Business Management

Global Supply Chain Management Assessment

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Assessment Type

Assignment

Word Count

3600 words

Subject

Supply Chain Management

Deadline

5 Days

Assignment Criteria

This assignment is an INDIVIDUAL piece of work. It represents 100% of the module mark. Students are required to produce a word-processed report in three parts.  

The context: You are employed by a consulting company. Your company has been recently approached by a European company that is looking for new business opportunities overseas. One option that has been suggested to the board of directors is soft drinks industry in South Africa. Your task is to evaluate the attractiveness of this industry. You are required therefore to carry out the necessary research to construct an analysis of the overall competitiveness and investment attractiveness of the South African soft drinks industry. You should use a range of published sources of information in this task, such as books, academic journals, periodicals, web resources and relevant databases. 

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Assignment Solution

Introduction

In a highly competitive environment, an effective and efficient global supply chain is a must for organisations (Huo, Qi, Wang, & Zhao, 2014). Companies use key performance indicators to ensure that their supply chain is competitive and productive. This report is divided into two sections. In the first section identifies the KPI strategies of fresh food and car manufacturing supply chains with the case of RedMart and Toyota and compares these two supply chains. The second section details five themes that cover the contemporary issues occurring in the global supply chain and strategies to overcome it. The findings from the analysis are summarised in conclusion.

1. Fresh Food and Car Manufacturing Supply Chains

This section analyses supply chains of fresh food grocery RedMart Singapore and car manufacturer Toyota through key performance indicators of quality, time, cost and CO2 emission.

1.1. RedMart's Fresh Food Supply Chain

Founded in 2011, Redmart Singapore is an online grocery retailer that provides fresh food items to Singapore households (Lian, 2016).  Its value proposition is to deliver happiness and convenience, maintain accuracy and being on-time and offer best customer service through dedicated teams. The current challenges arise from its dependable distribution network, managing price fluctuations and consumer choice, and keeping food fresh and affordable. It is to be noted that in the fresh food supply chain, once the retailers take possession of the product, they own it (Bosona & Gebresenbet, 2013). They either make money or suffer big losses if their own process is not managed well. Any product return has monetary impact and influence customer loyalty.

1.1.1. quality

RedMart works to ensure that its product offerings are of the utmost quality. To enhance this commitment, RedMart has to obtain HACCP (Hazard Analysis and Critical Control Points) certification or ISO 22000 certification to demonstrate to its customers that, it is committed to trading in safe food (Escanciano & Santos-Vijande, 2014). In the future, it can work towards attaining FSSC 22000, and the Global Food Safety Initiative recognised standard to cater to specific fresh food requirements (Street, 2015). 

1.1.2. time

Time is a major constraint for RedMart as it is committed to delivering fresh produce within a 2-hour time slot. It has to collaborate with local farmer’s and distributors to ensure that product availability despite seasonal fluctuations. The just-in-time, lean approach is not affordable as it would lead to increased transportation frequency.  It has to opt for Material Resource Planning (MRP) to ensure that sufficient inventory of products is maintained and replenished on time (Job Nyandwaro Nyakango, 2016). It has to hold ownership of the last mile delivery to avoid dependency on external service providers and improve productivity.

1.1.3. cost

The company works hard to keep its prices affordable for its customers who are primarily households in public housing estates. RedMart has to implement an integrated ERP solution to reduce operational costs. An ERP system would allow it to improve the purchasing process and track costs throughout its transactions (Tatoglu, Bayraktar, Golgeci, Koh, Demirbag, & Zaim, 2016). Implementing ERP would optimise inventory management and assist in handling warehouses effectively.

1.1.4. CO2 Emissions

As of 2015, RedMart owned 20 delivery vans and three fleet trucks. As they offer a 2-hour delivery window and if deliveries are found to be indifferent corners of a city, then deliveries are grouped around the same timeslots. The delivery route optimisation helps to ensure that each truck makes more deliveries in a single route rather than do more deliveries every day. The optimisation has to begin from scheduling (Cattaruzza, Absi, Feillet, & González-Feliu, 2015). 

Operating the fresh food supply chain to match on-demand needs and supply through an express delivery network under localised operating conditions and in-line with key performance indicators offer a competitive advantage for RedMart against its competitors.

1.2. Toyota's Car Manufacturing Supply Chain

The car manufacturing industry is subject to disruptive changes which are transforming its end products, the way vehicles are produced, and the auto industry as a whole (Thomé, Scavarda, Pires, Ceryno, & Klingebiel, 2014). The increasing requirement for real-time information and effective communication across the supply network is critical for managing and optimising the supply chain on a flexible basis while keeping costs under control.

1.2.1. quality

Toyota's operating philosophy is ‘customer first’ and ‘quality first’. It adopts control measures to ensure that there is continuous quality improvement. Toyota has to continuously adapt Total Quality Management (TQM) along with supplier collaboration to ensure that quality is maintained across its supply chain (Gao & Low, 2014). Combining TQM with Kaizen would allow the company to develop creativity and innovativeness across the organisation and general quality work and products, enhancing the vitality of the organisation.

1.2.2. time

Toyota’s philosophy is to eliminate waste which is achieved through the Kanban system. This allows the company to stock items which are in need and in required quantity and to ensure that the items and final products are available for sale at any given time. This follows the Just-In-Time approach, which helps in reducing inconsistencies and unreasonable requirements, resulting in improved productivity (Dange, Shende, & Sethia, 2016).

1.2.3. cost

In-line with its total quality control approach, Toyota budgeting system is not purely based on target costing, but instead on cost control, target costing, and kaizen. Further, the adoption of just-in-time offers sufficient operating cost control for the company. Incorporating Six Sigma with TQM would enable the company to reduce cost without compromising on quality (Ellis, Goldsby, Bailey, & Oh, 2014).

1.2.4. CO2 Emissions

Toyota has targeted for a zero-carbon emission plan from its products, plants and operations through The Toyota Environmental Challenge 2050. This would involve the reduction of operations related to CO2 emission per vehicle in the existing supply chain and new product lines. Integrating carbon footprint management and optimising route planning to limit emissions in logistics would assist the company in limiting emissions (Aivazidou, Iakovou, Vlachos, & Keramydas, 2013).

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