Supply Chain Management Integration - Assignment Example

Supply Chain Management Integration Introduction Supply chain management is the integration and management of supply chain activities through cooperative organizational relationships, effective business process, and high levels of information sharing (Wisner et al, 2009). On the other hand, the term integration is defined as the process of incorporating or bringing together different groups for the sole purpose of working jointly in executing a common business related assignment or purpose (Wisner et al, 2009). Indeed, supply chain is one of the most vital factors that set the pace for the company’s journey to desired success. In today’s business climate, adaptability and agility are primary due to the ever-changing strategies that are always aimed to attract potential customers to significantly increase the profitability of an organization. For an integrated supply chain to be termed as of quality, it must be open to functional shift ability (Delfmann, 2007). Functional shift ability in this case describes the process of assigning functional responsibility to members of the supply chain best positioned to perform those functions at the lowest overall cost or in the shortest period of time (Wisner et al, 2009). One of the renowned international Companies known to follow this strategy is the Coca Cola Company that is known for its tremendous wide array of soft drinks. The purpose of this paper is to provide insightful information about the imperativeness of effective supply chain management in terms of performance enhancement and optimal utilization of resources (Jacoby, 2010). The information is to facilitate decision-making in various institutions pertaining to the integration of supply chain management including Coca Coal Company that is adopted in this study. The concept holds the capacity to enhance the competitiveness of companies in diverse sectors through effective streamlining of production processes that enables companies to produce unmatched products in terms of quality. Characteristics and methodology of supply chain integration management strategies for Coca Cola Company A supply chain is an integrated process where a number of various business entities such as the manufacturers, distributors, retailers and suppliers work together in an effort to acquire raw materials, convert the raw materials into specified final product and deliver the final products to retailer (Ray, 2003). An efficient supply chain management is designed specifically to meet customer’s demands as well as satisfying the customer as practiced by Coca Coal Company. Giannoccaro (2013) indicates that supply chain is characterized by the flow of products, information and finance between organizations that are members of the supply chain. The process of supply chain management thereby needs coordination between the producers, suppliers, distributors, retailers to supply the correct product, at the right time within the right conditions and acceptable price (Qin, 2007). In order for the supply chain integration to be a success, companies such as Coca cola need to hone their skills in communication, coordination, collaboration and strengthen trust among members of the supply chain. Notably, Coca Coal Company has been employing the use of value chain management concept effectively. The concept has systematically revolutionized its operations and performance immensely. In particular the company has been focusing on implementing inventory, outsourcing and mass customization strategy for the sole purpose of improving and enhancing performance of the supply chain department and the organization as a whole (Flynn, Morita & Machuca, 2011). Its management holds that the main trait of a stellar supply chain management encompasses the area of communication. In this regard, the company has invested heavily on communication infrastructure and put in place requisite measures to ensure that communication is effective at all time among between departments. Indeed, communication is one of the factors that ensure that there are proper cooperation and coordination among the supply chain members (Qin, 2007). Besides, communication has been known to build trust among the members and thereby strengthening the relationship among the supply chain members. In the current digital world, information technology has taken a vast form of communication mechanisms (Blecker, 2012). This includes the use of internet, software application packages, intranet and decision support system, which are used as methodologies for facilitating information sharing with the customers and partners in Coca Cola company (Plenert, 2007).For integrated supply chain to optimize the process of supply chain performance, and then the organization should remain flexible in its operational strategies. The value chain process and management adopted by Coca Coal Company is shown below. Due to the ever-changing business environment and the fierce competition being faced within the business environment, organizations should always be welcoming alterations in their supply chain processes (Kros & Brown, 2013). Organizations such as Coca Cola Company should welcome the alterations for the main purpose of fully meeting their customers’ expectations whilst exploring other ways that could yield massive profits. The flexibilities could involve the process of changing the supply chain procedures and practices, changing the technology being used or making changes on the manufacturing process to speed up the entire production process (Ijioui, 2008). There should also be proper supply chain coordination and this may be achieved if the organization has selected the right partners. According to Shah (2009), this enables the supply chain network to rely on each other with trust for the sole purpose of attaining the main goals that will be to satisfy the customers’ demands at the correct time and price. The supply chain management also needs to have proper supply chain planning with the