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2021/2022- Semester 1
Supply Chain Management
THE COUNCIL OF COMMUNITY COLLEGES OF JAMAICA
SEMESTER I – SEPTEMBER 2021
PROGRAMME: BUSINESS ADMINISTRATION
COURSE NAME: SUPPLY CHAIN MANAGEMENT
YEAR GROUP: FOUR
DUE DATE: TBD
ASSESSMENT TYPE: COURSEWORK1 – GROUP- PROJECT (20%)
INSTRUCTION: In groups of no more than FOUR (4) persons, students are required to design
a Supply Chain Management Plan for a unique Jamaican product.
PROJECT-20% of GRADE
2021/2022- Semester 1
Supply Chain Management
Select a unique Jamaican product and develop a Supply Chain Management Plan for this
product by carrying out the tasks below:
A. Provide an executive summary of the organization selected (name, location, target market etc.)
B. Design the supply chain network with the aid of diagrams 10 Marks
C. Describe the transportation network design that will be used and advantages of this design
D. Describe the benefits of any forecasting techniques used by this entity. 5 Marks
E. Explain any revenue management opportunities available to that entity within the supply chain
F. Discuss the role of sourcing and the ways of accomplishing this function along the supply chain
G. Explain the effect or e-business opportunities within the supply chain of this
H. The role of information systems and the internet in the supply chain 4 Marks
I. Analyse how each supply chain driver uses information 10 Marks
J. Evaluate the major applications of supply chain information technology and the processes that they enable
K. Discuss the impact e-business can have on the performance of this supply chain. Limit your discussions to two factors
L. How would you utilize e-business frameworks to evaluate companies’ potential for e-business and where they should focus their e-business
efforts? Illustrate an example.
TOTAL 100 Marks
2021/2022- Semester 1
Supply Chain Management
Supply Chain Management Redesign.
The Global Pandemic which intensified in 2020 has seriously impacted business and commerce
in many ways. You have been summoned to an emergency meeting by senior management due
to decline in operational profitability caused by the global pandemic. You have been tasked to
assess the basic operations of the supply chain prior to the onset of the pandemic and make
recommendations for improvement in supply chain strategies which you feel would provide
optimum performance in the context of operating under global pandemic conditions.
A. Describe ways in which the global pandemic can have a significant impact on any 5 major
elements of the Supply Chain. (20 marks)
B. For each area identified make a recommendation as to the actions that can be taken by the
organization to mitigate the effects of these potential threats. You must explain how your
recommendation would be implemented (30 marks)
(to be included as appendix in the report)
• clear outline of business details
• supply chain identified
• clear forecasting method and technique(s)
• transportation network design clearly explained
• use of labelled diagrams (where appropriate)
• use of appropriate examples
• theoretical underpinning knowledge applied
• spelling, grammar and language
2021/2022- Semester 1
Supply Chain Management
referencing (ONLY ACADEMIC SOURCES) – at least 3 textbooks and 1 academic journal
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causing a weak
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Content – 150 Marks Grammar – 10 marks Organization – 10 marks Explanations and
examples – 20 marks Citations – 10 marks
Marley Coffee 13
Marley Coffee: Supply Chain Management Plan
Coffee is a drink made from roasted coffee beans that is often believed to be the most popular beverage on the planet. Coffee has a stimulating impact on the body, and many people use it to refresh themselves and get ready for the day. Espresso, single-serve coffee, café latte, and even tinned coffee are all coffee preparation and presentation examples. You may also buy roasted coffee beans to use in your own coffee making. Coffee offers long-term health advantages when consumed within the permitted limits.
Marley Coffee: Supply Chain Management Plan
For every firm, supply chain planning aims to optimize processes, increase efficiency, prevent delays, and lower operational expenses. When supply-chain planning is done correctly, it may help save expenses connected with corporate activities, including manufacturing, inventory management, shipping, and buying. As a result, supply-chain management must be done with caution. It is thought to be a critical factor for any company nowadays (Marley Coffee, 2019). The creation of a supply chain management strategy is one of the most critical parts. The supply-chain management strategy enables a company to stay flexible and respond quickly to any unanticipated challenges or changes.
