Comparison of Supply Chains of Two Substitutes, Beef and Chicken - Case Study Example

Report on comparison of supply chains of two substitutes, Beef and Chicken Student name Course name Lecturer’s name Date Introduction Supply chain refers to the production network that envelops those exercises connected with moving merchandise from the raw materials stage all the way to the client. It involves all those procedures that entail the movement of raw materials from the supplier, subjection into the production process and final distribution to the final consumer (Morali and Searcy, 2012). The best organizations around the globe are finding an effective new wellspring of upper hand known as supply chain which incorporates those incorporated exercises that put up item for sale to the public and make fulfilled clients. The Supply chain Program incorporates themes from fabricating or manufacturing operations, procurement, transportation, and physical distribution. Fruitful supply chain administration arranges and incorporates these exercises into a consistent procedure. It grasps and connects all of the accomplices in the chain (Morali and Searcy, 2012). Proper supply chain ensures that raw materials are received from the suppliers in time to prevent stoppage in the production process. Further, it ensures that the production process is fast and efficient enough to ensure that demand is met. Similarly, consumer demand is also taken care of by an efficient supply chain process. Therefore, the successful performance of an organization solely depends on the effectiveness of its supply chain (Burgess, et al., 2006). This report therefore tries to investigate the supply chain adopted for two substitutes, i.e. Beef and Chicken. Analysis Supply chain Design Comparison The supply chain of beef production is the coordination of producers of cattle, meat processors; retailers and end clients or customers (Burgess, et al., 2006). The cattle have to move from homesteads to processors who change them into meat items and sort out conveyance under the control of end clients. Quality standards, transportation and storage are different echelons involved in the Australian beef industry supply chain. Cattle is to be gotten from the cattle producers, taken to meat processors or slaughter houses, transported by cattle retailers and finally delivered to the consumers or the end users themselves (Morali and Searcy, 2012). An audit of these studies uncovers that five segments are of real significance to the Australian meat industry: key supplier associations, client connections, information sharing, information quality and incline considering (Morali and Searcy, 2012). This is on account of those segments for the most part exist on an intra or between hierarchical, for occurrence in the middle of makers and processors or processors and retailers. Also, those parts can give numerous favorable circumstances for beef endeavors including enhanced responsiveness and adaptability, expand creation effectiveness, meat quality and better satisfied clients. This thus prompts both more noteworthy consumer loyalty and higher benefit both by expanding incomes and diminishing expenses of firms in the supply chain (Morali and Searcy, 2012). Holland is one of the greatest suppliers of poultry in the European landmass and the generation and handling of the poultry is one of the biggest (Sahin and Robinson, 2005). The business sector of the poultry is big to the point that they send out the poultry to the neighboring nations like Germany and Britain and a portion of the other European nations (Sahin and Robinson, 2005). Poultry preparations have gone up in the Holland as the utilization of meat has gone down in the European Country. The poultry market in Holland has more benefit when contrasted with some other meat (Sahin and Robinson, 2005). Likewise, the crude material in the poultry handling is less expensive. The span of the endeavors is little yet the number is more. Additionally, the organization is giving new chicken to the business sector henceforth the poultry sold is relatively more as it is new. It is vital for the supply chain management to have their own particular transportation so they don't depend on the outsourced organizations (Ariffin, Abas, and Baluch, 2015). Decision making in supply chain Organizational managers are faced with a tough decision striking a balance between how much to produce and ensuring the organization profitability is enhanced (Sahin and Robinson, 2005). Many at times, organizations want to balance between the two to ensure that in as much as profitability is aimed; customer needs are also kept into consideration. However, it is hard to make such a balance if the supply chain is not considered. Supervisors perceive two imperative things. To start with, they consider the supply chain overall, i.e. every one of the connections included in dealing with the flow of items, administrations, and information from their suppliers to their clients Second, they seek after unmistakable results i.e. concentrated on income development, resource usage, and expense. Dismissing the customary perspective of an organization and its part as particular useful elements, these chiefs figure it out that the genuine measure of accomplishment is the manner by which well exercises coordinate over the supply chain to make esteem for clients, while expanding the profitability of each connection in the chain (Johnson,2010). The two substitutes, Chicken and Meat are also well coordinated in the manner in which their activities are carried out. Production is dependent on demand of the product which in turn is dependent on the availability of necessary materials from the suppliers (Johnson,2010). However, implementing any supply chain system is affected by cost as it is solely dependent on the players in the system. How to improve decision making Proper decision making in the supply chain can be enhanced by doing the following: Firstly, It is critical for officials to utilize incorporated information over the business as the premise for any choice. Secondly, great choices ought to be made by taking an "Incline" way to deal with any procedure that requires change (Johnson, 2010). Understanding inactive procedures and evacuating them keeps away from squandered time in investigating non esteem including exercises. As such, center choices on what makes a difference. Thirdly, it is basic to take a future perspective. Settling on choices that enhance cost, as well as spryness to drive the top line adjust the conventional supply chain cost improvement approach and adjust to an organization's general business goals (United Parcel Service of America, Inc., 2005).  