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In this assignment of module MO0255, there will be having better understanding on the concept of the global supply chain. This assignment critically explaining on the current position of one company named Schriskoope in this task. Schriskoope is one of the biggest chicken processing companies in European based in Holland. Schriskoope play two major roles in their business. The first main role, Schriskoope acts as a manufacturer where they are producing their chicken products including chicken leg, chicken breast, and chicken liver. All of these products imported by using Third Party Logistic Provider (3PL) and all of these products will be sold into several countries such as UK, France, Belgium, and Germany. Besides, Schriskoope also take roles as supplier, where they able to supply to the retailers, wholesalers, restaurants, and outside of their countries. Schriskoope need to appropriate performance measures in order to help them to resolve their problems mentioned. There are some improvement strategies for Schriskoope such as Benchmarking and Supply Chain Operation Reference Model (SCOR) which are very useful to improve their business globally. Besides, we will make findings on the different improvement strategies such as Forecasting, Total Quality Management (TQM), and Lean and Agile concept. Furthermore, every improvement strategies have their own benefits and limitations on the global supply chain. Lastly, the exploration of three various factors such as social, political, and environment factor that could impact on the global supply chain. Besides, these explaining about how these factors combine to achieve sustainable global supply chain. There are such different concepts linked to the Schriskoope that are very useful to be implemented into their business. Such concepts are green supply chain management, supply chain collaboration, and Six- Sigma tools.
In this module MO0255, we will learn and focus on global supply chain. It is very important for everyone to have better understanding on the global supply chain concept. Global supply chain has expanding to various elements including the food supply chain, lean and agile supply chain, supply chain integration, and logistics management. Besides, it also tells us about the implementation of different strategies to improve global supply chain in the business. Instead of implementing the strategies, we also need to learn how to adapt on resolving the limitations and problems that can give impacts on the global supply chain. There are such areas that are very useful tools such as six sigma, lean and agile SC, supply chain collaboration, and environment supply chain as these tools need to be practices by every company to assist them in improving their business in the future. In supply chain, we will learn about the flows of the creating of the products from the process of raw materials until it being processed in the manufacturing plant to become final products before delivering to the end user. Today, global supply chain trend to be more high risk rather than supply chain domestically. Basically, supply chain management will involves the participates of distributors, manufacturers, suppliers, and lastly is end user or customer.
Describe the current position of the company in fresh chicken SC and how they can measure their performance (including the simple drawing of the current SC network). (Max 700 words) (20% of Mark)
CURRENT POSITION OF SCHRISKOOPE SUPPLY CHAIN COMPANY
What is Supply Chain? There are many reviews on the different definitions of the supply Chain concept. Every definition has their own meanings on how they want to explain the supply chain concept which to make more understanding on this concept as will assist on the company itself to gain commercial benefits. According to Ayers, the definition of the supply chain concept came across as the process of managing all the supply chain strategies, operation, and all involved activities which satisfy and meet the customer requirements (Ayers, 2001). Nowadays, the global supply chain involves through the international borders which build the relationship in the supply chain as manufacturer, supplier, distributor, and consumers (New, S. J., & Westbrook, R., 2004). As a company, they need to consider their position in their business to become more competitiveness besides operating their business globally. A Schriskoope Company is one of the Chicken processing companies in the Holland. In this company, this company applied two important roles in managing their business globally. Schriskoope Company takes the first roles or functions as manufacturer in the business. In roles of the manufacturer, their company based in Holland is processing their own products which involves different activities including cutting, cleaning and washing, vacuuming, and packaging of all products before distributes to their customer. Besides, they have their own storage which all the final products can be stored with average one day capacity before distributes for sell to the customers. Second main roles of the Schriskoope Company that we need to concern is they are also act as a supplier on which they are supply all of their products to be sold to in their country and other different countries such as United Kingdom, France, Germany and Belgium.
FIGURE 1.0.1: SUPPLY CHAIN NETWORK OF SCHRISKOOPE COMPANY
1.1 PERFORMANCE MEASURES METHOD IN SCHRISKOOPE
How can we measure the performance of the company? In this case, we can see that how it is very important for every company to evaluate their performance while doing their business. Performance measures is important for every company in assist to become competitive in the market globally, such measuring their performance involving the strategies, improving such areas needed, and become a decent benchmark against the competitors (Sarah Shaw, David B. Grant, John Mangan, 2010). One of the methods to measuring the performance is benchmarking. According to Sarkis in 2011, in leader's perspective, the definition of the benchmarking is the continuous process of measuring the services, products, and all the activities involved in the company as the way to improve the company performance (Anderson, K. and Mcadam, R. (2009). The benchmark process will help to improve the performance of the company by take and comparing the performance with other prominent leader in the market. In this case, A Schriskoope Company should be implementing this method to improve their performance in maintaining their business globally. By having benchmarking, Schriskoope can take this advantage to identify the critical problems in the company, the strategies needed to be used, and measure different aspects of areas including their quality of the products and services provided to their customers, and improves all the activities and processes involved in the Schriskoope. Another important method for measuring performance is Supply Chain Operation Reference Model (SCOR). SCOR Model is useful for improvement of the alignment on the operation of the supply chain and demand in marketplace (Huan, S. et al., 2004). By using SCOR model, Schriskoope can have better improvement of their performance in the future, as this SCOR is practising towards the framework in supply chain which could make the better management of the operations inside the company, as well as increasing demand in marketplace.
