Chapter 3 - Supply Organization

BJMP 3073 PURCHASING MANAGEMENT AND SUPPLY CHAIN
COLLEGE OF BUSINESS
SCHOOL OF TECHNOLOGY MANAGEMENT AND LOGISTICS (STML)
BJMP 3073
PURCHASING MANAGEMENT AND SUPPLY CHAIN
SECOND SEMESTER SESSION 2021/2022 (A212)
REPORT TOPIC:
CHAPTER 3: SUPPLY ORGANIZATION
PREPARED FOR:
ASSOCIATE PROFESSOR TS. DR. ADAM BIN MOHD SAIFUDIN
PREPARED BY:
GROUP 3 (GROUP A&B)
NAME MATRIC NUMBER GROUP
Olivia Januai Seli 270507 A
Nurul Atikah Binti Sharifuddin 271042 A
Pavitira A/P Nilimaniam 271981 A
Nelson Severinus 269776 B
Nor Izati Binti Mohammad Fauzi 270218 B
Ainur Birha Binti Ismail 270846 B
Lou Kah Sin 271567 B
Siti Aisyah Binti Malik 273130 B
SUBMISSION DATE: 18 APRIL 2022
CONTENTS PAGE
1.0 INTRODUCTION…………………………………………………………… 1
2.0 SIGNIFICANT OF THE TOPIC…………………………………………… 1-2
3.0 PROBLEM STATEMENT…………………………………………………. 2
4.0 OBJECTIVES……………………………………………………………….. 2
5.0 CONTRIBUTIONS OF THE ARTICLES OR CHAPETRS…………….. 3
5.1 Organizational Theory……………………………………………………. 3-4
5.1.1 Classical Theory……………………………………………………. 4
5.1.1.1 The Characteristics of Classical Theory……………………. 4-5
5.2 Application of Classical Theory………………………………………..... 6
5.2.1 Efficiency………………………………………………………….... 6
5.2.2 Strong Planning Capabilities……………………………………….. 6
5.2.3 Teamwork…………………………………………………………… 6-7
6.0 LITERATURE REVIEW................................................................................ 7-8
7.0 PROCESS FLOW……………………………………………………………. 8
7.1 Objective of Supply Management…………………………………………. 8
7.1.1 Improve the Organization’s Competitive Advantage……………….. 9
7.1.2 Provide an Uninterrupted Flow of Materials, Supplies, and
Service Required to Operate the Organization……………………… 9
7.1.3 Keep Inventory Investment and Loss at Minimum………………….. 9
7.1.4 Maintain and Improve Quality………………………………………. 9
7.1.5 Find and Develop Best-in-Class Supplier…………………………… 9-10
7.1.6 Standardize, where Possible, the Item Bought and
the Processed used to Procure Them………………………………… 10
7.1.7 Purchase required Items and Service at Lowest Total Cost
of Ownership…………………………………………………………. 10
7.1.8 Achieve Harmonious, Productive Internal Relationship…………….. 10
7.1.9 Accomplish Supply Objectives at the Lowest Possible
Operating Cost……………………………………………………….... 10
7.2 Organizational Structures for Supply Management………………………….. 11

7.2.1 Small and Medium Sized Organizations……………………………….. 11
7.2.2 Large Organizations……………………………………………………. 11-13
7.3 Organizing the Supply Group………………………………………………… 14
7.3.1 The Chief Purchasing (CPO)…………………………………………… 14
7.3.2 Reporting Relationship…………………………………………………. 15
7.4 Supply Activities and Responsibilities………………………………………... 15
7.4.1 What is Acquired……………………………………………………….. 16
7.4.2 Supply Chain Activities…………………………………………………. 16-17
7.4.3 Type of Involvement……………………………………………………. 17
7.4.4 Involvement of Corporate Activities……………………………………. 17-18
7.5 Supply Team ………………………………………………………………….. 18
7.5.1 Leading and Managing Teams………………………………………….. 19
7.5.2 Cross-Functional Supply Team…………………………………………. 19
7.5.3 Sourcing Team………………………………………………………….. 19
7.5.4 New Product or Service Development Teams…………………………... 19
7.5.5 Commodity Management Teams……………………………………….. 20
7.6 Others Types of Supply Team………………………………………………… 20
7.6.1 Team with Supplier Participation………………………………………. 20
7.6.2 Team with Customer Participation…………………………………….. 20
7.6.3 Co-location of Supply with Internal Customers………………………... 20
7.6.4 Co-location of Suppliers in the Buying Organization………………….. 21
7.6.5 Supplier Councils………………………………………………………. 21
7.6.6 Supply Councils………………………………………………………… 21
7.7 Consortia……………………………………………………………………… 21-22
8.0 IMPORTANT FINDINGS………………………………………………………. 22-23
9.0 CONCLUSIONS…………………………………………………………………. 23
10.0 RECOMMENDATIONS……………………………………………………….. 24-25
11.0 SWOT ANALYSIS………………………………………………………………. 25-27

