Implementing Effective Supply Chain Strategy In China With Bellamy’s

Expanding Online and Offline Sales Channels

Question:

Discuss about the Developing Products and Services System.

The strategy Bellamy is using for the China market is to make the strong distribution growth in China. This can be done by expanding the online and offline sales channels and network. The enhancement of the network enhances the presence of the physical stores in China (Lu, and Swaminathan, 2015). Another strategy that the company is following comprises of partnership with manufacturers that are registered in China, this is done by the company to set up their own manufacturing facility so that they can provide the products to the customers at moderate prices.

The Bellamy should implement the new or improved supply chain to improve the availability of products in the physical stores. The company needs to smooth the supply chain that helps the company in achieving the objective for the Chinese market. The improved supply chain implementation will be best for the company because to create the appearance of the product on the physical stores is possible because of the effective supply chain (Fernie, and Sparks, 2014).

The supply chain consists of the contract with the manufacturers such as Tatura Milk and Fonterra. As the company is willing to manufacture its own product the company requires the suppliers (Monczka, Handfield, Giunipero, and Patterson, 2015). The contract with the manufactures helps the company in identifying the best supplier for their company. The supplier will provide the raw material to the company for manufacturing the products for the company. After capturing the raw material company start with the manufacturing of the products. Once the manufacturing of the product gets complete then it goes for packaging and later on for the distribution of the product. The distribution of the product should be affected through this only the company will be able to make the product available on online and offline platforms being it physical stores or online website (Charter, and Tischner, 2017). The customer behavior says that they find it convenient to buy the products through online platforms. This is the reason for selecting the strategy of the easy availability of the product at stores. If in case the people are not able to buy the product online they can check for the product in their nearby stores. This is the reason why a company is willing to enhance the availability of the product.

The manufacturing of the product in China needs the analysis of the market of China. The market analysis can take place through surveys and personal interview. The evaluation of the survey and the interview will help the company in understanding the needs of the customers. The customer needs are must to be an analysis that helps the company in manufacturing the products. Product design is a must before manufacturing the product. After completing the manufacturing process the company testing of the product and the packaging of the product take place. The distribution of the product is the final process that the company performs. There are many online websites who invite the companies to sell their product on their portal apart from this company launch its mobile app and website through which company can provide the product to the customers. The company should provide the facility to the customers who order the product online. The after sales services enhance the customer experience for the product and service (Rushton, Croucher, and Baker, 2014).

Partnering with Manufacturers to Set Up Manufacturing Facility

The implementation of the effective supply chain is must for the company. The company should bring the changes in the whole process. In the supply chain, the distribution of the products should be done properly. This formation and implementation of the strategy are done consider the strategic initiative that the company is willing to make the product available on the online as well as in the physical stores. This strategy is based on the time span of 3 years that the company uses to provide the availability of the product into the market.

Key milestones	Starting time	Duration (months)	Ending time	Description
Market analysis	March 2014	4 months	June 2014	Market analysis will be done with the help of surveys and interviews
Evaluation of the customer demand	July 2014	4 months	October 2014	Customer demand will be evaluated to identify the needs
Transporting of raw materials from suppliers	November 2014	2 month	December 2014	Supplier will send the raw material according to the demand of the company
Design of the product	January 2015	4 months	April 2015	The company will design the product
Manufacturing of the product	May 2015	6 months	October 2015	Manufacturing process will take place with the help of raw material
Testing of the product	November  2015	2 months	December 2015	After manufacturing the product, testing of the product will take place
Packaging of the product	January 2016	3 month	March 2016	The packaging of the product will be done
Launch of the product	April 2016	2 month	June 2016	The company will launch the new product in the market
Distribution of product to wholesalers	July 2016	3 months	September 2016	The product will be distributed to the wholesalers to make it available on the physical stores
Distribution of product to retailer	October 2016	3 months	December 2016	The product will be distributed to the retailer to make it available to the end users.
Making product available on online stores	January 2017	2 months	February 2017	The product will be available on the online stores so that customers can conveniently buy the products
Delivery of the product	March 2017	1months	March 2017	The delivery of the product should be done on time so that it will enhance the customer experience.

The Gantt chart is a chart which represents the implementation of the supply chain. This chart assists the company regarding starting and ending of the company that helps the company in analyzing the time it is going to take in the whole project (Baker, and Trietsch, 2013). The maximum time taken by the company is in the manufacturing of the product. Definitely, the product manufacturing is a most important process for the company.

The company should measure the strategy implementation to analyze the success of the plan, for measuring the strategic company should use balanced scorecard and strategy map. The measurement of the strategy is done by the company with the help of this two method and with the help of these strategy company will be able to identify the loopholes in the strategy of the company (Galliers, and Leidner, 2014). Once the loopholes will identify the company will be able to remove the hindrance.

The balanced scorecard is the framework which is used by the company to measure the strategic success or failure. This scorecard consists of the 4 strategic perspectives that include finance, learning and growth, customer and internal business process (Cooper, Ezzamel, and Qu, 2017). Below image explains the concept of the balanced scorecard framework that is used by the company. This perspective helps Bellamy’s company to measure the achievement of the strategy in the Chinese market. The table below the image consists of the goals, objectives and the measurement of the each of 4 perspectives of the Bellamy’s for the Chinese market (Coe, and Letza, 2014).

