Supply chain management - Essay Example

Supply Chain Management Table of Contents Introduction 2 Overall Design of the Supply Chains 2 English Wine 2 Ham 4 Process of Decision Making 5 Role of the Consumers 7 Importance of Quality 8 Conclusion 9 References 10 Introduction The prime objective of this essay is to undergo a comparative analysis of the supply chain used in marketing two different products. In this regard, the two selected products are English Wine and Ham that serve the food industry of the UK. In the UK, there are two types of wines commonly found and preferred by consumers – one being the English wine and the other as the Welsh wine, depending on their place of origin and production. English wine is however, typically produced from the fermented grape juice in different parts of the world today (Anderson, 2004). The other product selected for the purpose of this essay is the Ham. Ham is a processed food product that is produced from pork meat. The food is preserved through multiple stages of smoking, curing and salting. Traditionally, Ham was produced from the hind leg of swine, which is currently followed by many players in the supply chain who emphasise quality product deliverance. Ham is extremely popular in the UK, which in turn justifies the selection. Observably, the two selected products are extremely popular in the UK owing to the consumers demand for these products. Furthermore, it is also observed that the two products have extensive development in supply chain that has led to the development of its popularity in the region to a massive extent (Hui, 2006). Overall Design of the Supply Chains English Wine English wine possesses a specific supply chain design and process, which is extremely different from that of the supply chain followed in Ham production and marketing. To be specific, it has been widely accepted that English wine possess a unique supply chain design. It is primitively and traditionally produced from grape. Thus, the supply chain of English wine begins from grape production. At the onset, grapes are collected from the producers, i.e. the farmers or cultivators of quality grapes, preferably in Europe. It is then supplied to be crushed and stemmed in wine factories. In the stemming stage, the grapes are reacted with potassium, which decreases the acid level of the grapes and sweetens it while being processed, leaving the impurities when moving ahead to the next stage of the production. In the crushing process, phenolics are extracted from the first extract of grape juice, which are then supplied to the fermentation department followed by the clarification department, where the product is purified through number of filtration processes. Post maturation, the product is then supplied to the packaging department. The prime objective of the packaging department is to preserve the quality of the product, so that the consumers can attain maximum satisfaction, as it helps reducing the gap persistent between the customers’ need and the offered benefits. The packaging of the product is also considered with utmost care such that the product quality is not affected through the distribution process, wherein maturation of the product in a proper manner exists as a significant concern. Furthermore, in the supply chain framework applied for English wine, it is also observed that the selling and distribution process play a vital role being driven by the customers’ knowledge of quality and price. English wine is served to the targeted market with a multifaceted distribution process in order to gain efficiency in dealing with the augmenting consumers demand at almost every level of the national as well as international society. Correspondingly, the supply chain of English wine comprises of the local level, regional level, national and international level following the chain of retailers like bars, liquor stores, and grocers (Eco-management for food, 2014). Source: (Eco-management for food, 2014) Ham On the other hand, Ham, which is also extremely popular in the UK, follows a much simpler design of distribution. Apparently, supply chain design of Ham is unique and quite different from the supply chain of English wine, as described above. The supply chain design of Ham commences through the export of pork from other nations. The supplied pork to the producers is then processed to prepare ham. Notably, the production process of ham is much complex as compared to wine wherein maturation as well as curing process plays a vital role. At the initial phase of production, the collected pork is dried with salt and is then supplied to the wet drying department, in where the main preparation of ham takes place. The prepared ham is then supplied to the smoking department, where Ham is processed for better preservation. This is also considered as a supply chain phase for packaging. However, complete packaging of product is done in different departments at a multilayered process. Besides, one of the main components of supply chain is the distribution process. This is similar to the distribution process of English, as they are distributed through three levels as mentioned above. Furthermore, it is also observed that for effective penetration, the products are distributed through retailers. It is therefore observed that similar to English wine, ham also possess retailers like retail single grocers and chain grocers. However, it is also observed that the retailers including restaurant chain and single restaurant are also involved in the distribution process of ham as retailers. To be noted in this regard, the supply chain process ends through the final distribution of the products to the consumers (Government of Canada, 2011). Source: (Government of Canada, 2011) Process of Decision Making In the context of supply chain management, English wine and Ham is produced following multiple phases of decision-making. In this regard, it is observed that the process decision making in the supply chain of Ham involves transparency and greater regulatory involvement as compared to English wine. It is observed that on undertaking decisions on each facet of the supply chain process, there is high level of transparency demanded amid different departments within the organisations. Moreover, it is also observed that the transparency in decision making is not only limited to the internal stakeholders of the organisation but also extends to the external stakeholders groups. This also comprises animal welfare agencies at both the national and international levels that are responsible to have substantial control on the feeds and health of the pork used to produce ham. The stakeholders groups also include exporters as suppliers, and the distributors as well as the retailers. Consumers’ viewpoints are also considered in the decision making process to increase transparency in the supply chain management process. This higher transparency in supply chain decision-making process greatly supports increasing the effectiveness of supply chain management that can further lead to higher customer satisfaction and increased profitability (Campbell & et. al., 2009.). On the other hand, in the decision making process with regard to supply chain management of English wine, is the involved factors slightly differ to the supply chain