11.1 Comparison Between Ramly and Ayamas………………………………….. 27-28
11.2 SWOT Analysis for Ramly…………………………………………………. 28-30
11.3 SWOT Analysis for Ayamas……………………………………………….. 31-33
REFERENCE
CHAPTER 3: SUPPLY ORGANIZATION
1.0 INTRODUCTION
Purchasing and Supply Management is found in Chapter 3 of the textbook, Johnson 2020
entitled supply organization where discussing each organization in both the public and private
sectors is at various levels dependent on the materials and services supplied by others
organization. An important management challenge is to ensure the effective use of resources
and capabilities for supply organizations and supply chains or network to maximize the
contribution of supply to organizational objectives. (Johnson, 2020). A supply chain is a
network of organizations involved in the transmission of materials, documents, and
information from the initial supplier to the ultimate client, and it consists of three basic streams:
physical material flow, information flow, and tangible and intangible assets (Renko, 2011).
The standard statement of the objective of the supply function is that it should procure the right
materials and services, in the right quantities, for delivery at the right time and place, from the
right source, with the right service and at the right price in the short and long term (Johnson,
2020).
2.0 SIGNIFICANT OF THE TOPIC

Interest is found in the topic of Supply Organization related to the workflow of a company in
an organizational structure that assigns responsibilities to all employees. The organizational
structure helps add new job opportunities, developing flexibility in terms of capabilities and
skills. In addition, the organizational structure also consists of small businesses and large
businesses that have differences in size and organizational activities. The size and activity of
the supply function in a single business unit organization will depend on several factors, such
as the size of the company and the nature of its business (Johnson, 2020). Organizational
structure plays a role in enabling strategic change and improving business performance. Good
organizational structure helping to launch new products more frequently, explore and enter
new markets faster, and find new ones distribution channel (Kimanzi, E., & Mburu, D. K.
2015).
Next, the significance of this topic is the selection of structures for large organizations
consisting of centralized and decentralized and it is very important for supply structure. A
centralized organizational structure is the powers and responsibilities for most supply-related
functions assigned to a central organization while decentralized is the powers and
responsibilities for supply-related functions spread throughout the organization. Centralization
refers to where spending decisions are made, not where the purchasing and supply staff are
located geographically (Johnson, 2020).
The trend of Chief Purchasing Officer (CPO) is very significant in the topic of Supply
Organization. Some important trends regarding the profile and role of CPO. That is, CPO
increases the level of education CPO tends to report higher in organizations than in the 1980s
and 1990s. CPO is increasingly being taken from outside the organization instead of being
promoted from within. When a new CPO replaces the current CPO, the current CPO is
promoted or leaves the company for the same position in another firm. The CPO reporting line
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changes every 2.5 years on average a typical CPO will have at least two different bosses while
holding the position. The role of CPO is still new in many organizations (Johnson, 2020).
Finally, the significance of supply organizations for supply chain activities explains that
supply management organizations have more responsibilities than traditional “buying”
activities once associated with those functions. The activities handled by the supply function
vary from firm to firm, even within the same industry. However, regardless of company size,
there are some activities that are commonly performed by most supply organizations (Johnson,
2020).
3.0 PROBLEMS STATEMENT

i. Structural changes in supply organizations in large companies.
The effect of the occurrence of frequency of changes in the organizational structure of suppliers
caused the researchers found that changes in organizational structure were the result of changes
in the overall structure of the corporate organization. In either of these situations whether the
chief purchasing officer (CPO) has the free choice to choose the supply organization structure
he or she deems appropriate for circumstances. Instead, the structure of the supply organization
needs to be in line with the overall corporate structure. The challenge for supply executives,
therefore, are to maximize the benefits of the organizational structure while minimizing the
disadvantages (Johnson, 2020).
ii. Many large firms do not use hybrid organizational structure and move away from
it.
When more than one organizational design is employed to provide the corporation more
flexibility in dividing work and allocating job positions, it is referred to as a hybrid
organizational structure. (Lauterborn, A. 2020, April 3). Major changes affect the lives of many
people and create an atmosphere of apprehension among the staff. Implementing change places
significant pressures on the CPO, who not only has to worry about managing the day-to-day
affairs of the supply department, but also has to successfully implement the organizational
change (Johnson, 2020).
4.0 OBJECTIVES
There are four objectives in chapter 3:
1. To know the concept of supply organization.
2. To identify the differences between centralized and decentralized supply structures.
3. To understand the functions and roles of large organizational structures especially CPO.
4. To review supply management activities and responsibilities.
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5.0 CONTRIBUTIONS OF THE ARTICLES OR CHAPTERS

5.1 Organizational Theory
The organization itself is essentially a group of people who work together to achieve
organizational objectives through division of labor. (Greenwood, R., Hinings, B. and Amis,
J., 2021) In other meaning, the term organization refers to the group of individuals who
come together to perform a set of tasks with the intent to accomplish the common
objectives. The organization is based on the concept of synergy, which means, a group can
do more work than an individual working alone. In the context of business organization, it
is formed to provide goods or services to customers to meet their needs and wants in the
right way which allows them to make a profit in the end transaction later. Over the next
few years, economists and business analysts as well as academic researchers have
developed several theories that attempt to explain the dynamics of business organizations.
Among them are the way an organization to make a decision, the power and control needed
by the members of the organization, resolve conflicts with each other and oppose
organizational change. (Shadnam, M., 2021) As summarized by Mossel, A. V., Rijinsoever,
F. J., and Hekkert, M. P., organizational theory focuses on the following disciplines:
Figure 1: Organizational Theory.
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The organizational theory identifies organizational behavior patterns based on scientific-

