Supply Chain Management Assignment Solution
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No. of Words: 4000
Case 1(50 Marks)
Go through the given case scenario
Choose an organization operating in any part of the globe (preferably a super market, hyper market chain (or) a fast food industry or an electronics equipment manufacturer/distributor, automobile manufacturer or automotive parts or retail products / services.
The organization that you choose should either manufacture or market or distribute some products / services. The competition in these businesses majorly depends upon price, quality, timely delivery and service (which are core aspects of Supply Chain Management). Hence there is immense pressure on all the organizations in these businesses to keep the four aspects mentioned to their supreme best.
As these businesses are the most emerged industries in the recent past, the supply chain has seen huge transformations. These businesses are getting to the maturing stage and so as the transformations in the supply chain management of these business become more and more competitive, the customer gets only the best products / service.
Note : In case your chosen organization is operating in many countries and deals with many products, it is enough you consider the operations in any one country and indicate some materials that are part of the business and select 2 or 3 materials out of them for providing answers to the questions given below.
Students can make use of graphs, tables, illustrations, maps, pictures, images to add clarity to your answers.
Submit the assignment in the report format (4,000 words). The report should contain the following.
- Examine and evaluate your chosen organization’s Supply Chain, describe its basic working, strategy used by them, key drivers for achieving an integrated supply chain. What is the SCM model used?
- Go through the typical Working of the chosen Organization’s logistics process, Is there a role for reverse logistics for your chosen organization’s products / services ? If there is a role, explain the process that is applicable.
- Analyse and understand the different modes of transportation employed by your chosen organization. Indicate whether the current arrangements are effective. Suggest improvements for making the transportation sustainable and new modes of transportation.
- What is the Warehouse design used by the chosen organization and provide your idea on the appropriate warehouse design that will be suitable for the future. Justify your choice with proper reason.
- Given the nature of the products that you have selected for your chosen organization, what is the type of Inventory management control that your chosen organization should adopt? Give reasons.
Case 2 (25 Marks)
Go through the case-let given below and answer the questions that follow.
The Nestlé Cocoa Plan aims to help farmers address the challenges they face through three pillars – better farming, better lives and better cocoa. Activities such as training in better agricultural practices, distributing higher-yielding plants, promoting gender equality and tackling child labor help farmers to improve the quality of their products as well as their income and livelihoods.
In Ecuador, the Nestlé Cocoa Plan is helping farmers transform their business models and become agripreneurs. Their training program, launched in 2017, comprises 15 four-hour sessions over six months. The sessions provide theoretical and practical skills in areas such as irrigation, fertilization, pruning and grafting, all of which help farmers improve their productivity and quality. Of more than 370 farmers trained so far, around 30% are under the age of 30, and 20% are women. A survey conducted on a sample of around 100 attendees of the 2017 and 2018 program showed that 40% had provided services and said their income had increased since the program.
One such young agripreneur is Wilson Matamoros, 24, who works on his family’s farm in Mocache, Los Ríos province. Having learned pruning techniques through Nestle program, he has increased the cocoa yield on the family farm and offers cocoa pruning services to other local farms, earning additional income. He now aims to become the leader of a group of cocoa pruners in the region.
Source all cocoa for Nestlé confectionery through the Nestlé Cocoa Plan
- Identify the nature of supply relationship that Nestle has tied up with the farmers in Ecuador?
- Will this type of plan help Nestle in the long term? How?
- Do you feel that given this kind of relationship, Nestle can become a monopoly in cocoa procurement? Why or why not?
Case 3 (25 Marks)
Go through the case study and answer the questions that follow
The Benetton supply chain:
One of the best known examples of how an organization can use its supply chain to achieve a competitive advantage is the Benetton Group. Founded by the Benetton family in the 1960s, the company is now one of the largest garment retailers, with stores which bear its name located in almost all parts of the world. Part of the reason for its success has been the way it has organized both the supply side and the demand side of its supply chain.
Although Benetton does manufacture much of its production itself, on its supply side the company relies heavily on ‘contractors’. Contractors are companies (many of which are owned, or part-owned, by Benetton employees) that provide services to the Benetton factories by knitting and assembling Benetton’s garments. These contractors, in turn, use the services of sub-contractors to perform some of the manufacturing tasks. Benetton’s manufacturing operations gain two advantages from this. First, its production costs for woollen items are significantly below some of its competitors because the small supply companies have lower costs themselves. Second, the arrangement allows Benetton to absorb fluctuation in demand by adjusting its supply arrangements, without itself feeling the full effect of demand fluctuations.
On the demand side of the chain, Benetton operates through a number of agents, each of whom is responsible for their own geographical area. These agents are responsible for developing the stores in their area. Indeed, many of the agents actually own some stores in their area. Products are shipped from Italy to the individual stores where they are often put directly onto the shelves. Benetton stores have always been designed with relatively limited storage space so that the garments (which, typically, are brightly coloured) can be stored in the shop itself, adding colour and ambience to the appearance of the store.
Because there is such limited space for inventory in the stores, store owners require that deliveries of garments are fast and dependable. Benetton factories achieve this partly through their famous policy of manufacturing garments, where possible, in greggio, or in grey, and then dyeing them only when demand for particular colours is evident. This is a slightly more expensive process than knitting directly from coloured yarn, but their supply-side economies allow them to absorb the cost of this extra flexibility, which in turn allows them to achieve relatively fast deliveries to the stores.
- Brief your understanding about Benetton Supply Chain operations.
- In your understanding, what is the specialty of Benetton’s contractors?
- Do this method provide Benetton competitive advantage over their competitors? Is this method sustainable in the long term?
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