Using Facilities as Supply Chain Performance Driver

In: Business and Management

Submitted By samuke01
Words 2365
Pages 10
A strategic approach in establishing a competitive advantage and sustainable market dominance is always the target of most businesses. Chopra & Meindl (2007, pp.37) stated that: “A company’s competitive strategy defines, relative to its competitors, the set of customer needs that it seeks to satisfy through its products and services”. Bunge has been in existence for nearly two (2) centuries, remained competitive and has grown their businesses from a private enterprise found by a German merchant, Johann Peter Bunge, to a world class firm that is quoted in New York Stock Exchange (NYSE). On its inception at Amsterdam, the firm was involved in grains merchandising and importation from the then Dutch colonies until 1859 when it relocated to Antwerp to become one of the global recognised company in commodity trading; with several operations and businesses in the North and South Americas with distribution capabilities that is spread across the world, Bunge identified facilities as a key driver of supply chain performance as it affects responsiveness and efficiency in market environment (Chopra & Meindl, pp. 64).
As the company positioned to become the largest oilseed-processing firm in the globe through acquisition of Cereol in July, 2002; it was faced with the integration of Cereol into Bunge’s business and organizational model, and the dilemma of decentralization of its businesses.
This project will focus on identifying the corporate strategy of Bunge while describing the strategy that was adopted in achieving it.
At the upper level of the Company strategy, it was designed to make Bunge “the best integrated agribusiness and food company in the world”. It was further identified that logistics will play a key role in this integration…...

Similar Documents

Supply Chain

...A – Supply Chain Strategy The supply chain strategy chosen for the power tool company is a long term partnering relationship with few suppliers. The long term vision of the company is to make quality products and constantly stay ahead of the competition with innovation. The best way to accomplish this strategic long term goal is to partner with key suppliers that operate using a strategy of long term thinking based on trust and transparency. Ray Kroc was one of the pioneers on forming partnerships with the management teams of his suppliers back in 1955 (Vitasek & Manrodt 2012). Ray Kroc defined the McDonald’s supply chain partnerships with his suppliers as a “system” with everyone working together to drive costs out of the supply chain. This philosophy has proved tried and true for over 50 years and is what makes McDonald’s the successful company it is today. By partnering with few suppliers and building trust between the two organizations the customer and supplier can work together to better understand the drivers of the supply chain costs. There are many advantages of using a long term partnering supply chain strategy over some of the other strategies adopted by other companies. One of the major advantages of partnering with few suppliers is that you are able to build strong relationships with your supply base and both the supplier and customer grow the business together. One of Ray Kroc’s famous quotes was, “none of us is as good as all of us.” (Vitasek &......

Words: 9186 - Pages: 37

Drivers of Supply Chain Performance

...2013 Drivers of Supply Chain Performance Enhancing Organizational Output: An Exploratory Study for Manufacturing Sector Irum Shahzadi, Saba Amin, Kashif Mahmood Chaudhary* President GCUF Toba Tek Singh Group Department of Business Administration, Government College University Faisalabad, Pakistan * Tel: +923016517083, E-mail:, Abstract Purpose - The Purpose of this study is to explore the drivers of supply chain performance and give a framework that how organizations can manage these drivers for their survival. This paper is written especially for the students of business management to enhance their knowledge about supply chain practices. Methodology - The paper contains qualitative approach. In first phase the authors reviewed literature about the drivers of supply chain performance. In second phase the data from internationally published articles were collected and suggest a framework to manage the drivers of supply chain performance. Findings - The whole study concluded that there are six drivers of supply chain performance in literature that need to be managed to enhance organizational performance. These drivers are; Facilities, Inventory, Transportation, Information, Sourcing and pricing. These drivers are closely related with each other and have a greater impact on organizational performance. Organizations need to find a situation where both efficiency and responsiveness in supply chain practices are......

