How the Traditional Supply Chain Can Be Applied to an Item of Food - Assignment Example

University

Discuss how the traditional supply chain can be applied to an item of food.

The food item that will be used to deliberation of the traditional supply chain is Bacon (also known as rashers in the UK). This food item is very popular in the UK households and cafes, and is mostly consumed during breakfast. The traditional supply chain is based on the push based strategy whereby the finished products is pushed to the supply chain without receiving any adequate feedback in relation to the product. For instance, the bacon will be processed from pork and then pushed to the consumers and there will be no feedback even if the customer is dissatisfied by the bacon purchased at the butchery or retail outlet. The bacon produced a processed is from pigs, there is no consciousness about the demand of the processed bacon. Therefore, the bacon is pushed to the consumers without considering the aspect of demand. The companies that are using the traditional supply chain will utilize the push strategy in their supply chain system, therefore they will forecast that the bacon produced will find willing buyers and it will not run out unexpectedly. The pigs will be slaughtered, the pork taken to the processing plant to make bacon, then delivered to the retailers and wholesalers, and all this will be done without considering the aspect demand (Sanders, 2005). The traditional supply chain can hence lead to oversupply or undersupply of bacon in the market, which might affect prices as well as encourage wastage. Thus, for adopting this strategy, the traditional supply chain doesn’t have efficiency and the production of bacon can be characterised with wastage.

There is also the aspect of improper planning, which leads to non-harmonization between the channel partners. There is no prior communication and the channel partners don’t communicate effectively to the pork farmers and pork processing plants that manufacture bacon. The traditional supply chain also individual performance and the intermediaries are not considered. The intermediaries are very important in the supply chain process, but due the fact that they are not given much consideration in the traditional supply chain exchange of information is limited. Information regarding the quality of the bacon is very important, or the manner in which the customers are responding to that particular in the market will help the bacon producer to decide what measures to take to improve that particular type of bacon. The intermediaries can also be a source of information regarding the demand for the bacon, but it becomes very difficult since the concept of intermediaries is limited or absent in the tradition supply chain process Bowesox and Closs, 1996). Since the traditional supply chain doesn’t consider the intermediaries the bacon can be directly supplied to the consumer, the advantage of this concept is that the price might be lower as compared to when the bacon is passed to various forms of intermediaries. The traditional supply chain technique also implies that the bacon produce can never return to the producer, thus when the food item is passed to a particular intermediary it can’t be returned even when the supply is in excess.

Discuss the evolving role of logistics.

Logistics can be described as the part of supply chain that is involved in planning, implementing, and controlling the efficient, forward, and reverse flow and storage of goods and services between the source and consumption point so as to meet the customers requirement. The evolving role of logistics can be discussed from a past, present and future perspective. Logistics is an integral part of many businesses since it gives a strategic strength to many enterprises in terms of globalisation. It is important to understand where the aspect of logistics comes from to where it is headed. Historically, logistics was understood in military terms, and it involved procurement, maintenance and transportation of military facilities. The main aim of the objective of the logistics of the past is management of raw material acquisition to the end consumer. The past also collectively managed activities such as inventory and management control. Physical distribution and logistics in the past were also integrated in the marketing and production department, which prompted logistics to develop as an independent function within the business. Lastly, in the past there was very minimal coordination in the areas of purchasing, physical distribution (Christopher, Peck, and Towill, 2006).

In the present times the term logistic have been adversely been replaced by the term Supply Chain Management (SCM). There is no traceable source on where the name originated from and it has been mysterious, however the term supply chain management is linked to physical distribution and logistics of goods and services. The main observation that can be drawn in the present time regarding evolution of logistic is that it is mainly concerned with the concept of supply chain, where all processes in the production flow are concerned. Therefore, there is integration, coordination, relationship building, and collaboration of the entire process of supply chain. The concept of logistic in the present time also focus its operation from a global perspective. It should also be noted that the supply chain management (SCM) is currently been practiced as logistics (Manuj and Mentzer, 2008).

The World Development report (2010) indicate that by 2050 approximately 90% of the world population will live in the developing nations, which will change the dynamics of the logistics. Therefore the growth of logistics and supply chain is projected to grow tremendously and organisations are expected to pursue outsourcing, increase their international operations, and make sure that there businesses are operating in a global arena. The future of logistics also advocates that there should be a revenue generation strategy so as to enhance cost reduction. The supply chain will be devised in such a manner that it will enhance a logistics customer service, and this is because logistic customer service is the grounds in which revenues can be created. Logistics in the future is also projected to see aspects such as purchasing, operations, advertising, production, and marketing merge, which will be enhanced by supply chain management. Finally, as globalisation continues, the focus of logistic and supply chain will remain to be an important factor that will determine the success of a company Bowesox,, Mentzer, and Speh, 1995).

Discuss the importance of quality in a modern supply chain.

In the recent times there has been an emergence of modern supply chain management (SCM), which is mainly due to the evolution of advanced information technology. Millikin (2012) indicate that the success of many business will mainly rely people, processes, and technology. However, the value and the significance of the modern supply chain will be recognised by supply chain leaders (Thomas et al., 2011). Quality in the modern supply chain will ensure that there is sharing of large information within the process of the supply chain, and this will comprise of operational, strategic, and tactical aspects in the SCM. Additionally, quality in the modern supply chain will enhance that there is improved production planning, distribution and inventory management (Li et al., 2008). Quality in the modern supply chain has also ensured that major retail stores have and manufacturing companies can share real and realistic information regarding the levels of inventory and flow rates with primary suppliers, which will enhances improvement in performance such as faster development of products. Organisations that embrace quality in their supply chain are also able to initiate as well as sustain the core competencies of the organisations (Ravichandran and Lertwongsatien, 2005). Quality in the modern supply chain also ensure that factors that are prone to affect the processes of supply chain, hence a mechanism that ensures that cost in the supply chain is saved as well as improve investment decisions.

Most business enterprises mainly focus of mechanisms and tactics that will ensure that supply chain efficacy are improved. Therefore, the importance of quality in the modern supply chain practice is ensured. Quality in any process such as the supply chain management, will ensure that there is efficiency and this will be from the time the raw materials are purchased to when the product is consumed. The time, which is the duration in the supply chain, is also reduced to great levels when a company embraces quality. Supply chain management is also a concept that has been argued to be a crucial component to operational efficiency. Therefore, quality in the modern supply chain has the capability of ensuring that there is maximum customer satisfaction as well as company success is ensured. Recent times have indicated that the supply chain management is currently been viewed from a global perspective, hence embracing quality will ensure that the multinational corporations have a supply chain and logistic function that is efficient. Quality in the modern supply chain also eases the process of Total Quality Management (TQM). The products and services are also ensured since the long-term survival of the company is ensured. Communication is also enhanced when a company embraces quality in its supply chain, which is a tool that enhances trust among all the parties that are involved in the supply chain. In conclusion, quality in the modern supply chain is crucial since it enhances efficiency and effectiveness in an organisation, hence it is the duty and obligations of supply chain managers to ensure that there is quality in the respective supply chain process.