Академический Документы
Профессиональный Документы
Культура Документы
Cambridge campus
Assignment for
International Supply Chain
Management
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Table of Contents
1. Executive Summary......................................................................................... 3
2. Analysis of the current state (AS IS) of collaboration in Chula’s supply chain. . 4
4. Conclusion .................................................................................................... 15
5. References .................................................................................................... 16
6. Appendices ................................................................................................... 18
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1. Executive Summary
This report shows that there is an opportunity to develop and improve the supply chain
collaboration strategy for Chula, it needs to be supported by sharing communication to trading
associates using ecollaboration tools. Nowadays, the supply chain environment is a
collaborative commercial environment in which the members of supply chains are
interconnected with each other. Furthermore, the collaboration in supply chains requires the
use of enterprise applications, these tools are collaboration tools. In order to achieve this
collaboration, Chula’s supply chain needs to implement integrated collaboration tools. This
report will introduce a framework to ensure that collaboration in the supply chain is considered
and can be designed and implemented. Collaboration in supply chain is only successful if the
collaboration tools are implemented and used by the supply chain and their collaborative
partners. Also, this report provides some illustrations and application of tools and techniques
to improve Chula’s supply chain collaboration. It also analyses the issues presented in the
organisation and how they affect the company’s performance. Furthermore, improving the
flow of information will reduce waste and will help the company to become leaner and achieve
lean synchronisation. Hence, the recommendation is to improve the use of internet and
information and communication technology. The process will reduce cost and will increase
the flow of information between supply chain workers. Moreover, it will allow the organisation
to improve the responsibilities of Chula’s executive team and achieve a successful
collaboration (see figures 7 and 9 in chapter 3). Consequently, the benefits in Chula’s supply
chain will be to reduce inventory from 10 to 40 per cent, increase replenishment cycles from
12 to 30 per cent, increase sales from 2 to 10 per cent and improve customer service from 5
to 10 per cent (see figure 10 in chapter 3).
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The next figure shows a methodology for implementing supply chain collaboration:
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Chula’s supply chain need to follow a model for collaboration in order to improve the factors
that are affecting their performance. The next figure shows an example of model for supply
chain collaboration.
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Chula’s supply chain is affected by some of the main factors that can affect
collaboration in the supply chain (see appendix 1). Chula as an organisation
needs the constant flow of information constantly, a supply chain is successful when
the flow of information, resources and materials flow between chain members (Jain,
Waghwa and Deshmukh, 2009). The flow of information helps to reduce cost and
achieve a competitive advantage (Jain, Waghwa and Deshmukh, 2009). Chula needs
to improve the flow of information in order to reduce waste, become leaner and achieve
lean synchronisation.
Nowadays, organisations try to improve their agility with the intention to become
flexible and able to meet the changes in market requirements. Many companies have
added activities by outsourcing and developing online businesses. In this case, Chula
needs to improve their website in order to provide information to customers and
options to buy directly from them, in this manner Chula could reduce waiting time and
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become more agile. It is not possible to achieve a successful supply chain without IT.
Information is the union of the business’s structures that allow the supply chain to be
agile and respond to the new challenges (Jain, Waghwa and Deshmukh, 2009). The
use of internet and information and communication technology (ICT) allows to reduce
cost and share information between supply chain workers. Chula is organised in four
divisions; the next graph shows Chula’s organisation chart:
Holland (1995) shows that relationships in organisations are very important and they
need to move towards cooperation in order to make the supply chain more competitive.
Moreover, organisations need to understand the organisation’s competitive priorities
and analyse the technology adoptions in order to support these activities (Sanders and
Premus, 2002). There is a high impact of critical information sharing by using e-
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collaboration tools on the supply chain, the use of internet and new information and
communication technologies allow cost effective information sharing among supply
chain workers (Ovalle and Marquez, 2003; Disney, Naim and Potter, 2004).
Collaborative planning process and tools can reduce inventory and increase customer
service quality levels (De Kok et al, 2005). The improvement of supply chain
collaboration can transform the company and it can improve the executive
management to support the change. The effective supply chain collaboration can be
achieved by sharing organisational information and knowledge (Chandra and
Tumanyan, 2007). Ouyang (2007) mentioned that “sharing customer demand
information across the chain significantly reduces the bullwhip effect”. In addition, the
right selection of information sharing and forecasting methods impact significantly on
the supply chain performance (Sohn and Lim, 2008). Also, the implementation of IT in
supply chain management is very important because it is able to provide accurate
information and it improves the supply chain collaboration (Li et al, 2009). Information
sharing can help to remove issues of excess inventory and lack of service due to
uncertainty (Ryu et al, 2009).