The name of the company chosen is Marley Coffee. Marley Coffee is a Jamaican firm that specializes in selling coffee goods. In 2007, the firm was founded by: Shaineisha Skippings, Aisha Thomas, Akerra Wwilliams and Kamula Williams. The firm started with roughly 52 acres of land in Jamaica and has since expanded to source from all over the globe and service various places. The firm concentrates on organic coffee cultivation and offers fair trade certified coffee as a consequence. The firm distinguishes out due to its emphasis on organic farming and sustainable production practices.
Marley Coffee has its headquarters in Kingston, Jamaica. It also branches in Europe and USA. The company sells different product brands in the different locations including Get Up Stand Up, One Love, Buffalo Soldier, Lively Up, and Simmer Down are some of the company's coffee brands. In addition, the firm sells Rainforest Alliance, Organic Range, Blue Mountain Coffee Products, and Nespresso Capsules, among other coffee blends. If It also serves single-serve coffee.
The target market for coffee, includes drip coffee drinkers, whole bean buyers, specialty coffee drinkers, and coffee shop lovers. The company targets consumers in markets including Jamaica, the United States, and Europe. The product is available in thousands of retailers throughout the United States. Marley Coffee has developed a devoted following in Europe, particularly in the organic and health-food store and café sectors. This is the case in nations such as the United Kingdom, Ireland, Iceland, Holland, the Czech Republic, Norway, Hungary, Sweden, Denmark, and Finland.
There will be two tiers to the Marley coffee supply chain. The supply chain starts with the procurement of coffee beans at both levels. Coffee imported from other nations, such as Ethiopia and Brazil, is on the first level, whereas coffee cultivated in Jamaica is second. The supply chain for goods like "One Love," which uses 100 per cent Ethiopian roasted coffee, will start with importing the coffee from various farms and producers. Because it exclusively utilizes organic coffee, the firm should establish relationships with local farmers. This implies it must be cautious of all of its vendors. The supply chain will be robust and powerful if growers and coffee cooperatives in Ethiopia are prioritized. The graphic below depicts the company's supply chain network for imported coffee beans.
Diagram for Marley Coffee below
The firm produces organic blue Mountain coffee on its plantations in Jamaica for its Blue Mountain coffee. The next phase in the procedure is to roast the coffee beans once they have been sourced. The coffee is roasted in various ways, including medium roast, dark roast, and light roast. After that, they are packed into various brands depending on the sort of coffee and where it was acquired. Following that, the corporation has a vital distribution system to ensure that the coffee reaches various places. The items offered in Jamaica are sold in a variety of local shops. Furthermore, Marley Coffee will be delivered to other online platforms, such as Amazon, where they will sell it.
The corporation should establish a distribution center near the production and hire logistics companies to assist with shipping and distributing various coffee brands to maintain efficiency. Partnerships with logistics businesses will be required for items that must be exported to enable a seamless transfer of the product to overseas customers.
Transportation Network Design
The transportation network refers to the infrastructure employed to guarantee that items are delivered to customers in an unrestricted manner (Lei et al., 2017). To deliver the goods to the various markets, many kinds of transportation will be needed. Marley Coffee will deliver its goods by air and road freight from its roasting facility in Jamaica. This implies that the corporation will have two transportation networks: air and road. The country's road networks will be utilized to supply the many local businesses.
Using road networks is advantageous since it reduces capital expenditure and facilitates distribution to various parts of Jamaica. This implies that the network will make it simple to distribute several coffee brands to local retailers. It will also give localized, adaptable service. It is also ideal for short-distance travel since it is less expensive than air travel or other modes of transportation. It is also rapid, reducing the danger of product damage while in transportation. Using this network will also save the firm a lot of money on packaging.
