Managing the Supply Chain for Enhanced Customer Satisfaction

Dsicuss about the Strategic Organisational Supply Chain Management.

Supply chain management could be defined as the procedures having direct relationship with each other. The intention is to ensure better and enhanced provision of products and services to the customers. The first party in the supply chain management is the suppliers involved in transferring raw materials to the organisation. After the suppliers, the next two parties include the manufacturers and the wholesalers or retailers. The manufacturers produce the final products and they deliver them to the retailers or wholesalers. They, in turn, deliver the products and services to the end customers. Thus, all the supply chain members play significant roles. In the current era, many multinationals are operating in foreign nations and thus, they are needed to manage and maintain their supply chain effectively. Logistics could be defined as the transport of finished products to the different supply chain associates for ensuring the stock bases of the retail stores of the business organisations. In this assignment, Nestle Middle East would be studied and the ways through which it manages its supply chain and logistics would be explored as well. A brief explanation would be provided regarding the proposed changes that the organisation is required to implement in its logistics for ensuring customer satisfaction.

Nestle Middle East intends to meet the needs of its customers by ensuring the availability of all its products to the same. In other words, the customers need to have the feeling that the products of the organisation are sold out rapidly (Bag, Anand and Pandey 2017).  In addition, it needs to ensure the minimisation of time for product transportation for quick delivery. An effective supply chain has helped in formulating these objectives. With the help of supply chain, the organisation has formed an association between two largest distribution hubs in UK and it intends to create a centre of single customer service in New York (Nestle-me.com 2018). These two objectives are achieved with the help of logistics and supply chain management.

As a result, the position of each product could be ascertained. This implies that the organisation is aware of the products having greater market demand and thus, production could be planned accordingly. In addition, it enabled Nestle Middle East in enhancing its services without raising its costs. The supply chain of the organisation is managed in such a manner to keep tight control on the costs.

Effective Coordination among Supply Chain Members

The significant functions of the business related to the organisation are to lay stress on the significant areas like finance, sales and marketing. In addition, it needs to focus on bringing new products based on the varying tastes of the customers. For enhancing its sales margin, it is necessary for Nestle to concentrate on supply chain to assure the timely delivery of products in the retail stores. Effective management is another crucial factor for reaching its customers effectively to offer its products (Brindley 2017).

Two levels are present in the supply chain of the organisation. The beginning level starts from the area of production to the centre of distribution of Nestle and the second level is from the centre to the retail shops selling the products. Thus, the association between business functions and supply chain enables the organisation to gain an understanding of the demand ad work accordingly.

The factors that enable in accomplishing balanced supply chain are the supply chain members of Nestle Middle East. This implies that an effective coordination among these members is beneficial to maintain the same (Christopher 2016). By accomplishing the same, the organisation is able to be aware of all the market variations. In addition, it could obtain information about its products that are not gaining popularity in the market and accordingly, it could carry out alterations. Thus, implementation of change could be immediate with the help of smooth flow of information from one element to another.

Another influential dynamic in the establishment of an effective supply chain is the synchronisation of each individual process in the unit. As a result, Nestle could focus only on the demands of its targeted consumers. Finally, the integration of the information systems is made in an orderly fashion resulting in an effective supply chain.

In the current competitive landscape, every organisation aims to make profit to remain in a win-win situation. The scenario is similar for Nestle as well, which is implementing changes so that the profit margin could be maximised. This could be accomplished only, if effective and positive relation is maintained with the suppliers and Nestle has been highly effective in maintaining it. It has maintained effective terms with the constituents as well for raising its overall sales in the Middle East (Dubey et al. 2017).

This positive relationship has helped Nestle in reaching its customers immediately and when needed. Moreover, the wholesalers and the retailers help in providing useful information to the organisation about the product demand based on the various demographic profiles of the consumers (Grant, Wong and Trautrims 2017). As a result, Nestle has formulated ways of targeting its customer group and the technique of production for meeting their needs. As the intention of the organisation is to increase its customer base, it has accomplished the target due to its effectiveness in maintaining healthy relationships with the suppliers in the Middle East market.

