Supply Chain Management of Business Aramex Inc - Case Study Example

? Business Aramex Inc Business Aramex Inc Company background and overview of its operations Aramex Inc. is a United Arab Emirates-based public company established in 1982 and deals with provision of consumers’ related solutions based on freight, express logistics and supply chain management of businesses. The company has been under private ownership since 2002 and operates comprehensive problems on transportation and logistics. Aramex Inc. presents one of the most prominent companies within Middle-East since its listing in international stock exchange in mid 1990s. The company appeared on the public listings of Dubai Financial Market in 2005 under ARMX trade shares. Currently, Aramex Inc. employs more than twelve thousand workers across sixty countries with strong world-wide network (Aramex Inc, 2011). Service delivery enterprises are normally anchored on key assumption that management, information and communication technology are important aspects and ingredients which are very crucial for success to be realized. However, all employees are required to embrace the use of information technology since it forms crucial part of a qualified member within any supply chain. This ensures efficient monitoring and delivery of intended goods and services to consumers (Kotler and Keller, 2007). Service deliveries ensure that all members of the society are reached with the intended product or services at the right time. Such companies usually operate on a designed conceptual model taking into account economic, social and political forces that determine resource allocation and management within companies from every region. The leadership structure is another important aspect of the supply chain (Mentzer et al, 2001). Critical Analysis of Operations Transformation Process for Products/Services Supply chain of Aramex Inc can be described as the core of the company’s organization’s operational efficiency. Aramex’s supply team comprises of knowledgeable individuals with advanced skills in monitoring flow of goods throughout supply chain. The nature of the customized solutions the company uses has necessitated cost reduction and increase in the speed of transaction and efficient implementation of customer needs. Aramex Inc. combines use of technology in delivering internationally standardized services that avails comprehensive solutions to requirements within supply chain and logistics. The company enjoys the services of its largest logistics and transportation networks in the world hence providing cost-effective services within the supply chain (Aramex Inc, 2011). Aramex Inc. Partner with Zubair Corporation (Z-Corp) headquartered in Oman for the purposes of offering businesses with integrated services such as warehousing and distribution through every means including sea, air and ground transportation. Z-Corp also offers such services as freight forwarding and customs brokerage to wide range of industries such as telecommunications, military and Information Technology related companies. Aramex Inc. also acquired Berco Express (Pty) Ltd to assist in logistics and transportation issues within South Africa and other regions. The company has significant share of South Africa’s freight and logistics market and has over fifteen operating branches within South Africa (Aramex Inc, 2011). Aramex’s transportation network covers wide region from Middle-East to United Kingdom through to Caribbean countries. Such land networks are utilized by trucks fitted with Modern GPS-tracking system and also advanced technology involving scheduled services and strategic locations for their various terminal offices (Aramex Inc, 2011). This creates a cost-effective service preferred by most companies as compared to shipping services. The company is involved in receiving shipments from defined points taking charge of all clearance procedures to the delivery points of the products. Aramex Inc is capable of providing different modes of transportation depending on customer requirements. Such means include air-sea, air-land and supposedly sea-land (AramexInc, 2011). The company’s supply chain management team of experts ensures maximization on the product delivery processes from the factory right to retail outlets and finally to customers. The kind of customized solutions used have assisted in reducing customer’s costs on inventory and transaction speed (Harrison and van Hoek, 2008 ). Being one of the global leaders providing major solutions in logistics and transportation, Aramex Inc. network has continued their trend in acquiring prominent organizations in all regions. Performance Imperatives, Quality, Speed, Dependability, Flexibility and Cost Aramex Inc. considers the use of several approaches for the purposes of ensuring perfect mobilization of customers towards company services. Approaches applied by the company vary in details depending on the target goal. Aramex Inc. utilizes push management for the purposes of positioning services at suitable target points based on intended need (Halldorsson et al, 