The supply chain and logistics management is an important aspect within an organizational scenario that plays significant role in the final shipment of the products that have been manufactured. In addition to this, it can be said that the supply chain management is a significant component of an organization and helps in designing the business planning and marketing of the products. It has been noticed that the organizations tend to focus on adopting effe4ctive supply chain and logistics management as it helps the organization top decide effective strategies for performance, quality management and risk management. However, it has been noticed that in the present context the organizations are facing multiple difficulties in adopting and implementing effective supply chain management. In this regard, it is to be mentioned that by taking up effective supply chain and logistics management an organization is able to gain competitive advantages. It can also be said that the supply chain management frameworks that are taken up by the organizations tend to face multiple difficulties in the present competitive environment. In order to overcome the issues faced by the supply change management of an organization, it is important to focus on the major issues and the reasons behind these problems. It can be noticed that the major problems t5hat the organizations are facing are being highly influenced by the several factors. Globalization is one of the most significant factors that creates impact on the supply chain and logistics management system of an organization. Moreover, it can be noticed that the organizations are being highly influenced by the effects of globalization. It has been noticed that in order reduce the costs of the manufacturing and packaging, many organizations are taking up the strategies of relocating their manufacturing units to the locations that have lower taxes, transportation and labour costs. Moreover, it is to be noticed that the organizations that adopt the methods of shifting their manufacturing units to different locations face problems as a result of complexity of the overall procedure.
In addition to this, it has been monitored that the organizations suffer significantly as a result of the increasing demand of the market and the high competition that is existing within the industry. As a result it has often been monitored that the organizations often fail to adopt efficient strategies that can address the needs of quality compliance.
It has been monitored that the food and grocery supermarket chains are monitoring exceptional growth within the country. In this regard it can be said that the food and grocery industry of the country is monitoring highest growths (Christopher, 2016). Moreover, the annual turnover of these organizations are also very high. Hence, it can be said that the food and grocery industry of the country is developing remarkably.
Pak’n Save is a food warehouse is a food chain that is operating in New Zealand. The organization is owned by Foodstuffs cooperative and was established in the year 1985. In addition to this the organization is regarded as one of the most popular supermarket chains that are operating within the country. The primary aim of the organization is to provide the local consumers with everyday needs of food and grocery items. Moreover, the organization aims at providing the food and grocery items at a significantly low price (Jacobs, Chase &Lummus, 2014). It is to be mentioned that the one of the primary business strategy of the organization is to provide the food items in a comparatively lower price. In addition to this it has been noticed that the vision statement of the organization is emphasizes the strategy of selling grocery and food items at a lower price. In order to support their organizational aim, Pak’n Save has set up outlets and stores that do not have any frills. In addition to that the organization customers need to pay extra for the plastic bags that are to be used in order to carry the items (Monczka et al., 2015). Often the packaging has to be done by the customers themselves. Hence, the supermarket has been highly successful by applying the strategy. Moreover, it is considered as one of the cheapest supermarkets in the New Zealand.
It has monitored that in order to support the efficient functioning of the supply chain management of the organization, the role of suppliers are to be regarded as highly significant. Moreover, it is to be noticed that the suppliers and the customers are to be integrated and cooperative in order to achieve the aimed success (Seuring, 2013). Moreover, it has been noticed that better coordination helps the organization to reduce implement effective waste management and reduce variability. As a result of these, an organization is able to increase organizational efficiency as well as ensure faster delivery. In the present context it can be said that the role of the suppliers are highly important. The collaboration of the suppliers and the manufacturers are to be regarded as integral part of the supply chain management.
It can be easily understood that in order to achieve the aimed success Pak’n Save needs to operate in an integrated manner. Moreover, it can be said that the integrated supply chain management operates in an integrated manner and employ effective strategies to ensure effective functioning (Brandenburg et al., 2014). It has been noticed that the suppliers of the organization have the responsibility of delivering essential materials to the manufacturing units. In addition to this, timely collection of the final products and supplying them to different locationsis also important. Hence, it can be said that the suppliers of the organization play important roles and need to work in an integrated manner.
