Supply Chain Management Systems: About LafargeHolcim (Other (Not Listed) Sample)
Target Word Limit: 1250-1500 words
Referencing Style: APA
As an Operations Manager of an organization of your choice, you are required to evaluate the organization’s Supply Chain Management system. Provide
adequate reasons as to the importance of their system, utilizing the key task below.
1. Analyze the Supply and Demand aspect of the organization’s supply chain.
2. Critically evaluate the benefits of a well-managed supply chain system, considering the dynamics of both internal and external attributes.
3. Provide a holistic analysis of your organization’s supply chain activities, specific to the organizations main objectives.
4. Conclude your report and provide recommendations.
Supply Chain Management
Supply chain management system is key component in a company since it determines how an organization utilizes its resources to customize their needs in the most cost effective way. Supply chain management systems provide the opportunity to ensure fluidity among supply chain partners, something that is of increasing importance in the changing marketing environment. Supply chain management systems have the potential to ensure that all activities in the supply chain are specific to operating environments and that they promote organizational efficiency and effectiveness (Bradley and Benjamin, 2017). It is from this perspective that this report will analyze the supply and demand aspect of supply chain, benefits of a well managed supply chain and an organization’s chain activities. This is in reference to LafargeHolcim Company.
LafargeHolcim is the leading global company in manufacturing building materials and related solutions. LofargeHolcim operates in 80 countries of the world and is the most innovative in manufacturing of cement and concretes as well as aggregate solutions. LafargeHolcim is a merger of Lafarge and Holcim and both have a combined experience of over 180 years in the construction industry (LafargeHolcim Company, 2017).
Question 1: Supply and Demand aspect of the organization’s supply chain
The main aspect in LafargeHolcim Company supply chain is ensuring that its product is available at all times and that there are reliable deliveries. This is because more important for the customers, is accessing the product they want and when they want it. LafargeHolcim is particularly concerned with ways of ensuring that the right quantity of products is available at the right time and at the right price. This is important in ensuring that the supply chain is not only used to maximize profits but also in ensuring that the product is available for the customers at all times.
In order to meet the increase demand for building materials and other solutions, the company has heavily invested on innovative solutions. Among the innovative areas that the company is keen at, is providing retailing solutions through a nationwide network of stores. This is important in ensuring the company products can easily be accessed at different points in the market.
Further, the company has also introduce idea of deports and container shops that are mobile. This is to ensure wide coverage and more especially to the remote cases. Example countries where this innovative idea is being used, is Tanzania and Zambia in Africa.
Finally, the company has developed an advanced inventory management system to ensure that products are available at all times. This is possible with the availability of advanced inventory management software that enable the company refill its stock at the right time. This is important in ensuring that the customers get the right product and of the quality in any given store.
However, for the company to ensure that products are available and that reliable deliveries are made, it has to ensure proper planning and organization to promote efficiency in operations and networking. According to Pinedo (2009; pg 12) planning is a rational and well structured decision making process that is aimed at getting the best choice of objectives and approaches to every situation. In this case therefore, the success of LafargeHolcim supply chain should be depended on how well the supply chain decisions are related to its goals objectives. The specific methods that the company should use in planning and organizing its operations include compressing the supply chain structure, reducing time lags, enhancing cooperation and optimization.
Question 2: Benefits of a well-managed supply chain
According to Ourania et al. (2013, pg 441) the main benefits of a well-managed supply chain are: time savings, cost reductions and enhancement of operations.
Time savings: This is basically the time saved as a result reduced time that the company takes to take the product to the market including its expected quality standards. This is possible in a case where the supply chain is efficient and effective.
Cost savings: This happens when the cost is optimized as a result of carefully selected suppliers. This is because competitive suppliers are able to give competitive discounts. Further, cost savings is also as a result of optimized processes of managing resources and other marketing expenses. Managing the cost is aspect is of critical importance since it influences the company profit margins.
Enhancement of operations: This is basically about how individual enterprises in the supply chain associate and operate. This could also have an impact on either time or cost reductions. This is because a well managed supply chain promotes core competencies, product core-creation and risk management among the partners in the network.
For the benefits to accrue to the supply chain network, both internal factors and external factors have to be managed. Internal factors such as employee motivation, training and development play a significant role in the execution of various activities in the supply chain. On the other hand, external factors such as middlemen and depleting natural environmental resources are also key factors that should be addressed.
Even though these are important factors in the supply chain, quality remains a key factor. This because it is when a product is of a right it can serve the customer need. In the supply chain are specific problems to ensuring quality control and they include lack of information security, poor configuration and design of network, competitive threats from partners, loss of reputation and resistance to change (Pinedo, 2009). These are major problems and difficult to control because are external and a company has to deal with them.
Question 3: LafargeHolcim supply chain activities
The specific supply chain objectives of LafargeHolcim are: to come up with a system to ensure product availability and reliable deliveries; to have an in-store animation that drive sales, have one-stop shop for a wide range building materials and solutions and develop digital services to ensure easy accessibility of company solutions.
In order to meet these supply chain objectives, LafargeHolcim is performing these activities:
Manufacturing various products and making them available for delivery at all times. This is important in ensuring a wide range of products to choose from at any given time.
The company has also managed to develop an in-store animation and shopping experience in order to drive sales traffic. This is important in getting the product to the point of sale hence helping generate more revenue for the company.
Further, the company has also managed to establish a one-stop retail shop stocked with a wide range of pro...
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