Information Technology as an Enabler of Effective Supply Chain Management

The rapid and advanced information technology systems are one of the strongest platforms in order to maintain the organisational processes effectively. Nestle Middle East uses these systems for conducting its activities efficiently along with forming effective relationship with the suppliers and other related associates of the supply chain. For assuring the same, the organisation records its daily transactions, which are distributed to the members of the supply chain afterwards. As a result, they have full knowledge of the overall business activities (Fernie and Sparks 2014).

Electronic data interchange is used within the organisation as well for implementing a common operating system and accordingly, data are transferred in a standard layout. Hence, information could be transferred easily from one part to another.Nestle Middle East is involved in using electronic integration and this is IT-enabled. As a result, it enables the organisation to connect with the suppliers for quick transfer of updates and information. Hence, long-term association with the suppliers is established for Nestle.

In order to maintain proper coordination between Nestle and its centres of distribution in the Middle East, systematic analysis and program is used to maintain the connection with the suppliers for information flow (Govindan, Soleimani and Kannan 2015). It has implemented auto-store warehouse management system to manage the product movements at both distribution centres for transferring information between the warehouse and the suppliers. In addition, the organisation would gain an insight of the significant issues related to sales for improving its profitability. As a result, the negotiations and deals could be carried out effectively and the satisfaction level of the suppliers would increase and in turn, strong relationships could be maintained with them.

During free and regular transfer of information, the supply chain members and the organisation are coordinated into a single unit. As a result, it helps in imparting adequate knowledge to conduct the needed operations and accordingly, efforts are made to enhance the customer satisfaction level (Hugos 2018). The progress of information technology has made it possible for Nestle to implement an integrated system for transferring knowledge. Hence, there is strong bonding in all the supply chain parts of the organisation.

Electronic data interchange is used as a medium as well to link with all the members. With the help of this medium, a member at the end of the customer could inform about the modifications in patterns of public demand and accordingly, the management of Nestle Middle East could formulate solutions. This enables in maintaining flexibility and developing trust among all the members, as the negotiations would be made in front of all the members (Jacobs, Chase and Lummus 2014).

Ensuring Ready Availability of Products through Effective Information Transfer

With the help of information technology, Nestle Middle East has integrated all the supply chain members along with assisting in the coordination of internal management. With the increase in the medium of communication information and its rapidity, Nestle is needed to minimise its costs. These new techniques have increased the number of transactions and supplier negotiations. The pace with which information is transferred has resulted in minimisation of human errors and as a result, the delays in business operations are avoided (Rushton, Croucher and Baker 2014).

The use of information technology has made it possible for estimating changes despite the dynamic and unpredictable nature of the competitive market. In addition, any change could be informed to the supply chain members of the organisation; thus, making it easier to react to changes and market competition.

The ready product availability denotes the effective method of information transfer in managing its supply chain. The customers have provided positive responses about the products (Mangan, Lalwani and Lalwani 2016). With the help of web distribution and intranet, the supply chain members could be informed about the likely delays or changes about a product. Hence, the supply chain is integrated into a single unit for providing regular information to all the members along with risk minimisation.

However, the organisation could think of periodic revision of its supply chain, if needed, without wasting adequate resources and time through using information technology. As a result, a global customer base and multiple units could be formed quickly. The costs of the organisation are minimised, as the orders and suppliers could be provided electronically with the payments, which are secured and less time-consuming.

Logistics is the process, which considers transfer of products from the warehouse of an organisation to retail stores or wholesalers (Saenz and Koufteros 2015). The objective of the logistics department is to ensure mobility and timely delivery of products for creating a transparent business environment. With the help of logistics department, Nestle Middle East has brought the pallet leads of different nature into operation in UAE. Along with this, installation is made with confectionaries and beverages in its distribution hubs with the help of two vehicle fleets.

