...customer needs that it seeks to satisfy through its products and services”. Bunge has been in existence for nearly two (2) centuries, remained competitive and has grown their businesses from a private enterprise found by a German merchant, Johann Peter Bunge, to a world class firm that is quoted in New York Stock Exchange (NYSE). On its inception at Amsterdam, the firm was involved in grains merchandising and importation from the then Dutch colonies until 1859 when it relocated to Antwerp to become one of the global recognised company in commodity trading; with several operations and businesses in the North and South Americas with distribution capabilities that is spread across the world, Bunge identified facilities as a key driver of supply chain performance as it affects responsiveness and efficiency in market environment (Chopra & Meindl, pp. 64). As the company positioned to become the largest oilseed-processing firm in the globe through acquisition of Cereol in July, 2002; it was faced with the integration of Cereol into Bunge’s business and organizational model, and the dilemma of decentralization of its businesses. This project will focus on identifying the corporate strategy of Bunge while describing the strategy that was adopted in achieving it. CORPORATE STRATEGY At the upper level of the Company strategy, it was designed to make Bunge “the best integrated agribusiness and food company in the world”. It was further identified that logistics will play a key role...
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...Chapter 3 Supply Chain Drivers and Metrics True/False 1. The major drivers of supply chain performance are facilities, inventory, transportation, and information. Answer: True Difficulty: Moderate 2. The major drivers of supply chain performance are customers, facilities, inventory, transportation, and information. Answer: False Difficulty: Moderate 3. The two major types of facilities are production sites and storage sites. Answer: True Difficulty: Moderate 4. The two major types of facilities are distribution sites and storage sites. Answer: False Difficulty: Moderate 5. Inventory is an important supply chain driver because changing inventory policies can dramatically alter the supply chain’s efficiency and responsiveness. Answer: True Difficulty: Moderate 6. Information is potentially the biggest driver of performance in the supply chain as it directly affects each of the other drivers. Answer: True Difficulty: Easy 7. Information is potentially the biggest driver of performance in the supply chain even though it has little impact on each of the other drivers. Answer: False Difficulty: Easy 8. A facility with little excess capacity will likely be more efficient per unit of product it produces than one with a lot of unused capacity. Answer: True Difficulty: Easy 9. A facility with little...
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...Chapter 3 Supply Chain Drivers and Metrics True/False 1. The major drivers of supply chain performance are facilities, inventory, transportation, and information. Answer: True Difficulty: Moderate 2. The major drivers of supply chain performance are customers, facilities, inventory, transportation, and information. Answer: False Difficulty: Moderate 3. The two major types of facilities are production sites and storage sites. Answer: True Difficulty: Moderate 4. The two major types of facilities are distribution sites and storage sites. Answer: False Difficulty: Moderate 5. Inventory is an important supply chain driver because changing inventory policies can dramatically alter the supply chain’s efficiency and responsiveness. Answer: True Difficulty: Moderate 6. Information is potentially the biggest driver of performance in the supply chain as it directly affects each of the other drivers. Answer: True Difficulty: Easy 7. Information is potentially the biggest driver of performance in the supply chain even though it has little impact on each of the other drivers. Answer: False Difficulty: Easy 8. A facility with little excess capacity will likely be more efficient per unit of product it produces than one with a lot of unused capacity. Answer: True Difficulty: Easy 9. A facility with little...
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...and full text archive of this journal is available at www.emeraldinsight.com/0144-3577.htm Supply chain risk management and performance A guiding framework for future development Bob Ritchie Lancashire Business School, University of Central Lancashire, Preston, Lancashire, UK, and Supply chain risk management and performance 303 Clare Brindley Head of Department, Lancashire Business School, University of Central Lancashire, Preston, Lancashire, UK Abstract Purpose – The purpose of this paper is to examine the constructs underpinning risk management and explores its application in the supply chain context through the development of a framework. The constructs of performance and risk are matched together to provide new perspectives for researchers and practitioners. Design/methodology/approach – The conceptual and empirical work in the supply chain management field and other related fields is employed to develop a conceptual framework of supply chain risk management (SCRM). Risk in the supply chain is explored in terms of risk/performance sources, drivers, consequences and management responses, including initial approaches to categorization within these. Two empirical cases are used to illustrate the application of the framework. Findings – A new framework is presented that helps to integrate the dimensions of risk and performance in supply chains and provide a categorisation of risk drivers. Research limitations/implications – SCRM is at an early stage of evolution. The paper provides...
