Bennett's is a supplier of bakery products in United Kingdom and its product is an emerging force in the pre-packaged bakery goods market. Bennett's hope can be the replacement supplier for Marks & Spencer since their key suppliers has caused a larger loss to them. So, as a manger of the operations and supply chain department of Bennett's was responsibility to make a report with the key issued about which Marks & Spencer will need to be reassured in relation to their operation.
According to the product recall notice in the Times newspaper, Bennett's knew that a Marks & Spencer supplier have done some big mistake and it was broke Marks & Spencer reputation on quality and reliability in the products it offers for sale in market. It was make an opportunity for Bennett's to get into one of the biggest players in food retailing on the British high street if it can become the replacement supplier of these products for Marks & Spencer. Before of this, Bennett's should make a report based on the key issues about which Marks & Spencer will need to be reassured in relation to their operations.
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A brief introduction about the Bennett's Bakery Products Company will be considered. Then, the following part will discuss about the concept and approaches of supply chain management and how Bennett's can improve its management of organisation. It includes of the Lean manufacturing and agile response, Strategies for managing quality, Logistical Consideration, Benefit of the cross functional, Strategic Partnership, Information and communication technologies, and Environmental impact and ethical issues.
Lean manufacturing is helping the organisation minimise their cost or waste of the raw material during producing and it help them gain the maximum profit from their selling. Agile will created the processes, tools, and training to enable it to respond quickly to customer needs and market changes while still controlling costs and quality. Agile may can settle the problem of the shortage or surplus of the products.
Product quality is very important and an organization must apply the quality control management into the producing operation. The management of quality control and quality assurance normally applying into the organisation. Quality control is a concern of activity that to ensure the products are develop in good quality and quality assurance is help improving and stabilising production quality, testing and blocking the release of defective products, and minimum produce the defective products. Beside it, Total Quality Management also helps to ensure the quality of products must always meet to the requirements of international standards quality system, ISO 9001.
Logistical consideration in the supply chain management is help organisation to choice the best way to delivery the products and it including the consideration of the cost, speed, performance of products delivery.
Cross functional in an organisation brings many advantages to their daily activities. People that working in team can complete the job in short time and save more time to do other activity. The information is sharing in horizontally, so each department can be getting a better communication with each other and it help to reduce communication barrier. Creative ideals always generate in the cross function which have many different knowledge n skill that provide in the team and also help to improve innovation. Teamwork also will be gain better than individual working.
A supply chain need a strategic partnership to help them to achieve the goal of the organization and it is no only gain by the organisation but also the strategic partnership. They are helping each other to growing with applying the long -term contract that bring benefit to both of them.
Information and communication technologies are the technologies to help the oragnisation to analysis and manage their data and information. Enterprise resource planning (ERP) and Material Requirements Planning (MRP) is applying in this case. Enterprise resource planning (ERP) is a system designed to coordinate all information and data, the resources, and the activities needed to complete business processes. Material Requirements Planning (MRP) is the software that provides inventory control system and production planning system to help the management of manufacturing.
Scanning the environmental impact of the manufacturing and address some other ethical issues which affect the organization should be managing by an organization. Manages the environment impact and the ethical issue with well will help or lead an organization to meet their mission.
Table of Content
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Table of Content
2.1 Lean manufacturing and agile response
2.2 Strategies for managing quality
2.3 Logistical Consideration
2.4 Benefit of cross functional
2.5 Strategic Partnership
2.6 Information and communication technologies
2.7 Environmental impact and ethical issues
Bennett's is a supplier of bakery products in United Kingdom and its product is an emerging force in the pre-packaged bakery goods market. It was established in 1980 and now running 7 bakeries spread throughout United Kingdom. Bennett's produces their product for a variety of retail and catering outlets.
In last year, Bennett's has built a new bakery plant in the Czech Republic and it have develop a range of packaged cakes tat can distributed throughout the European market. The location of the plant are bring advantage to Bennett's in seeking contracts with major retail chains because there have abundant skilled labour and easy getting fresh raw materials, so it make Bennett's can compete on quality and price with confident.
One day, the marketing manager, Claire Evans, has saw a product recall notice in the Times newspaper and it shows that one of the Marks and Spencer's key suppliers has shipping several consignments of contaminated cake products to the retailer and it cause a larger loss. Marks & Spencer has to removed the contaminated cake product from their store and it also make their perfectly good stock went unsold. This problem is totally decreasing Marks & Spencer sale and order for their cake products across other retail chains. In this moment, Marks & Spencer has to build up its reputation on quality and reliability in the products it offers for sale by finding other better supplier.
Bennett's now is taking a good opportunity for be one of the key supplier of Marks & Spencer. Bennett's can make a pitch to provide equivalent cake products and push the new range of products to Marks & Spencer store management. If the products are prominent in Marks & Spencer stores, it will make Bennett's in advantage to getting big orders from other major retail chains.
So, Bennett's must convince Marks & Spencer that it can become the ideal replacement supplier of these product and offer quality, value, reliability and safety in the supply chain. Thus, there is some approach for Bennett's on how becomes an ideal supplier for Marks & Spencer.