2- Critically evaluate the application of different supply chain improvement strategies that can help the company to reduce challenges and help to achieve to the goals. You need to critically evaluate the benefits and limitations of these strategies while presenting the principles, concepts and other elements. (Max 900 words) (30% of Mark)
2.0 APPLICATION OF IMPROVEMENT STRATEGIES AND ITS BENEFITS AND LIMITATIONS
The application of different strategies on supply chain is very crucial for every company nowadays. Major of Companies to be more focus on the company's strategies to be improved and linked with the implementation of every improvement strategies on supply chain (Dangayach and Deshmukh, 2001). One of the improvement strategies that can be implemented into supply chain is Forecasting. Forecasting is defined as evaluating any conditions or activities in the future as assist in the planning of the every company for their success (Chin, K. et al. (1996). Forecasting is one of the improvement strategies to be implemented into Schriskoope Company. As Schriskoope having the lack of balance between supply and demand, Schriskoope will make a forecast on this area by evaluating all the sales report, and making some survey on targeted area to get accurate demand need for the perishable products in Scrhiskoope. Furthermore, by having accurate information on demand on targeted area, there will be having appropriate quantity of chicken products to be supplied to such areas. Besides, they need to ensure that there must be cost reduction on the coordination of the staffs between supply department and demand department and networking with the company's plan, as they will gain benefits when they can make balancing between demand and supply in Schriskoope and meet the forecast demand (Nakano, M. and Oji, N. 2012). Another benefit by using forecasting strategies is Schriskoope can resolve their problem on capacity layout by expanding to bigger layouts, and Schriskoope can improve their employment in facility, and thus, this will also help to increase more sales demand in the future (Waddell, D. and Sohal, A. 1994). There is also a limitation when using forecasting strategies for Schriskoope. Schriskoope need to understand that any conditions in the future is always uncertainty, they need to have backup plan on their sales and production. Besides, forecasting will cost of huge money for Schriskoope, as there will be many areas need to be improved especially on their supply and demand. Another strategies can be used by Schriskoope is Total Quality Management (TQM). We need to fully understand that total quality management are more concern about quality improvement, measurement of quality cost, and commitment of workers in Schriskoope (Feigenbaum, 1991). As Schriskoope having the problem with the cost of poor quality in their final products and lack of consistency in products and services quality, they should implement TQM as one of their strategies, TQM will help Schriskoope to produce better quality planning in such those problems. Schriskoope will gain benefits from TQM as the ways to ensure that the quality of their products achieve the standards of ISO 9000 (Tarí, J. 2005). When implement TQM, there will be such limitations as TQM is a highly cost tool which need large investments, problem with participants of the workers, and it is very difficult to implement TQM as this tools are needed for continuous improvement in Schriskoope (Longenecker, C. and Scazzero, J. (1996). Schriskoope high level staffs need to ensure that all of their workers will take part in making success of TQM strategies as to ensure their business will be more effectiveness in terms of their quality of products and services, as well as quality of the workers. The third improvement strategy recommend for Schriskoope is integration of lean and agile supply chain. Lean concept is more reduce waste and cost, while agile concept is more focuses on quick respond and flexibility of demand (Christopher, 2000). Schriskoope need to fully focus on their demands in the future and also their stocks for every product produced such as chicken breast, chicken leg, and chicken liver. According to Aronsson, H., by using lean concept, there is more benefits on reducing the number suppliers, instead of produce good partnerships of suppliers, and give them duty on just-in-time(JIT) and quality of services. As this will help Schriskoope gain their benefits by improve their partnerships in supply chain, and give trust to every partnership to do their responsible jobs. As reducing number of suppliers, this will help Schriskoope reduce their cost from using outsources, besides give their partners in the supply chain trust to make quick deliveries from manufacturing plants to the end customers. The limitations of using integration of lean and agile supply chain that will impact to Schriskoope are problem with the lack of flexibility. Most of the partners such as suppliers and distributors are they are not consistent on the reliability and flexibility of their jobs in time. Besides, Schriskoope will have the problem of trustworthy of their partnership, as there are too many numbers of partners. Therefore, they need to reduce the number of the third party logistics providers (3PL), and always check on all their partner's jobs and works, so that they can improve their company to be more quick response to demand.
