The report helps in the entire analysis of the internal and external value chain along with logistical issues in Reitan Distribution Company. Furthermore, the current state of the different operations is required to be analysed appropriately which will help in analysing the different kinds of operations which are being undertaken by the company.
The formulation of the problem along with providing appropriate solutions is required to be done which will help the respective distribution company in managing and reducing the delivery time along with analysis of the issues of the distribution company effectively. Proper improvement of the service levels is required to be analysed appropriately as to identify current along with future value stream flows n external and internal view in Reitan Distribution.
1. Reduction of Delivery Time from 48 Hours to Less Than 24 Hours
The delivery time can be reduced from 48 hours to less than 24 hours in the Reitan Distribution by applying the following methods in an effective manner:
Proper usage of the domestic suppliers as this will help in automatically reducing the lead time by more than two weeks. Proper increase in the number of suppliers for the company will help Reitan Distribution in managing the demands of the customers and this will lessen the potential kind of delays in the organization (Pagell and Shevchenko 2014). This has been noticed that the customers in the market do not like waiting and this creates frustration among the customers as well (Waters and Rinsler 2017).
Increase in the frequency of the order is the second element which can help in reducing the delivery time from 48 hours to less than 24 hours. Proper total cost analysis is required to be done as this will help in determining the different orders which have been placed by the customers in the entire market. The smaller number of products can be ordered which will reduce the lead time and this will reduce the delays as well (Monczka et al. 2015).
Consolidation of the different suppliers is essential in nature which will help in managing the different suppliers in an effective manner. The proper maintenance of the relationships with the multiple suppliers in the market is essential in nature which will help in handling multiple accounts and implementation of the management software will help in streamlining the processes along with creating efficiencies as well (Simpson et al. 2015).
Creation of the proper incentive is essential in nature for Reitan Distribution Company which will help in managing the different activities of the suppliers efficiently. The lead time can be reduced from 48 to 24 hours by staying coordinated with the suppliers and analyse the schedule of the production with the other projects effectively.
1.1 Reaction on Change from Two Days Delivery to Daily Delivery and Lead Time in Reitan Distribution
In order to reduce the lead and delivery time, there can be different changes which have to be faced by the company Reitan Distribution centre. There are different kinds of implementation of changes such there will be:
Increase in the costs of the supply of the goods and services which are being distributed from the company as there will be increase in the number of labourers in the company and this will incur huge costs as the salaries and wages will be require d to be provided to customers in an effective manner (Fernie and Sparks 2014).
There will be more sales of the company which a positive aspect of the company and this will be will help the company in gaining more competitive advantage in the entire economy (Stadtler 2015). Furthermore, this will help them in providing forecasts to the different suppliers relating to the different activities and the orders which are required to be delivered to the customers within specified time.
Furthermore, the information will be automated along with the supply chain which is being used by Reitan Distribution as this will reduce the lead time in an effective manner. This has been seen that the process will be expensive in nature as there will be different kinds of other expenses which are extra included in the process of the reducing the delivery time in an effective manner (Carter,Rogers and Choi 2015).
1.2 Optimising Logistics System in Order to Meet Buffering Dates by Reitan Distribution
The Reitan Distribution company can include different techniques which will help the company in meeting the different buffering dates by the Reitan Distribution. There are different kinds of analysis which is required to be done by the respective company which are as follows:
Design of the process and development is essential in nature which helps the company in introducing more cost-effective processes. The Reitan Distribution company has to include the effective networks which will help in examining the operations in detail and this will redesign the process of logistics (Carter,Rogers and Choi 2015)
Proper identification of the key drivers such as building multiple suppliers network which will help in identifying the drivers for gaining outstanding performance effectively. With the redesign of the process, this will help in optimization of the cost and the opportunities can be increased to more than 25%.
Improvement in collaboration between suppliers and retailers for demand data driven forecasting along inventory management is essential in nature which will help in providing different kinds of opportunities for proliferation of data and this will help in proper connectivity and this will allow to test the optimality in ever increasing areas in an effective manner with the usage of mobile based technology as this will help the company in directly communicating with the different customers in an efficient manner (Monczka et al. 2015).
Furthermore, the responsive kind of supply chain is essential in nature as this will help Reitan Distribution company in managing the programs which are required to be performed by the organization in an appropriate manner (Fahimnia, Sarkis and Davarzani 2015). Additionally, the objectives are required to be quantified and measurable in nature which will help in accomplishing the different requirements effectively (Simpson et al. 2015). The technology advancement is required to be enabled in an efficient manner by Reitan Distribution Company which will help the company in analysing the various issues which will help in simplying the process and reduce the application complexity.
