing prevailing courses could if ever the
answer exists. Instead, fruitful renovations start with a zero built redesign of the customer
knowledge of an assumed undertaking, such as introductory to an account/ renovating a service
(Gao and You 2015).
5.2 Extensive term Dimensions Strategy
Strategic managerial matrix on the supply chain was mainly presented as a form of
familiarity in the primarily 1980s. Tentatively, the sequence was initially presented by Harvard
University in the late 1920s and it was finally, recognized as a business strategy. Therefore, the
emphasis of the sequence was then to assimilate the purposeful parts of the business organization
like secretarial, human resource managerial, finance, construction, accounting, and promotion so
that experts might recognize the interrelationship and connections of every one of the practical
parts with the processes and administration of the whole organization (Dessbesell, Up, Pulkki,
Leitch, and Mahmood 2016).
Shedding graceful on the qualifiers and opponents of suppleness, analysts inspected the
source chain act of Mckinsey businesses in five trades, as well as a variety of, performs that
affect it. However, it involved analyzing trademarked information from conferences with
processes directors at additional of 250 worldwide companies. Additionally, interviews measured
ten supply sequence abilities, comprising portfolio and involvedness, command and demand,
estimating, and risk (Carter, Rogers, and Choi 2015)
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5.3 Entire Quality Managerial
However, the entire quality of managerial aspects effectively touches client dealer limits,
interior, and exterior client and suppliers. Thus, a huge number, of course, sit at every edge.
Consequently, it vital also to the business pledge, together with credit that the factual business
culture presumed to be vital for actual-entire quality administration (Allaoui, Guo and Sarkis
2019)
5.4 Resource preparation mechanism
The breakdown could also be finalized by creation, business, and employment network.
Earlier on, Anderson et al optional that consumer must be segmented built on capability
necessities, named, “networks and transaction need” and “order self-actualization requests”. An
enormous number of the persons finally came into preparation, in which altogether distinct
highlighted on client’s requirements but does not seem to be adequate nowadays (You et al.,
2015)
5.4.1Associations between Client and Technical Necessities
Figure 5.4 demonstrates the client and technical supplies acquired from segments 5.1 and
5.2. Therefore, interrelationships amongst them are obtainable on a 3-level measurement of the
supply chain in the center matrix surrounded amongst the customer and methodological
necessities. Reactions from four specialized defendants were used to acquire the associations
amongst client necessities and technical supplies.
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5.4.2 Correlations amongst Methodological Necessities
Essentially reactions from the survey T-REQ (Appendix B) delivered the interlinks amongst the
technical necessities obtainable in the ridge of Figure 5.5. A six-position scale (+9 (firm positive), +5
(Positive), +1 (feeble positive), -1 (feeble Negative), -5(Negative), -9 (Strong Negative)) was used.
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Appendix Report
Appendix report demonstrates that the greatest widespread practice of
the internet for source chain managerial known to be in transference,
followed by command handling, working vendor associations, purchasing
gaining (e-procurement) and client facility (see Appendix 1, figure 5.5).
Therefore, the internet has numerous tasks in locating presentations such as
interconnecting with sellers, inspection vendor value quotes and creating
acquisitions from trader online collections (see Appendix 1, figure 5.4).
Appendix 2 recapitulates the undertakings internet was used in the parts of
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portfolio managerial, conveyance, order dispensation, client facility, vendor
associations as well as invention scheduling.
Conclusion
However, at this point, readers know a few around what occupation and what it does not
in supply chain net managerial. Familiarity advances gradually for a minimum of two motives.
First, customary analytical methodologies to displaying supply chains appear to hesitate when
demonstrating composite supply sequence networks. However, the source network has already
drawn-out and extended internationally, and the hazards intrinsic in the network have improved
accordingly. Network amenities would deliver perception by what means to effectually fix up a
stock network, captivating into version alternative bases of supply and contentment.
6.1Recommendation
Supply network has spread and expanded internationally, and the peril integral in the
network have enlarged and improved accordingly. Network amenities must offer perception in
what way to efficiently establish a supply net, taking into justification alternate foundations of
supply and self-actualization. However, demand indications must directly change consequently
and supply strategies should be coordinated to the rise in demand. Via actual “Commercial
Continuity Amenities”, organizations might instantly re-route deliver intended supply through
activating alternate foundations of supply and transformation distribution plans to clients while
informing entire parties involved.
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