Nestle has obtained support from its supply chain consultant to work on “Total Logistics” for numerous years. As a result, it could solve various strategic complexities needing concern. Thus, it delivers minimised volumes of products ultimately resulting in significant cost minimisation.

Conclusions

For ensuring smooth running of operations, Nestle needs to follow the procurement practices. This is because it would enable in providing an insight of the proper supplies for transferring the products of the organisation in an effective manner. This is the method through which greater quality products could be identified. The procurement process takes into account buying and sourcing activities of the organisation (Schönsleben 2016).

In this process, Nestle Middle East needs to track whether the supply chain members work in accordance with the safety standards and the quality of the organisation. In case, the suppliers are aware of the same, they would provide those raw materials favourable for the users. The procurement practices of the organisation are that it has detected the distributors and suppliers carefully able to run the business in an effective manner. It takes into consideration the techniques through which goods are supplied to the retail shops, which are environment-friendly (Stadtler 2015).

Various factors need to be considered through which Nestle Middle East could enhance logistics and supply chain coupled with the practices related to procurement. In order to achieve this, it is to be assured that clearness could be maintained during the negotiations dealing with the supply chain members. As a result, fairness would be promoted in treating the suppliers of the organisation. Eventually, this would lead to maintenance of effective coordination among everyone and thus, best services would be provided. It would result in cost effective system (Touboulic and Walker 2015).

Along with this, it is necessary for Nestle Middle East is required to pay attention to ensure efficient functioning of the business processes and organisational regulations. For conducting the procurement practices in an efficient manner, it is essential for the organisation in checking that the business operations conform to the organisational regulations and standards.

It is significant for a firm to plan a supply chain strategically and the way of managing the same in a proper manner. Initially, the organisation is needed to enforce suitable communication techniques for providing free flow of alternatives and thoughts (Waters and Rinsler 2014). In case, information could be passed rapidly without wasting much time, they would be updated immediately. This would enable the organisation to understand the market conditions based on which it needs to conduct its operations. Secondly, Nestle is required to work on the business operations and processes. This is because with the help of such improvements, timely product delivery could be assured.

Another factor to be taken into consideration is risk management. The suppliers need to maintain records of the customer demands for increasing the awareness of the organisation. In addition, it needs to inform regarding variations in tastes and preferences of the customers. If the suppliers do not maintain effective relationship, obtaining customer information would be possible. Hence, the organisation needs to work on such aspect.

In case, there is implementation of an effective strategy in order to enhance the supply chain of Nestle Middle East, the business performance needs to be improved in a number of ways, which are discussed as follows:

• The supplier negotiations could be carried out at a faster rate along with improving the transactions
• The supply chain improvement would help in minimising costs and additional resources could be employed for valuable purposes (Wisner, Tan and Leong 2014)
• Establishment of an effective coordination and collaboration among the supply chain members through the enhanced strategy of the supply chain

Nestle Middle East could utilise the IBM Cognos SCPM solution for associating the data of the supply chain to the other organisational applications, which comprise of human resources, customer relationship management, finance and external data. In this manner, the technique helps in enhancing the supply chain performance along with integrating the overall organisation into a single source of mission-critical information. Thus, the overall business performance could be improved along with the value of the current IT resources of the organisation (Wolf 2014). The staffs throughout Nestle Middle East could access this particular software for existing and rightful data required to collaborate on issues along with undertaking greater business decisions. Hence, this software is highly valuable in overcoming the barriers at the time of implementing the supply chain improvement strategy in Nestle Middle East.

Conclusion:

From the above discussion, it is evaluated that supply chain management and logistics are significant parts of Nestle Middle East, in better words, they could be considered as the backbone of the organisation. By administering them in a controlled fashion, the organisation could accomplish overall efficiency and it could utilise its resources in an organised manner.

References:

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