Words: 8915 - Pages: 36

Measuring Supply Chain Performance

... prod. res., 2004, vol. 42, no. 1, 131–163 Understanding supply chain management: critical research and a theoretical framework I. J. CHENy* and A. PAULRAJy Increasing global cooperation, vertical disintegration and a focus on core activities have led to the notion that firms are links in a networked supply chain. This strategic viewpoint has created the challenge of coordinating effectively the entire supply chain, from upstream to downstream activities. While supply chains have existed ever since businesses have been organized to bring products and services to customers, the notion of their competitive advantage, and consequently supply chain management (SCM), is a relatively recent thinking in management literature. Although research interests in and the importance of SCM are growing, scholarly materials remain scattered and disjointed, and no research has been directed towards a systematic identification of the core initiatives and constructs involved in SCM. Thus, the purpose of this study is to develop a research framework that improves understanding of SCM and stimulates and facilitates researchers to undertake both theoretical and empirical investigation on the critical constructs of SCM, and the exploration of their impacts on supply chain performance. To this end, we analyse over 400 articles and synthesize the large, fragmented body of work dispersed across many disciplines such as purchasing and supply, logistics and transportation, marketing, organizational......

Words: 17828 - Pages: 72

Supply Chain

...CURRENT CHALLENGES OF SUPPLY CHAIN MANAGEMENT Acknowledgement It is only because of the grace and mercy of great Almighty ALLAH that we are able to complete our report. Without His help, in no way we could complete it. We are highly indebted to honor Sir Shoaib Ishtiaq (Bahria University) for assigning us such an important and interesting report and for his valuable guidance in carrying out this research study which benefited during our course work in the university. We would also like to extend our gratitude towards the internet & books which helped us greatly. And on the other hand all those people who were directly and indirectly involved in the completion of this project. ABSTRACT Purpose : As the business environment becomes increasingly competitive, companies continuously look for ways to distinguish themselves from their competitors. Companies adapt different Supply Chain Management practices and philosophies to help them become competitive. However, they may face challenges that hinder attainment of the results sought. Here is the study of few challenges that supply chain management are facing in today’s world and some strategies propose to cope up with those challenges. Methods : Firstly the major challenges were search and then some strategies were purpose to cope up with those challenges of supply chain management by giving the examples of case study than how in past companies have faced those challenges and they were not able to handle...

Words: 8071 - Pages: 33

5 Key Drivers of Supply Chain Compliance and Why?

...5 key drivers of supply chain compliance and why? The key drivers of supply chain management that determine the overall competitiveness and responsiveness of the organization relate to inventory, transportation, facilities and information. The complete supply chain is made up of many channel partners and many processes. Supply chain management encompasses several activities and partners. The forces which are responsible for making the supply chain effective are legislation, environmental, pricing, customer and social. 1. Legislation Legislation is the most important drivers of supply chain; a firm should follow the legislation, or exit the market. Legislation may be in form of general environmental laws (Fleischmann et al., 1997; Georgiadis and Vlachos, 2004; and Van Nunen and Zuidwijk, 2004), or it maybe specific, for example mandating a given recycled content in new products (Krikke et al., 2004) or pinpointing End Of Life (EOL) take-back responsibility (Krikke et al., 2004). Legislation in turn may be driven by issues like government's concern for environmental degradation, public opinion or pressure, lobbying by interest groups, shortage of resources, preferred modalities of a nation's development, which may also, in turn, act directly as drivers for a business firm. Reference: 1. Mann, Hanuv; Kumar, Uma; Kumar, Vinod; Mann, Inder Jit Singh. “Drivers of Sustainable Supply Chain Management.” Iup Journal of......

