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Supply Chain Planning And Control

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Question :

What is the Supply Chain Planning and Control ?
 
 

Answer :

Introduction:

Supply chain planning is one of the steps included in supply chain management which is involved with estimation of requirements of the future to balance the supply and demand of it. The supply chain planning is the planning which requires checking of the total system of links in the chain which works for creation of customer satisfaction at the time of delivery to the customer. A supply chain is a group of companies or business entity linked by upside and downside flow of services products finance and information from a source to customer (Ross 2015). Supply chain controls are the controls which are required for proper function of the supply chain. (SCM) is the controlling of such supply chain.

This report consists of the information regarding the role of supply chain planning and control and also the competitive advantage it provides to organization over other. The supply chain planning is shown in case of a Singapore based company Tee Yih Jia in which planning and manufacture of Hargow skin gives it a competitive advantage.

Personal view:-

Importance of supply chain planning and supply controls in a business organization:-

A Supply Chain Management framework is basic for getting to continuous operational data over different divisions and organizations. Lack of clear knowledge into the different exercises and working procedures that constitute your inventory network can abandon the company for not able to make methods that offer an economical upper hand.  Enterprise resource planning system also has a important role in creating and maintaining of supply chain (Christopher 2016).

Supply chain planning and its role in providing competitive advantage of company:-

Supply chain planning arranging includes the choice of channels linked with the advertising department, advancements, decision regarding the stock amount and stock required and checking renewal and creation approaches can stay aware of interest. ERP frameworks offer a less demanding and more adaptable approach to set up and adjust the conditions inside which a production network is required to work (Esmaeilikia et al. 2016)

The supply chain planning helps in improving efficiency of an organization which gives it’s a competitive advantage. Supply chains contain three parts supplier, manufacturer and distributor. Planning is required to improve efficiency. Proper planning is required to get raw material fast so that the manufacturing department does not get delayed in production of the product. If the planning is proper and raw materials are received fast then the efficiency improves which gives a competitive advantage.

Supply chain planning also increases profit and checks economy. The raw material which is brought at fast interval is important and also equally important is the amount for it. Proper planning is required for getting the raw material in cheap price. This will help the company to reduce cost of raw material and it will give advantage over company who are buying raw material at high prices.

Planning also improves expectation. If the cheap and fast raw materials are quickly changed into finished product by manufacturing team then it helps in increasing expectation which helps in giving competitive advantage. Planning can also improve evolution. If proper planning is done in production and delivery of product so that the product is delivered to customer in perfect time then it will give advantage over company who delivers in late time.

Supply chain controls and its role in providing competitive advantage in business organization:-

Supply chain management is important resource for organizations as it can decrease costs, increase the revenue of company and also gives increased profit for work done. These advantages stated above do not mean that no changes are required in SCM (Monczka et al. 2015). The main major issue is the absence of control which much more important than vendors innovation and information.

  One of  a major issue relating to SCM include the absence of high value information. Many companies forget and neglect the fact that the results of stock should be in tandem with the high value information the supply chain is using. To get and use proper information involves the need to thinking and contemplations and which are often neglected by those who are incharge of  supply chain management. Here the size of information does not matter. Thus, SCM information must be persistently re-assessed and refined so it matches reality (Stadtler 2015).

One  most important issue is the innovation required to bring supply chains onto the Internet. While a few organizations have been at the cutting edge of adjusting coordinated, Internet-based supply chains, others have been hesitant to make the following stride. Therefore, it can be hard to get all sellers and providers on board. There are numerous great reasons why sellers may modest far from the new innovation. All things considered, the establishment of the important equipment is expensive and tedious.

At long last, once in a while the merchants that these frameworks should associate with have undermined numerous SCM frameworks and executions. Actually in setting up a production network not everybody will see the advantages instantly. Over the long haul, being a piece of the inventory network will be gainful to the greater part of the organizations included. In any case, at first, not everybody will profit similarly. Accordingly, a few accomplices in the chain may feel frustrated or may feel insignificant in the general arrangement. Actually, a few organizations may even fear losing their general upper hand accordingly of joining the production network. For these reasons, many organizations essentially aren't hopping on the incorporated inventory network temporary fad.

 


Clearly, these issues are to some degree outside the ability to control of production network chiefs. Regardless of how talented, an individual can't make a seller join the store network in the event that he or she is in entire restriction to joining. Be that as it may, as a rule, the correct approach can take care of the issue. With the nature of the information, for instance, workers responsible for estimating should be prepared and need to completely comprehend the means important to guarantee the nature of the data they construct the framework in light of. Great preparing can go far to enhance the information and the general viability of SCM.

With the merchants, providers, and other important components of the production network, organizations need to adopt an alternate strategy. They have to meet with the chiefs in those organizations and layout obviously for them the advantages of the innovation and the store network for them (Yinan, Tang and Zhang 2014.).

Role of Supply chain planning in giving Tee Yih Jia a competitive advantage:-

Tee Yih Jia food manufacturing pvt ltd manufactures and distributes frozen foods. It is a Singapore based company. It offers dim sum, glutinous rice balls, roti & paratha spring rolls, samosas and it also provides contract manufacturing services and provides customer Europe America South Africa and Asia pacific. Here I am working as an executive in the planning department of supply chain management department. My role was to make innovative planning with my fellow staff for getting business advantage over our rivals. Also our role is to understand the requirements of products and up gradation of it for the maintenance of demand and supply.  Last year our team made up new innovation of frozen   hargow crystal skin or the skin for Chinese shrimp dumplings. We are first in the world to achieve it but it was not an easy task. The skin of shrimp dumplings the texture of it is very difficult to achieve and it took three years of complete R & D work. But for conquering Asia’s market all the efforts was taken. This product helped our company to break into the product segment which normally requires highly qualified chefs to make by hand. This planning and innovation helped to reduce food preparation time. As it is made by machines so the textures are uniform. Some new products were also innovated like pastries for siew mai and Peking duck. A new brand happy belly also started this hargow skin but our growth and market hold did not affect. As specified by executive chairman this company is successful because of good product quality, product mix and innovation of new and existing products. After planning is done for any new product or requirements for old product the next department does thorough research and then control is set for the supply of the demand of these products. All these come under supply chain management which is required for the competitive edge in business market.

Conclusion:

SCM or supply chain management is the management of the supply chain which includes manufacturing of products till its usage by the customer. The proper planning and controls of this supply chain helps in the customer satisfaction which ultimately helps in the growth of company. The proper planning of getting cheap and fast raw materials and giving fast manufactured product in specified time gives competitive advantage over other companies. Here it is seen that a new innovation planning and control of hargow skin has led Tee Yih Jia to achieve success in Asia pacific region and all around the worlds.

 

References:

Christopher, M., 2016. Logistics & supply chain management. Pearson UK.

Esmaeilikia, M., Fahimnia, B., Sarkis, J., Govindan, K., Kumar, A. and Mo, J., 2016. Tactical supply chain planning models with inherent flexibility: definition and review. Annals of Operations Research, 244(2), pp.407-427.

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

Ross, D.F., 2015. Distribution Planning and control: managing in the era of supply chain management. Springer.

Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and advanced planning (pp. 3-28). Springer Berlin Heidelberg.

Yinan, Q., Tang, M. and Zhang, M., 2014. Mass customization in flat organization: The mediating role of supply chain planning and corporation coordination. Journal of Applied Research and Technology, 12(2), pp.171-181.

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