2003). Push model has made Aramex Inc.to install new state-of-art technology alongside equipped line of services based on standardized processes. This ensures efficient delivery of products and services at right points within appropriate time line. The kind of technology utilized by the company including GPS-equipped trucks assists in easier tracking and administration of activities along the supply chain. Such models make work easier since all activities down the supply chain are centrally controlled (Halldorsson et al, 2003). The current supply chain seems effective due to application of pull management systems. This is since the aspect creates massive and stable foundation capable of handling logistical and other service problems of both individuals and companies (Hagel and Brown, 2005). Increasing uncertainties within companies can be reduced through the kind of efficient services offered by Aramex Inc. Such as professional consultancy services (Halldorsson et al, 2003).This can further be reinforced through application of pull models. The level of professionalism with which services are offered is the main lacking ingredient with most service companies. Consumers, normally seek high level of satisfaction from any kind of service whatsoever. In such cases it is possible for the concerned parties and partners to venture into creative ideas capable of handling contemporary issues with rising demand on logistical services. Real-time visibility technology seeks to improve vigilance at retail level where basic tools and resources are necessary for accomplishing tasks and addressing supply needs. The supply chain fits the company’s overall strategy through focused vision and objectives. Aramex’s main objective involves facilitation of regional and global trade based on logistics and transport network. Participants within Aramax’s supply chain works towards attaining highest level of services on issues pertaining logistics and complex delivery networks. Efficiency of Aramex’s supply chain depends on the consumer response towards new technology used (Waldman et al, 2006). Evaluation Of Company’s Operations (Operations And CSR) The company uses fully revised, detailed and up-to-date schedules. Excellence could also be manifested in various leadership programs within the chains. The project manager is always believed to be confident leader hence capable of maintaining detailed control of their segments all the times. Otherwise managers who have difficulties in making key decisions throughout the supply chain always fail in propagating the company’s vision (Utting, 2005). Various financial budgets should relate to the target segments for the reasons of helping in resource allocation. It is known that those involved in the supply chain management, manage tasks, critical paths, budgets and several Gantt charts. Ability to efficiently and effectively manage resources has a direct bearing on the project delivery process staying within the allocated budget, which is major determining in the success of any delivery (Blanchard, 2010). Such strategy ensures active connection between customers, employees and company’s strategic principles making easier the aspect of exploring market opportunities. However, the services are offered at affordable costs alongside convenience expected by customers. Aramex Inc. focuses on satisfying customer curiosity based on efficiency and confidentiality accorded to goods on transit. These processes help in enhancing the Company’s image amongst consumers because of their high performance level. The Company emphasizes so much on product delivery as one of the important quality drivers (Waddock, 2007). Benefits from the overall supply chain can be identified through application of relevant partnership and service oriented goals. The kind of transport network offered by the company is considered market viable in the sense that majority of market segments have poor communication and transport network system. Many companies from remote regions are in great demand for efficient services. Such group forms a large market base for logistic, consultant and transportation (Simchi-Levi et al, 2007). Besides, various company staff and machinery equipped with sound technical knowledge makes it possible to reach many consumers across the globe at a faster rate. Value-added and facility management services ensures that enough support is gathered from potential sources such as world organizations. In essence, delivery models that are technologically driven are relevant for current generation because the information and communication technology tools are consumer-centric and involve use of frameworks that make it possible the involvement of all stakeholders during decision making processes (Larson and Halldorsson, 2004). Appropriate Tools and Techniques to Analyze Complex Operational The overall performance of the company is analysed by use of various performance measurement tolls. Various targets are analysed by use of double bottom line, triple bottom line and balanced scorecard. Among these performance measurement frameworks, the