based managerial activities for predicting, controlling, and influencing behavior in order to
optimize the organization's efficiency and productivity. After researching the structure,
functioning, and performance of organizations, the organizational theory uses these
patterns to construct normative theories about how they should work. After years of
reflection on what happens in organizations, it is essentially a set of propositions that
describes how individuals and groups act in various organizational structures and situations.
An organizational structure plays a vital role in the success of any enterprise. Thus, the
organizational theories help in identifying the suitable structure for an organization,
efficient enough to deal with the specific problems.
5.2 Application of Organizational Theory
Supply chain organization consist of huge area of business involves the flow of materials,
finances and information. This includes product design, planning, implementation,
monitoring and control. The organizational theory is an ideal concept of an organization
on how to manage an organization to become a successful. An organization that wants to
become a successful company in supply chain need certain characteristic like speed and
efficiency, strong planning capabilities and teamwork.
Figure 6: The Characteristics of Organizational.

5.2.1 Efficiency
Supply organization involves optimizing operations to maximize both speed and
efficiency. Efficiency in supply chain organization is essential in a business
organization because it plays an important role in determining the organization’s
ability to meet customer demand and achieve a competitive advantage in the business
world. Efficiency in supply organization can give a significant impact on the
customer service by ensuring the right range of product and the required quantities
on the right time. Efficiency in supply organization can ensure the product that the
purchased by the customer can be delivered in short period of time (Gomes, 2019).
Besides, to ensuring customer satisfaction, efficiency in the supply chain, effective
in reducing costs, improving quality and providing higher profit margins.
5.2.2 Strong Planning Capabilities
Supply organization must be flexible to any changes in its operation and have a strong
planning capability. Planning skills cover various related aspects, including in terms
of time, priority of focus according to need and suitability, as well as the
implementation of a task or project entrusted. (Doyle, 2021) Without careful,
effective and systematic planning, the efforts and goals to be achieved are very likely
to be affected or fail and bring losses to the organization. Strong planning capabilities
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can facilitate the achievement of goals, activities carried out in an organized manner,
make coordination and distribution of tasks, as well as avoid leakage or waste of
money.
5.2.3 Teamwork
Teamwork can be defines as a group of people that has a different skill working
together and being responsible for achieving a goal. A team consists of a combination
of a number of individuals who have interdependent competencies in terms of ability,
expertise, skills and knowledge and have accountability and commitment to team
performance and are willing to perform tasks together (Tripaty, 2018). One of the
most important benefits of teamwork in the purchasing organization is increased
levels of efficiency. When employees work together, they are able to complete more
work in less time. Teamwork maximizes output and minimizes effort. Besides,
creativity increases when people work together as a team. Brainstorming avoids self
-centered views and it allows to develop creativity. Combining different views from
team members helps to create more effective solutions to problems. In addition,
working as a team helps share knowledge and stimulates individual and group
learning.
6.0 LITERATURE REVIEW

Every organization no matter whether it is public or private is reliant on materials and services
provided by other organizations to varied degrees. There is no such thing as a self-sufficient
organization. To run its business, even the tiniest office needs room, heat, light, power,
communication and office equipment, furniture, stationery, and miscellaneous supplies. The
supply function's organizational structure has an impact on how it fulfils its tasks, how it
collaborates with other parts of the company, and the skills and talents required of supply
people. Work must be assigned to ensure the efficient and successful delivery of goods and
services to the company, regardless of the structure chosen which is centralized, decentralized,
or a hybrid (Johnson, 2020).
The supply chain involves all actions and processes related to the flow of goods and
information from the raw material stage to the final product/service consumer. Manufacturers,
suppliers, transporters, warehouses, wholesalers, retailers, various intermediaries, and even
customers themselves are all part of the supply chain. Any product traded in the consumer
goods market goes through a sequence of business-to-business transactions as it progresses
from raw materials to final goods. Many authors credit the origin of supply chain management
and logistics as interchangeable terms. Even though supply chain management includes
logistics management operations, there is a distinction between supply chain management and
traditional logistics. Supply chain gives a broader view of movement through all associated
organizations that make up the supply chain, whereas logistics is the management function
responsible for all material movement inside the borders of a single firm (Felea & Albăstroiu,
2013).
According to Murugan and Dharmalingam, he developed a framework for supply chain
partners to blend distinct components in a business process, such as resources, materials, and
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activities. (Mrugan, M. & Dharmalingam, M., 2016) Individual component integration,

removal of interfacing stages between partners, depiction of connections (component
precedence, parent-component, component-component), and capabilities for component
planning and execution are some of the elements of such a framework. Many applications in
supply chain management, such as production, distribution, and maintenance, have been
effectively implemented using unitary structuring. The structure can also minimise interfacing
processes and provide a foundation for an integrated approach to modelling supply chain
environments, according to the statistical testing results.
Consider carbon emission costs in a three-tier supply chain (supplier, manufacturer and
retailer), (Sarkar, 2016). Their strategy aims to lower supply chain expenses, such as
fluctuating transportation and carbon emissions caused by shipment issues. There are three
levels of supply chain management maturity. Management components (process management,
technology and tools, performance measurement, risk and project management, and supply
chain structure (collaboration, strategic focus, responsiveness, and environmental resources)
are among them. Based on a classification tree and its stages, the maturity of supply chain
management. (Cheshmberah, 2020) explored the design and validation of models for
sustainable supply chain management using the Delphi method, as part of the ongoing maturity
development of sustainability.
7.0 PROCESS FLOW