2. Issues in Reitan Distribution
There are different kinds of issues in the entire distribution channel of Reitan Distribution Company. When the company will not perform a proper and effective research of the market before deciding on the distribution method, there can be various issues related to the same. The different and major kinds of issues which exists in the channel members includes the following:
Channel Relationship Issues is one of the major issues which are being faced by Reitan Distribution Company. Firstly, there are less and no such formal relationships which are being maintained by Reitan Distribution Company. This has been seen that the distribution channel of Reitan Distribution is not at all effective as there are different loopholes as the relationship between the suppliers and the companies in which the products and services are being delivered in an ineffective manner (Watersand and Rinsler 2017).
Furthermore, this has been seen that there are no such long-term commitments between the company and the different kinds of issues related to delivery of the products is the major constraint which causes huge pressure on the respective distribution company as well. Additionally, this has been seen that the market is changing at a fast pace and the behaviour of the customers is being changed drastically. However, this is the main duty of the distribution channel of the Reitan Distribution Company as due to globalization and fast changing behaviour of the customers, this can be seen that the company is not being able to develop marketing plans in an effective manner.
Marketing Decision Issues is the other major issue which is faced by the respective company in relation to the distribution channel. This has been seen that there are different issues related to product, promotion, pricing and target market issues. The nature of the product helps the company in determining the distribution channel which will be effective for such products (Mangan, Lalwaniand Lalwani 2016).
Furthermore, the price issues are related to the different kinds of issues which are related to the products which require special handling and this is required to be kept in mind by the distribution company as this creates huge effect on the final price of the products in a negative manner (Brandenburg et al. 2014).
Additionally, the issues which is being related to the target market have to be taken into consideration in which the primary motive of the respective company should be utilising the channel of distribution in such a manner as this will help the products to reach the end users (Ellram and Cooper 2014). This has been seen that there are different products which are not being reached to the end customers and this affects the entire distribution channel of the company in a negative manner (Waters and and Rinsler 2017).
These are the two major issues which are required to be taken into consideration by the company Reitan Distribution by usage of the online solutions and this will help in establishment of proper distribution channels. Proper training is required to be provided to the different workers who are employed in the organization which will have and create focus on the different aspects which will help in managing the differences efficiently (Ellramand Cooper 2014).
2.1 External and Internal Influence on Reitan Distribution
There are different kinds of internal influences of the Reitan Distribution company which will have a positive impact on the company. In case of the marketing decision issues, this can be analysed that there are different product, promotion and pricing issues which can have huge negative impact on supply chain management of the organization (Qrunfleh and Tarafdar 2014).
The promotional activities are not being taken into consideration and hence this is creating negative impact on the company as well. However, the external influences can be managed by the company with the proper utilisation of the different resources such as collaboration with the channel partners (Troselj 2014).
The manager of the respective company needs to appoint different kinds of training and developing partners along with marketing staffs which will be helpful for the company in building and maintaining strong relationships between the customers and the suppliers of the company and they will be able to satisfy the demands of the customers effectively (Wang and Cullinane 2014). Furthermore, the different supplier management problems need to be solved by making the distribution channels more effective by becoming serious in nature (Brandenburg et al. 2014).
On the other hand, this can be seen that there are external influences on the Reitan Distribution Company. This can be seen that while there is issue in distribution channel, there can be decrease in the overall sales of the company along with this will be resulting in poor performance and the customers are not being satisfied as well. This has been seen that there is no such motivation provided to the employees and this is one of the major causes in which there is no such knowledge of the product regarding the channel effectively.
Furthermore, this can be seen that there are different strategies which can be implemented by the company Reitan Distribution in which this will help in managing the internal issues and influences effectively. This can be seen that there should be different partners and there are different kinds of engagement which is required to be analyzed effectively as well by the company in order to carry out the different activities effectively. The appropriate channels of distribution internally and externally are required to be done by the company which will assist them in analyzing the various issues and solve them in an effective manner as well.
These are the different external and internal influences on the distribution channel of Reitan Distribution Company. The different problems are required to be handled effectively with proper implementation of the advancement of the technology and this will improve the overall process in an appropriate manner. Lastly, this has been noticed that there are issues in the distribution channels which can cause the company to lose their different target customers in the market and this can lead to entire loss of the productivity and profitability of the organization as well.
