The aim of the report is to analyse effective supply chain management for a Middle East company. Saudi Electricity has been taken as case study. This company generates, transmits and distributes electric power in Saudi Arabia (Se.com.sa, 2016). This company tries to keep good relation with its partners, customers and the suppliers. Supply chain management practice becomes complex while maintaining large scale of operation (Christopher, 2016). Effective supply chain management improves performance of the organisation. Due to uncertainty in business environment, supply chain management has been challenging for the organisations. Hence, possible challenges that may be faced by Saudi electricity are discussed in this report.
Supply chain of Saudi Electricity Company is as follows:
Figure 1: Supply chain of Saudi Electricity Company
(Source: Stadtler, 2015)
Choosing right supplier
Identification of effective supplier is important aspect of supply chain management. Right supplier increases Company’s sourcing leverages and provides an opportunity to the company to evaluate alternative suppliers across the geographical area. There are several ways that can be followed by the company. In the view of Seuring (2013), traditional method of choosing suppler is tedious and time consuming. Hence, use of sourcing tool may be effective to engage with the suppliers. These tools set some parameters for choosing right suppliers.
Supplier on boarding
Availability of information and knowledge is essential for effective supply chain management. As stated by Barney (2012), supply on boarding is the process to equip potential suppliers with required knowledge and behaviour for effective supply chain management. The supplier is required to submit documents and certificate regarding company registration, insurance and quality certificate. Rushton, Croucher & Baker (2014) opined that automating on boarding process is less costly and less time consuming.
Inventory of Saudi Electricity are raw materials, cash and others. As mentioned by Yue, You & Snyder (2014), effective management of inventory optimises the supply chain. Bullwhip effect is seen in the supply chain. Bolstorff (2015) stated that due to this effect, variability in demand increases with moving up the supply chain. This process can distort information flow through the supply chain. Bullwhip effect increases supply chain inefficiencies. As the consumer demand is not stable, businesses keep a certain level of inventory to meet consumer demand while moving up the supply chain from raw material supplier o the consumers.
Use of technology
Development of technology enables Saudi Electricity to get information easily with in supply chain. Technologies are helpful in coordinating different activities of supply chain such as customer relation, supplier relation, production and distribution. Computer, data recognition equipment and communication technology help in supply chain management. Technological development adds competitive advantage to the company through electronic data interchange. Technology improves customer services recording electricity usage by different customer groups. Payment of electricity bill, providing several information such as change in company rule, offers become easier through use of technology (Christopher, 2016).
Collaboration with other companies is effective in supply chain management. Partnership with other firms regarding finance, supply of raw materials and marketing support are helpful for improving supply chain management of Saudi Electricity. Saudi Electricity tries to maintain good relation with the partners by preparing a code of document for both the company and the partners. This document includes property rights of the company. This company provides shared services to all subsidiary company through service level agreement (Se.com.sa, 2016).
There are other aspects in the company which are required to consider for effective supply chain management. Those aspects are accurate market analysis and demand forecast, undertaking development strategies, internal strength, weakness and, opportunity analysis, plan executive strategy (Bolstorff, 2015).
Figure 2: Supply chain management strategies
(Source: Bolstorff, 2015)
Disruption in supply
Electric supplier such as Saudi Electricity may face disruption in electricity supply due to natural disasters. Supplies are needed to shut down at that time, which causes loss in business. Therefore, this company needs to find alternative supply sources in order to ensure business continuity. Possible challenge that can be faced in this case is taking long time to build up relation with the prospective supplier. It is a cumbersome process to validate an evaluate supplier (Rushton, Croucher & Baker, 2014).
Qualification of suppliers
If unscrupulous suppliers of raw materials enter into the supply chain, there will be question regarding quality of service to the consumers. Moreover, chances of wastage increase along with the increasing cost (Yue, You & Snyder, 2014).
The company may face inventory management cost in terms of capital cost, storage space cost, inventory service cost. Moreover, installing new technology for improving supply chain management increases cost of operation of the company. This may impact the pricing policy of the company. Change in price can affect the demand for electricity for this company (Barney, 2012).
Implementation of supplier management solution can be a solution to overcome challenges regarding choosing right suppliers. The sourcing team of Saudi Electricity needs to be careful about the fraudulent suppliers supplying substandard raw materials. It is recommended to Saudi Electrics to keep transparency for efficient supply chain management. Continuous improvement is required for the SCM.
The report has analysed several aspects of supply chain management of the chosen company. Saudi Electricity supplies electricity all over the Saudi Arabia. Hence, it has monopoly power in this country. Supply chain management practices improve operational efficiency of the company. Relations with supplier, customers and other partners are important criteria for the supply chain management. The company may face several challenges during SCM. Challenges and possible recommendations have been discussed in this study.
Barney, J. B. (2012). Purchasing, supply chain management and sustained competitive advantage: The relevance of resource?based theory. Journal of Supply Chain Management, 48(2), 3-6.
