Generally, the supply chain is a marketing channel of distribution beginning with the supplier of materials, extending through the manufacturing process to the distributor, retailer and ultimately to the consumers. Every process of the supply chain is just like a network; they work together to control, manage, improve, and design the flow of materials from suppliers to the end users. It is important that every single supply chain player to coordinate and collaborate to meet each of their specific goals. It is normally about how to fulfil customers demand through the most efficient use of resources.
However, every single organisation has their own supply chain in order to succeed in their business. It also means that different organisation has different and complex supply chain. For instance, Sainsbury, IKEA and Asahi breweries have their very own supply chain because they are offering different products lines for their consumers. Apart from that, it is also extremely important that organisation manages its supply chain efficiently by getting the right product at the right time, right place and at the right price.
The supply chain system involves peoples, technology, resources and information. A supply chain manager with lots of expert knowledge and always interacts with people who are specialist on technology, Regional law, and International law, currencies, cultures, and infrastructure and resource availability. Therefore, the knowledgeable and sociable supply chain manger will be able to guide an organisation in purchasing, operations and logistics to a successful business pathway.
In addition, a smart supply chain manager usually saves costs at every single stage from primary to tertiary stages meanwhile the value has been added on the product such as label and design in order to offer the finished product in an attractive way – price, packaging and brand name. It is important that a supply chain manager has lots of business and supply chain knowledge in order to succeed. It is responsible of supply chain manger to make a decision on: Supply chain manager also need to make sure the organisation are using minimum effort and cost in order to achieve sustainable goals.
Deal with potential suppliers – contract-skills and knowledge is needed in order to negotiate the purchase of raw materials * Minimise the cost at every available opportunity in order to add value on the products such as using the lowest material cost * Location of factories and warehouses to serve customers’ market * Using location and allocation * Transportation, distribution – vehicle routing analysis * Dynamic programming * Traditional logistics optimisation to maximise the efficiency of the distribution size
At first, plans such as supply chain strategies and product development are needed to predict customers demand and for the whole supply chain. Then, the procurement of raw materials takes place. Organisations need suppliers to provide the goods with a great value and quality in order to be competitive in the market. For example, Sainsbury has over 2, 000 direct suppliers throughout the UK and aboard. Sainsbury also supports their suppliers in difficult time such as the downturn of economy and make sure that all the suppliers are equipped with the skills and knowledge in order to provide a good level of raw materials.
Sainsbury’s potatoes Potatoes are planted and collected by the local farmers. The local farmers usually have their own land in order to grow their potatoes. At this primary stage, Sainsbury food factories are responsible to collect different potatoes from different farmers and repackage it with the Sainsbury brand name on it. Sainsbury also strive to innovate continuously and improve products in line with their consumer needs such as ‘ try our new today’ and ‘ everyday delicious’ in store.
For example, Sainsbury improve their products’ quality and taste such as the better potatoes, vegetables, raw meat, and fresh breads. IKEA’s shoes cabinets IKEA usually collect and buy different raw materials such as the woods from different suppliers. Before that, there are many famous designers who are designing the different products such as furniture. The majority of IKEA’s products are environmental friendly in order to meet demand of sustainability. IKEA also has different quality of products in order to suit different benefits sought of customers.
IKEA has its two different types of segmentation such as the price sensitive and quality segments. For examples, some of the IKEA’s customer who values the benefits of low price however some of the customer values high quality and is prepared to pay more for that benefits. Apart from that, benefits sought of customers are always different depend on their lifestyle, income and age. Asahi Breweries’ Asahi Beers Asahi Breweries have their own product development in this stage therefore able to always upgrade the taste of its beer in order to suit the taste of its consumers.
For instance, Asahi Breweries collects the different raw materials from different suppliers for ‘ Super Dry Beer’ such as bottles, crown, labels and ingredients. At this stage, the buying process take place, the suppliers have to ensure that all the materials can be provided on time to meet their demand now and in the future. Therefore, Asahi Breweries only sign quality contracts with suppliers who can guarantee to meet the needs of Asahi Breweries. Secondary Sector
This is the stage where the manufacturing process takes place; organisations need to produce their products in a factory which will involve technology. Organisation needs to make decision as the following: and make sure every manufacturing process is running smoothly. The production is so important for the organisation because the delay of the production can cause the organisation loss its profits. Contingency plan is needed when unpredictable things is happen such as the failure of machine in order to avoid the failure of supply chain.
At this stage, there are several issues that need to be considered such as social responsibilities, – ethics, sustainability and community interactions by following national and international law as following: * Not use child labour * Fair wages such as the minimum wages * Make sure employees work in safety and health condition * To avoid manufacturing dangerous, unhealthy and low quality products * Care for the environment such as contribute to recycling * Negotiating fair deals with small companies and poor communities Sainsbury’s potatoes
Sainsbury have their equipment in the food factory in order to package and put their brand name on all the potatoes. This process involves the employees who are controlling the machines and packaging the potatoes. Then, distribution take pace, the drivers deliver the potatoes to every single Sainsbury store locally. IKEA’s shoes cabinets IKEA start to produce the products from the raw materials such as wood from the forest. In addition, the IKEA supply chain is mainly produce furniture therefore the supply chain of IKEA is heavily dependent on forests.
After the manufacturing process, delivery takes place by delivering all the finished products-shoes cabinets to every single IKEA’s store around the world. Asahi Breweries’ Asahi Beers Asahi Breweries have a factory network system to control every production process in every factory that they have invested. Moreover, Asahi Breweries have cooperated and integrated with some massive company in order to expand their brand name and also produce their own beers in those companies such as in Germany, China, America and Canada.
During this stage, manufacturing, designing label and packaging take place. Asahi Breweries also make sure every process in the factory have to meet the level of hygiene and no product is delivered before it passed through the inspection process. Therefore, the network system of every single factory enables Asahi Breweries to make sure everything is under control and reduce the chance of problems occur. Tertiary Sector The logistics (planning that takes place within the supply chain) and distribution (movement takes place) will take place to deliver products to the retailer and customers.
There will be some planning and delivery within the supply chain. For example, Asahi Breweries manage to deliver beer through shipping to distributing therefore customers are able to enjoy its fresh taste. Asahi Breweries invested some new technology to maintain the original taste and fresh and greatly contribute to the retention crisps of ‘ Super Dry Beer’ but no preservatives added. It is also important that organisation able to bring the right products or services at the right time, right place and at the right price.
The international businesses need to know about the different culture, lifestyles and even the weather when operate their business in different countries. Excellent stock management The stock management take place which is the function of understanding the stock mix of a company or suppliers and the different demands of the stock. The good stock management can increase the efficiencies and reduce the storage costs of an organisation. For instance, Sainsbury’s real time supply chain technology enables Sainsbury have a good stock management in store especially the fresh foods such as vegetables in order to reduce the waste.
Moreover, there are also many unpredictable things such as the weather which might influence the sales of particular products such as the barbecued foods. In the supply chain, an organisation needs to have a good management on all their products from raw materials to a finished product. There are so many people deal with each others such as suppliers and producers in the supply chain therefore businesses relationship formed. Long-term business relationships such as the good in cooperation, collaboration and configuration are needed base on the fairness and honestly such as trading agreement.
Businesses need to feel that they are getting a fair deal with each others. Additionally, as the supply chain players build up the excellent relationship, it makes everybody easier because they know each others’ needs in business perfectly compare to the others. As a conclusion, the better planned overall production and distribution the more saving on waste, time and money therefore gave a more attractive price for the final product. Finally, those final products will lead to better sales and more successful that the organisations will became.