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The plan refers to those processes that generate demand and supply to develop a
course of action which best meets sourcing, production and delivery requirements.
Source refers to those processes that destine goods and services to meet the current
demand. Make refers to those processes that change products to a finished state to
meet current demand. Deliver refers to those processes that generate finished goods
and services to meet current demand, normally including transportation management,
order management and distribution management. Return refers to those processes
related with returning or receiving returned products for any reason. These processes
extend into post-delivery customer support.
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The proven path approach helps to reduce risk and to deliver good results by
combining the power of the operational excellence and supply chain collaboration. It
name comes from the fundamental fact that, if followed, it works. Carrying out business
excellence produces an opportunity to transform the processes used to manage and
administrate the business. “Success depends on the management of this change
through the focused integration of people, processes, and technology” (Ireland and
Crum, 2014). The proven path approach is shown in the next figure:
The next figure shows how the responsibilities of Chula’s executive team could be
developed in order to achieve trading partner collaboration.
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Figure 8. Typical functions in an organization. Source: (Ireland and Crum, 2014, p.74)
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conclusion, the company should improve these issues and become more successful
in collaboration. The next figure shows the characteristics of successful collaboration:
A successful supply chain collaboration benefit suppliers and retailers, so it will also
generate trust among them and will improve the performance of the company. The
benefits of supply chain collaboration are shown in the next table:
Figure 10. Benefits of Supply Chain Collaboration. Source: (Ireland and Crum, 2014,
p.2)
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4. Conclusion
Chula’s supply chain collaboration is affected by the unsuccessful range cooker,
issues in the production lines, suspicion of child labour and bribes, lack of information
and collaboration between partners and issues with inventory and transportation
capacity. Chula needs the constant flow of information constantly, a supply chain is
successful when the flow of information, resources and materials flow between chain
members. It allows the organisation to reduce waste, become leaner and achieve lean
synchronisation. Also, the improvement of relationships in Chula will help the supply
chain to generate trust, become more competitive and accurate. The use of internet
and new information and communication technologies allow cost effective information
sharing among supply chain workers. The right selection of information sharing and
forecasting methods impact significantly on the supply chain performance and it can
help to remove issues of excess inventory and lack of service due to uncertainty.
Furthermore, Chula needs to implement information and communication technology
(ICT) in order to reduce cost and share information between supply chain workers. It
also can allow the organisation to improve relationships and generate trust.
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5. References
-APICS Supply Chain Council, 2014. ExpressPoint adopts the SCOR® model for
strategic supply chain progress [online] Available at:
<http://www.apics.org/docs/default-source/scc/expresspoint-
casestudy.pdf?sfvrsn=0> [Accessed 1 May, 2016].
-Chandra C. and Tumanyan A. (2007). Organization and problem ontology for supply
chain information support system. Data & Knowledge Engineering, 61(2), pp.263–280.
-De Kok, T., Janssen, F., van Doremalen, J., van Wachem, E., Clerkx, M., and Peeters,
W. 2005. Philips Electronics Synchronizes Its Supply Chain to End the Bullwhip Effect.
Interface, 35(1), pp.37-48.
-Disney, S. M., Naim, M. M., and Potter, A. (2004). Assessing the impact of e-business
on supply chain dynamics. International Journal of Production Economics, 89(2),
pp.109–118.
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-Ireland, R. and Crum, C. 2014. Supply chain collaboration. USA: Ross Publishing.
-Jain, V., Wadhwa, S., and Deshmukh, S. 2009. Revisiting information systems to
support a dynamic supply chain: issues and perspectives. Production Planning &
Control, 20 (1), pp.17–29.
-Li, G., Yang, H., Sun, L., and Sohal, A. S. (2009). The impact of IT implementation on
supply chain integration and performance. International Journal of Production
Economics, 120(1), pp.125–138.
-Ouyang Y. (2007). The effect of information sharing on supply chain stability and the
bullwhip effect.
European Journal of Operational Research, 182(3), pp.1107–1121.
-Ryu, S. J., Tsukishima, T., and Onari, H. (2009). A study on evaluation of demand
information-sharing methods in supply chain. International Journal of Production
Economics, 120(1), pp.162–175.
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-Sohn S.Y. and Lim M. (2008). The effect of forecasting and information sharing in
SCM for multigeneration products. European Journal of Operational Research, 186,
pp.276–287.
6. Appendices
Appendix 1. Main factors affecting collaboration in the supply
chain
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