Lean manufacturing and Agile response
Lean manufacturing concept should be applied into supply chain management. Lean manufacturing can making mass production with the low cost, such as less human effort, less investment in tools, less manufacturing space, and less engineering time to develop a new product. There should have an exchange of information between the raw material suppliers and customer. The benefits generally are higher quality, lower costs, and shorter lead times. The main objective of lean manufacturing concept is waste elimination from the system. "Prime objective of waste elimination from the system is achieved with lean manufacturing technique and all tools. Based on this requirement, Just In Time (JIT) techniques, Total Quality Management (TQM), Total Productive Maintenance (TPM), Flow charts, Workplace Redesigning techniques are used. (Aza Badurdeen, 2008)" It has four steps of lean manufacturing technique to help reduce the waste of an organization, such as waste in time for producing, material overuse to complete a final goods, waste of ability of labour and other.
First step is to realize that there are wastes in the system to be removed. If it no removed from system, it will cause problem and organisation will try to find solutions for these problems. The second step, you will identify the different forms of that waste and find out the causes for these wastes. Knowing the causes of it will make you easy to solve the problem. In the third step, comes the solution finding for the identified root causes. The effect of the solution to the entire system is very important and cant giving a negative effect on organization. Final step is the implementation process and it will be tested and implemented. This step generally takes long time but it can make the lean manufacturing become more efficiency working.
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However, problem of shortages will occur from the lean manufacturing, so agile response should be included in the supply chain management too. Agile response is a term applied to an organization that has created the processes, tools, and training to enable it to respond quickly to customer needs and market changes while still controlling costs and quality. It is major emphasis to quality, and concern of cost and lead time. Managing small volume of products can lower the cost and can be monitor the quality of the products with easier. So understanding to the uncertainty customer needs and market changes are very important because it enables them can manage it with efficiency.
With well management of lean and agile, Bennett's would be providing the most efficiency productivity for Marks & Spencer and against the problem of shortage or surplus of the products.
Strategies for managing quality
Quality control management in an organisation is very important element. It is to ensure products or services are designed to produce to meet or exceed customer requirements.
Since the Marks & Spencer key suppliers has shipping several consignments of contaminated cake products to the retailer and it cause a larger loss before, so now Marks & Spencer will to attach importance to the quality of products. Bennett's even more maintain and improve product quality with apply a better quality control management. It involves the activities and techniques required to achieve the quality of output required. The activity in quality control management involved monitor activity, finding, eliminating, and causes of quality problems. These activities are to ensure organization cans always analysis and develop good quality of products for market. An organization need to bear the prevention costs that associated with preventing defects and imperfections from occurring and appraisal costs that associated with the direct costs of measuring quality for achieve good quality in this case.
Other than quality control management, quality assurance also helps to improve the quality of product for an organization. Quality assurance is the prevention of quality problems through planning and systematic activities Quality assurance activity include improving and stabilizing production quality, testing and blocking the release of defective products, and minimum produce the defective products. Thus, quality control and quality assurance management are an important role in an organization to help produce or develop standard quality product. In addition, normally Total Quality Management also always established in the quality control management and the purpose of Total Quality Management is to ensure the quality of products must always meet to the requirements of international standards quality system, ISO 9001. All of this is helping to built up Marks & Spencer reputation on quality and reliability in the products it offers for sale in market.
"The choice of the transportation carriers affects the pricing of the products, delivery performance, and condition of the goods when they arrive- all of which will affect customer satisfaction. In shipping goods to its warehouse, dealers, and customer, the company can choose among five main transportation modes: truck, rail, water, pipeline, and air, along with an alternative mode for digital product: the market. (Kotler, Armstrong, 2004)"
Transportation of products from Czech Republic to the UK market and elsewhere in Europe should using intermodal transportation which combining 2 or more models of transportation. For example, "Piggyback describes the use of rail and trucks; fishyback, water abd trucks; trainship, water abd rail; and airtrunk, air and trucks. (Kotler, Armstrong, 2004)" The shipper can get the benefit and flexible from each combination of that transportation depend their wants and needs.
The shippers must balance many considerations like cost, spend, availability, flexible, dependability, and other consider before choosing a transport mode for the products. Thus, if shippers wish transport in low cost, then water and pipeline might be best and if speed needed then air and truck are the best. It can be ensuring Bennett's can shipping the products for M&S in a fast n costless way.
Benefit of the cross functional
Bennett's is running the cross functional in the organisation managements. Cross functional management in an organisation will bring a lot of benefit, and it an improve performance of most of the task.
With cross functional team, a task can be complete in the short time period because a problem solving or an assignment task always complete soon if that is done by a team than individuals and the agreement of the members easier to reach , which can reduce the repeating work and reduce the time that require to execute the decision. Member in teams also will enhanced good communication between functions or organizations. Communication barriers were reducing from it since the members are in direct contact to each other either electronic communication or face-to-face communication and it is encourages open and timely exchange of information between members and members. Teamwork of the members is strong in the cross functional and works in teams make them perform better on a task compared to departments or individuals acting alone. New and creative ideals to solve the problem or to complete a task always generate in the team work than individual work. Individual work cannot solve problem with well because lack of new and creative ideals and it is limitation of information that just provided in alone. It also increases the innovation of ideals to the products to maintain advantage over competitors. The successful always bring by the innovation of new ideals and products.