most appropriate one for the enterprise is balanced scorecard. The marketing approach based on social performance target is the balanced score card (Omera and Bernard, 2007). Efficiency can be reinforced within manufacturing by the use of Business Score Card which assists in making important changes within human resource and manufacturing. This implies that the overall efficiency of the processes should be improved by more than 10%. Besides focusing on quality expectations from consumers, the various aspects of production should encompass cost of production and nature of delivery. The use of supply chain order matrix should be implemented to reveal the real nature of the company’s organization (Godsell et al, 2006). Table1: Supply chain Order Matrix Metrics Reliability Responsiveness Flexibility Cost Assets Perfect Order Fulfilment z Order fulfilment Cycle time z Upside Supply Chain flexibility z Upside Supply Chain Adaptability z Downside Supply Chain Adaptability z SCM Cost z Cost of Goods Sold Z Cash-to-Cash Cycle Time z Return on Supply Chain Fixed Assets z Return on Working Capital z Issues and Development of Viable Courses of Action Currently, the world and specifically Middle East Region Companies are facing shortage of efficient logistical and transport services, and this demand for establishment of customer friendly companies with affordable costs. Transportation problems extend to a wide geographical area since it is a global phenomenon that affects delivery of services to many communities in the entire world. Rural communities are the most affected, especially those from the developing countries. The problems that poor people from the developing world face include lack of quality and affordable products and services (Lavassani et al, 2009). In the case of Aramex, all plans are focused on the targeted customers and services provided and the means of delivery. The vision of Aramex Inc.is to provide quality and affordable logistical and transportation services to their customers. The mission centres on timely delivery and affordable value-added, consultation and delivery services to customers with the best efficiency and reliability and the strategy is targeting developing countries in order to offer them quality and affordable services. The services are extended online by the use of communication tools such as internet websites and mobile phones, customers across regions are reached through air and sea services (Movahedi et al, 2009). References Aramex Inc 2011, Products and services. PDF file. Viewed http://www.aramex.com/ Blanchard, D 2010, Supply Chain Management Best Practices, 2nd Edition, London, John Wiley & Sons, Print Godsell, J, Harrison, A, Emberson, C& Storey, J 2006,‘Customer responsive Supply chain strategy: An unnatural act?’International Journal of Logistics, vol. 9, no. 1, pp. 2-35. Halldorsson, A, Herbert, K & Tage, S 2003, Inter-organizational theories behind Supply Chain Management – discussion and applications, Berlin, Physica Verlag, Print Hagel, J, & Brown, J 2005, ‘From Push to Pull Emerging models for Mobilizing Resources’,Working paper, vol.10, no. 1 pp. 2-48 Harrison, A & Remko, V 2008, Logistics Management and Strategy: Competing Through the Supply Chain, London, Prentice-Hall Jacoby, D 2009, Guide to Supply Chain Management: How Getting it Right Boosts Corporate Performance (The Economist Books), London, Bloomberg Press, Kotler, P & Keller, K 2007, Marketing Management, Pearson, Upper Saddle River. Larson, P & Halldorsson, A 2004, “Logistics versus supply chain management: an InternationalSurvey,” International Journal of Logistics: Research & Application, Vol 7, pp. 17-31 Lavassani, M, Movahedi, B & Kumar, V 2009, “Developments in Theories of Supply Chain Management: The Case of B2B Electronic Marketplace Adoption,” The International Journal of Knowledge, Culture and Change Management, Vol. 9, pp. 85–98 Mentzer, J, William, D, Keebler, J, Soonhong, M, Nix, N, Carlos, S & Zach, Z 2001, “Defining Supply Chain Management,” Journal of Business Logistics, Vol. 22, pp.1–25 Movahedi, B, Lavassani, M & Kumar, V 2009, “Transition to B2B e-Marketplace Enabled Supply Chain: Readiness Assessment and Success Factors,” The International Journal of Technology, Knowledge and Society, Vol. 5, pp. 75–88 Omera, K& Bernard, B 2007, ‘Risk and supply chain management: creating a Research Agenda,’The International Journal of Logistics Management, vol.18, no. 2, pp. 197 - 216 Simchi-Levi, D & Kaminsky, P 2007, Designing and Managing the Supply Chain, thirdedition, London, McGraw Hill, Utting, P 2005, “Corporate responsibility and the movement of business,” Development in Practice, Vol. 3 No. 14, pp. 375–388 Waddock, S 2007, “Leadership integrity in a fractured knowledge world,” Academy of Management Learning & Education, Vol. 4, No. 6, pp. 543–557 Waldman, D, Siegel, S & Javidan, M 2006,”Components of CEO transformational leadership and corporate social responsibility,” Journal of Management Studies, Vol. 8, No. 43, pp. 1703–1725 Wieland, A & Carl, M 2011,Supply-Chain-Management,Berlin, sturmischen Zeiten Read More