Strategic Supply Chain Management AQF Level 9Cindy GunnessStudent numberTitle of assignmentWord count: …insert word count here…Executive summaryYour executive summary should include what you did, how you did it, what your main findings were and what your key recommendations are. Although the executive summary appears at the beginning of the document, it should be written last after completing the assessment.… type text here …The Purpose of the paper was to investigate the impact of supply chain integration on supply chain performance.
The construct of Supply chain integration has been divided into three derivers that are information integration, coordination resource sharing and organizational relationship linkage. There are certain barriers to integration found in each industry that have moderating effects on the relationship b/w integration and organization performance, a few of which was analysed and recommendations are provided.All executive summary in past tense and states what was done during the projects.Table of contents TOC o “1-3” h z u 2.Integration PAGEREF _Toc530511983 h 42.1Firm-level Functional Integration PAGEREF _Toc530511984 h 42.2Supply Chain Integration PAGEREF _Toc530511985 h 53.Product Push to Demand Pull PAGEREF _Toc530511986 h 84.
Recommendations and Conclusions PAGEREF _Toc530511987 h 10References PAGEREF _Toc530511988 h 121.IntroductionThe Trinidad & Tobago Fine Cocoa Company Ltd was established as a public-private partnership with the aim of rehabilitating the cocoa sector. This is achieved through improving the quality and yield of bean production and developing value-added products for the local, regional and international markets (ttfinecocoa n.
d.)Every successful business relies heavily on efficient supply chain management to run their everyday operations.(Put reference here)In modern business scenario Supply chain has become the back bone for every business organization. All supply chain partners are joined together in value delivery network of company that no one can perform better without support of other. The ultimate objective of this cohesive relationship is to deliver value to customers and gets desired state of customer satisfaction and loyalty for the organization. For this purpose, it is necessary to integrate the internal and external partners of Supply chain at different levels. 2.
IntegrationAt the core of supply chain management lies integration. Organizations’ decision making within functional areas may result in below standards outcome for the organization (Autry ; Moon 2016). What is needed is a more integrated approach to decision making, one that incorporates all departments within the functional areas creating supply chain system. Therefore, integration should consist of their systems, activities and processes, this is vital for international companies (Christopher 2011). Some advantages of integration include but is not limited to delivery, reduced costs, improved quality, improved scheduling of production and innovation of sharing (Christopher 2011).2.
1Firm-level Functional IntegrationTo achieve an effective supply chain integration, a company must be first aligned and integrated internally (Christopher 2011). Goals must align to an all-encompassing corporate strategy Communication barrier must be reduced between activities to enhance information flow throughout the organisationTherefore, firm-level functional integration or internal integration is the supply chain within an organization that ends with providing customers with a specific product or service value (Basnet 2013). Included in this chain are functions such as production, distribution and sales (Basnet 2013). The company’s goals must be aligned to an all-encompassing corporate strategy (Christopher 2011).Flynn et al.
(2010) also recognized the importance of having an integrated operation between different departments and functions areas in an organization. They went on to state that an internal integration will remove functional barriers which will lead to cooperation within the internal supply chain to achieve customer satisfaction which results in performance and ultimately a superior competitive advantage. With the removal of barriers between departments and functional areas resulting in a cohesive organization leads to competitive advantage as a result of reduce cost, improve lead time, and reduce stock-outs (Chen et al. 2009).For the Trinidad & Tobago Fine Cocoa Company Ltd (TTFCC) to remain competitive in this global industry they need to incorporate a solid internal supply chain integration within its company.
The objective is to have strong internal integration before incorporating supply chain integration. By having strong internal integration, the organization will acquire coordination skills into the supply chain integration which leads to tactical associations with customers and suppliers.2.2Supply Chain IntegrationFor external integration or supply chain integration to occur the internal integration and functional strategies must be aligned (Christopher 2011).
As a result of globalization and the advent of outsourcing, companies need to be a part of a network of supply chains to remain competitive in the market (Christopher 2011). According to the article by Smartsheet Inc. (n.d.), a supply chain is a conglomeration of suppliers which a company relies on to produce a product for its company. Each supplier is a link and is crucial to the success of the company. Fawcett & Magnan (2002) stated, ‘Supply chain management means anything from cross-functional process integration within a firm to total forward (customer)/backward (supplier) supply chain integration.
