Logistical Processes at Tate and Lyle - Case Study Example

 Key factors that influence the logistical processes at Tate and Lyle Introduction The success of logistical processes at Tate and Lyle Sugar Company in Germany is highly influenced by a variety of critical factors. Logistical processes entail the sum-total operational criterion within an organization that drives the achievement of the desired goals. Logistics are also considered as those processes involved in the planning and implementation, in addition to the control, of the efficiency, cost effectiveness, flow, and raw materials’ storage. It also entails the efficiency of in-process account, complete products, as well as information that relates to the final consumption by the consumers from the point of production of the consumable goods. The operations of the company in the attainment of vision and mission rely heavily on the environmental location. For instance, special considerations are made for the silver town Refinery’s upstream supplies chain and the next tier downstream in regards to the reinstated logistical processes. The completion of logistical processes in production and delivery of the products is more successful when the company is able to address a range of challenges that are commonly faced. There is also a need for change adoption to enhance the survival values of the Tate and Lyle organization in Britain. However, constraints for transformation have been rampantly experienced and are an ample factor for address. The recent developments in the organization entail the utilization of supply-chain management strategies with an intention of countering every form of organizational negativity. The best models of supply chain need be utilized in the logistical processes management to ensure organization compatibility with the input strategies (Plunkett, 2007). The discussion in this paper establishes the key factors that influence the logistical processes at Tate and Lyle. The comprehension of these factors will be boosted by conducting a special survey on the Silver town Refinery’s upstream supplies chain and the next tier downstream. Identification of the range of challenges that Tate and Lyle must address is also considered vital at this juncture and the different logistical activities within the supply chain. It is also crucial to investigate into the extent of change of activities at Tate and Lyle could change and constrains for change that are majorly experienced. Key factors that influence the logistical processes at Tate and Lyle Logistical processes at Tate and Lyle are massively influenced by overwhelming factors that are deemed crucial as success or failure drivers. The most crucial and long term factor is the organizational equipment that is utilized in the execution of the required processes. The plant is well established in ample sites that follow each other to accomplish a sequential process. The location of a main plant at Silver town is considered as an upstream domain for the main production of the needed end products, while the downstream tiers are considered as sequential plants that enhance the produced goods delivery to the final customer. Every organization upstream settings determine the success of the downstream tiers and the final product deliveries. Thus, the Tate and lyre logistical processes execution are highly determined by the operational equipment in the set up plant. Secondly, the operational compatibility is a long term factor that influences logistical processes. The Tate and Lyle being a food company has operational compatibility in regard to its introduction of various operational stations with distinct supply chain stages involvements. However, compatibility is influenced by the type of products in relation to the production plant as well as the expected outcome as per the availability of product consumers. Britain location is compatible with the starch and sugar products produced by the Tate and Lyle (Fine, Heasman and Wright, 1996). The management planning within the company is a key factor that determines that influences the logistical processes. Management in any form of organization determines the overall performance and company productivity. The company has long been productive in the production of the sugar products in Britain due to the utilization of chain management methodologies. The top management monitors the activities of the middle and low levels activity performance. The scope of operation is also a long term rationale to the accomplishment of logistical processes at the Tate and Lyle. The company operates over a wide scope, having its main organ in the UK and having established other branches in other nations for comprehensively operating all over the globe. The upstream plants are always involved in the production accomplishment while the down streams are ample for handling sequential delivery management processes in a bid to reach the final consumer. Efficiency in time management is also a very crucial factor that enhances the performance of the logistical processes in the company. The production certain products that are in requirement over a certain period play a vital role in ensuring production and distribution efficiency (Fine, Heasman and Wright, 1996). Procurement management is a long term factor that has been strongly integrated with the company. This relates directly to the purchasing activities for products as well as services within the organization to execute the overall organizational performance and success. The purchase of product entails seven stages, which are inclusive of gathering, supplying, contacting, and reviewing the background and negotiation in addition to fulfilment, consumption as well as maintenance, disposal and renewal. Tradition relates to procurement as essential commodity supplies that are mainly needed for operations in business activities. The process also keeps in mind money saving strategies in order to enhance consumption efficiency in all realms of operation. For instance, 80% of items that are purchased at the Tate and Lyle Company are inclusive of operations, repair and maintenance. These