LOG201 Supply Chain Management for Information Flow

Product Flow- The product flow element of the supply chain of the company can be termed as effective in nature as the products of the company flow in a uni-directional manner to the customers of the company from the manufacturing units of the company. The efficient product flow of the company ensures that the products of the company reach the customers of the company at the required time. As opined by Wilson (2016) the recommendation to the company to improve the product flow in supply chain of Nutradry is to improvise distribution network so that the product of the company reaches to the customers at a faster and effective way. Another recommendation to Nutradry regarding improvement of product flow in supply chain is to establish information conduits in order to share important data such as tracking information with the key partners of the company.

Information Flow- The information flow element of the supply chain of the company can be termed as effective in nature as vital information of the company are available to all entities present in the supply chain which serves as connection between the various stages of the supply chain process and allows them to co-ordinate among themselves and take important decisions. As opined by Badenhorst, Maurer & Brevis-Landsberg (2013) the recommendation to the company to improve the information flow in supply chain of Nutradry is to enable real-time data access of the company in order to take informed decisions and to be informed about a great deal of diverse information about the company. The other recommendation to Nutradry regarding improvement of information flow in supply chain is to ensure security of company.

Cash Flow- The cash flow element of the supply chain of the company can be termed as effective in nature as the company not only focuses on their earnings but also specialize in cash flow management which helps in the optimization of the supply chain. The recommendation to the company in order to improve the cash flow in supply chain of Nutradry is to implement process of EBITDA (earnings before interests, taxes, depreciation and amortization) optimization which will help in enriching cash flow in the supply chain of the company. There are various strategies which can be implanted by the company in order to enrich the cash flow in the supply chain of the company through EBITDA optimization such as business process optimization, direct effort optimization, logistics optimization, machine optimization etc.

Reverse Logistics- The reverse logistics element of the supply chain of the company can be termed as effective in nature as the companies have effective processes in place in order to recapture the value of the product after the product has moved from the place of utilisation to the place of origin. According to Kumar, Amorim, Bhattacharya & Garza-Reyes (2016) the recommendation to the company in order to improve reverse logistics in supply chain of Nutradry is to implement a Returns Management Strategy in the company which will help in providing customers with multi-channel visibility.

                                                   The key flows  in a supply chain are as follows:

                                                                    Fig: Key flows  in a supply chain

                                                                     Source- brandalyzer.org(2018)

The Make Process

According to Vogel, Almada-lobo & Almeder (2017) production planning is described as management procedure which occurs inside manufacturing firms and which includes ensuring that enough raw material, staffs and additional vital resources are acquired and available to process finished goods by following specific procedure.

The production planning process at Nutradry can be termed as effective in nature as it follows all the necessary steps which are involved in the process of production planning namely forecasting the demands of their products, determining potential options for production, choosing the best production option which uses the combination of resources in a more effective manner, monitoring and controlling and adjusting. As opined by Bielecki & Gali?ska (2017) the production planning process of the company can also be termed as effective in nature as it helps the company to meet the demands of the products of the company in the market while reducing manufacture timing and production costs by improvising the process flow, lowering wait timing amid various stages of operations and streamlining the usage of machines and tools.

Recommendations for Nutradry to improve the production planning process of the company involves having an effective inventory management system or process in place so that the production planers of the company will know exactly what resources are available at any given time. As stated by Göçer, Yumurtaci, Yurt & Baltacioglu  (2015) another recommendation to the company in order to improve the production planning process of the company is to increase the efficiency of the company in managing workloads as it will help in increasing the efficiency of the production planning process of the company.

Materials Requirement Planning is defined as a planning and control system for inventory, production and scheduling. As stated by Doma?ski & Adamczak (2017) the Materials Requirement Planning helps in the conversion of the master schedule of production of a company in to a detailed schedule so that the companies can purchase raw materials and components.

As opined by Rivers (2013) the Materials Requirement Planning Process which is being followed in Nutradry can be termed as effective in nature as the materials requirement planning process implemented in the company follows all the necessary steps associated with the materials requirement planning process namely identification of quantity requirements, using the Materials requirement planning calculations and completing the orders. As stated by Wang & Liu (2013) the Materials requirement planning process which is followed in Nutradry can also be termed as effective in nature as it helps the company to timely manufacture goods for the customers, reduce the equipment downtime and decrease the capital costs through lowering inventory volumes and optimum utilisation of manufacturing materials.

