Thursday, December 12, 2019
Supply Chain Logistics Management UK Retail Grocery Market
Question: With reference to critical analytical frameworks to global supply chains critically evaluate the following statement: The real competition is not company against company but rather supply chains against supply chains? Answer: Every organization tends to implement the best strategy possible and put the best step forward to gain the best position in the market. The changes can be internal or external. Many organizations think that by changing the internal environment. On the other hand, there are certain organizations that believe that changing the way of business operations might help the organizations to lead in the market. However, it might happen that the supply chain management can help the organization to develop a strong business. The supply chain can at times play the role of a value chain if the businessperson intelligently chooses the suppliers as well as select a chain that will help in reaching the customers in a better manner. The relationship of the businessperson with the supplier and a constant market research will help the organization to stay ahead in the race. When an organization gets better suppliers, they will be able to draw more customers from the market. It is also important that th e organizations supply packaged goods to the customers in a proper manner. The customers who can appreciate the products and hence remain attached to the organizations. Thus, along with the studying the customers, it is important that the organization also study the suppliers and try to strengthen the supply chains. The supply chain plays an integral part in the organization and eventually helps the organization to develop the business. The write-up will look into the importance of the supply chain and the ways that an organization can strengthen the supply chain (Viswanadham and Kameshwaran 2013). To win over the competitors, it is important that a company organizes the supply chains as well as arrange the logistics accordingly. Once an organization arranges the supply chains well by keeping in mind the three Cs that are, the customers, the competitors and the company, there is a high chance that the organization will have a competitive advantage in the market. The supply chains can be strengthened by keeping in mind the three Cs (Viswanadham and Kameshwaran 2013). Figure 1: the competitive advantage showing the three Cs in the supply chain management (Source: Gereffi and Fernandez-Stark, 2011) or an organization, which seeks to gain more profit from the market, it needs to create a strong customer base by providing goods at a better price than the competitors provide. On the other hand, the competitors and the company itself will look into the assets available in the market as well as in the organization, and utilize it accordingly (Gereffi and Fernandez-Stark 2011). Hence, the organization should create a strong a chain of strong suppliers from where they can get the goods at a lower rate. Once the suppliers provide the raw materials for a lower rate, and the organization develops a good relationship with the suppliers, they will be able to add on the assets available to the organization. Thus, by creating a chain of strong suppliers and getting the raw materials in time, it will help them to satisfy the customers (Cordon, Hald and Seifert 2012). As a result, it will eventually help in creating as a strong customer base. According to Cox, the supply chain thinking includes power and theory in an equal manner. A person might have the power over someone and something (Cox 1999). In a supply chain, it is important that the businessperson value the suppliers, the company, the customers the competitors equally. It might happen that in a supply chain, one person might have more power while the power of another person is limited (Cowen 2014). The person who can gain more amount of revenue by using the power or by limiting the power will also try to do. Hence, it is important that a buyer understands which supplier possess the exact amount of power. In this way, the buyer has to place the suppliers in a way so that the buyer can gain the most with the minimum price (Lysons and Farrington 2012). The user also has to decide the ways to get more from the value. When the buyer can get more amounts of good from multiple buyers at a similar rate, the buyer should shut down the suppler who is unnecessary seeking fo r more power. On the other hand, valuable suppliers should be handled properly so that they buyer can stay ahead in the race of the competitors (Morana 2013). The utilization of power and the assets is another integral part where then buyer or the owner of an organization should know the way they should utilize the power and the assets in the organization (Myerson 2012). If the supply is less, then the owner should use the resources in such a way so that the raw material does not get used up easily (Selwyn 2008). Figure 2: the supply chain and value chain mapping (Source: Christopher, 2011) To stay ahead in the competition, the owner needs to do a proper mapping of the value chain and the supply chain. In the map, the value chain is considered the raw material without which the businessperson