7.1 Objectives of Supply Management
The important part of supply management is to control the overall goods and services in
terms of workflow while the actual task is to maximize quality, revenue, and customer
experiences (Ashish M. Shaji, 2021). This task has to be looking at the sides of the
components including the main raw materials. All this is the pillar that should be noted as
it will deliver the final product to the customer. This will use the supply manager as a
monitor by using the tactical and strategic perspective (Johnson, 2020). Below are the nine
goals that describe overall of supply management:
Improve the Provide an uninterrupted Keep inventory

organization’s flow of materials, supplies investment and
competitive and services required to loss at minimum
position operate the organization Page | 6
Standardize, where Find and develop

possible, the items bought Maintain and
best-in-class
and the processes used to improve quality
suppliers
procure them
Purchase required Achieve Accomplish supply

items and services at harmonious, objectives at the
lowest total cost of productive internal lowest possible
ownership relationships operating costs
Figure 7: The Nine Goals of Supply.
7.1.1 Improve the organization’s competitive advantage

In this first goal, there will be an assessment for organizations to achieve the goal
through the supply manager. Supply manager will play a very important role where
the job is to carefully identify and exploit the available opportunities that lead to
contributions in terms of increase in revenue, asset management and also cost
reduction (Johnson, 2020). The manager also has to focus on strategies to provide
value to customers. To be easily understood, this entails charging lower rates,
providing better value, or providing a higher level of service than your competitors
(Kevin, 2016).
7.1.2 Provide an uninterrupted flow of materials, supplies and services required to operate
the organization
This is closely related to the cost that the organization has to face when the materials,
components, and services experience late delivery. There are situations to be faced
which are lost production, lower revenues and profits, and diminished customer
goodwill (Johnson, 2020). For example, digital cameras cannot be produced if the
camera lens is not available or not in stock.
7.1.3 Keep inventory investment and loss at minimum
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Holding stock levels low reduces the amount of storage space required for goods,
which can save storage expenses. Because of that, one way to ensure an uninterrupted
material flow is to hold large inventories. However, inventory assets require use of
capital that cannot be invested elsewhere, and the cost of carrying inventory may be
20 to 50 percent of its value per year. (Johnson, 2020).
7.1.4 Maintain and improve quality
Every type of materials having their own requirement or quality level otherwise the
end product or service will not meet expectations or will result in higher-than-
acceptable costs. For example, drinking can production has its own standardization
in producing the can. Let say the company’s quality level accepted for the can is 20
percent which is good but can still be dented. This is the acceptable rate and also the
standard in making the can. However, if the quality of the can is overqualified, which
is more than 20 percent, this will not meet the expectation and will result in higher
than acceptable costs (Johnson, 2020).
7.1.5 Find and develop best-in-class suppliers
The cost of the supplier may not be the main consideration when selecting one. What
is far more crucial is to choose dependable vendors. This enables you to fulfil your
commitment to provide the finest possible quality to your consumer (Mooney, 2019).
From another point of view, to achieve the continuous improvement in supply, the
organizations have to maximize the ability in terms of linking the decision by using
the strategy and skills which is locating or developing suppliers and analyzing
supplier capabilities. The important step is to select the appropriate supplier and then
work with that supplier in the long term. In this case, every company has to do the
research to obtain the best suppliers (Johnson, 2020)
7.1.6 Standardize, where possible, the items bought and the processes used to procure them
Standardization is a set of agreements to which all relevant stakeholders in an
industry or organization must comply or agree in ensuring the related process and
development of goods or delivery of a service are carried out accordance with
established rules. This standardization being implemented across the organization,
industry, country and worldwide (Johnson, 2020). For example, many fast-food
franchises already set specific processes outlined to ensure the product is prepared
same way as another franchised that has been visited by customer.
7.1.7 Purchase required items and services at lowest total cost of ownership
Total cost of ownership (TCO) is the combination of asset price and operation costs
where it can give a huge description about what product would be and how much it
is worth over time. For example, the purchase of a car. The overall cost for a car
includes not only the cost of items but also the additional costs while running it, like
maintenance, taxes, and petrol (Twin, 2021). When trying to compare a used car to a
new car, the total cost of ownership assessment is particularly necessary. Some used
cars show up to be a great deal may basically have a higher total cost of ownership
than a new car. This is because a used car will do a lot of maintenance whereas the
new car has a four-year warranty which may support the cost of damages.
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7.1.8 Achieve harmonious, productive internal relationships

Building a positive relationship with business partners of the company will enhance
performance and service to customers. Close supply between design engineering,
operations, marketing, and finance is the approach that supply managers have to look
to achieve the goals and objectives by effective cooperation with them (Johnson,
2020). It is important to create harmonious and productive relationships because they
also will be business supporters and offer a new point of view to make the business
grow (Page, 2021).
7.1.9 Accomplish supply objectives at the lowest possible operating costs
This is important to reduce the costs because the actual objectives are to be
accomplish economically as possible. This is because to the fact that process
inefficiencies will result in waste and also unnecessary in terms of operating costs
and lead to high total of ownership. This will affect the salaries, communication,
supplies, and travel cost and also overhead costs (Johnson, 2020).
7.2 Organizational Structures for Supply Management