Words: 2051 - Pages: 9

Supply Chain

...Supply Chain Challenges for Food Processing Industry. By – Bhupinder Singh. Dated 5th Dec. 2009. Vista Foods – Mumbai An Group Company Vista Foods – Mumbai – India an OSI Group company. OSI Group is strategically organized into three defined Zones – The Americas Zone. The Europe Zone. The Asia /Pacific Zone. Over all OSI Group is in 26 Countries. Serving McDonald’s Worldwide and other international retails label pack. “Be ready to accept a new idea. Innovation is the lifeblood of growth. Create an environment that breeds innovation . Maintain consistency while responding to change.” ---- Ray Kroc Chairman Agenda 1 Food Processing Sector in India 2 Supply Chain Challenges in Food Industry 3 Opportunities & Recommendations 4 1 Food Processing Sector in India 2 Supply Chain Challenges in Food Industry 3 Opportunities & Recommendations 5 Food Processing Sector in India Food is the largest consumption category in India... Food Consum ption in India 250 So urce: B M I, Q12009 & CSO C A G R : 5 .3 2 % 229.7 210.3 200 180.1 168.6 151.7 157.7 184.4 191.4 198 1 50 1 00 50 0 2005 2006 2007 2008e 2009f 201 0f 201 f 1 201 2f 201 3f Significant Opportunity India as a huge Consumer Market 6 Food Processing Sector in India India has huge supply advantages due to diverse agro-climatic conditions and wide ranging raw material base… • 52% cultivable land compared to 11% world......

Words: 2092 - Pages: 9

Supply Chain

...Introduction Inventory serves as a useful purpose in the supply chain. Many supply chain managers say firms can help decrease the need for inventory by carefully managing factors that cause inventory levels to increase. Inventory can be defined as the result of imbalance between supply and demand. The term inventory drivers comes from the consequences of certain supply or demand characteristics, such as: product desirability, responsiveness, information, collaboration, and visibility (St. John, 2008). The four common inventory drivers are: 1) demand/ capacity mismatches; smoothing inventories 2) demand/ process volume mismatches; cycle stocks 3) demand/supply uncertainty; safety stocks and 4) demand/supply chain lead time mismatches; anticipation inventories (Bozarth, 2011). Determining Inventory Levels Inventory decisions are normally determined by five key business drivers: consumer demand, lead time variability, pack mix, merchandising requirements, and service levels. However, with every decision there is always an area for error. Forecasting consumer demand involves factoring in lead time, lead time variability, and package size constraints. The best way to manage customer demand is to run a sales and operating plan across merchandise, supply chain, and store operations to tweak forecasts and reduce forecast errors. The key is to do a monthly review of forecasts for items with a stable demand, and for items with unstable demand and promoted categories they need a......

Words: 2212 - Pages: 9

Supply Chain Performance Measurements

...6.1) Key performance indicators (KPIs) are used to measure the progress of a business reaching their goals. The success of the business and its activities should be measured to identify problems or possible improvements. I have identified a number of KPIs specific to departments in the supply chain as well as the supply chain as a whole. KPIs which can be introduced across the sales department are: • Lost sales to keep a record of which customer orders are not fulfilled. • Turnover generated by each product in order to make comparisons between the different adhesive and grout types. • Sales target in order to have a goal to work towards. • Sales growth measurement, which is important to determine if the product sales are increasing to be able to supply the growing demand. KPIs which can be introduced across the marketing department are: • Return on investment in order to determine the revenue that a marketing campaign is making in comparison with the costs to run that campaign. • Incremental sales which demonstrate the effect that the marketing campaign has on increasing sales. KPIs which can be introduced across the procurement department are: • Deliveries which compares the actual delivery date to the promised delivery date of raw materials. Delivery accuracy can then be measured. • Lead times, which should be monitored to determine delivery dates of raw materials. • Total cost savings, which measures the amount of money saved on an order by purchasing...