could deliver the finished products to the customers; the supply chain in the map describes the path through which the products will be delivered to the customers (Sodhi and Tang 2012). It includes the packaged goods that are delivered to the customers. Hence, it is important that the supply chain and the value chain be given equal importance. Once the value chain is weak, it the businessperson will not be able to deliver the products well (Dolan and Humphrey 2000). On the other hand, even if the then value chain is strong, if the businessperson does not establish a strong supply chain, the products will not reach the customers. Hence, it is important that both the chains be given equal importance (Drake 2012). Moreover, the map shows that the exchange relationship. Hence, it can a lso be said that the supply chain and the value are inter-dependent ones each other (The deadly life of logistics: mapping violence in global trade 2015). Thus, the both the chains should be strong so that the organization can survive in the competitive market. Thus, the line The real competition is not company against the company but rather supply chains against supply chains should be taken seriously by the organization. Once an organization can establish a strong supply chain, they will be able to perform better in the competitive market (Fold 2002). In the article by Cox, Glyn Watson represented a case where the roles of certain supply and value chains are being mentioned (Cox 1999). The case mentioned that the key participants can make two choices; the key participants in the supply chain management can either understand the competition or give rise to innovation (Burt and Sparks 2003). However, the risks will be there in both the cases. When they understand the competition, they can implement a common market strategy and play safely in the market. On the contrary, if they choose to implement an innovation, they will be able to achieve gain, which will be temporary. Joe Sanderson points out that even if a businessperson is a potential player in the market with a strong hold on the assets, the reason needs to upgrade the functions to keep up with the competition (Tokatli 2007). At times when there is a tough competition, it is not always the company, which wins the game. It might happen that the company that delights the custome rs wins the race; hence, the organization needs to have strong supply chain so that it can delight the customers, rather than just to satisfy the customers (Bowersox 2013). Conclusion The assignment concludes that the importance of supply chain management should be given special attention by the organizations. The three Cs shows that there are the three factors, which helps the organization to implement a competitive advantage in the market. The three Cs that are taken into consideration are the customers, the company, and the competitors. The organization not only needs to satisfy the customers, but they also need look into the assets and the utilizations of the assets to stay ahead of the competitors as well as maintain the organization. The supply chain and the value chain mapping shows that the organization should give equal weight age should be given to the value chain and the supply chain. In the map, the value chain is the raw material that is delivered to the organization, and the supply chain is the path through which the products will get delivered to the customers. An organization should strengthen the value chain to get better raw materials so that the y can deliver better products to the customers. An organization also needs to strengthen the supply chain so that the customers are delighted with the services rather than just getting satisfied with the products. References Bowersox, D. (2013).Supply chain logistics management. New York: McGraw-Hill. Burt, S. and Sparks, L. (2003). Power and Competition in the UK Retail Grocery Market.British Journal of Management, 14(3), pp.237-254. Chopra, S. and Meindl, P. (2013).Supply chain management. Boston: Pearson. Christopher, M. (2011).Logistics supply chain management. Harlow, England: Financial Times Prentice Hall. Cordon, C., Hald, K. and Seifert, R. (2012).Strategic supply chain management. Abingdon, Oxon: Routledge. 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Lysons, K. and Farrington, B. (2012).Purchasing and supply chain management. Harlow, Essex: Pearson Financial Times. Morana, J. (2013).Sustainable Supply Chain Management. Wiley-ISTE. Myerson, P. (2012).Lean supply chain and logistics management. New York: McGraw-Hill. Selwyn, B. (2008). Bringing social relations back in: (re) conceptualising the 'Bullwhip Effect' in global commodity chains.IJMCP, 3(2), p.156. Sodhi, M. and Tang, C. (2012).Managing supply chain risk. New York: Springer. The deadly life of logistics: mapping violence in global trade. (2015).Choice Reviews Online, 52(10), pp.52-5571-52-5571. Tokatli, N. (2007). Global sourcing: insights from the global clothing industry the case of Zara, a fast fashion retailer.Journal of Economic Geography, 8(1), pp.21-38. Viswanadham, N. and Kameshwaran, S. (2013).Ecosystem-Aware global supply chain management. New Jersey: World Scientific Publishing Company.
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