7.2.1 Small and Medium-Sized Organizations
Small and medium-sized organizations are independently owned companies with a
capital, employees, and property that fall below a specific level which has been set
by the government. To be understood, this organization will earn less money and run
the business with smaller employees and also limited resources (Verma, 2021).
Usually, the issues that arise in these organizations are related to the lack of expertise
of supply among the employees which because small-medium organizations do not
apply a lot of employees and trainees for them to run the business. So that's why
individuals who lack expertise don’t have any supply responsibilities (Johnson, 2020).
By this, division of function and responsibilities are formed.
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Figure 8: Typical Supply Organization in a Single-Location for Medium-Sized Company.

7.2.2 Large Organizations
Large corporations must become far more agile in implementing new products and
new business models. The pace of technology change, the blurring of industry
boundaries, and the agility and resources of start-ups in almost every industry
segment demand it (A.Euchner, 2022). In supply structure in companies,
centralization-decentralization is the important thing to focus on. There are three
models in organizations which are:
Figure 9: Three Common Organizational Models.
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For centralized and decentralized supply structures, there will be potential advantages
and disadvantages as stated below:
Figure 10: Advantages and Disadvantages of Centralization.
Figure 11: Advantages and Disadvantages of Decentralization.

A hybrid structured supply chain is a combination of strategic functions and
operational functions where strategic functions are centralized and operational
functions are decentralized. The main function is in terms of decisions that have high
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risk (strategic), cost and impact will be implemented centrally. In addition, decisions
involving low risk (tactical and operational), cost as well as impact will be carried
out in disperses. In this structure, it involves stakeholders as well as customers. This
is because strategic functions are centralized for cost considerations and operations
are decentralized to maximize customer service (Taylor, 2019). Therefore, hybrid
organizational structures attempt to capture the benefits of both centralized and
decentralized (Johnson, 2020)
Figure 12: Advantages of Hybrid Structure.

7.3 Organizing the Supply Group
Some businesses have implemented a supply management function in their operations.
Although, few importance has been given to how the supply organization is formed, like
the variety of tasks it has, its level in the organization and also the expertise needed (Boute,
2011). Description of key aspects of supply organization design include the role of chief
purchasing officer, supply status in the organization, and also reporting and internal
relationships. But it is also relevant for smaller supply not only to focus on large supply
organizations (Johnson, 2020).
7.3.1 The Chief Purchasing Officer (CPO)
Generally, Chief Purchasing Officer (CPO) refers to an executive who controls the
purchasing, buying or sourcing functions for the procurement of goods and services
from external suppliers (K.Pratt, 2022). All CPO responsibilities may be shared
between managers and departments, but the primary responsibilities and powers of
the CPO should be recognized which is addressing relevant supply network links and
also the entire scope of organizational requirements and creating purchasing policies
and procedures. The other functions of CPO are identifying and carrying out
necessary purchasing and supply chain improvements, managing an effective
purchasing team, and developing and mentoring members in order to maintain
motivation levels and optimize performance (Johnson, 2020).
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Figure 13: The Job Description of CPO.

7.3.2 Reporting Relationship
Reporting relationship is an organizational system in which every employee is
assigned a position in organization hierarchy which means the employees report to
the employee whose name appears above theirs (upper management) on
organizational structure (Heathfield, 2020). For example, if the chief officer is a vice
president who reports to the CEO, it shows that supply has been acknowledged as a
top management function. However, the most significant factor in selecting to whom
supply should report is where it will be most effective in recognising the contribution
to organization goals.
Figure 14: Reporting Relationship.
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7.4 Supply Activities and Responsibilities

Supply management can be described as a series of activities that must be managed
effectively for the organization to deliver best value to the final customer. Roles and
responsibilities of supply fall into four general categories:
Figure 15: The Role and Responsibilities of Supply.