main purpose of producing the products that the customers are likely to demand (Gattorna, 2008). This is done if an organization has coordinated demand forecasts, coordinated information systems, coordinated allocation of inventory and capacities and coordinated business process designs. Organizations are thereby advised to increase their investments on planning methods and systems to eventually meet all customers’ needs at the most appropriate and correct time. Crowston, Herman & Malone (2003), indicates that effective use of outsourcing enables the Coca cola Company to exploit the available resources with the aim of concentrating on its own capabilities and core competencies. Outsourcing has thereby been a key factor in ensuring that the company optimizes on its supply chain performance. SCOR analysis along with a Lean Supply Chain analysis on the chosen manufacturing organization Supply Chain Operations Reference is a model that was developed by an independent, nonprofit oriented association known as the Supply Chain Council (SCC) (Ijioui, 2008, p. 56). The SCOR model was designed for the key purpose of structuring the supply chain processes. The process categories in the SCOR model are differentiated with the aid of dimensions production concept and orientation of product structure. The SCOR model based supply chain utilizes the SCOR monitoring processes as its foundation within all businesses involved, on both the suppliers and customers side (Akȧli, 2005). The SCOR model provides a unique framework that links performance metrics, processes, best practices and people into a unified structure (Handfield & Nichols, 2002). The SCOR model has especially been beneficial to the Coca Cola organization since it supports rapid assessment of supply chain performance; it enhances supply chain network redesign and integration, operational control from standard core processes, and clears identification of performance gaps. Besides that, SCOR model has helped in the alignment of supply chain skills to team members of diverse companies (Kersten, 2008). On the other hand, Lean concept in supply chain management involves the process of identifying and eliminating non-value-adding activities in design, production, and supply chain and in dealing with the customers (Clausen, Hompel & Meier, 2013). It is known to specify the value desired by the customer, identify the value stream for each product, make the product flow continuously, introduce pull between all steps where continuous flow is possible and manage towards perfection. Lean management concept has more so assisted the Coca Cola Company as it has led to structure methodology for waste identification and elimination in any process involving production to supplying (Blanchard, 2010). It has also helped the company in developing structured project management approach and helps in the process of organizing wide training. Critical success factors and pitfalls to avoid According to CSCMP (2014), one of the factors that Companies should avoid is production of wrong products. This is the production of goods that are not demanded by the customers at that given period. The companies should do thorough research in concern with the products in demand to avoid unwanted losses. Due to this, it is recommended that before any production of a given product, it is compulsory for a company to ensure that the products are indeed in demand (International symposium SymOrg, 2008). This is to ensure that both the Company and the customers gain by ensuring that the products produced will satisfy the customers and the Company will be able to gain the desired profits. The company should also ensure that there are proper communication means installed to strengthen the cooperation among the members of the supply chain and the Company at large. This is to ensure that there is coordination amongst the members for the company to eventually supply its products at the most appropriate and correct time with the aim of reaching all customers demand (Sabri & Shaikh, 2010). This will avoid lateness in the process of supplying and would ensure that most of the produced products are sold. Without proper communication means, the Company is bound to experience losses. Conclusion In conclusion, an integrated supply chain remains to be one of the most vital factors that determine the success of companies especially in the current competitive business environment. Its relevance cannot be ignored in any sector since it influences the flow of activities by streamlining production and distribution processes. It also influences performance in institutions since it deals with logistical issues in institutions. As noted, exemplary performance that Coca Cola Company is reporting continuously is attributed to the effective supply chain management process that it operates under. The integration of the process has enabled the company to produce the right products at the correct time with the aim of satisfying the demands of the consumers. As established, it is highly recommended for institutions to prioritize the integration of supply chain management to enable them realize their aspirations. The concept is vital for any institution that seeks to gain high levels of competitiveness since it enhances corporative relationships, development of effective business processes and levels of information sharing. References Akȧli, E. (2005). Applications of Supply Chain Management and E-Commerce Research. New York: Springer Science+Business Media, Inc. Blecker, T. (2012). Pioneering Supply Chain Design: A comprehensice insight into emerging trends, technologies and applications. Lohmar: Eul. Blanchard, D. (2010). Supply chain management best practices. Hoboken, N.J: John Wiley & Sons. Clausen, U., Hompel, M. & Meier, F. (2013). Efficiency and Innovation in Logistics: Proceedings of the International Logistics Science Conference (ILSC) 2013. Dordrecht: Springer. Crowston, K., Herman, G. A., & Malone, T. W. (2003). 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