process followed in the Ham industry. In this regard, it is observed that the decision making process involve considerations of all the stakeholders of an organisation. Similar to the supply chain of Ham, stakeholder involvement is regarded as quite necessary in supplying English wine products as well. However, the decision taken by the players in English wine industry is not as transparent as that of the Ham industry. In this regard, such type of decision-making process that takes place in the English wine industry is popularly known as End-to-End Decision Making Model. In this type of decision-making model, the decisions are considered with focus on increasing the efficiency and effectiveness of each phase of the supply chain management process. This leads to the overall effectiveness and efficiency of the organisation, increasing in customer satisfaction and profitability to the organisation as well (Chan & et. al., 2012). Role of the Consumers Consumers play a significant role in improving the supply chain process followed by organisations. While differences persist in the various dimensions of consumer needs and preferences for English wine and ham, its importance is equally identifiable to both the selected sectors. In this regard, it is observed that the feedback from the consumers is collected by the distributors of both the sectors to ensure minimum gap is persistent within the demanded qualities and the served features of the two products. Owing to their unignorable involvement, consumers play a superior role in improving the quality of the products. It is thus observed that several consumers suggest different methods to improve product quality. The only differences in the role of the consumers in the two sectors involve the type of suggestions. Observably, the consumers of Ham suggests of improving the supply chain process, so that the nutrient quantity of the products are highly preserved. The consumers thereby suggested of improved packaging system that would lead to higher preservation of the products. Moreover, it is also evident that the consumers play a vital role in improving the nutritional value of the products. The consumers also suggested of adding supplementary nutrients in Ham that has highly benefited the industry (Shah, 2009). On the other hand, the consumers of English wine also play a vital role in improving the quality of the products. In this regard, it is also observed that majority of the consumers suggested of improved quality of packaging whereby the packaging quality of supply chain management in English wine industry is extremely important from the perspective of the consumers. This is fundamentally owing to the fact that the improper packaging of English wine in the recent years have led to serious issues among consumers that has again provoked greater governmental intervention therewith (Stadtler, 2014). Importance of Quality Importance of maintaining quality in supply chain management process is unignorable in both the industries. This is one of such aspects of supply chain management process, which is similar and applicable to both the sectors. In this regard, it is observed that quality control in the supply chain management process leads to substantial decrease in the occurrence of defects and scraps in products. The occurrence of defects in the quality of the aforementioned products also leads to customers’ dissatisfaction. This greatly hampers the loyalty of the customers and the market share not only in the short-term but also in the long-term, imposing significant effects on the sustainability potentials of the organisations. Thus, it is extremely important from the perspective of the organisations. Moreover, importance of quality in supply chain management is also important from the perspective of the consumers for both the sectors. It is fundamentally because both the products are food consumed by people. Thus, the improper supply chain process shall lead to the generation of toxic effects to the food, which confirms it as extremely harmful to the consumers’ health. Simultaneously, it is also important to the organisations functioning in the two sectors to improve the quality of supply chain management process. Moreover, it is also important to note that despite the similar importance of quality in supply chain management in both the sectors, the process of quality control is widely different (Ramanathan & Ramanathan, 2013; Dimitris, 2012). Conclusion From the course of the study, it can be observed that there is a significant difference existing between the two sectors – English wine and Ham, in terms of supply chain process. In this regard, these differences are majorly observed in case of the supply chain process that involves the industrial preparation procedures of these products. The study further revealed that there is also a difference in the distribution stage of supply chain. In this regard, it was observed that Ham uses restaurants in its supply chain, while on the other hand, English wine uses bars as retailers. Besides these, there are several similarities involved in the supply chain processes of the two products, which refer to the importance of packaging in both these sectors. Both these industries use retailers like single shop grocers and chained grocers for their effective distribution of the products. Moreover, minor differences are observed in the decision making process related to supply chain management applied by the two products. In this regard, it is observed that Ham producing organisations are more transparent in decision-making, wherein English wine follows an End-to-End Decision Making Model assuring a balance in quality and quantity, in addition to its cost-intensive nature. Conclusively, it also observed that consumers of both the sectors have similar roles in developing the effectiveness of the supply chain process wherein importance of quality maintaining in the supply chain process is equal. References Anderson, K., 2004. The World's Wine Markets: Globalization at Work. Edward Elgar Publishing. Campbell, J. R. & et. al., 2009. Animal Sciences: The Biology, Care, and Production of Domestic Animals, Fourth Edition. Waveland Press. Chan, H. K., & et. al., 2012. Decision-Making for Supply Chain Integration: Supply Chain Integration. Springer Science & Business Media. Dimitris, F., 2012. Outsourcing Management for Supply Chain Operations and Logistics Service. IGI Global. Eco-management for food, 2014. Description of the Wine Supply Chain. Wine supply chain. [Online] Available at: http://ww2.unime.it/emaf/index.php?option=com_content&view=article&id=53&Itemid=41&lang=en [Accessed January 4, 2015]. Government of Canada, 2011. Entering Japan's Agri-Food Market A Guide for Canadian Exporters. Agriculture and Agri-Food Canada. [Online] Available at: http://www.ats-sea.agr.gc.ca/asi/5810-eng.htm [Accessed January 4, 2015]. Hui, Y. H., 2006. Handbook of Food Science, Technology, and Engineering. CRC Press. Ramanathan, U. & Ramanathan, R., 2013. Supply Chain Strategies, Issues and Models. Springer Science & Business Media. Shah, J., 2009. Supply Chain Management: Text and Cases. Pearson Education India. Stadtler, H., 2014. Supply Chain Management and Advanced Planning: Concepts, Models, Software, and Case Studies. Springer. Read More