7.4.1 What is Acquired
The things or products obtained by supplier groups vary from one organization to
another, and items are added or subtracted based on the buying organization's internal
conditions. Raw materials, standards, and seek order purchases, maintenance, repair,
and operations (MRO) supply, capital, services, and resale are among the
procurement segments. Non-traditional purchases are expenses that are often handled
outside of the procurement and supply chain management processes. In certain
businesses, purchasing operations are restricted to production-related materials and
services, keeping the consumer responsible for non-production or indirect supplies
and services (Johnson,2020).
7.4.2 Supply Chain Activities
Supply has assumed greater responsibility in various fields, including those that are
not seen as traditional, as companies are working to make the most of profit
opportunities and create competitive advantage through their supply practice. Today's
supply management organization has more responsibility than the traditional
"buying" activity has ever been associated with the function. Activities operated by
supply functions vary from firms to firms, even in the same industry. However,
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regardless of the size of the company, there are some activities commonly done by
most supply organizations (Johnson,2020).
Any organization's actions can be classified as either internally or externally
focused. Unpaid accounts, centralized buy coordination, cost management,
legislation, material management and logistics, production planning, quality, and
supply budget and financial management are the internal concentrated tasks. External
focussed activities, on the other hand, may have a client or supplier focus. Suppliers
are the focus of these external activities, which include logistics, supplier
development, raw material procurement for suppliers, supplier evaluations and
communications, e-procurement, and outsourcing or subcontracting. Outgoing
logistics, participation with new company growth and new product development, as
well as programmes and customer bid assistance are all examples of customer-
focused operations (Johnson,2020).
7.4.3 Type of Involvement
There can be no documentary, professional, or meaningful involvement by supply in
what is obtained and supply chain operations. If there is no interaction, supply is
absolutely ruled out. The supply function is required to operate as a recorder, a sender
of purchase orders, or a receiver of bids due to document involvement, but critical
supply decisions are decided outside of supply. Professional involvement means that
supply professionals can put their knowledge to use at key points of the procurement
process. Outside the supply group, meaningful involvement means that parties are
willing and competent to address supply matters when managing their respective
areas of responsibility. They routinely and actively seek opinion and help from supply
workers, and they are also involved in supply choices that have historically been
considered supply's domain. The amount to which supply is expected to participate
in significant company activities is one indicator of meaningful involvement
(Johnson,2020).
7.4.4 Involvement in Corporate Activities
Mergers and acquisitions, new facility planning, new product development,
outsourcing, revenue enhancement, technology planning, corporate e-commerce
effort, and corporate cost reduction initiative are all major strategic corporate projects.
As the organization navigates through each phase of the transaction: deal appraisal,
deal structure negotiation, and postdeal integration execution, supply management
can play a significant role. Supply managers may help with mergers and acquisitions
by sharing their operational experience and offering competitive research on
competitors and suppliers. The capacity of the supply function to generate synergy
savings may play a role in the eventual success of a merger, acquisition, or divestiture
(Johnson,2020).
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Figure 16: Supply Chain Activities.

7.5 Supply Team
Teams bring together a group of individuals to work on a same task, generally from diverse
functional areas. Because of the variety of talents, expertise, and capacities of team
members, it is thought that team efforts provide better outcomes than solo efforts. They
also encourage cross-functional collaboration and communication, which may aid in the
formation of organizational consensus. A range of roles employ teams for a variety of goals,
including quality, cost, and delivery improvements; product development; process
engineering; and technology management. They might be oriented or ongoing projects.
Project teams are formed for a specific purpose or consequence, such as the completion of
a capital project or the launch of an e-commerce campaign. While ongoing teams, such as
a commodity-sourcing team that controls the purchasing process and supplier relationships,
remain permanently (Johnson,2020).
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7.5.1 Leading and Managing Teams

● Supportive organizational culture, structure, and systems.
● A common compelling purpose, measurable goals, and feedback for individuals
and the team.
● Organized for customer satisfaction rather than individual functional success.
● All functional areas involved in up-front planning, shared leadership roles, and
role flexibility.
● The right people (right qualifications), in the right place (on a team requiring
their skills), at the right time (when those skills are needed).
● A common, agreed-upon work approach and investment in a high level of
communication.
● Dedication to performance and implementation with decisions delegated to the
appropriate level.
● Integration of all relevant functional areas and various teams throughout the
project life cycle.
7.5.2 Cross-Functional Supply Teams
A 'cross-functional team' refers to a group of individuals "from various organizational
functions who are brought together to achieve clear, worthwhile, and compelling
goals that could not be reached without a team. Cross-functional teams are made up
of people from several departments who are working on a supply-related assignment.
High-performing, cross-functional teams are thought to achieve better task results,
with higher benefit to the business as a whole, at lower costs, in less time, and with
greater stakeholder buy-in. Effective cross-functional teams save time by working in
parallel rather than sequentially. Three important cross-functional supply teams are
sourcing, new product development, and commodity management.
7.5.3 Sourcing Teams
The team can work on a variety of tasks, such as cost-cutting strategies, local,
business unit, or organization-wide sourcing strategies, assessing and choosing
suppliers, doing value analysis, analyzing expenditure, and discovering consolidation
possibilities.
7.5.4 New Product or Service Development Teams
An organization's competitive position can be improved through effective new
product or service development procedures. By working concurrently rather than
sequentially, cross-functional teams can cut development cycle times, increase
quality, and save development costs. Because purchased materials account for such
a substantial portion of a product's cost, early supplier participation is frequently
required. Many supply managers say they are more involved in the design and
development of new products and services when surveyed (Johnson,2020).
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7.5.5 Commodity Management Teams