The main recommendation to Nutradry for improving the Materials requirement planning of the company is to implement an ERP solution with a powerful Materials Requirement Planning Technology in the operations of the company as it will help in improving the demand planning and forecasting process of the company which will help in enhancing the materials requirement planning process of the company. As stated by Li & Disney (2017) another recommendation to the company in improving the materials requirement planning process of the company is to frequently audit the vendors and suppliers of the company regarding their actual lead time vs. anticipated lead time, which will help in the enhancement of the materials requirement planning process of the company.

The Supply Chain Forecasting

There are various methods which can be used by organizations for forecasting their supply chain. The various supply chain forecasting methods are as follows:

Qualitative forecasting techniques- The qualitative forecasting techniques are the approaches towards forecasting which are based in intuitive or judgement evaluation. As stated by Ghalehkhondabi, Ardjmand, Weckman & Young (2017) the qualitative forecasting techniques are generally used when data are limited, not available or are not relevant in nature. There are various types of qualitative techniques which can be used by an organization mang which the most popular techniques are estimates of sales force, personal insights, consensus of panel, market research, visionary forecasting and the Delphi method. The common examples of qualitative demand forecasting are development of long range projections and new product development.

Quantitative forecasting technique- As stated by Ogcu Kaya & Demirel (2015) the quantitative forecasting techniques are the approaches to forecasting the supply chain by an organization where historical demand data is utilized to project and predict future demand. The quantitative forecasting technique uses intrinsic and extrinsic supply chain forecasting techniques.

Graphical forecasting method- The graphical forecasting methods utilizes visual information in order to predict pattern of sales typically involving plotting information in a graphical form. It is perceived as relatively easier to convert a spreadsheet into a graph which conveys the information in a visual manner. In the graphical forecasting models, the trends and patterns of data are easier to spot and the extrapolation of earlier demands can be used in predicting future demands.

Trend forecasting models- As stated by Maaß, Spruit & de Waal (2014) the trend forecasting models include the methods of forecasting sales data when a definite upward or downward pattern is observed. The various common trend forecasting models are regression, triple smoothing and exponential smoothing.

The forecasting method which can be suggested to Nutradry is exponential smoothing as it helps in effective demand forecasting in the supply chain of the company. As stated by Ravinder (2013, b) the exponential method of forecasting will help the company to compare the past forecast of the company with the actual past results and then will help in applying the difference between both the forecast in the next forecast of the company. Presumably, the new forecast of the company will be more accurate in nature as it accounts for actual distinctiveness in the estimations of the company and the actual results and interpreting that baseline will help to control numerous elements that are outside the control of Nutradry thus helping to reduce the margin for error in the company.

There are numerous benefits of applying Exponential smoothing method for supply chain forecasting which are as follows:

• As stated by Ravinder (2013, a) the exponential smoothing method of forecasting is convenient to understand and use as it is applied in only three forms of data for forecasting namely forecast for most current time period, real value for that time period and value of smoothing constant.
• The exponential smoothing method gives an accurate projection of one period ahead by utilising trend forecast method.
• The exponential method of smoothing gives more significance to recent observations as it neglects the random variation.

Conclusion

From the above report it is clear and evident that the supply chain management function of Nutradry has contributed to the growth and development of the company. The various key flows of supply chain of Nutradry namely product flow, cash flow, information flow and reverse logistics are highly effective in nature which contributes to the success of the company in the market. From the report it is also observed that the various elements of the supply chain management process such as production planning and materials requirement planning are highly effective in nature which has improved the productivity and profitability of the company. The main suggestion to the company regarding the improvement of the production planning and materials requirement planning of the company is to implement ERP software in the operations of the company which will help in streamlining the operations of the company and hence will add to effectiveness of supply chain process of Nutradry. From the report it can also be stated that there are various supply chain forecasting techniques and methods which can used by companies regarding forecasting demand in a supply chain and after analysing the operations of the company it can be stated that the best forecasting technique or method which can be suggested to the company is exponential smoothing as it helps in forecasting exact demands and requirements of the market.