Advantage of better Identification and resolution of problems was gain from it. Causes of the problems that may affect to the organisation can be identifying with quickly because of different knowledge and skills of the members and they are sharing their information to each of the members. Identify of the problem in early and making correction in the right time can prevent the problem totally impact and bring negative effect to the organization.
A strategic partnership is a formal alliance between two commercial enterprises and formalised by one or more business contracts that forming a legal partnership, agency, or corporate affiliate relationship. There are 3 type relationships of the strategic partnership, such as co-operation, co-ordination, and collaboration.
In this case, Bennett's was applying the co-operation strategic partnership with them, which is the raw material supplier of their product. It must has a long term contract between parties that have guarantees volume to ensure the raw materials always available to provide and Bennett's also can produces the products to M&S without worry to the problem of lack of raw materials. Bennett's also may gain offer price of the raw materials with the long term contract with the raw material supplier and it can reduce the cost of production of Bennett's.
Before of this, recognition of supplier quality certification and ensures their raw materials was require specific quality certifications is needed because it can help to reduce negotiations and reduced monitoring of supplier quality in production process. It will lead the productivity of the organization increasing, deal to the trust of the parties. So, sharing of information and trust in between parties is very important to ensure they can be enter into win-win situation because they need each other to achieve the ultimate goal that gains the profit and advantages for their organization. Shorten lead times and gain higher return on investment that lead to increased profits also available from this, and it show the strategic partnership is needed since it will help the each organization to growing.
Information and communication technologies
The information and communication technology is the term that includes the technologies for the manipulation and manages communication of information and data. One of these new technologies is Enterprise resource planning (ERP).
Enterprise resource planning (ERP) is a system designed to coordinate all information and data, the resources, and the activities needed to complete business processes. It helps to maintain the different data into few specific databases for a variety of department in an organisation such as Financial, Human Resources, Manufacturing and other else. Each department can store or retrieve information in real-time from these databases and it provides benefit of sharing information. In the ERP implementation, it helps to analysis the business process such as which processes have the biggest impact on customer relations? Which process would benefit the most from integration? Which processes should be standardised?
Enterprise resource planning (ERP) bring a lot of the benefit to organisation. It encourages proper communications between different departments in an organisation and it also giving analysis result about how to best make the product. It always aims to improvement of the productivity and efficiency.
Material Requirements Planning (MRP) also is better software that provides inventory control system and production planning system to help the management of manufacturing. The main objective of MRP is to ensure the raw materials are enough and available to produce the products and can delivery to customers on time. It helps to control the inventory and maintain the lowest possible level of inventory that can against problem of shortage or surplus of products. Other of its purposes also is help to plan manufacturing daily activities, delivery schedules and purchasing activities.
Environmental impact and ethical issues
Scanning the environmental impact of the manufacturing and address some other ethical issues which affect the organization should be managing by an organization. "Environmental impact is all aspect of business activity cause changes in the environment to a greater or lesser extent. Organizations deplete energy sources and raw materials and generate products and waste materials" (Ken Whitelaw, 1997).
Organisation should reduce the environment impact of the manufacturing by applying the Occupational Health and Safety (OHS) into their manufacturing operation. "Occupational Health and Safety (OHS) refers to the legislation, policies, procedures and activities that aim to protect the health, safety and welfare of all people at the workplace" (WorkCover, 2003). Occupation Health and Safety is a concern about a regulation to guide the safety to the staff since they are working long hour in the manufacture department and it may cause injuries from some of the machine during the job. In addition, staff will feel satisfaction when they are working in a health and safety working environment. It also will improve the productivity and efficiency of them in the manufacturing operation. So, provide satisfactions and reduce the injuries to the staff is the main objective of the Occupational Health and Safety (OHS).
There also have some of the ethical issue that an organization to address careful because it many affect the reputation of an organization. Bennett's design the product or service must focus to the customer safety and it is important part to decide whether the organisation can be continue growing in the market, customer nowadays never turn back to purchases the product that bring harmful or loss to them. Other point, process technology should ensure the safety of the staff, reduce the pollution to the minimum level, and also against waste of using the raw materials. And also the job design should minimum the stress in the staff workplace, like never force staff doing work that over 8hour or more.
Manages the environment impact and the ethical issue with well will help or lead Bennett's to achieve their mission that becoming a world class supplier of Bakery Products.
Mission of the Bennett's is becoming a world class supplier of Bakery Products. For this mission, Bennett's must have a great supply chain management in their daily activity.
Bennett's must improve their management in variety function. It is difficult to make the supply chain management become the best but at least it can be better after identify and solve the problems that affect the organisation in early part, such as finding a long-term raw materials supplier and getting an offer price by applying both into a long term contract, minimise the waste and pollution from manufacturing, against low quality product and other else.
Bennett's also can gain higher profit with low cost by manage their supply chain management with professional and standard. So, manage the supply chain management is important for each of the organisation because it really bring a lot of benefit to help an organization to growing.