usually contribute to the definite total procurement value to the level of 20%. The inclusion of the activities that are not value added while executing procurement processes leads to the experts not offering full attention to those high yielding materials. Thus, some major failures may have their way in the organization whenever low-yielding materials are focused on than when high-yielding materials are focused on (Fine, Heasman and Wright, 1996). The relationship between the production and the supply entities is also a long-term factor that influences the logistical processes at Tate and Lyles. Positive relationships are a rationale to positive operations in contrast to negative relationships that are poison to the success of all processes. The upstream operation is effective when the employees in these levels cultivate effective management and relationship strategies. Failures in the execution of many logistics within complex organizations are experienced due to the lack of appropriate management relationships. The producers and suppliers actions and personalities should be pleasing for successful logistics success within organizations. The placement of organizations is also a long-term determinant of effectiveness in organizational logistical processes. Successful organizations must be placed strategically in areas near the suppliers of raw materials as well as nearness to customers. Demand and supply are also important factors that influence the logistical processes at Tate and Lyle organizations. Whenever demand for the food products is high, there is room for Tate and Lyle to produce more goods and thus the exercises of executing the logistical processes is very high. Similarly, supply highly demands that logistical processes be executed at a fast rate to ensure the success at every production and procurement state (Plunkett, 2007). Identification of the range of challenges that Tate and Lyle must address Tate and Lyle Company have been successful, over the years, in their logistical processes, according to the recent empirical reports from researchers. However, for successful future operations, some diverse challenges must be keenly addressed by the organization. Leadership is the most important challenge that many organizations face in their operations execution. Inappropriate leadership makes an organization to experience major failures since it is a rationale to majorly affecting the employee pace of working and morale. In order to make sure that the logistical processes are in a successful mode, restructuring and addressing of weak areas in the leadership patterns is very crucial at Tate and Lyle. Employee management is also a long-term area that needs be addressed by the management of the company. The logistical processes accomplishment relies heavily on the performance of the general workforce. The ability of the workforce to perform effectively is therefore dependent oh how well the management manages the employees. Employee management entails the address of issues, which are inclusive of remuneration, job satisfaction in regards to promotions as well as appropriate regard. Allowing employees to take part in the decision-making processes within an organization is also very crucial in ensuring that the logistical processes are at work 24/7. Therefore, the company must ensure that theirs is the best place where people are more than willing to work (Tate & Lyle, 2010). Volunteering is also a point of concern for many organizations, which entails trusting of peoples property to charitable work as well as ample societal concerns. The management as w ell as the employees need be taught on the importance of entrusting their property as well as the company’s property into suitable organizational and public concerns as a means of overcoming the spirit of self-centered organizations. Another crucial area of address is that of the cooperation in the execution and achievement of the ultimate company’s goals. Lack of cooperation leads to arise of organizational conflicts that are a major drawback to organizational success. Therefore, Tate and Lyle must address the issue of cooperation to enhance the performance in a joint effort by all stakeholders. Effectiveness in communication models also needs be employed in the organization as a factor that determines the operation effectiveness of the entities involved. Good communication models be implemented and emphasis placed on their utilization by all stakeholders to overcome the challenges of poor communication. Furthermore, training is always considered as a very efficient tool in the management of complex organizations and therefore need be addressed to ensure that correct paths are in use in all the realms of operation (Tate & Lyle, 2010). The different logistical activities within the supply chain The supply chain at Tate and Lyle constitutes of the interplay of different logistical activities. Logistics entail the employment of those processes involved in the planning and implementation. Planning activities are always conducted at Tate and Lyle in order to effectively implement the sought strategies. This involves drawing of the frameworks that are deemed crucial in the logistical processes conduction to ensure sequential processes are executed in the right manner within the organization. The plans are basically geared towards the conduction of the main organizational processes. Procurement activities are conducted in the company in a bid to ensure the availability of raw materials. These entail the buying processes for the acquirement of raw materials that are needed in order to come with desired products. The procurement processes are conducted via a variety of methodologies, which are inclusive of manual marketing strategies, brokerage methodologies as well as the recent adoption of the Electronic marketing. The best methods of purchase are those that look forward to the enhancement of cost-effectiveness for profit maximization as one of the supply chain activities. Information sharing is also an important activity in the Tate and Lyle logistics. The sharing of information is considered as a rationale to the