In order to analyse the possible ways of increasing the efficiency of the supply chain management of the organization, importance of Value Stream Mapping (VSM) is to be analysed thoroughly. The VSM system of an organization focuses on the process of adopting organizational strategies. Moreover, it is to be mentioned that Pak’n Save needs to adopt a VSM framework that is effective enough to address the issues of lean waste generation. In addition to this it can be said that the Value Stream Mapping of Pak’n Save have to effective enough to add value to the products of the organization (Pagell&Shevchenko, 2014). It has been noticed that the primary purpose of the value stream is to effectively identify the factors that are influencing waste generation. In addition to this, the VSM system takes up effective steps to reduce the waste generation. It can hence be said that by adopting effective VSM framework, the organization will be able to increase the efficiency of the supply chain and logistics management.
In this regard it is to be mentioned that the organization can effectively use the VSM framework to identify the strategies for waste removal. Furthermore, the waste removal policies can be divided into three types. The Non-value adding operations is one of the most effective ways of waste r4emoval operations of VSM system that focuses on the aspects of reducing the waiting time of the supply (Zhu, Sarkis& Lai, 2013). In addition to this, another effective way of ensuring waste removal operations is to identify the necessary but non-value adding actions. It has been monitored that within an organizational scenario several actions are to be taken up that do not have any particular outcomes. Hence, these actions are to be regarded as wasteful. However, it has also been noticed that these actions cannot be eliminated easily. The VSM procedure however works effectively in order to conserve the operations that are adding value to the supply chain management (Fahimnia, Sarkis&Davarzani, 2015). It has been noticed that by taking up effective VSM framework, the organization will be able to converse the process of generating raw materials by using manual labour.
Value Stream Map
(Source: Author)
The supply chain management is not only about acquiring goods and services, it also involves identifications of risks and take measures in order to mitigate or resolve them .The risks associated with supply chain can be categorized into external risk and internal risks (Fahimnia et al., 2015) . The three important steps related to risk management practices followed by the supermarket, Pak’n Save are as follows:
The conflicts in a supply chain involves the tension between the two or several individuals or groups within a supply chain or organization resulting from the incompatibility or differences from the actual or desired responses .The three major conflicts encountered in the supply chain of the company Pak’n Save are as follows :
The sustainability in an organization involves meeting the needs and goals of the company without exploitation of resources so that it can be used in the future (Beske&Seuring, 2014). The three important sustainability practices followed by the company ,Pak’n Save are as follows :
In a supply chain, the reverse logistics involves monitoring the lifecycle of the products after the sale of products (Dyckhoff, Lackes& Reese, 2013). The reverse logistics practices followed by the company ,Pak’n Save includes how the products of the company can be potentially reused , how it can be disposed after its usage and also finding the way by which the products which are expired can be utilized or created value (Hsu, Tan &MohamadZailani, 2016). The company Pak’n Save make use of the reusable plastic bags for their customers, which can be used number of times and at the end of its lifecycle it can be recycled for future use , instead of the usage of environmentally damaging plastic bags . This approach or practice by the company ,Pak’n Save complies with the reverse logistics practice followed by them .
It has been noticed that in order to reduce the chances of greater waste generation and support the process of effective operation of the supply chain management, the organization needs to take up effective methods of transportations. In this regard, it can be said that the organization has taken up approximately 10 sources to which they are delivering their products. The sources to which the organization is supplying their dairy products are the retailers, supermarkets and the warehouses (Govindan et al., 2014). Hence, it can be understood that the organization needs to take up effective supply chain and logistic strategies in order to support the entire process. In this regard the locations to which the manufacturing unit is supplying the materials are to be named. As it can be understood that the organization has multiple outlets and supermarkets and grocery stores all over the country. The organization has more than 57 stores that are presently operating in New Zealand. It can be monitored that the popular stores of the organization are located at Plymouth, Auckland, Pukekohe and Christchurch. Hence, it can be understood that the stores of the food and grocery stores of the organization are located in the prime locations of the country. Moreover, it can be noticed that the stores of Pak’n Save are located across the south and the north islands of New Zealand. In this regard, it has also to be mentioned that the organization has also opened the fuel site in Tameta (Martínez-Jurado&Moyano-Fuentes, 2014). Hence, it can be understood that the organization has spread all over the country and the supply chain management of the organization needs to adopt strategies to supply the manufactured products from the warehouses to these stores. In addition to this, the supply chain management of the organization needs to adopt strategies in order to supply the raw materials from the m suppliers to the factories.
|
Warehouse Layout · Future Storage · Adaptability · Warehouse |
Receiving · Checking materials · Inspection of Packages |
Put Away · Location of the stores · |
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Equipment · Buying equipment to reduce damage · Reducing the time of good transferring |
Packaging · Collecting articles in a specified quantity |
It can be noticed that the layout of the warehouse is important in order to support the efficient flow of the logistics. In this regard it can be mentioned that the organization needs to focus on the future storage requirements of the warehouse. Moreover, it can be said that by forecasting the stocks and the requirements, the organizations will be able to address the planning requirements (Waller& Fawcett, 2013). Moreover, it can be said that by taking up effective strategies the organization will be able to adoptive and flexible in nature. In order to ensure effective functioning of the organization the organization will be able to be more adaptive towards the external environment. Moreover, the flow of the workhouse is also highly important.