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...(profitability). SC=customer value -SC cost SC Decision phases: 1 - SC Strategy (design)– how to structure the supply chain over the next several years. EX: in-house or outsourcing, location and capacities of production and warehouses, products to be manufactured or sored, modes of transportation and type of info system to be utilized. 2 – SC Planning – time frame is a quarter to a year. The goal here is to maximize SC surplus that can be generated over the panning horizon given the constrains established during the strategic phase. Includes decision about which MKT will be supplied from each location, subcontracting g of manufacturing, inventory policies time and size of marketing and price promotions. 3 – SC Operation – time horizon is weekly or daily. Decisions regarding individual customer orders. SC config. here is fixed and planning policies are already defined. The goal is to handle incoming customer orders in the best way. Allocation of inventory or production to individual orders, set dates when an order is to be filled, generate pick lists at a warehouse, allocate an order to a shipping mode and shipment, set delivery schedule of trucks and place replenishment orders. Less uncertainty about demand info. (short term). Process views of a SC: 1 - Cycle view – processes are divided into a series of cycles, each performed at the interface between two successive stages of a supply chain. Procurement cycle (suppliers to manuf.) – Manufacturing cycle (manufacturer to dist.), replenishment...
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...Q: 1 Why Integration among three macro processes- CRM, ISCM and SRM is crucial for successful supply chain management? Answer: Customer relationship management (CRM) is a widely-implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments. Measuring and valuing customer relationships is critical to implementing this strategy Internal Supply Chain Management (ISCM) The primary objective is to visualize activity and event spawn during work flow and offers panoramic view of upstream and downstream activities. It constitutes inbound, outbound and production operations, and can be segmented into Raw material, work in process and finished goods with their intrinsic operations. Supplier Relationship Management (SRM) is about developing two-way, mutually beneficial relationships with your most strategic supply partners that deliver greater levels of innovation and competitive advantage than could be achieved...
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...Introduction Inventory serves as a useful purpose in the supply chain. Many supply chain managers say firms can help decrease the need for inventory by carefully managing factors that cause inventory levels to increase. Inventory can be defined as the result of imbalance between supply and demand. The term inventory drivers comes from the consequences of certain supply or demand characteristics, such as: product desirability, responsiveness, information, collaboration, and visibility (St. John, 2008). The four common inventory drivers are: 1) demand/ capacity mismatches; smoothing inventories 2) demand/ process volume mismatches; cycle stocks 3) demand/supply uncertainty; safety stocks and 4) demand/supply chain lead time mismatches; anticipation inventories (Bozarth, 2011). Determining Inventory Levels Inventory decisions are normally determined by five key business drivers: consumer demand, lead time variability, pack mix, merchandising requirements, and service levels. However, with every decision there is always an area for error. Forecasting consumer demand involves factoring in lead time, lead time variability, and package size constraints. The best way to manage customer demand is to run a sales and operating plan across merchandise, supply chain, and store operations to tweak forecasts and reduce forecast errors. The key is to do a monthly review of forecasts for items with a stable demand, and for items with unstable demand and promoted categories they need a more...
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...5 key drivers of supply chain compliance and why？ The key drivers of supply chain management that determine the overall competitiveness and responsiveness of the organization relate to inventory, transportation, facilities and information. The complete supply chain is made up of many channel partners and many processes. Supply chain management encompasses several activities and partners. The forces which are responsible for making the supply chain effective are legislation, environmental, pricing, customer and social. 1. Legislation Legislation is the most important drivers of supply chain; a firm should follow the legislation, or exit the market. Legislation may be in form of general environmental laws (Fleischmann et al., 1997; Georgiadis and Vlachos, 2004; and Van Nunen and Zuidwijk, 2004), or it maybe specific, for example mandating a given recycled content in new products (Krikke et al., 2004) or pinpointing End Of Life (EOL) take-back responsibility (Krikke et al., 2004). Legislation in turn may be driven by issues like government's concern for environmental degradation, public opinion or pressure, lobbying by interest groups, shortage of resources, preferred modalities of a nation's development, which may also, in turn, act directly as drivers for a business firm. Reference: 1. Mann, Hanuv; Kumar, Uma; Kumar, Vinod; Mann, Inder Jit Singh. “Drivers of Sustainable Supply Chain Management.” Iup Journal of Operation...