Words: 1614 - Pages: 7

Key Drivers That Move an Organisation Towards Implementing an Integrated Supply Chain

...The key drivers that are moves an organization towards implementing an integrated supply chain. Integration: This era of supply chain management studies was highlighted with the development of Electronic Data Interchange (EDI) systems in the 1960s and developed through the 1990s by the introduction of Enterprise Resource Planning (ERP) systems. This era has continued to develop into the 21st century with the expansion of internet-based collaborative systems. This era of supply chain evolution is characterized by both increasing value-adding and cost reductions through integration. By developing cross-functional integration, supported by data warehousing and shared roles and responsibilities, organizations began to create a customized view of the customer. Support issues, Web hits, sales calls and marketing inquiries started building a deeper understanding of each customer and allowed aggressive organizations to adapt their tactics to fit individual needs. a) Customer service management process Customer Relationship Management concerns the relationship between the organization and its customers. Customer service is the source of customer information. It also provides the customer with real-time information on scheduling and product availability through interfaces with the company's production and distribution operations. Successful organizations use the following steps to build customer relationships:  determine mutually satisfying goals for organization and......

Words: 1216 - Pages: 5

Supply Chain Performance Measurement: a Literature Review

...Journal of Production Research Vol. 48, No. 17, 1 September 2010, 5137–5155 Supply chain performance measurement: a literature review Goknur Arzu Akyuz* and Turan Erman Erkan Department of Industrial Engineering, Atilim University, Kizilcasar Mahallesi, 06836 Incek Go¨lbasi, Ankara, Turkey (Received 19 February 2009; final version received 2 June 2009) This paper is intended to provide a critical literature review on supply chain performance measurement. The study aims at revealing the basic research methodologies/approaches followed, problem areas and requirements for the performance management of the new supply chain era. The review study covers articles coming from major journals related with the topic, including a taxonomy study and detailed investigation as to the methodologies, approaches and findings of these works. The methodology followed during the conduct of this research includes starting with a broad base of articles lying at the intersection of supply chain, information technology (IT), performance measurement and business process management topics and then screening the list to have a focus on supply chain performance measurement. Findings reveal that performance measurement in the new supply era is still an open area of research. Further need of research is identified regarding framework development, empirical cross-industry research and adoption of performance measurement systems for the requirements of the new era, to include......

Words: 7390 - Pages: 30

Supply Chain

...| | McDonald’s Supply Chain | | | | | | | | | Contents Introduction 3 History 3 McDonald’s in India 4 Supply Chain of McDonald’s 5 Introduction 5 Incorporating Chill Zones – The McDonalds Cold Chain 6 Validation of McDonalds Cold Chain 8 McDonalds Suppliers and Distributors 10 Outsourcing of Ingredients 12 McDonald's Supply Chain – Challenges 19 Conclusion 20 References 21 Introduction McDonald's is the leading global foodservice retailer with more than 32,000 local restaurants serving more than 60 million people in 117 countries each day. More than 75% of McDonald's restaurants worldwide are owned and operated by independent local men and women. McDonald's predominantly sells hamburgers, various types of chicken sandwiches and products, French fries, soft drinks, breakfast items, and desserts. In most markets, McDonald's offers salads and vegetarian items, wraps and other localized fare. This local deviation from the standard menu is a characteristic for which the chain is particularly known, and one which is employed either to abide by regional food taboos (such as the religious prohibition of beef consumption in India) or to make available foods with which the regional market is more familiar (such as the sale of McRice in Indonesia). History The business began in 1940, with a restaurant opened by siblings Dick and Mac McDonald in San Bernardino, California. Their introduction of the "Speedy Service System"...

Words: 4390 - Pages: 18

Supply Chain Quality and Performance Management

...with all the staff. The outcome was however that they probably lost many good people. The main component that was missing from their TQM implementation was Systems Thinking. They did not implement a system that allowed issues which required improvement to become new projects. Thus even though they claimed they were continuously improving, there were very few new initiatives. Prepared by: Deon du Plessis Page 2 of 19 Created on 04/04/15 Individual Examination: British Telecom Individual Examination: British Telecom The solution will be to become a true BSPM learning organisation. This will involve some more changes to the structure where the continuous improvement projects will be programme managed across the value chain. 2 Question1: What role has the Quality Management system and the ISO 9001 standard played in BT’s total quality journey? If one looks at the ideal QMS system as portrayed in Figure 4 then one will see that BT have implemented major parts of the QMS system from the time that they decided to implement TQM in 1986. 2.1 The timelines of major QMS milestones. 1984: Privatise. 1986: Decide to implement TQM and announce a value system. Involving everyone workshops held. Train the managers via the Leadership Programme (employee involvement). 1991: Project Sovereign Restructure (customer focus). Prepared by: Deon du Plessis Page 3 of 19 Created on 04/04/15 Individual Examination: British Telecom   of 19  INDIVIDUAL......

