Solution of Operational Problem by Supply Chain Management Concept
Question 1
Operational Problems and Applied Supply Chain Management
There are several operational problems appertaining to a commercial or industrial enterprise and the people constitute in business (Andreas and, Carl, 2011). Operational problem is source of difficulty which are in series of actions or sequential difficulties influencing others. In this section we summarize the operational problem and consider the application of supply chain management general idea or concepts that will curb or limits the operational problems.
The operational problem considered is distribution strategy, which is addressed by supply chain management by controlling question emanating from operation that are; centralized, decentralized and shared concerning delivery of systematic plan of action or just scheme of delivery, for instance situation where there exist direct shipment of products or goods and shipping that can be pool point or simply pool point shipping.
Control of docking which is oriented in cross docking, precise store delivery, close loop shipping that is transportation mode for instance a vehicle entailing less than truckload and control of transportation of privately operated motor vehicle or logistic of third party.
Operation problem relates to distribution of network arrangement or configuration in which supply chain management addresses by ensuring a number of configurations is appropriate. Network commission or mission and location of the company or business entity is accessible and reliable. company or firm initiates several locations to be close or accessible to customers of high market volume (The Economist Books, Bloomberg Press; 1st edition, ISBN 978-1576603451). Facilities of production are more reliable and capacitated and centers of distribution are accessible. Whereby, storehouses are well supplied with aid of supply chain management customers which are networked and finally cross-docks are well structured and networked.
Result of Proposed Solution
Expected results of the proposed solution is to make supply more frequent and available to customers because there is network mission of suppliers and proper distribution strategy enhanced by good transport system.
Question 2
Background of Problems
The operational problem aforementioned, that is distribution network configuration and distribution strategy are actually from my work of supply. This is because distribution network configuration should be the one of prime factors, I should have given priority for the flourishment of the business.
This network factor is very prerequisite for availability of products and maintenance of customers, since when customers get product unavailable at some time, then they will change their mind for another optional business entity, Guide to Supply Chain Management: How Getting it Right Boosts Corporate Performance (David, 2009).
On the same line, operational problem of distribution strategy is my own because I ought to have planned for strategy because in any business distribution strategy is always establish and it is one of the fist strategies that will help in sales marketing.
Company background
The company in the subject is called Talex Coffee Company which processes coffee in large scale and refine and commit packaging. Talex Coffee firm is having capacity of producing 30 boxes of coffee tins per day and the production facility is effective and reliable that can produce more than 60 boxes of coffee tins.
The company has 12 branches each in 12 states in USA and each branch averagely occupy 25.78hac track of land and has employed 24,678 staff and has facilities or that suits large scale processing of coffee and headquarter is located in Georgia USA.
Question 3
Description of the problem
More information on operational problem in the subject called distribution network configuration. Elements belong to his operational problem are; number of supply or number of products to be supplied. In more details if the number is known, then the supply will be reliable and prototype meaning perfect and standard in other words there will be sufficient supply of goods which will not disappoint customers that may render them to change for another alternative business entity.
In the situation where the number of products supplied is not sufficient, then uncontrol operating questions of distribution strategy may lead to insufficiency of supply and make company undergoes a loss and lead to another sequential problem of collapse of the business. Alternative there is an operational problem of distribution strategy that happen when there is absence of direct shipment and unavailability of pool point shipping. On the same investigation, when there is no replenishment strategy in pull, push or hybrid then there is likely loss of quality of supply (Special Topic Forumon Power in Supply Chain Management. 51(2), pp.98-98).
The problem of distribution network configuration involves operational decision making in which there is establishment of distribution center and storehouses or warehouses. furthermore, distribution strategy involves operational decision making where there is transportation control and replenishment strategy. The paper considers the problem of determining control of transport and replenish strategy. The main problem of the firm is how to enhance speedy and precise distribution strategy
Question 4
Application of Operations and Supply Chain Management concepts. Supply chain management entails essential sequence of activities that must be accomplished sufficiently and on time. In other respect ways, if not activities not accomplished products will become unavailable when required by customer.
Fulfillment of the seventh rights
The capability to fulfil needs of the clients for every product, is established on the anticipation that all is done rightfully in supply chain, this shows that executing it correctly on the initial time with no error is accepted. In the seek to give service of high quality makes clients fulfilled, classy companies in line with supply chain are aided by seven rights of fulfillment (2012, Encyclopedia of Management).
Considering this concept, each order requirements to be done as per these seven goals. Business entity must try to perform or do a “perfect order” to each client each time. Doing it correctly the initial time render the client jovial, save the price of doctoring errors, and does not need extra assets. Hence, each part of the forum has enthroned interest in following perfection;
Delivery of “Perfect order”, in more details this is achieved when entire Seven Rights of Fulfillment are obtained. To fulfil an ideal order accomplishment, the merchandiser has to possess company’s favored product available for commission as an order, operation of an order in rightful manner, then entire shipment through the method that an individual may request, an individual is issued in advanced with shipping details; tracking number and individual account.
Merchandiser’s objective and goal is to render clients are delighted by conducting the work correctly and this issue a sound reason of clients to utilize the merchandiser’s services in future time (Blanchard,2010).
Supply Chain Management Flows
If the objective of supply chain management is to give product availability via sufficient and timely accomplishment of client demand. An individual need active product flowing from origin towards consumers to fulfil the goal. In addition to this some flows are also very essential in the role played by suppliers, firms that have enthroned interest in flows of finance that is suppliers need to possesses payment for their owned products and sieves immediately without hassle at some time.
Supply Chain Management Process
Activities appertaining to Supply chain are not the obligation of an individual or single company, many or mass of people require to be effectively engaged in many various processes to render it work. To manage a win, supply chain management needs supply chain specialists or connoisseurs to do similar activity (2014, Supply Chain Management Process Standards).