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...Executive Summery Rajnigandha Melamine Ltd produces melamine tableware as make-to-stock philosophy. It stocks its finished goods inventory in own warehouse sells the products from an outlet. Customers are the end consumers and independent retailers. This distribution network we call ‘manufacturer and retail storage with customer pickup’. Rajnigandha sources its raw materials from China and Taiwan uses independent transport agency for inbound transportation. Raw materials are stored in the factory which minimizes inventory cost. The company focuses on efficiency not on responsiveness. Customers get the facility of same day pickup but not much differentiation. This company’s success depends on how they collaborate with its suppliers and customers. What Kind of Products is Melamine? Functional kind of product. Demand is uncertain. Main rivalry is the ceramic products. Volume of SKUs is high. Demand is same throughout the year except for the Eid-season. 1 Chapter 1 1.1 Introduction Rajnigandha Melamine Ltd was established in 1991 in Chawkbazar, Dhaka. It was first established with a view to produce plastic products. From 2001 they started to produce melamine tableware’s. They produce more than 130 items and more than 1000 models including melamine bowl, plate, condiment dish, serving tray, stewing pot, lunch box and teacup. Company Profile Business Name Business type Year of Established Total Employee Number Business...
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...INSTITUTE OF BUSINESS MANAGEMENT STUDIES Term End Examination/ Supply Chain Management. All Questions are compulsory. Total Marks : 100. Q.1 Consider the supply chain involved when a customer order a book from Amazon. A. Identify the push/pull boundary & two process each in the push & pull Process? Answer : In Amazon’s original operations design the push/pull boundary existed betwixt the retailer (Amazon) and their distributor. Amazon ordered product from the distributor and the customer order arrived. Today, Amazon has six warehouses where it stocks an inventory of items it is confident that will sell. In this scenario, the push/pull boundary exists between the customer and the retailer. All supply chain processes can be broken down into four process cycles that connect the five stages of the supply chain; the customer order cycle, the replenishment cycle, the manufacturing cycle, and the procurement cycle. The customer order cycle connects the customer with the retailer; this connection is made as the book, perhaps Supply Chain Management, is selected and paid for by the customer. Processes in the pull phase are the order fulfillment, shipping, customer returns, and customer billing. Processes in the push phase are production, stock replenishments, shipping, and payment. B. How do you characterize the competitive strategy of high end dept. store chain Such as Nordstrom? What are the key customer needs that Nordstrom aims...
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...Starting a new business, management of every company has to decide what competitive strategy will be; whether focus will be on low price, speed, high quality or other. Depends on that decision, organization can develop its supply chain strategy, work on performance objectives and make trade-offs needed to achieve strategic fit. Drucker (1995, cited in Elgazzar et al., 2011) posts words of William Durant, founder of General Motors, that profit is the result of a ‘cost stream that spread throughout the supply chain’, showing that only analysis of the whole chain makes the difference. To analyze supply chain performance there are following drivers to consider: facilities, inventory, information, transportation, sourcing and pricing. Rolls-Royce’s business is on the products with long life cycle. Gas turbines are not a commodity product and it takes years to come up with a new system. This fact allows the company to achieve strategic fit, stay competitive and generate revenues over the long term. Obviously, each of the performance drivers is considered in order to get the results shown in the annual report. Facilities are the physical locations where product is fabricated, assembled or stored. Possible choices for a company are to have one facility, so that increase efficiency, but lower responsiveness or to have a few of them, so that increase responsiveness by sacrificing efficiency. Exact location, capacity, variety of products should be considered. Rolls-Royce, competing...