Perspectives	Goals	Objectives	Measurements
Customer	Easy and convenient availability of the product will enhance the customer satisfaction.	The company should make the product available on the physical as well on the online store. The company is willing to decrease the time from order booking to delivery of the product (Sainaghi, Phillips, and Corti, 2013).	The company took the help of the online store to make the product available to the customers. The company delivered the entire product on time that reduces complaints of the company and helps the company in enhancing the customer satisfaction.
Internal business	In China, the company is willing to perform the effective distribution and was willing to manufacture the products in China itself.	The company is willing to enhance the distribution network so that the availability of the product will increase. The company wants to bring the reduction in the cycle time so that the company will be able to accomplish the process as soon as possible.	The strategic plan of the company helps the company in decreasing the cycle time of the company. The company performs tie-up with the different network (Tjader, May, Shang, Vargas, and Gao, 2014).
Innovation and Learning	Innovation is helpful in designing the product for the manufacturing. Product designing opens the ways for the manufacturing of the product (Perkins, Grey, and Remmers, 2014). In China, the company manufactures the product considering the demand of the customers.	The company should reduce the time in designing the product so that manufacturing process will take place because launching the new product in the Chinese market is a very time-consuming process.	The availability of the innovative products that fulfill the expectation of the customers will enhance the sales of the company. The company will be able to make the space in the market for their organic products.
Financial	The company needs to take care of the investment that they are going to make in the whole process. The effective management of the process will reduce the cost of the process (Wu, and Liao, 2014).	The moderate prices and easy availability of the product attract the customers towards the organic products that enhance the revenue of the company.	The company makes sure that they accomplish the process effectively and efficiently that helps the company in reducing the cost of the production. Moderate price will help the company in enhancing the market share.

The strategy map is the second measure that is used by the Bellamy’s to measure the outcome of the success of the strategy in the Chinese market. The strategy map is the updated generation of the balanced scorecard.

The map indicates the primary strategic goals that are adopted by the administration of the company. The strategy map is helpful for the managers of the company because they can check all the information in the single go (Quezada, and López-Ospina, 2014).

Improving the Supply Chain to Enhance Product Availability

The Bellamy’s company will be able to achieve the goals and objectives of the company when the managers of the company will get all the details easily. The strategy map consists of the 4 goals such as finance, innovation, customer satisfaction or experience and the internal business processes.

The image shows the connecting arrows that reflect the causal relationship of the strategic goals. The arrows in the image show a connection with the each perspective.

The Bellamy’s actions in the Chinese market are connected with each other. Design of the products is must for the company to perform the manufacturing activities of the product. The manufacturing of the product will take place once the design of the product will be accomplished (Sivaraman, Al Balushi, and Rao, 2014). For designing the product the company needs to take the help of the innovative ideas. The innovative ideas lead to the effective designing of the product. Distribution of the product comes under the internal process of the business that helps the company in enhancing the product availability in the physical stores as well as on the online stores. Effective Distribution enhances the availability of the products and the services. Distribution is linked with the customer perspective according to the strategy map. Availability of the product with the quality and price leads to the improvement in the cost structure of the company (Gomes, Romão, and Caldeira, 2013).

References

Baker, K.R. and Trietsch, D., 2013, Principles of sequencing and scheduling. John Wiley & Sons.

Charter, M. and Tischner, U. eds., 2017, Sustainable solutions: developing products and services for the future. Routledge.

Coe, N. and Letza, S., 2014, Two decades of the balanced scorecard: A review of developments. The Poznan University of Economics Review, 14(1), p.63.

Cooper, D.J., Ezzamel, M. and Qu, S.Q., 2017, Popularizing a management accounting idea: The case of the balanced scorecard. Contemporary Accounting Research.

Fernie, J. and Sparks, L., 2014, Logistics and retail management: emerging issues and new challenges in the retail supply chain. Kogan page publishers.

Galliers, R.D. and Leidner, D.E. eds., 2014, Strategic information management: challenges and strategies in managing information systems. Routledge.

Gomes, J., Romão, M. and Caldeira, M., 2013, The benefits management and Balanced Scorecard strategy map: how they match. International Journal of IT/Business Alignment and Governance (IJITBAG), 4(1), pp.44-54.

Lu, L.X. and Swaminathan, J.M., 2015, Supply chain management.

Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015, Purchasing and supply chain management. Cengage Learning.

Perkins, M., Grey, A. and Remmers, H., 2014, What do we really mean by “Balanced Scorecard”?. International Journal of Productivity and Performance Management, 63(2), pp.148-169.

Quezada, L.E. and López-Ospina, H.A., 2014, A method for designing a strategy map using AHP and linear programming. International Journal of Production Economics, 158, pp.244-255.

Rushton, A., Croucher, P. and Baker, P., 2014, The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers.

Sainaghi, R., Phillips, P. and Corti, V., 2013, Measuring hotel performance: Using a balanced scorecard perspectives’ approach. International Journal of Hospitality Management, 34, pp.150-159.

Sivaraman, I., Al Balushi, A. and Rao, D.H., 2014, Application of Balanced Score Card (BSC), Strategy Map and Key Performance Indicators (KPI)-for an Engineering college in Oman. Asian Journal of Education and e-Learning (ISSN: 2321–2454), 2(01).

Tjader, Y., May, J.H., Shang, J., Vargas, L.G. and Gao, N., 2014, Firm-level outsourcing decision making: A balanced scorecard-based analytic network process model. International Journal of Production Economics, 147, pp.614-623.

Wu, W.Y. and Liao, Y.K., 2014, A balanced scorecard envelopment approach to assess airlines’ performance. Industrial Management & Data Systems, 114(1), pp.123-143.