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
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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,
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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/
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