Production strategy in supply chain compared The strategy presents needs, objectives and subsidizing needs to guarantee the Canadian beef and Holland Chicken industry flourishes well into what's to come, while expanding on the qualities of existing industry associations (Gunasekaran and Ngai, 2004). The methodology is organized around four columns and objectives that are adjusted to the business' vision of being dynamic and gainful, and its central goal to be the most trusted and aggressive top notch meat steers maker on the planet, perceived. The four pillars that guide beef and chicken production strategy in Canada and Holland include the demand of the commodity, possible competition, product level of productivity and commodity level of connectivity to the players in the industry. However, of importance is how a certain product has been packaged to meet customer needs. Customers require products that apart from satisfying their needs offer no side effects (Gunasekaran and Ngai, 2004). The demand of the commodity is taken care of in the two supply chains as this is replicated in the way the production process has been carried out (Gunasekaran and Ngai, 2004). To ensure that production process is continuous, there should be a constant supply of materials from the suppliers. Should there be stoppage in the production process, the corporate image identity of the organization will be in question. Besides, production stoppage is associated with a number of costs, including the cost of being out of stock. However, the production and demand of chicken is showing an increasing trend indicating that more of the product is required (United Parcel Service of America, Inc., 2005). Importance of quality and end consumers In today's retail environment, it's customers who rule and always right. In the event that they don't discover what they need at one store, they'll see it over the shopping center or on the Internet, at a value they need to pay. These purchasers or consumers are a differing parcel and particular, as well. Equipped with an extraordinary plenitude of item information they request a bewildering determination of items (Hittle and Moustafa Leonard, 2011). However, to meet difficulties in the beef and Chicken industry, industry pioneers are beginning to fabricate specific inventory network models that are fast, responsive, minimal effort, all with a laser concentrate on meeting consumer requests. The customers are involved in the supply chain because their demand needs are considered before production is started. This is to eliminate wastages to the organization which in the long run affects the overall profitability of the industry (Hittle and Moustafa Leonard, 2011). Further, customers will have an influence on the amount of raw materials to be sourced from the suppliers to cater for the production requirements. Besides, manufacturing or production is determined by the consumers themselves because level of production depends solely on the customer demands. Customers ought to shape the supply chain process if the organization objectives are to be achieved, which is a measure of success, because the customer is always right. The study on the supply chains in the chicken and beef industry indicates that customer needs are prioritized even in terms of location of stores worldwide (Gunasekaran and Ngai, 2004). Sustainability of supply chains compared Driven by enactment and expanding natural mindfulness, supportability has turned into a vital issue among driving associations, research organizations and strategy producers at national and global levels (Hittle and Moustafa Leonard, 2011). Inside associations maintainability issues lie with key level basic leadership on corporate social Responsibility (CSR) and convey genuine ramifications for acquiring and production network administration (Williamson, 2008). The supply chain effects social, ecological and monetary maintainability. The social manageability issues may be reflected in how suppliers treat their specialists and nearby groups (Williamson, 2008). Manageability or sustainability in production supply chain by and large alludes to constant responsibility for danger and negative effect brought about by a scope of activities along the store network. Sustainability endeavors are additionally gone for upgrading decency and positive advantages for suppliers, specialists, clients, end-clients and whatever other partners. Sustainability presents organizations with a chance to manufacture new connections and construct more grounded center skills (Manufacturing Skills Australia, 2016). The beef and Chicken industries have ensured that the production process of the two commodities are not only of good quality, but are environmentally friendly (Williamson, 2008). For instance, cattle are slaughtered in an enclosed slaughter house and the blood is well disposed. Further, cattle and chicken is bought locally from the farmers themselves to reduce waste on fuel, which is a sustainability issue. How to best improve sustainability Inorder to ensure that sustainability is enhanced; the following should be incorporated fully in the supply chains of the two unrelated products a. Ensure Policy choices with respect to acquirement throughout the system b. Identifying the dangers and opportunities in the inventory network c. Using nearby suppliers and contractual workers to decrease fuel use and carbon impression in the end product d. Identify the parts of social maintainability or sustainability suppliers could be easily accessed. e. Measurement, costing and examination models to help production network choices. These might incorporate full cost investigation, life cycle appraisal; incline bookkeeping, carbon impression, biological impression (Manufacturing Skills Australia, 2016). Recommendations Developing purchaser power and the multiplication of new innovations are driving the change of the supply chain. At each point along the store network, direct client associations are making new information streams that encourage an effective new innovation base (Williamson, 2008). These two forces are separating the old similitudes depicting the communications that happen in the commercial market place. The following are recommendations to improve supply chain. a. Develop proper links with consumers As buyers apply more impact in molding commercial center elements, players that have built up connections to the buyers, whether through direct cooperation or through associations with organizations that possesses information about the customer, will have an upper hand (Williamson, 2008). Organizations ought to make interests in advances and vital associations that will empower these significant connections. b. Use technology to enable information sharing As the base of capable new information advancements rises, organizations will have the capacity to diminish vulnerabilities about moving interest by depending on constant information (Williamson, 2008). The stream of this information crosswise over associations will empower more effective reactions in a shopper driven commercial center. c. Make use of information to meet individual needs As organizations execute forms for imparting continuous information to accomplices and suppliers, they will have the capacity to make a more finish picture of individual shoppers (Williamson, 2008). Creating techniques for reacting to buyers at an individual level will be a key to achievement in this new environment. Conclusions In conclusion, since supply chains have moved from a cost center to a client center and now at present to a key center, the need to contemplate the supply chain has never been more critical. The achievement of a technique is just in the same class as the organization's capacity to completely and legitimately execute it. An incredible inventory network system, connected with operational greatness, can give accomplishment to the organization being referred to as well as its accomplices and clients. To enhance sustainability in the supply chains, organizations should ensure that they observe environmental and economic issues and ensure they are well addressed. However, maintaining an effective supply chain is equally expensive. Bibliography Ariffin, A.S., Abas, Z. and Baluch, N 2015, ‘Literature ratified knowledge based view of poultry supply chain integration concept’, Journal Teknologi, vol. 77, no. 27, p. 35-39. Doi: 10.11113/jt.v77.6885. Burgess, K., Singh, P. J. and Korogla, R 2006, Supply Chain Management: A structured literature review and implication for future research, International Journal of Operation & Production Management, vol. 26, no. 7, p. 703-729. 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