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Report on Supply Chain Management System of Almarai food company Saudi Arabia

Category: Supply Chain Management Paper Type: Report Writing Reference: APA Words: 2150

Table of Contents

Introduction. 3

Problem Statement 3

Supply Chain Management activities by the Companies. 4

Comparison and Contrast of the Supply Chains. 5

Al Baik. 6

Almarai 6

Emirates Airlines. 7

Suggestion to the Companies. 7

Conclusion. 9

References

Supply Chain Management System

Introduction of Supply Chain Management System of Almarai food company Saudi Arabia

Supply chain in the business world involves the services, information, cash, flow of goods regarding the supply or availability of the product or services. The supply chain could be explained as the capacity requirement planning; regarding supply chain management there is the need to notice the changing of customer preferences with the time. However, in the field of the supply chain, the companies in the modern world need to effectively and efficiently respond to the market or customers need by concerned about the appropriate levels of outsourcing, through managing the suppliers, quickly identify problems, managing procurement as well as managing customer relationships. For effective supply chain management, the companies should focus on the planning and coordinating activities for the product and service flow from suppliers to get timely goods and services (Jacobs, 2016).

The modern supply chain needs to focus to enhance efficiency in satisfaction in the customer needs as there should be the diversified products in the market because modern customers have awareness regarding the diversified products that are present in the market. Modern customers with the use of Social Media can get the awareness of the product or services. To manage the customer’s, interact there is the need to stay updated and there is the need to respond to the various needs.

Problem Statement of Supply Chain Management System of Almarai food company Saudi Arabia

The major problem in the supply chain could be related to changing customer preference because customers have awareness. Customers want the product and services on time, mismanagement in the supply chain can lead the companies to face problems”. However, there can be issues in predicting customer wants therefore, inventory and modern pace with logistics and designing tools are important and the products should be given according to the customer demands. Due to changing customer preferences, the supply chain of the companies should employ various supply chain tools. In the modern world invest in technology, agile supply, manufacturing requirement planning, just in time practices is important to be involved in the supply chain for efficient activities facilities, functions. The companies need to innovate the latest preference and should focus on producing and delivering service needs through determining the sales data sharing or forecasts (Schroeder, 2013).

Supply Chain Management activities by the Companies Almarai food company Saudi Arabia

The companies that are selected for the analysis are Al Baik, Almarai and Emirates Airlines; however, it is noted that all three companies are managing their supply chain effectively, and focused on the business analysis to remain competitive. Al Baik is concerned about the effective distribution network design, better flow of the material and there is long-term planning by the company for the satisfaction of the clients (Albaik.com, 2019). Al Baik's mission is “working with highly motivated, successful and ethical Team Members, Franchisees, and Suppliers” (Albaik.com, 2019). Al Baik is concerned about logistics management as there is a focus on customer service, handling, packaging, and distribution of the products and services (Hugos, 2011).

Almarai is also is managing its supply chain effectively as there is the focus to provide the real product to the customers and concerned about efficiency system for supply chain tools relationship there is the proper management, proper physical distribution and manufacturing flow (Neubert, Ouzrout, & Bouras, 2018). Almarai managing its supply chain effectively through the distribution channel and the third party supplier. Moreover, Almarai concerned about the sales and distribution, food processing for exceptional dairy farming. Almarai has a chilled distribution network and there are highest standards for the excellence of the supply chain of the dairy products. Almarai productivity is exceptional (Cma.org.sa, 2019).

However, Emirates Airlines is concerned about the development of production technology and there is a focus on the rapidness and profitability. The company is effectively managing the supply chain by managing the target cost and target customers effectively. Transportation and raw material are efficiently concerned in the supply chain process (Bridge, 2019). Emirates Airlines for managing their supply chain effectively focus on the adequate supply of raw materials; there are concerns to reduce the cost and management of the operation of the minimum level of the inventory (Svensson, 2009).