Marley Coffee will employ air networks to move its various coffee goods out of the country and into worldwide markets. The United States and Europe are among them. One of the benefits of employing this transportation network architecture for international product delivery is that it delivers high-speed, ensuring constant coffee availability in various nations. Furthermore, it delivers really quick service. Another incentive to choose air transportation is the high level of security connected with it. There will also be no need for bulky packaging, allowing the corporation to save money in this area.
Supply chain forecasting is a method of predicting future demand for a product by examining historical evidence, data and assessing previous and present supply (Cohen & Roussel, 2013). The corporation will apply the straight-line forecasting approach for Marley Coffee. This strategy is straightforward since financial analysts will need to look at previous data and patterns to forecast future revenue growth for Marley Coffee's coffee goods. The corporation will always utilize these to establish how much it will provide, which is one of the most significant factors. Furthermore, this is beneficial since it gives realistic predictions of what the organization might anticipate in future financial conditions.
The firm's supply-chain forecasting approach will help it optimize its logistics, lower costs, and achieve more efficient production scheduling. All of these things are crucial in the process. The straight-line approach of predicting will be useful mostly because coffee consumption is a habit that seldom varies. Looking at historical data is, therefore, a smart technique to predict since it will assist the organization in determining how much to provide based on previous sales.
Revenue Management Opportunities
Revenue management is critical to guaranteeing the company's long-term success. The yield management method focuses on the pricing strategy that the firm will adapt based on the degree of demand at any given time (Christopher, 2016). Offering new items to various markets is one of the revenue management alternatives that the corporation may pursue. Increasing the range of coffee items available will allow the company to gain income. Currently, the firm concentrates on roasting coffee beans, grinding coffee, and single-serve coffee. The firm will be able to improve its income by introducing an instant coffee product. The instant coffee product should be marketed in small quantities and at a lower relative price but with a greater rate of return when compared to manufacturing expenses. The company's revenue will improve as a result of this. The firm may also use dynamic pricing based on location in which it sells. The cost of identical coffee items in Jamaica and Europe, and the United States should be different.
Sourcing is the process of evaluating, selecting, and managing suppliers that can give the organization the inputs it needs to manufacture its goods (Cohen & Roussel, 2013). In the case of Marley Coffee, they are the cooperatives and farmers that will provide the firm with the coffee beans it needs to manufacture its various coffee products. Sourcing is an essential component of the supply chain because it allows companies to pool their buying power and obtain the lowest total cost of ownership feasible. Consequently, the firm will be able to reduce supply-chain risks and, as a result, will be able to guarantee that it has a constant supply of coffee goods to sell to the market at any given time.
Marley Coffee should concentrate on strategic coffee bean procurement. To locate the finest suppliers, the organization needs to go through a five-step procedure. The first step is to conduct an assessment and gather data that will be utilized to develop a plan. This will include a thorough examination of the coffee bean supply requirements. The organization must decide the number and quality of coffee beans necessary and the places from which they must be sourced. Because the firm sources coffee from places like Brazil and Ethiopia, it's critical that these be featured.
The next step in the process is to choose the appropriate engagement model. Selecting the relevant sourcing events is crucial to ensuring that the organization takes the appropriate strategy. There must be a balance between the intricacy of the situation and the measures that will be implemented. The third step is to verify that the firm was able to do research and award the supplier. Communication skills, supply operations, the supplier's financial stability, infrastructure, the supply chain they utilize, ethics, and even catastrophe preparations will all be important in this process. The implementation of the contract is the next step in this procedure. Working with new suppliers will include developing a communication strategy that will carry out the plan and assure the delivery of coffee beans. The organization will need to set up and monitor invoices as the last step in the strategic sourcing process. This occurs after the firm has on boarded the supplier.