‘ The goal of supply chain integration is to incorporate as many links of the chain (Figure 1) to ensure good working relationships amongst each other by bringing each link closer to each other (Smartsheet Inc. n.d). The main goal is to reduce costs, waste, response time and production time (Smartsheet Inc.
).Figure 1: Integrated Supply ChainSource: Smartsheet Inc., Integrated Supply Chain Management: Horizontal and Vertical IntegrationTrinidad and Tobago Fine Cocoa Company Limited to have a successful integrated supply chain integration, the company should aim or continue to develop trust by building personal relationship and sharing information. The value generated from this process will result in competitiveness which will be achieved across the chain to deliver value to the customer. As a result, both risks and profits are shared benefitting each company (Christopher 2011).
2.2.1The Benefits Of Supply Chain IntegrationFigure 2 demonstrates some key benefits of supply chain integration.Figure 2: Benefits of Supply Chain IntegrationSource: Smartsheet Inc., Integrated Supply Chain Management: Horizontal and Vertical Integration2.2.2Challenges Of Supply Chain IntegrationTable1 list some of the challenges a company may face when pursuing supply chain integration.Table 1: Challenges of Supply Chain IntegrationCreating a shared vision of how integration will improve both financial and intangible resultsBuilding an organizational culture that incentivizes people to support the supply chain visionEstablishing end customer-centric metrics throughout the chain to improve quality controlOrganizing multiple supply chains to meet the needs of different customer segmentsMaking product and service design decisions based on broader shared supply chain considerationsMaintaining consistency in relationships with suppliers and customers, even during downturnsJoining sales and operations into one effective process, preventing miscommunicationsImplementing reliable databases and keeping all partner suppliers on the same IT infrastructureDeveloping analytics capabilities to make effective decisions in a complex partnershipBuilding trust both inside and between all organizations in the supply chainSharing risks and rewards among supply chain partners in a way perceived by all as fairSource: Smartsheet Inc.
, Integrated Supply Chain Management: Horizontal and Vertical IntegrationThe cocoa industry in Trinidad and Tobago has declined drastically within the decade. One of the underlying factors is the obsolete supply chain structure. In order to revitalize the cocoa industry, the supply chain must connect farmers to high value markets. To build international market recognition, the supply chain must incorporate effective training to farmers, international quality standards and certification, and traceability system leading to increase in farm productivity.
3.Product Push to Demand PullFor a product to be available for the customer, the supply chain strategy would decide when to make the product and when to deliver to distribution centres. According to Lander (2018), the process is driven by the customer demand in the pull supply chain, whereas the push supply chain is determined by long-term projections of customer demand (Figure 3).Figure 3: Push vs. Pull StrategySource: Tanner & Raymond (2012), Marketing Strategies 2nd edn.The product push strategy is used when the company is focused on long-term projections of customer demand where planning for events in the future is crucial for organizations that use this strategy (Sharma 2018). Whereas, the pull strategy or just-in-time strategy focus on having low inventory to ensure low costs to the organization as opposed to the push strategy (Sharma 2018).
The only downfall is that if the company does get a last-minute order, they may not be able to fulfil the order on time (Sharma 2018). According to Sharma (2018), no company uses only the push or pull strategy solely, however they use a mix of both strategies to achieve the best use of them. Hence, the best strategy for the cocoa industry would be to use a combination of both the push and pull strategy. To ensure a competitive advantage over other markets, TTFCC should incorporate both strategies as to drive improvements in productivity while supporting value-added product development and market innovations at the other end.
Also, TTFCC offers specific retailers such as Harrods in England as an upstream supplier to use their own brand label for packaging which they sell directly to its customer (TTFCC website). TTFCC also sell via online and to specific distributors as opposed to retailers directly (TTFCC website).As a result of this, it would be recommended that while the TTFCC uses both strategies they should place their products at supermarkets and discounts stores such as PriceSmart for sale. This will bring about brand awareness to the wider population hence increase sales. At these retailers the TTFCC products should be placed in specially designed shelves to increase the products visibility. Finally, TTFCC can also, partner with speciality coffee shops / cafes, bookshops and gift shops to market their products.