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...STRATEGIC SUPPLY CHAIN MANAGEMENT AND LOGISTICS | | Unit aim This unit provides the learner with the understanding and skills to plan strategies to improve an organisation’s supply chain Unit introduction This unit focuses on how the concept of supply chain management and logistics is based on the idea that every product that reaches an end user represents the combined effort of multiple organisations which make up the supply chain and that until recently, most organisations paid attention to only what was happening within their own business. Few organisations understood, much less managed, the entire chain of activities that ultimately delivered products to the final customer. This resulted in ineffective supply chains. In this unit, learners will develop the knowledge that, today, many organisations realise that effective management of supply chain activities can lead to increased customer value and achieve sustainable competitive advantage. Supply chain activities cover everything from product development, sourcing, production and logistics, to the information systems needed to coordinate these activities. Learners will discover that the organisations that make up the supply chain are ‘linked’ through physical and information flows. Physical flows involve the transformation, movement and storage of goods and materials and are the most visible piece of the supply chain. Of equal importance are information flows as they allow the various supply chain partners...
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...objective of every supply chain is to maximize the value generated for the manufacturing component of the supply chain. a) True b) False 2) Activities involved in the Customer Relationship Management (CRM) macro process include c) planning of internal production and storage d) order fulfillment e) marketing f) supply planning g) demand planning. 3) A company's supply chain strategy h) defines the set of customer needs that it seeks to satisfy through its products and services i) specifies the portfolio of new products that it will try to develop j) specifies how the market will be segmented and how the product will be positioned, priced, and promoted k) determines the nature of procurement and transportation of materials as well as manufacture and distribution of the product l) determines how it will obtain and maintain the appropriate set of skills and abilities to meet customer needs 4) The key weakness of the ________ view is that different functions within a firm may have conflicting objectives. m) Intrafunctional scope n) Intraoperation scope o) Interfunctional scope p) Intercompany scope q) None of the above 5) Seasonal inventory is inventory that is built up to counter predictable variability in demand. r) True s) False 6) Which of the following is not a major driver of supply chain performance? t) Facilities ...
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...A critical analysis of Supply Chain Collaboration Techniques By Arun Table of Contents Introduction 3 Supply chain Management and Drivers of supply chain performance 3 Retail Industry supply chain overview 4 Bullwhip Effect 5 Reducing the “Bullwhip Effect” 6 Mitigating Bullwhip Effect by Improving Information Accuracy 7 Collaborative planning, forecasting and replenishment (CPFR) 8 Drawbacks of CPFR 9 Vendor Managed Inventory (VMI) 9 Drawbacks of VMI 10 Mitigating Bullwhip Effect by Improving Operational Performance 10 Vendor consolidation 11 Risk in using 3PL for vendor consolidation 13 Reducing Replenishment Lead time using Cross docking 14 Supplier selection for cross-docking 15 Benefits of Cross-docking 16 Disadvantages of Cross-docking 17 Conclusion 18 Appendix 19 Appendix A 19 Products suitable for cross-docking 19 Types of cross-docking 19 References 21 Introduction A Supply chain consists of all the participants and processes which are involved in satisfying the customer demand. The large amount of participants, variety of processes, dynamics and uncertainty in materials and information flow prove that the supply chain as a complex system in which coordination is considered as a key element for success. The lack of supply chain coordination between the participants results in a “Bullwhip Effect”. This report analyzes different techniques followed by Wal-Mart to improve coordination for reducing the bullwhip effect...
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... Source: Slack N, Chambers S, Johnston R and Betts A (2009) Operations and Process Management. Operations management is a process of how the organizational activities are carried out efficiently and effectively in order to achieve strategic objectives. It identifies the best practices in performing business activities. Hence it creates value to the organization and its customers. In the context of operations management “Logistic and Supply Chain Management” plays a vital role. Therefore, this report discusses the importance of logistic and supply management and its implications on business activities. It will explain the overall concepts underlining supply chain management and brief the personal opinion on the concepts explained. Finally, it will evaluate the application of the concepts in the practical environment. 3. Introduction to Logistic and Supply Chain Management According to the Council of Supply Chain Management Professionals (CSCMP), a professional association that developed a definition in 2004, Supply Chain Management “encompasses the planning and management of all activities involved in sourcing and procumbent, conversion, and all logistics management...
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