Effect of E-Business Opportunities
E-Business offers the firm a means of communication that opens up new markets for the company's goods (Lei et al., 2017). Taking advantage of e-commerce prospects will be crucial for Marley Coffee in ensuring that the firm can boost production and efficiency while reducing expenses. Aside from Amazon, other e-commerce businesses will need to get involved. Furthermore, the corporation may employ online delivery services to send the various coffee goods to clients once purchased. This is simple to execute in Jamaica, where the firm is based.
Role of Information Systems and the Internet
Because they promote visibility and accountability, information systems are crucial in supply-chain management. This implies that Marley Coffee, the manufacturing firm, will have more control over product movement and information flow across the supply chain. This implies that there will be improved relationships between trade partners, which will result in better inventory management, profit maximization, and overall supply-chain and value-chain management (Daneshvar & Gargeya, 2019). This is an important component of the business nowadays. The organization may also utilize the Internet to make it much easier to locate suppliers. The Internet also makes it easier for the firm to interact with one another.
Production, inventory, location, transportation, and information are the five supply-chain drivers. Based on the information, production decides how much should be produced and how much should be purchased from suppliers (Saeed & Kersten, 2019). This will guarantee that their product is available in the inventory at all times. Inventory utilizes data to calculate how much from the production team to order. Customer demand and the status of the market are two examples of the data.
Another crucial consideration is the location. Because certain areas or target markets may need more goods than others, various locations will have varying demands. The corporation must react to this, which it does by delivering inventories. Information is used in transportation to guarantee enough supply between the manufacturers and the merchants or the many sites where the product is distributed. The availability of information guarantees the company's response, which assures the supply chain's efficiency.
Supply-Chain Information Technology
Supply-chain information technology is a crucial aspect of the supply chain. It allows a corporation to digitally organize inventory data, monitor and control shipping operations for various items, and track data (Lei et al., 2017). Aside from that, the organization may quickly develop electronic bills of lading and invoices using this information. Product planning, inventory management, and contracts with suppliers are just a few of the key uses of supply-chain information technology today.
Impact of E-Business
In two ways, e-business will influence Marley Coffee's supply chain. One of the benefits of e-business technology is that logistical expenses will be decreased. Products may now be transported straight from the Marley coffee distribution center to the client due to the establishment of such platforms. There would be no need for any middlemen, which lowers logistics. E-business technology will also help simplify procurement procedures by reducing the time spent at each stage in the supply chain, making it more effective and efficient.
In addition, Marley Coffee has expanded its distribution in Chile, with new locations in numerous major supermarket stores. Wal-Mart Stores, Inc., with over 30 stores confirmed to carry three SKUs of 8oz bagged coffee, was added to the company's list of retailers. Wal-Mart represents a significant retail distribution gain in Chile, with plans to open 120 stores over the next six months. In addition, the company has recently obtained distribution in 100 Unimarc stores and 50 Tottus supermarkets in Chile, two of the country's largest grocery retailers.
The site now includes information on sustainability and news updates from the Marley family farm in Jamaica's the Blue Mountains, in addition to instructions on how to prepare the ideal cup of coffee.
The Investor Relations section contains access to business management, news releases, media placements, analyst coverage, annual reports, SEC filings, and a calendar of corporate events. A fully integrated e-commerce portal, as well as a "coffee of the month" club and a unique reward program, will be launched soon.
A beverage with a taste as memorable as Marley Coffee deserves an equally memorable website. We are pleased with our new website, which provides an engaging experience for our investors and interested visitors.
We believe it will enhance our image and communicate our narrative in a bold new way that will appeal to coffee enthusiasts globally, thanks to its new layout, enhanced design, and range of features.
Utilization of E-Business Frameworks
The e-business frameworks are useful in analyzing whether or not a firm can utilize e-business to grow its market share and income. External research of the microenvironment and industry structure, internal analysis of the company's core resources and competencies, and an examination into generic strategy possibilities are all part of the e-business frameworks (Johnson & Whang, 2002). In addition, the framework includes determining a sustainable competitive advantage, exploring other market sectors that might be explored, internal structure, and even mobile e-commerce plans for the firm.