conduction of all forms of procurement and sale activities. This is in a bid to control the inflow of materials and the outflow of finished goods to the esteemed recipients. Adoption of Information communication technology as well as e-commerce plays a pivotal role in the provision of the means of alliance and amalgamation between the industry associates. Other activities like the efficiency of in-process account, complete products, as well as information that relates to the end consumption by the final consumers from the point of production of the consumable goods are also considered vital in the Supply chain management (Hofer, 2010). The extent of change of activities at Tate and Lyle The extent for change requirements in the conduction of the above supply chain activities is very great, owing to the operation of the food company in an extremely volatile environment. The company operates in an upstream policy therefore need enhance ample relationships between the partners and suppliers. There is also the need to modernize every aspect of the operation, including the adoption of ample communication devices, especially those that utilize integrated communication models to enhance the rate of information reception within the organization. The adoption of Electronic marketing strategies is also considered vital in the transformation enhancement in the company. E-marketing enables the utilization of electronic methodologies in the procurement processes enhancement, a factor that speeds up the rates of transactions that take place between a buyer and a seller (Feder, D., 2009). On the other hand, there is the requirement to adopt an approach that is group wide and consistent in accordance to organizational requirements. The importance of the approach is demonstrated in its enablement for purchase strategies enhancement over a wide scope at the local, regional, as well as international levels. This acts as a rationale for the promotion of supply chain ethics in order to make use of the best practices in the delivery of services and goods to the esteemed clientele. These standards also enable the company to purchase raw materials from local and international suppliers. The need to adopt the recent management frameworks also acts as a long-term strategy to change the organizational operations trends. Change management strategies for all supply chain processes need also be given the best consideration. The supply chain logistics are also considered vital when technological advances are duly improved. The incorporation of the most recent internet applications in the logistics management would enhance the systems for the overall efficiency and effectiveness promotion (Voigtmann, 2010). Constrains for change Numerous constraints for change are so far identifiable at the company, despite the overwhelming success gained via the application of logistical processes. The constraints are rooted in the complexities of organizational transformation as well as the difficulties by the change provision authorities. The adoption of the e-commerce and new ICT models poses greater than expected constraints to the organizations that are desperately in need of these best strategies to accomplish their missions. Tate and Lyle have not been able to completely adopt and incorporate excellent leadership strategies in the operational systems to ensure that the logistics are appropriately run. Most of its entities are running in a deficit of leadership strategies that would ensure attainment of ultimate goals. Lack of commitment of the overall employee body is also a vital factor of success consideration. However, the organization has been faced by lack of voluntary commitment by the workforce. The failure by the procurement officers to focus on purchasing raw materials that yield high quality of products has ideally affected the quality of the final products within the organizational supply chain. The elimination of such constraints is the only key to driving organizational logistical processes (Tate & Lyle, 2010). Conclusion The success of logistical processes at Tate and Lyle Sugar Company in Germany is highly influenced by a variety of critical factors. Logistical processes are inclusive of planning and implementation in addition to the control of the efficiency, cost effectiveness, flow, and raw materials’ storage etc. However, factors like operational compatibility, operational plant equipment are major determinants of Tate and Lyle’s success in logistical management. Most of the supply chain processes are sequential entailing those deemed crucial in the procurement, production as well as communication and sale strategies. However, the organization need address the rampant challenges that may hinder the accomplishment of logistical processes to eradicate supply chain operational constraints. Nevertheless, studies that are more empirical should be conducted to come up with the solutions to the need for effective logistical operations within Tate and Lyle. List of References Feder, D., 2009. Ingredient Cost Control – At What Cost: Processors and ingredient companies share their strategies for helping to control today’s high cost of ingredients – without impacting quality or safety. Available from http://www.foodprocessing.com/articles/2009/026.html. Fine B., Heasman, M., and Wright, J., 1996. Consumption in the age of affluence: the world of food. NY: Routledge, Inc. Hofer, R., 2010. Sustainable Solutions for Modern Economies. NY, Royal society of chemistry. Plunkett, J., 2007. Plunkett's Food Industry Almanac 2007 (E-Book): Food Industry Market Research, Statistics, Trends and Leading Companies. NY: Plunkett Research, Ltd. Tate and Lyle. 2010. Tate and Lyle: Annual report. Tate & Lyle company, Inc. (Online). Available from http://annualreports.tateandlyle.com/2010/ara/businessreview/whatwedo/people.html (Accessed May 17, 2011). Voigtmann, J., 2010. Construction logistics planning by simulation: Proceedings of the 2010 Winter Simulation Conference. Germany, Bauhaus-University Weimar press. (Online). Available from http://www.informs-sim.org/wsc10papers/296.pdf (accessed May 17, 2011). Read More