Comparison and Contrast of the Supply Chains Almarai food company Saudi Arabia

Al Baik, Almarai and Emirates Airlines companies are managing their supply chain effectively and striving to remain competitive. The highest standards for the excellence of the supply chain are the mission of Al Baik, Almarai and Emirates Airlines companies and thus, concerned about the sales and distribution. Companies are managing the supply chain effectively focus on the adequate supply of raw materials. However, Al Baik is facing supplier issues and logistics issues as they cannot focus on the activities of the supply chain and the number of products. Almarai has the issue related to customer services there is a certain impact suffered by the Cheese ingredient industry with the slowdown of the economic growth. There is not an effective analysis of the key vendors, capacity, and cost structure and revenue. Moreover, Emirates flights were delayed and the canceled number of flights.

Al Baik is facing the supplier issues and logistics issues Al-Baik Restaurant in Saudi Arabia’s has the fast food concept; however, the restaurant had to shut down for four hours when there was the consequent crowd or when there were unexpected numbers of customer. However, thousands of customers faced issues related to inbound and outbound management because Al-Baik Restaurant did not manage the management and forecasting related to the supply chain including procurement, forecasting, and sourcing, etc. To increase market Share Company should focus on the activities of the supply chain and several products (Nouman, 2015).

Almarai of Supply Chain Management System

Almarai has the issue related to the changing customer preference, customer services there is a certain impact suffered by the Cheese ingredient industry with the slowdown of economic growth. However, the Global Cheese Market still maintained its optimistic growth. The analyst believes that the cheese market will further expand in the future and by 2024, it will arrive at 102105.0 million $. Current and future market Cheese ingredient industry are described in the comprehensive report, there is also an analysis of the key vendors (Saunders, 2019).

In the market trends, Almarai is also facing the challenges related to the cheese market because growth opportunities, market demand, and competition cannot be predicted, there could be issues in managing the capacity, and cost structure and revenue from the cheese market as the customers have awareness regarding the product. 

Emirates Airlines of Supply Chain Management System

Emirates Airlines is facing issues related to logistics as noted that there was 15.17 percent of Emirates flights were delayed and the canceled number of the flight was just 0.23 percent. The passenger waiting time was just over 37 minutes (Bridge, 2019). Emirates has loyal customers but due to the inconvenience, the passengers were angry. These were issues related to logistics and time management.

Suggestion to the Companies of Supply Chain Management System

In order to effectively manage the supply chain and to remain competitive, Al Baik, need to focus on the supply chain effectiveness as the Al Baik in Saudi Arabia’s has the fast food concept; however, the restaurant had to shut down for four hours when there was the consequent crowd or when there were unexpected numbers of customer. The function and activities that need to be indulged or concerned in this way are inventory management, forecasting, quality assurance, purchasing, information management, production and delivery, scheduling, customer service. Al Baik should focus on its purchasing department because there the management was unable to manage the customers, it is the responsibility f the purchasing department to focus on supplies and services, obtaining the materials, product or provide a service, etc. Al Baik should focus on the moral standards of society by following ethical concerns. Al Baik should provide supply chain visibility and there is the need to know suppliers. Al Baik should also focus on the product and service flow as there is a focus on handling customer service needs (Auramo, et al., 2005).

Almarai should also effectively manage the supply chain and to remain competitive there are problems related to the supply chain as Almarai is also facing the challenges related to the cheese market because growth opportunities, market demand, and competition cannot be predicted as noted by the Global Cheese Market that is still in optimistic growth (Cetinkaya, Cuthbertson, Ewer, Klaas-Wissing, Piotrowicz, & Tyssen, 2011). The function and activities that need to be focused by Almarai as information management, quality assurance, and customer service should be concerned in this way, Almarai should focus on procurement purchasing plans for products, in this way, there could be a better focus on to order the cheese. Procurement purchasing plans also support operations strategies. Almarai should focus on risk management as they have the potential impact and then developing strategies. Product and service flow should focus on Almarai as there could be efficient movement of goods and services from suppliers (Singh & Teng, 2016).