Critically evaluate the impact of political, social and environmental impact of global supply chain and also the inter-facing of the associated elements of these dimensions to develop sustainable global supply chain. (Max 900 words) (30% of Mark).
3.0 IMPACT OF POLITICAL, SOCIAL, AND ENVIRONMENTAL ON GLOBAL SUPPLY CHAIN
Nowadays, global supply chain has become one of the elements leading to the competitiveness among the companies. The structure of global supply chain is assist on the improvement to the low-cost worker and resources of materials, marketing of product's expansion, and the attraction of capital offered (AlHashim, 1980). However, global supply chain could be impacted by such factors such as political, social, environmental factor. There will be potential of risk when most of companies are trying to expand their global supply chain in the world market (Barry, 2004). There are such many impact of political factors on the global supply chain. As supply chain expand globally, the government of the country has the responsibility on checking all the export and import products on the country (Appels and
de Swielande, 1998). In this situation, this process will take longer time for the customs to make clearance of the goods before can be distributed into the country. As the process of custom clearance becoming one of the critical barriers in global supply chain (Pearson et al., 1998). Besides, basically in United States and United Kingdom, the government actions toward planning to improve the food supply chain by using six-sigma model which is very costly tool, as the global supply chain will become more complicated and need high investment for the companies (Hoffman, 2008). As this is linking to Schriskoope, they need to ensure that they can adapt such those barriers in expanding their global supply chain, and implementing tools such as six sigma is very useful to Schriskoope but the company will suffer high investment.
Global supply chain also has its own risk in social factor. In managing supply chain, most of companies are expanding their supply chain by creating supply chain integration. However, the creating of relationship in supply chain is lead to the risk on the trust on the relationship (La Londe, 2002). As Schriskoope use the third party logistics provider (3PL) to assist their product deliveries, it is better for Schriskoope to select better partners rather than using large numbers of partners to work with them. In select better partners, Schriskoope can give their partners a trust and share information among them, instead of giving them responsibility to handle all the task of deliveries of the products and quality of the services. It is also important for Schriskoope to maintain their customer loyalty, as this is important to ensure that they have permanent customer to buy their perishable products.
While, the environmental factor also can give impacts on the global supply chain. The important issue to be argued is supply chain disaster. The globalization of the supply chain is becoming less secure because several environmental disaster in certain countries such as terrorist attacks and natural attack. One of the best example is terrorist attack happened in the United States on 11 September 2001, as this disaster lead to the economy falls down (Hale, T. and Moberg, C., 2005). Besides, company like Schriskoope also need concern about the environmental uncertainties focusing on supply and demand (Sun, S. et al., 2009). Such as environmental uncertainty in the future cannot be predicted accurately, it is important for Schriskoope to have contingency plan in a way to avoid from disaster in other countries and affecting their supply and demand of their perishable products.
3.1 INTER-FACING OF ASSOCIATED ELEMENTS OF DIMENSIONS TO DEVELOP SUSTAINABLE
GLOBAL SUPPLY CHAIN.
It is important for every company to achieve their sustainable global supply chain. The company will gain commercial benefits on develop sustainable global supply chain, as the way to ensure the company is having the competitive advantage in the business. It is needed for company like Schriskoope to have appropriate planning and ensure such factors as social, political, and environmental factors could help to develop global supply chain in the business. Environmental factors now are becoming main issues on current global supply chain (Kuik et al., 2010). From these factors, it is recommended that government policy should make changes on the imported product limitation into the country. Besides, government also can make changes for all companies on application of six sigma tool model to improve supply chain in the country. From social issues, every companies should have collaboration towards the supply chain, give their partners a trust and responsibility to do their job. It is very challenging to have reliable partners who can be full trusted. By environmental issues, a company could be implemented the green supply chain managament which need long-term planning and result in ways to reduce waste, environmental waste, and safe for public use. By this way, such products like Schriskoope company which sell perishable products could be reduce the environment cost, as well as giving better quality of products. As, the implementation of these factors could lead to the improvement on the company to develop effectiveness in sustainable global supply chain.
As a conclusion, we reviews back on overall of the assignment on this module MO0255, global supply chain are very important for every company or firms to be more success in their business. Global supply chain could become a basis of competitive advantage in the business. Global supply chain in today's world is taking more risk as this supply chain management across towards the connection of many networks with other companies around the world. However, it is important for every company to have accurate planning on practicing global supply chain as the way to ensure they can maintain their business globally. There are such barriers that could affect the company toward expanding their global supply chain. Schriskoope and other companies which involved in global supply chain should be concerned and focus on such factors such as social, political, and environmental factors that can give benefits to their business and as well as giving negative impact to the limitations of the global supply chain. There such many ways for a company to sustaining their global supply chain such as implementing six sigma, green technology, and lean and agility supply chain. All of these strategies will help the company to gain competitive advantages and become the prominent leader in the world market.