Every supply chain player must perceive his or her work, establish good strategies for winning and associate with their colleagues in supply chain, this collaboration is by committing a list of activities the supply chain management team who can do (Chopra, 2020). the listed processes are;
- Planning-put a blueprint searching creation of active short and long-range supply chain strategies.
- Procumbent -buying is focused on the purchasing of necessary raw materials
- Production-ensuring the processes implies the conversion and manufacturing of material into final products.
- Distribution-the process in goo motion control the goods flow which are logistical in supply chain
- Client interface-revolution of demand process going around the entire issues relating plans of client interaction.
QUESTION 5
concept application to the problem for solution
The application of Supply Chain Management Flows. If the objective of supply chain management is to give availability and sufficient product on time for accomplishment of client’s demand. An individual need active product flowing from origin towards consumers to fulfil the goal. In addition to this some flows are also very essential in the role played by suppliers, films that have enthroned interest in flows of finance that is suppliers need to possesses payment for their owned products and sieves immediately without hassle at a sometime (Andrew, Dan, and Tom 2006).
Supply chain management give 24 boxes to a town, each box contains 7,100 coffee tins products. Boxes are delivered on time that’s by 6.00 am this is accomplishment of client demand because the population of coffee consumers is in that town is 169,950. The supply is available and sufficient because . This shows that 170,400 tins will sufficiently serve 169,950 customers in that town meaning 169,950 tins will be delivered and the retailor will remain with , which can be merchandised at a lower price to regular clients an incentive.
The retailor will still make a profit on tins as expressed in percentage of is sold making a profit plus the profit which is obtained from remaining 450 coffee tins sometimes all coffee tins are sold and if not all sold then, it contribute to supplier income as calculated above. Active product flow of 24 boxes of coffee tins from firms to retailor serving consumers, make the customers satisfaction. In addition to the flows of supply are also very important in the role played by suppliers, films that have enthroned interest in flows of finance that is suppliers need to possesses payment for their 24 boxes of coffee tins products and sieves immediately without hassle.
Question 6
Expected result of the proposed solution. Coffee firms expect a revenue of $ 60,383,250 daily. In analysis this revenue is before implementation of solution of the supply chain management flows. The solution of Supply Chain Management Flows will make expectation because if one tin cost 85 and the number of tins supplied is 710,400 then the firm will get $60,384,00 which even exceed the expectation and an improvement of operational performance of $750 which is of through put time is recorded.
Conclusion
Applied Supply Chain Management can give solution to Operational Problem. In this case the concept of distribution of network configuration in which supply chain management addresses the number of configurations is appropriate and distribution strategy, which is addressed by supply chain management in controlling question emanating from operation that are; centralized, decentralized and shared concerning delivery of systematic plan of action solves problem of globalization
Globalization appertain to the operation of integration and interaction among people, firms, and authorities or governments of different nations. This is being compelled by the decrease of trade roadblock, advancements in transportation, technology and information. Authority managing operation find themselves confronting competition from challengers within their country and also from other states. Operations management needs to have the software that are usable to increase their production and ultimately enable firm to maintain its competitive advantage.
Once operational problem of distribution strategy has been solved by supply chain management concept, then sustainability is attained. Sustainability is one of the biggest reason impact conversation. Even though there is argument that, if sufficient resources required for future use can be obtained then Sustainability concept concerns three main sustainable pillars always come into action, these includes economic, environment and social. Responsible authorities in management must have information of the result of every pillar, involving how their facility production will influence the main factors. Active management of operation will apply commitment that will deal with these issues belonging to sustainability.
Importance of active communication is exhibited when there is consistence and effective information deliverance or communication is very difficult within firms. The dispute for operations authorities is to be capable to communicate actively with entire external and internal stakeholders. This will finally admit for more crucial transparency within production facility of the firm, which will help the factory.
Having concerned member on the same platform, one can enhance efficiency within firm’s manufacturing action with ease and management of operations require to seek for software that can render this much easier for the firm. Effective communication is necessary for manufacturing firms that are looking to enhance operational efficiency in field such as planning of demand, forecasting of demand, utilizing the blueprint/forecast, and finally apply this into a right production plan.
Essence of Ethical Conduct is also realized. In details ethics is a subset of commercial or industrial enterprise ethics that is entailed to check that functions of production are not negating or negatively affecting society.
Comprehending the ethics of industrial enterprise will assure that firm will not come out of line with keeping the society and business environment secure. wrong character has bestowed to the death of many different firms worldwide, that is the reason comprehending them is so essential. Being moral across all business functions will assure that operations goes smoothly and that firm will not fail due to this.
References
Cf. Andreas Wieland, Carl Marcus Wallenburg (2011): Supply-Chain-Management in stürmischen Zeiten. Berlin.
Chopra, S., 2020. Supply Chain Management. New York: Pearson Education Limited.
- Supply Chain Management. London: Emerald Group Publ.
David Blanchard (2010), Supply Chain Management Best Practices, 2nd. Edition, John Wiley & Sons, ISBN:9780470531884
Logistics, Vertical Integration, Materials Management and Supply Chain Dynamics. In: Slack, N (ed.) Blackwell Encyclopedic Dictionary of Operations Management. UK: Blackwell.
Andrew Feller, Dan Shunk, & Tom Callarman (2006). BPTrends, March 2006 – Value Chains Vs. Supply Chains.
- Supply Chain Management. Hershey, Pa: Business Science Reference.
- Supply Chain Management Process Standards. Oak Brook, Illinois: Council of Supply Chain Management Professionals.
Journal of Supply Chain Management, 2015. Special Topic Forumon Power in Supply Chain Management. 51(2), pp.98-98.
- Encyclopedia of Management. Detroit: Gale, Cengage Learning.