Supply & Distribution Chain - Essay Example

Develop a logistic plan for a product of Australian Company & Section Number of Supply & Distribution Chain Name: Date: Tim-Tam Biscuits Tim-Tam Biscuits is a brand of Arnott's Food Company in Australia, which is established from the past 144 years. It is one of the largest food companies in Asia Pacific region. Tim-Tam is a premiere biscuit brand of the company which is famous all around the globe for its unique taste. These chocolates biscuits are well demanded in many countries and famous for its taste and flavors (Arnotts, 2011).

Logistic plan of Tim-Tam biscuits is not an easy task, since product is distributed to different channels and in different countries. We will use different channels to reach our target market. We will follow traditional chain but with innovative strategy and use of technology. Food manufacturers normally sell directly to sole distributors, wholesalers and super or mega markets. Many companies have their own distribution channel and they reach retailers and wholesalers through this network. We will also acquire our own network and we will distribute our products through two main channels, one with our existing network and second through joint venture or strategic alliance we will work with partners.

This plan needs to focus on different elements and in this plan we will focus three elements; Information Technology, Demand Management and Procurement. Information Technology: To make sure all the processes are going smoothly and forecasting is accurate and productivity is efficient. Company will hire outside companies or partner with companies offers ERP solutions and supply chain solutions. These automations allow company to; identifies seasonal profiles automatically, Best Fit Forecast recast weekly for all items and Calculates sales volatility to optimize safety stock needs.

Inventory Intelligence, purchase needs and buyers (retailers) need. It can help us to identify shorter and cost effective vendor cycle, EOQ, and suitable pack sizes (ABB, 2011). Automatically generates time-phased replenishment orders and also support interfaces to your ERP system. Software tells you exactly how much of each of your product to send to your customers' locations (retailers, wholesalers, distributers). Through this system, ERP will connect all the parties through one platform, shares information which will guide the inventory inflow and outflow, who needs what, with what numbers and when (Altekar, 2005, p.376). Identify Key Performance Indicators, Out of Stocks material and products, Overstock products and material and Trends.

This will enable company to set certain parameters, such as money lost due to stocks out, projected inventory turns, service levels and safety stock funds (ABB, 2011). Demand Management: In peak seasons demand will rise high, and company needed extra staff, to avoid any interruption in supply chain and to miss any opportunity company need backup plan. Company need some alternatives if team not enough for these season. To fulfill the gap, management can manage it through contractual labor and also start internship programs before these seasons like Christmas, Easter, Halloween, etc.

These changes will be also observed in other supply chain functions such as Purchase department and Inventory and raw material department. Management has to pro active with their research about supply and demand and forecast right numbers for these seasons. In case our full time hired workers are not enough and any fluctuation in demand can affect sales so management can full fill such short term needs by these options. Procurement: As a matter of fact company have multiple warehouses in each city for different countries and some items sell better in certain areas than in other areas; so un-optimized inventory can hurt us in many ways, such as, costing us sales in the areas or cities where demand is higher and inventory carrying costs in regions where demand is lower will be rise too.

The use of software(s) can automatically link your interstate or intercity demands forecast and place your inventory in the closest warehouse where that inventory is needed most. Shipments to nearest clients from nearest stores can reduce your costs to huge levels. This will also generates daily reports of forecasted sales for each product, projected inventory balances, projected inventory turns and service levels (Neelankavil and Rai, 2009, p.289). References ABB. (2011). Advanced Process Control, Optimization & Simulation.

Retrieved May 21, 2011, from http://www.abb.com.sa/industries/db0003db004061/4df43ae2d423f4c3c12573a7004d45d3.aspx?productLanguage=us&country=SA Altekar, R.V. (2005), Supply Chain Management: Concepts And Cases. Delhi, India: PHI Learning Pvt. Ltd. Arnotts. (2011). About our company. Retrieved May 21, 2011, from http://www.arnotts.com.au/about-us/corporate-profile.aspx Neelankavil, J.P., & Rai, A. (2009), Basics of International Business. NY, USA: M.E. Sharpe