3. Types of forecasts to be made by Reitan Distribution for becoming more efficient
Forecasting is considered to be an imperfect science which is however useful for the business organizations which operate in different industries. Supply chain management based activities of an organization are also influenced by forecasting methods that are the used. Forecasting is thereby highly beneficial in providing the management with an insight regarding the ways by which demands of customers can be fulfilled with the help of products and services that are offered by the customers. The supply chain management based systems can thereby be used by the organizations in order to forecast demands in an effective manner (Prajogo, Oke and Olhager 2016). Different forecasting based methods that can be effectively used by Reitan Distribution in order to analyse the needs of customers are as follows,
Survey methodology – The human resource surveys are mainly implemented for the purpose of studying the samples of the individual units within a population. The techniques which form an important part of surveys are survey data collection, questionnaire construction and the accuracy of responses which are provided. The statistical surveys are conducted by the researchers in order to make the inferences about part of the population that is studied (Dubey et al. 2017).
Delphi method – Delphi method is considered to be a structured technique of communication has been developed originally like a systematic and interactive method of forecasting that relies on the panel of different experts. The experts are thereby able to answer different questionnaires with the help of two or more than two rounds. The earlier responses which have been provided by the experts can be changed during the second round (Hohenstein et al. 2015).
Scenario building – The future events which can take place are analysed with the scenario analysis. Scenario analysis is considered to be one of the processes which can help in the projection of demands of the customers. The outcomes are able to project the ways by which the company can be affected by the customer demands (Beske and Seuring 2014).
Technology forecasting – The future characteristics of the technologies that are used by the organization are analysed with the help of this process. The technology based forecast plays an important in taking the decisions related to the usage of the technologies which are currently used by the organization (Beske and Seuring 2014).
The four forecasting methods are thereby able to influence the ways by which the organizations are able to operate and fulfil the demands of customers. The efficiency of Reitan Distribution can be increased with the proper implementation of these processes. The demands of customers are related to the raw materials that are used provided by the suppliers (C?t?lin, Bogdan and Dimitrie 2014).
3.1 Ways of using demand data to make forecasting
Data based on the demands of customer play an important role in forecasting the demands in an effective manner. The researchers thereby need to analyze different types of data in order to analyze the demand in an effective manner. The two types of data which are analyzed by the researchers are primary data and secondary data. Data based on the demands of customers is collected with the help of different methods which include, observation method, schedule method, questionnaire method, interview method and socio-metric method (Chaudary, Zafar and Salman 2015).
Primary data is mainly collected with the help of these methods which can help in deciding the demands of the customers. The researchers are able to collect secondary demand data with the help pf different methods which include, the record that have been kept by the company, internet, government records and the print media. The data is analyzed by the researchers so that the management is able to analyze the demands and forecast the future strategies for the company as well (Dubey et al. 2017).
3.2 Forecasting method that is most accurate for Reitan Distribution
The technology forecasting method can be used by the organization in order to operate in a profitable manner. The technologies that are used by Reitan Distribution are able to provide effective judgements to the company in order to take decisions based on the future operations and strategies. The use of technologies is able to create effective position of the company in order to create a supply chain which is highly efficient. The technologies thereby need to be updated with respect to the demands of the customers. Reitan Distribution can use this technique in order to operate in the industry in a profitable and sustainable manner. Forecasting of different technologies which can be implemented in the supply chain of Reitan Distribution plays an important in improving the operations of the company (Izvercian et al. 2014).
The improvement of customer services plays an important role in the ways by which an organization is able to improve its customer relationships. Reitan Distribution thereby needs to implement these strategies in order to create an effective relationship with its customer. The processes which can be implemented by the company to improve the levels of services are as follows,
4.1 Ways used by Reitan Distribution to manage inventory
Inventory management plays an important role in managing the inventory or assets that are owned by an organization. Inventory management based activities can be considered to be a part of the supply chain management based activities of an organization. The flow of goods from different company warehouses is managed with the help of proper inventory management activities. The most important function that is played by the inventory management of an organization is related to the maintenance of detailed records based on the movement of different goods between the manufacturers and the warehouses (Leavengood, Anderson and Daim 2014). Reitan Distribution also uses certain inventory management based techniques for the proper management of assets and movement of goods. The different inventory management processes that are used by the organization are as follows,
4.2 Importance of seasonality to influence service level
Seasonality can affect the levels of services that are provided to the customers by an organization. The demands of services can change with respect to the seasonality based timings. Increase in demands of services and products can affect the services or goods which are provided to the customers by the company. Reitan Distribution operates in the food production based industry. The demands for certain food products can change at different times which can affect the ways by which the company is able to provide services to customers (Mohammad Mosadeghrad 2014). The service levels and time of services can also change with respect to the demands in the market. The service levels however need to be maintained by the organization in order operate in the industry in a sustainable manner. The profitability of the company is dependent on the ways by which Reitan Distribution provides the services to customers in a timely manner.