The mobile e-commerce strategy for the firm is one of the frameworks that the organization may use. It's feasible to determine whether the corporation can boost sales by concentrating on having effective mobile platforms that clients may use to place orders for coffee items and mixes. Marley Coffee might use similar technology to boost sales if it is practicable. SWOT analysis, competitive forces analysis, and value chain analysis are some methods that may be utilized to help with strategy execution (Christopher, 2016). This will aid in determining the company's crucial success aspects.
Christopher, M. (2016). Logistics & supply chain management. Pearson Uk.
Cohen, S., & Roussel, J. (2013). Strategic supply chain management: the five disciplines for top performance. McGraw-Hill Education.
Daneshvar Kakhki, M., & Gargeya, V. B. (2019). Information systems for supply chain management: a systematic literature analysis. International Journal of Production Research, 57(15-16), 5318-5339.
Johnson, M. E., & Whang, S. (2002). E‐business and supply chain management: an overview and framework. Production and Operations Management, 11(4), 413-423.
Lei, L., DeCandia, L., Oppenheim, R., & Zhao, Y. (2017). Managing Supply Chain Operations. World Scientific.
Marley Coffee. (2019, April 30). About Us. Marley Coffee. Retrieved November 1, 2021, from https://www.marleycoffee.com/about-us/.
Marley Coffee. (2021). Coffee blends. Marley Coffee UK and Europe. Retrieved November 1, 2021, from https://www.marleycoffee.eu/coffee-blends/.
Saeed, M. A., & Kersten, W. (2019). Drivers of sustainable supply chain management: identification and classification. Sustainability, 11(4), 1137.
Include in the executive summary: The partners in the US, when Marley Coffee part ways with them and build a facility in Jamaica
Distributors of Marley Coffee
Phase 1 – SC Strategy
· Providing customers with a unique blend of organic coffee. Thus they are more for differentiation. Aims to provide high availability of a variety of high quality blends at reasonable prices. Its competitive strategy is built around providing the customer with convenience, availability, and responsiveness.
· The company reach is a global market, hence there is global competition
· Growth will be accomplished through partnerships and acquiring existing facilities
· Any internal constraints as it relates to capital, growth or existing network.
· Include a network design chain diagram
Phase 2 – Regional Facility Configuration
· identify regions where facilities will be located, their potential roles, and their approximate capacity
· Jamaica – Farm/manufacturing or processing plant (why), DC (where?)
· Demand forecast in regions– homogenous products requirement which favors large consolidated facilities (exclusive distributors for regions)
· Identify demand risk, exchange-rate risk, political risk, tariffs, requirements for local production, tax incentives, and export or import restrictions.
Phase 3 – Potential Desirable Sites
· Sites should be selected based on an analysis of infrastructure availability to support the desired production methodologies.
· Farm (Blue mountain peak (Portland) – good climate for coffee farming) (Plant (Kingston – manufacturing Hard infrastructure – availability of suppliers, transportation services, communication, utilities and warehousing facilities
· Soft infrastructure requirements – skilled workforce, workforce turnover and community receptivity to business and industry
Phase 4 – Location choice (Jamaica)
· Select a precise location and capacity allocation for each facility.
Transportation Network Design – Tailored Network
· Jamaican Farm – Shipment to Manufacturing plant via truck-loads
· Regional Suppliers – Direct Shipment Network to Single Destination – shipment to manufacturing plant using intermodal (containers via water and then trucked to manufacturing plant. OR All Shipments via Intermediate Transit Point with Cross-Docking
· From Manufacturing plant to Distributors – Direct Shipment Network to Single Destination using intermodal (water and truck)
· From Distributors to retailers – Direct Shipping with Milk Runs
· For online customers – package carriers
Revenue management is the use of pricing to increase the supply chain surplus and profit generated from a limited availability of supply chain assets.
Revenue management may also be defined as the use
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