Bolstorff, P. (2015). The Seven Principles of Effective Supply Chain Planning. Apics.org. Retrieved 6 December 2016, from https://www.apics.org/sites/apics-blog/think-supply-chain-landing-page/thinking-supply-chain/2015/05/20/the-seven-principles-of-effective-supply-chain-planning
Christopher, M. (2016). Logistics & supply chain management. Pearson Higher Ed.
Rushton, A., Croucher, P., & Baker, P. (2014). The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers.
Se.com.sa. (2016) Corporate social responsibilities. Retrieved 6 December 2016, from https://www.se.com.sa/en-us/pages/corporateresponsibility.aspx
Seuring, S. (2013). A review of modeling approaches for sustainable supply chain management. Decision support systems, 54(4), 1513-1520.
Stadtler, H. (2015). Supply chain management: An overview. In Supply chain management and advanced planning (pp. 3-28). Springer Berlin Heidelberg.
Yue, D., You, F., & Snyder, S. W. (2014). Biomass-to-bioenergy and biofuel supply chain optimization: overview, key issues and challenges. Computers & Chemical Engineering, 66, 36-56.
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2018). Supply Chain Management : Saudi Electricity. Retrieved from https://myassignmenthelp.com/free-samples/supply-chain-management-saudi-electricity.
"Supply Chain Management : Saudi Electricity." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/supply-chain-management-saudi-electricity.
My Assignment Help (2018) Supply Chain Management : Saudi Electricity [Online]. Available from: https://myassignmenthelp.com/free-samples/supply-chain-management-saudi-electricity
[Accessed 11 December 2019].
My Assignment Help. 'Supply Chain Management : Saudi Electricity' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/supply-chain-management-saudi-electricity> accessed 11 December 2019.
My Assignment Help. Supply Chain Management : Saudi Electricity [Internet]. My Assignment Help. 2018 [cited 11 December 2019]. Available from: https://myassignmenthelp.com/free-samples/supply-chain-management-saudi-electricity.
MyAssignmenthelp.com is the perfect solution to render quality solution for all sort of academic issues. We have hired professionals from different fields of study to provide assistance with different subjects. We successfully have provided different types of assignment solutions on 100+ subjects. We have hired industry experts to deliver nursing assignment, hr assignment and finance assignment help. To offer quality content with IT assignments, we have hired IT professionals to render programming language assignment help and IT assignment help for other types of IT assignments as well.
Answer: Answer 1 Part: A As stated in the given case, cherries will have to be transported from Tasmania to South Korea. In addition, it is also stated that these cherries will be exported four times a time year according to the ripening season. Thus, it is assumed that each season, 250 tons of cherries will be exported that will totaled at 1000 tons. There are number of transport systems available for the cherry grower in exporting their go...Read More
Answer: Introduction Logistics management is one of the major factors that have affected the country on a larger basis. The logistics is defined as the whole concept of maintaining the flow of the product with the required span of time. The logistics is one of the major parts of the supply chain management which is the primary topic of the concerned report. In accordance to the views stated by Myerson (2012), there are a number of parts of th...Read More
Answer: Introduction The study aims to devise a SIPOC diagram for an off-road buggy. This diagram has analysed the process of production as per the information provided in the case study. The SIPOC chart has considered the critical information which are in the best interest of the key stakeholders and manufacturers. The given model has been identified with the problem of non-identical fuel tanks which are present on the either side of the bug...Read More
Introduction Services differ from good due to the absence of tangible evidence after the delivery. The customer and the service provider should meet to ensure the success of service delivery. The report focuses on the delivery of catering services by the Forte Company in Australia. The catering services involve various activities such as the delivery of meals, planning and hosting events. The service delivery sector has evolved over time to in...Read More
Answer: Background Information about Alteo Mauritius Alteo Limited is a sugar milling company which is situated in Mauritius. The company’s vision is to be a sustainable regional leader in the sugarcane industry, renewable energy and property. Its vision on the other hand is to responsibly create value through people development, strategic partnerships, innovative thinking, market focus and operational excellence. The company has s...Read More
Just share your requirements and get customized solutions on time.
Our writers make sure that all orders are submitted, prior to the deadline.
Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.
Feel free to contact our assignment writing services any time via phone, email or live chat.
Our writers can provide you professional writing assistance on any subject at any level.
Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.
Get all your documents checked for plagiarism or duplicacy with us.
Get different kinds of essays typed in minutes with clicks.
Calculate your semester grades and cumulative GPa with our GPA Calculator.
Balance any chemical equation in minutes just by entering the formula.
Calculate the number of words and number of pages of all your academic documents.
Our Mission Client Satisfaction
THIS ASSIGNMENT WAS GOOD AND I GOT THE MAKE 66% OUT OF ONE HUNDRED. HOPE NEXT ASSSIGMENT WILL GET MORE
Quality formatting now, and easy to understand the values being added to balance and adjusted ledgers.
Great Job, Great Job, Great Job, No Plagio, Very Professional, I recommended. Great Job, Great Job
Hi thank you for helping out with mi assignment the content is good but after but the plagiarism is too high. Then among the internet sources there is ur site appearing.This then defeat s the purpose of using you guys as if the assignment can be tra...