When costs are high and the commodity is complicated and vital to success,
commodity management teams are created. These are usually permanent teams that
provide additional knowledge, cross-functional coordination and communication,
better control over standardization projects, and improved supplier communication.
They create and implement commodities strategies with the goal of lowering total
cost of ownership. They work on a variety of initiatives, including supply base
reduction, requirement consolidation, supplier quality certification, delivery and lead
time management, cost-cutting programmes, and supplier relationship management
(Johnson,2020).
7.6 Other Types of Supply Team
7.6.1 Team with Supplier Participation
Suppliers on teams tasked with improving supplier competencies or responsiveness,
but not on teams tasked with assessing new suppliers. Involving suppliers at early
stages of the product design process may provide significant advantages, and it is
typical in discrete products sectors like automotive and consumer electronics.
Supplier engagement is often complicated by intellectual property and confidentiality
difficulties, especially when new product design is involved. To reduce the impact of
this stumbling block on the team's effectiveness, several companies require suppliers
to sign confidentiality agreements (Johnson,2020).
7.6.2 Teams with Customer Participation
Some businesses integrate end consumers on their teams in an effort to be really
customer-centric. They are the most skilled about new features that must be offered
in terms of maintenance, customer service, and maintenance plan. There is a better
chance of delivering the most value in the quickest cycle time if supply is included
in teams with end customers (Johnson,2020).
7.6.3 Co-location of Supply with Internal Customers
As individuals come to know and work with one another, locating buyers with
internal customers can assist to break down barriers between functions. Close
proximity promotes increased awareness, which leads to a better perception of each
group's goals, methods, and obstacles. Also, if the buyer is easily accessible when
concerns occur, internal consumers are more likely to include suppliers in choices.
By supplying market knowledge, including information on availability, suppliers,
and specific goods, buyers may "sell" other departments on their value. A measurable
consequence, such as cost savings, greater quality, or better specification, is the top -
selling point (Johnson,2020).
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7.6.4 Co-location of Suppliers in the Buying Organization

Organizations are increasingly turning to suppliers for knowledge and support as they
seek to complete more work with fewer employees while meeting the firm's
productivity and competitiveness goals. Having important supplier workers in the
buying organization who can act as buyers, planners, and salespeople can enhance
buyer–seller relationships and procedures, absorb work that would otherwise be done
by company employees, and lower administrative and sales expenses (Johnson,2020).
7.6.5 Supplier Councils
Supplier councils typically include 10 to 15 senior executives from the company's
preferred supplier base, as well as six to eight top executives from the purchasing
business. A number of large firms use supplier councils to manage supplier
relationships. Supplier councils gather two to four times a year to discuss supply
policy concerns at the buying business, with the goal of enhancing relationships and
communication with the supply base. Supplier councils enable suppliers to be active
participants in the buying firm's supply management activities, and they can be useful
forums for communicating strategies to key suppliers, identifying supply base
problems early on, and agreeing on competitive targets in areas like cost, quality, and
delivery (Johnson,2020).
7.6.6 Supply Councils
Supply councils, also known as purchasing councils, are made up of senior supply
professionals and are formed to make cooperation across business units, divisions, or
facilities easier. Many companies utilize supply councils to share information across
dispersed units or to coordinate efforts aimed at solving a specific problem involving
multiple supply groups. The council's objectives are to appropriately manage buyer–
supplier relationships and to promote continual development. The site buying
leadership made up the corporate purchasing council. Standardizing buying
procedures, standardizing goods and services across sites, aggregating requirements
and leveraging scale for cheaper pricing, and simplifying and expediting the materials
process were all priorities. The council also developed yearly business plans and
buying targets (Johnson,2020).
7.7 CONSORTIA
Purchasing consortia are a type of cooperative purchasing utilized by both public and
commercial entities to supply a wider range of services at a lower actual price. Purchasing
consortia can take a variety of forms, ranging from informal groups that meet on a regular
basis to the formation of formal centrally controlled consortia for the management of
members' supply activities. The consortium's members are debating whether to create a
new formal centralized consortium to implement new district-level buying divisions. Not-
for-profit organizations, notably educational institutions and health-care groups, frequently
form consortiums. The potential to construct Internet-based consortiums, sometimes
known as electronic exchanges or marketplaces, and the lack of antitrust barriers generated
interest in the notion in the for-profit sector.
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The development and membership in purchasing consortia are primarily motivated by

the desire to save money through price reductions. Administrative efficiency, product and
service uniformity, increased supplier management skills, employee specialization, and
greater customer service are among the other advantages (Johnson,2020).
Successful consortia are able to address these hurdles by achieving the following 6
objectives:
❖ Reducing total costs for the members through lower prices, higher quality, and
better services.
❖ Eliminating and avoiding all real and perceived violations of antitrust regulations.
❖ Installing sufficient safeguards to avoid real and perceived threats concerning

disclosure of confidential and proprietary information.
❖ Mutual and equitable sharing of risks, costs, and benefits to all stakeholders,
including buying firms/members, suppliers, and customers.
❖ Maintaining a high degree of trust and professionalism of the consortium
stakeholders.
❖ Maintaining a strong similarity among consortium members and compatibility of
needs, capabilities, philosophies, and corporate cultures.
8.0 IMPORTANT FINDINGS