4.3 Level of inventory
The inventory levels need to be maintain by an organization in order to provide effective services to the customers. Maintenance of inventory levels plays an important role in the proper operations of a company in the industry. The inventory manager uses the inventory level based information in order to determine the optimal time which is required for the production of goods. Optimal levels of inventory are managed by the organizations in order to maintain the levels of services. Reitan Distribution also maintains effective inventory in order to provide the food products in the market according to the demands of the customers. The wastage is also reduced in the process with the help of proper inventory management techniques (Palm, Lilja and Wiklund 2016).
The current and future value stream based activities of an organization are mainly based on the ways by which Value stream mapping can be used for the purpose of assisting the organization with performance management and planning. Value Stream mapping however consists two major aspects which are current value stream mapping and future value stream mapping. The two aspects of value stream mapping based activities are closely linked with each other and are able to affect the operations of the company. The processes are based on some subtle differences which can play an important role in the improvement of the organizational processes (Sabella, Kashou and Omran 2014).
Current value stream map helps in ensuring proper flow of the processes which can identified and data can be analysed for the purpose of identifying the areas which require improvement. The value streams which need to analysed with the help of this process needs to be chosen in a careful manner. The two types of flows which form an important part of value stream mapping are, material flow and information flow. After proper completion of current value stream mapping the levels of improvement which are required to be made in different in parts of the organization are decided in an effective manner. Future value stream mapping is based on the proper identification of improvements which can be implemented in the value stream (Saljoughian et al. 2014).
The reduction of lead time in production processes is an important part of the future value stream mapping process. The internal and external operations of Reitan Distribution are influenced with the help of different current and future value stream based activities of the company. The process of value stream mapping can be used by the organization in an effective manner for the purpose of implementing lean practices. The company can thereby be able to increase its efficiency and further reduce the waste levels with the help of proper value stream mapping. The analysis of current and future flows is able to affect the internal operations or environment of the company (Siva et al. 2016). On the other hand, the external operations which are based on delivery of products to the customers can also be managed with the help of results that have been obtained from the value stream based activities. Proper management of the risks that are faced by Reitan Distribution is also based on value stream based activities (Stadtler 2015).
5.1 Level of supply chain management currently and ways by which it can change in the future
The supply chain management based activities that are performed by Reitan Distribution are based on its operations in various countries. The company has been able to maintain its position in the industry with the help of its services. The supply chain has been maintained in such a manner which can play an important role in forming collaborations with various other organizations all over the world. The company has created an effective logistics based center which helps in the proper delivery of products and services (Touboulic and Walker 2015). The organization has also experienced a steady growth in the turnover with the help of its supply based activities. The daily deliveries are maintained by Reitan Distribution with the help of its huge base of suppliers in the industry. The company has been growing its operations in Denmark with the help of these services. The large employee base of the company is also a major part of the operations and effectiveness of the supply chain (Zhang, Linderman and Schroeder 2014).
The future supply chain based activities of the company can be improved in order to decrease the lead time which is required for the purpose of providing goods to the customers. Number of employees or delivery boys in the organization can be increased in order to reduce the time that is required for providing the products to customers. The company can increase its collaboration with the efficient suppliers in order to provide best levels of services to the customers. The supply of goods in this case will play an important role in increasing the revenues and profitability of the company to high levels (Wang et al. 2016).
The suppliers of Reitan Distribution can be increased in order to acquire the raw materials faster and in a more efficient manner. The company has seen huge levels of growth in different operations with the help of its effective supply chain. However, the aim which has been set by Reitan Distribution to reduce the time of delivery can be fulfilled with the help of improvement of the supply chain and increase of employees. The value-driven operations of the company will play an important role in improving the supply chain management of the company in the future (Brandenburg et al. 2014).
Conclusion
The report can be concluded by stating that Reitan Distribution has been able to grow in the industry with the help of its efficient supply chain. The company however aims at reducing the time that is required to deliver the products and services to the customers. This will help the company to increase its profitability and revenues in an effective manner. On the other hand, the implementation of these processes will require the appointment of more employees within the organization. This will play an important role in the reduction of lead time which is required to provide appropriate products to the customers. The company will need improve the different inventory management based techniques that have been used in order to maintain proper levels. The service levels of the company also need to be improved in order to maintain its position in the industry. Suppliers of the organization can also be increased in order to provide the best levels of services and products within a short period of time.
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