Receiving is another important aspect of effective logistics. The packaging of the external materials is important (Touboulic& Walker, 2015). Moreover, it can be said that the raw materials that have been received, are to be checked thoroughly.
Implementing new technologies and advanced equipment are also important in order to reduce the wastage. Moreover, it can be noticed that by taking up equipment, the organization will be able to be more cost effective and reduce the risks of injury of the labours.
Conclusion
To conclude, it can be said that by adopting an effective framework of supply chain management Pak’n Save needs to focus on the process of integration and value generation. In addition to this, it has be mentioned that the VSM framework has to be implanted effectively in order to reduce the chances of risks and conflicts with the suppliers and the manufacturers. It can also be monitored that the sustainability practices that have been taken upby the organization are highly effective in reducing the risks of increased waste disposal. However, it has also been noticed that the organization needs to take up effective strategies that are helpful in reducing the conflicts between the manufacturers and vendors. Along with the effective VMS framework, importance has to be given to the effective transportation and logistics operations.
Reference
Beske, P., &Seuring, S. (2014). Putting sustainability into supply chain management. Supply Chain Management: an international journal, 19(3), 322-331.
Brandenburg, M., Govindan, K., Sarkis, J., &Seuring, S. (2014). Quantitative models for sustainable supply chain management: Developments and directions. European journal of operational research, 233(2), 299-312.
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Dyckhoff, H., Lackes, R., & Reese, J. (Eds.). (2013). Supply chain management and reverse logistics. Springer Science & Business Media.
Fahimnia, B., Sarkis, J., &Davarzani, H. (2015). Green supply chain management: A review and bibliometric analysis. International Journal of Production Economics, 162, 101-114.
Fahimnia, B., Tang, C. S., Davarzani, H., &Sarkis, J. (2015). Quantitative models for managing supply chain risks: A review. European Journal of Operational Research, 247(1), 1-15.
Govindan, K., Kaliyan, M., Kannan, D., &Haq, A. N. (2014). Barriers analysis for green supply chain management implementation in Indian industries using analytic hierarchy process. International Journal of Production Economics, 147, 555-568.
Hsu, C. C., Tan, K. C., &MohamadZailani, S. H. (2016). Strategic orientations, sustainable supply chain initiatives, and reverse logistics: Empirical evidence from an emerging market. International Journal of Operations & Production Management, 36(1), 86-110.
Jacobs, F. R., Chase, R. B., &Lummus, R. R. (2014). Operations and supply chain management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Martínez-Jurado, P. J., &Moyano-Fuentes, J. (2014). Lean management, supply chain management and sustainability: a literature review. Journal of Cleaner Production, 85, 134-150.
Martínez-Jurado, P. J., &Moyano-Fuentes, J. (2014). Lean management, supply chain management and sustainability: a literature review. Journal of Cleaner Production, 85, 134-150.
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and supply chain management. Cengage Learning.
Pagell, M., & Shevchenko, A. (2014). Why research in sustainable supply chain management should have no future. Journal of supply chain management, 50(1), 44-55.
Seuring, S. (2013). A review of modeling approaches for sustainable supply chain management. Decision support systems, 54(4), 1513-1520.
Touboulic, A., & Walker, H. (2015). Theories in sustainable supply chain management: a structured literature review. International Journal of Physical Distribution & Logistics Management, 45(1/2), 16-42.
Waller, M. A., & Fawcett, S. E. (2013). Data science, predictive analytics, and big data: a revolution that will transform supply chain design and management. Journal of Business Logistics, 34(2), 77-84.
Zhu, Q., Sarkis, J., & Lai, K. H. (2013). Institutional-based antecedents and performance outcomes of internal and external green supply chain management practices. Journal of Purchasing and Supply Management, 19(2), 106-117.
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