Words: 3803 - Pages: 16

Supply Chain Performance Indicator

...Key Supply Chain Performance Indicator Paper Danny Shieh ISCOM/370 March 31th, 2012 Leon Powell Key Supply Chain Performance Indicator Paper The success of a company can often be represented by its performance of the supply chain element. Such performance is measured to ensure the flow and process of each element is accurate and up to standard based on the company’s goals and objectives. In this paper, author will first define supply chain and its elements, then define the meaning and importance of key performance indicators. Lastly, Author will explain three example indicators, how it is calculated, and what the number means. Supply Chain Management Supply chain management (SCM) is defined as managing the flow of information and materials from upstream suppliers to downstream customers. The Institute for Supply Management’s definition states that “Supply chain management is the design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer” ("Institute for Supply Management", 2011).  The elements of the supply chain are components that made the flow possible. Such element includes supplier, logistics/transportation, purchasing, production, inventory, planning, IT, quality assurance/quality control, and customer. These elements are important to the flow of supply chain as they each contribute a function that worked together...

Words: 785 - Pages: 4

Supply Chain

...Supply Chain and e-Supply Chain: Structures, Strategies and Drivers 1. SUPPLY CHAIN DESCRIPTION |Supply Chain: |Activities involved in fulfilling a customer request | |Actors: |Suppliers, Sub-Contractors, Manufacturers, Transporters, Warehouses, Retailers, Customers | |Functions: |Product, Development, Marketing, Procurement, Manufacturing, Operations, Distribution, | | |Finance, Customer Service | |Objective: |Maximize value generated through customer satisfaction | Decision Phases | |Strategy (Design) | | |Locations, Capacity channel design, Warehouses, Manufacturing, Outsourcing | | |Planning | | |Supply scheme, Inventory policy, Subcontracting | | |Operations | | |Allocation of individual orders to inventory or production,......

Words: 1979 - Pages: 8

The Importance of Information Sharing in a Supply Chain for the Supplier‘S Performance

...The importance of information sharing in a supply chain for the supplier‘s performance Bachelor thesis: Organization studies, 2nd semester, academic year 2011-2012 Thesis Circle: Time will tell…. A processes perspective on inter-organizational collaboration Name: PC Jansen ANR: 770926 E-mail: The importance of information sharing in a supply chain for the supplier‘s performance Abstract This literature review investigates the effect of information sharing from a buyer to a supplier in a supply chain on the performance of that supplier, with taking in mind that the supplier has to combat the bullwhip effect. With the existence of the bullwhip effect, a supplier cannot make right forecasts and therefore has difficulties in planning its production and/or inventory control. This research shows that information sharing is the key solution to reduce or avoid the bullwhip effect and, by that, it positively influences the performance of the supplier in the chain. Keywords: Bullwhip, supply chain, information sharing, supplier performance, inventory control, single-echelon, multi-echelon Thesis Circle: Time will tell…. A processes perspective on inter-organizational collaboration Supervisor: Remco Mannak Supervisor 2: Annemieke Stoppelenburg Name: PC Jansen ANR: 770926 E-mail: 2 Table of contents Table of contents 3 1. Introduction 4 2. Theoretical......

Words: 12355 - Pages: 50

Home Decor | Watch now! | Lissage Bresilien Inoar Marroquino KIT 2 X 100 Ml GANTS OFFERT