References

Badenhorst, J. A., Maurer, C., & Brevis-Landsberg, T. (2013). Developing measures for the evaluation of information flow efficiency in supply chains. Journal of Transport and Supply Chain Management, 7(1) doi:https://dx.doi.org/10.4102/jtscm.v7i1.88 Accessed as on 30/11/2018

Bielecki, M., & Gali?ska, B. (2017). TOTAL LOGISTICS MANAGEMENT CONCEPT AND PRINCIPLES IN MANUFACTURING ENTERPRISE. Business Logistics in Modern Management: Osijek, 93-107. Retrieved from https://search.proquest.com/docview/2123045729?accountid=30552 Accessed as on 30/11/2018

brandalyzer.org(2018) major flows in supply chain Available at- https://brandalyzer.blog/2016/03/23/the-five-major-flows-in-supply-chain/ Accessed as on 30/11/2018

Doma?ski, R., & Adamczak, M. (2017). Analysis of the influence of the lot sizing on the efficiency of material flow in the supply chain. LogForum, 13(3) doi:https://dx.doi.org/10.17270/J.LOG.2017.3.8 Accessed as on 30/11/2018

Ghalehkhondabi, I., Ardjmand, E., Weckman, G. R., & Young, W. A. (2017). An overview of energy demand forecasting methods published in 2005-2015.Energy Systems, 8(2), 411-447. doi:https://dx.doi.org/10.1007/s12667-016-0203-y Accessed as on 30/11/2018

Göçer, A., Yumurtaci, I. Ö., Yurt, Ö., & Baltacioglu, T. (2015). A new framework for supply chain risk management through supply chain management capability. Çanakkale Onsekiz Mart Üniversitesi Yönetim Bilimleri Dergisi, 13(26), 151-174. Retrieved from https://search.proquest.com/docview/1721395366?accountid=30552 Accessed as on 30/11/2018

Kumar, V., Amorim, M., Bhattacharya, A., & Garza-Reyes, J. (2016). Managing reverse exchanges in service supply chains. Supply Chain Management, 21(2), 157-165. Retrieved from https://search.proquest.com/docview/1773186318?accountid=30552 Accessed as on 30/11/2018

Li, Q., & Disney, S. M. (2017). Revisiting rescheduling: MRP nervousness and the bullwhip effect. International Journal of Production Research, 55(7), 1992-2012. doi:https://dx.doi.org/10.1080/00207543.2016.1261196 Accessed as on 30/11/2018

Maaß, D., Spruit, M., & de Waal, P. (2014). Improving short-term demand forecasting for short-lifecycle consumer products with data mining techniques. Decision Analytics, 1(1), 1-17. doi:https://dx.doi.org/10.1186/2193-8636-1-4 Accessed as on 30/11/2018

Ogcu Kaya, G., & Demirel, O. F. (2015). Parameter optimization of intermittent demand forecasting by using spreadsheet. Kybernetes, 44(4), 576-587. Retrieved from https://search.proquest.com/docview/1686402226?accountid=30552 Accessed as on 30/11/2018

Ravinder, H. V. (2013a). Determining the optimal values of exponential smoothing constants - does solver really work? American Journal of Business Education (Online), 6(3), 347 doi:https://dx.doi.org/10.19030/ajbe.v6i3.7815 Accessed as on 30/11/2018

Ravinder, H. V. (2013b). Forecasting with exponential smoothing - what's the right smoothing constant? The Review of Business Information Systems (Online), 17(3), 117. Retrieved from https://search.proquest.com/docview/1425502272?accountid=30552 Accessed as on 30/11/2018

Rivers, L. E. (2013). Build-to-order supply chain performance: Scheduling and material requirements planning. Business Premium Collection. Retrieved from https://search.proquest.com/docview/1492330316?accountid=30552 Accessed as on 30/11/2018

Vogel, T., Almada-lobo, B., & Almeder, C. (2017). Integrated versus hierarchical approach to aggregate production planning and master production scheduling. OR Spectrum, 39(1), 193-229. doi:https://dx.doi.org/10.1007/s00291-016-0450-2 Accessed as on 30/11/2018

Wang, C., & Liu, X. (2013). Integrated production planning and control: A multi-objective optimization model. Journal of Industrial Engineering and Management, 6(4), 815. doi:https://dx.doi.org/10.3926/jiem.771 Accessed as on 30/11/2018

Wilson, J. M. (2016). The origin of material requirements planning in Frederick W. Taylor's planning office. International Journal of Production Research, 54(5), 1535-1553. doi:https://dx.doi.org/10.1080/00207543.2015.1092616 Accessed as on 30/11/2018