Emirates Airlines should also focus on the effectiveness of the supply chain as there are problems related to the supply chain as there were issues related to logistics and time management. There were percentages of Emirates flights that were delayed and the canceled number of flights. The function and activities that need to be focused include scheduling, forecasting, information management, quality assurance, and customer service (Singh & Teng, 2016). Emirates Airlines need to concern about the aspects of management responsibility as the legal and knowledgeable laws and regulations of the countries need to be concerned by Emirates Airlines in supply chains. Sales data, sharing forecasts need to be concerned about involving the information flow. Emirates Airlines should plan schedules efficiently by identifying risks that include the risk reduction risk sharing and risk avoidance (Neubert, Ouzrout, & Bouras, 2018)

Conclusion of Supply Chain Management System

It is concluded that Supply Chain programs can effectively respond to the capacity requirement planning, changing customer preference and there could be appropriate levels of outsourcing in this way. Moreover, the company can manage procurement as well as manage customer relationships through supply chain needs and enhance efficiency in customer satisfaction the companies could manage the customer's interaction in this way. Moreover, through analyzing the case studies of the three companies it is known that amendments and proper attention are needed in the supply chain strategies as Al Baik is facing the supplier issues and logistics issues, Almarai has the issue related to the customer services, Emirates flights were delayed and the canceled number of flight. It is also concluded that Al Baik, Almarai and Emirates Airlines companies are managing their supply chain effectively but through involving the aspects of management responsibility there could be more effective in the supply chain operations. 

References of Supply Chain Management System of Almarai food company Saudi Arabia

Albaik.com. (2019). Our Vision & Mission. Retrieved from http://www.albaik.com/en/article/corporate/our-mission.html

Auramo, J., Inkiläinen, A., Kauremaa, J., Kemppainen, K., Kärkkäinen, M., Laukkanen, S., et al. (2005). The roles of information technology in supply chain management. 17th Annual NOFOMA Conference.

Bridge, S. (2019). How Emirates compares globally for flight delays, cancellations. Retrieved from https://www.logisticsmiddleeast.com/transport/33874-how-emirates-compares-globally-for-flight-delays-cancellations

Cetinkaya, B., Cuthbertson, R., Ewer, G., Klaas-Wissing, T., Piotrowicz, W., & Tyssen, C. (2011). Sustainable Supply Chain Management: Practical Ideas for Moving Towards Best Practice. Springer Science & Business Media.

Cma.org.sa. (2019). AL MARAI COMPANY. Retrieved from https://cma.org.sa/en/Market/Prospectuses/Documents/Marai_eng.pdf

Hugos, M. H. (2011). Essentials of Supply Chain Management. John Wiley & Sons.

Jacobs, F. R. (2016). Operations and Supply Chain Management: The Core. McGraw-Hill Higher Education.

Neubert, G., Ouzrout, Y., & Bouras, A. (2018). Collaboration and integration through information technologies in supply chains... arXiv preprint arXiv:1811.01688.

Nouman, S. (2015). Saudi restaurant shuts down due to high demand. Retrieved from https://www.hoteliermiddleeast.com/24226-saudi-restaurant-shuts-down-due-to-high-demand

Saunders, A. (2019). Global Cheese Ingredients Market: Sales, Consumption, Demand and Forecast 2019-2024: Chr. Hansen Holding, Almarai, Fonterra, Dupont, Dsm, Adm, Arla Foods. Retrieved from https://www.ccsentinel.com/uncategorized/global-cheese-ingredients-market-sales-consumption-demand-and-forecast-2019-2024-chr-hansen-holding-fonterra-dupont-dsm-adm-arla-foods-saputo-inc-almarai-alpura-csk-food-enrichment-etc/

Schroeder. (2013). Operations Management in Supply Chain. Tata McGraw-Hill Education.

Singh, A., & Teng, J. (2016). Enhancing supply chain outcomes through Information Technology and Trust. Computers in human behavior, 54, 290-300.

Svensson, G. (2009). The transparency of SCM ethics: conceptual framework and empirical illustrations. An International Journal, 14 (4), 259 - 269

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