Recommendations and ConclusionsIn conclusion, organizations should focus on firm-level functional integration before incorporating a supply chain integration which will include other supply partners. Having a solid firm-level functional internal integration means that the company has already established a sound coordination and communication skills. Having these skills will facilitate the incorporation of supply chain integration. Integration has its challenges and requires work and commitment to overcome some the traditional barriers to achieve success with the strategic supply chain goals.
With regards to the product push and demand push strategy, they have both strengths and weaknesses. However, when combined, push and pull strategy minimizes the disadvantages and utilizes the advantages of both approaches.Recommendations:Utilise appropriate performance metrics through the supply chain.Performance measurement shapes behaviour.
” You cannot manage what you cannot measure.”Metrics, KPIs,Job descriptions, Performance incentives,monthly targetsExample: In Logistic Dept : Inventory days, Inventory turns, stockouts, inventory dwell time, Service levels to operations(%)A final sentence of the report could be used to demonstrate that the purpose of the assessment task (stated in the introduction section) has been achieved.You may want to take out the individual recommendations scattered throughout and out a Conclusion and recommendation section and use them there to improve the flowWhat about the use of performance metrics to improve the supply chain.
By finding the baseline position as it is now and then applying resources,measuring performance and improving.Review presentations Topics 1-3 slide by slide and topic 10 to gt more insight into the assignmentReferencesAutry, CW, Moon, MA, 2016, Achieving Supply Chain Integration: Connecting the Supply Chain Inside and Out for Competitive Advantage, FT PressBasnet, C 2013, ‘The measurement of internal supply chain integration’, Management Research Review, Vol. 36 Issue: 2, pp.
153-172, Chen, H., Daugherty, P. J., & Landry T.D. 2009, Supply chain Process Integration: A theoretical framework. Journal of business logistics, vol 30, nr 2, p 27 – 46Chen, H, Daugherty, P.J, Mattioda, D, 2007, Firm-wide integration and firm performance, International Journal of Logistics Management, vol 18, no.
1, p 5-21Christopher, M 2011, Logistics and supply chain management, 4th edn, Pearson, NY Fawcett, S.E., Magnan, G.
M. (2002) The rhetoric and reality of supply chain integration. International journal of physical distribution and logistics management. Vol.
32, no.5, 2002, pp 339-361Flynn, B.B., B. Huo, and X. Zhao. 2010.
The Impact of Supply Chain Integration on Performance: A Contingency and Configuration Approach. Journal of Operations Management 28(1): 58–71Lander, S 2018, Push vs. Pull Supply Chain Strategy, viewed 10 November 2018, https://smallbusiness.chron.com/push-vs-pull-supply-chain-strategy-77452.htmlPittman, A 2014, The Network Effect Beyond Supply Chains, ‘Push vs.
Pull in Your Supply Chain…What’s The Difference, viewed 4 November 2018, https://supplychainbeyond.com/push-vs-pull-supply-chain-whats-difference/Sharma, TK 2018, Blockchain Council I, ‘What is Push and Pull Strategy in Supply Chain Management?’, viewed 9 November 2018, https://www.blockchain-council.
org/blockchain/what-is-push-and-pull-strategy-in-supply-chain-management/Smartsheet Inc., Integrated Supply Chain Management: Horizontal and Vertical Integration, viewed 10 November 2018, https://www.smartsheet.com/integrated-supply-chain-management-vertical-and-horizontalTanner, J, Raymond, M.
A. 2012, Marketing Principles, Chapter 8 ‘Using Marketing Channels to Create Value for Customers, viewed 15 November 2018, https://2012books.lardbucket.org/books/marketing-principles-v2.0/s11-using-marketing-channels-to-cr.htmlTrinidad and Tobago Fine Cocoa Company, viewed 7 November 2018, http://ttfinecocoa.com/