Organizations are seen as open systems in modern business, ready to respond quickly and
effectively to any changes in the environment that affect their survival and success in the face
of fierce market competition. The struggle for survival and the advancement of one's market
competitive position necessitates the use of extremely efficient, flexible and dynamic
organizational structures. Besides, a good organizational structure is not a sufficient
prerequisite for business’s success, but it is a component without which business success is
impossible, regardless of how good a company’s managers are. Organizational structure
elements not only determine the motivation and satisfaction of employees, but also have a
significant impact on customer satisfaction, since only motivated staff will strive for customer
satisfaction and loyalty and establish an efficient supply chain management system
(Mijušković, V. M., & Todorović, 2019).
Organizational structure is critical in ensuring an efficient and flexible organization that can
respond quickly and effectively to changes in the environment. It is regarded as extremely
important for the company’s profitability and development. Moreover, it is crucial for the
implementation of a strategy as a long-term plan of any organization to have an organizational
structure that will pave the way for its implementation and performance improvement. An
efficient organizational structure generates more investment, more advanced technology
implementation, greater employee motivation and higher productivity, all of which have a
direct impact on the efficiency of supply chain management, which is one of the key qualitative
indicators of business performance (Mijušković, V. M., & Todorović, 2019).
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On the other hand, supply activities in any organization can be categorized as either
internally or externally focused. The company’s managerial centralization has an impact on
organizational structures as well. "Centralization," the extent to which decision-making
authority is limited to higher levels of management, usually leads to a pyramid structure. When
competing goals and strategies among operating units necessitate a uniform policy so that
centralization is generally recommended. The degree to which lower levels of the hierarchy
have decision-making authority is known as "decentralization," and it usually results in a leaner,
flatter organization. Decentralization is advocated, when conflicting strategies, ambiguity, or
complexity necessitate local flexibility and decision-making. Apart from that, decentralization
serves a variety of purposes, including boosting information processing capacity, shorter
communication lines, responding faster to environmental changes, stimulating entrepreneurial
and inventive initiatives, and so on. The following are the key hazards of decentralization:
greater organizational complexity, high coordination costs, and difficulty implementing novel
strategies in a crisis situation.
9.0 CONCLUSIONS
In this chapter supply organizations, we learn that supply objectives must eventually contribute
to the achievement of short- and long-term organizational strategy, goals, and objectives. The
process and function can be organized in a variety of ways to maximize the supply's
contribution as effectively and efficiently as possible. Every organization, both public and
private, is, to varying degrees, reliant on materials and services provided by other organizations.
No organization is self-sufficient. To carry out its operations, even the smallest office requires
space, heat, light, power, communication and office equipment, furniture, stationery, and
miscellaneous supplies. As part of its organizational structure, almost every business has a
separate supply function. One significant management challenge is ensuring that the supply
organization's and the supply chain's or network's resources and capabilities are used
effectively to maximize supply's contribution to organizational objectives.
There is no one perfect supply organizational structure. Its organizational structure will be
similar to that of the parent company. The challenge for supply executives is to make the most
of their organizational structure, whether centralized, decentralized, or hybrid. The supply
function's organizational structure influences how it executes its responsibilities, how it
collaborates with other areas of the firm, and the skills and capabilities required by supply
personnel. Work must be assigned regardless of the structure used to ensure the organization's
efficient and effective delivery of goods and services. Over the last decade, significant research
into organizational issues has provided useful insights into novel attempts to integrate the
supply function and suppliers more effectively into organizational goals and strategies.
Regardless of where the supply function is located on the organizational chart, each individual
member of the supply organization has the opportunity to improve relationships with internal
customers and suppliers in order to contribute more to organizational goals.
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10.0 RECOMMENDATIONS
The management system of an organization is made up of various structural elements. The
structural unit of management activity, according to the functional approach, is functional task
management, the realization of which occurs in the course of activities designed control
technology. The operation of numerous system management processes and sub-processes is
considered. This act is typically carried out by completing a set of specific management tasks
in order to achieve the desired goal of a fixed initial situation. The contemporary development
of organizations is determined by the necessity to respond to the current challenges and the
market trends. In order to react adequately, it is critical to use effective means to rebuild the
systems of managing the economic systems known as organizations (Gerasimov, B. N., &
Gerasimov, K. B, 2015).
Newly adopted technologies are extensively implemented, installed, and used by numerous
organizations who pursue in order to improve an organization’s business processes,
information, and data between departments within an organization, also by assisting an
organization to outperform its competitors (Dube, T., Van Eck, R., & Zuva, T, 2020).
Nowadays, global technologies, particularly digital things, have become an important tool for
businesses to maintain viable partnerships and build a high-value connection with other
businesses (Lee, K., Azmi, N., Hanaysha, J., Alzoubi, H & Alshurideh, M, 2022).
Technological tools are critical to the efficiency and effectiveness of a business. Keep
different members of a team up to date on the status of a project, even if they are not actively
working on a specific portion of it, by using software or collaboration tools. Increasing the
use of technology in the organization is thus one method of improving organizational
effectiveness.
To survive in these markets, organizations have to be able to deal with the increased
complexity of customers' demands and respond quickly to changing requirements of their
customers (Wulf, V., & Rohde, M, 1995, August). Furthermore, the quality of products or
services and customer satisfaction have different effects on organizational reputation. Thus,
effective supply chain management can provide direct improvement to the quality of services
or products in order to increase customer satisfaction. The ability of the supply organization
to achieve higher quality, faster, and at a lower cost than competitors will improve not only
the company's competitive position, but also customer satisfaction. The key is to strike a
balance between high-quality and cost-effective solutions. The goal of any company is to
improve its products while staying within a specific budget or price range.
Leadership has consistently found to be a significant contributor to organizational success
and competitive advantage (Clifford Defee, C., Stank, T. P. (Ted), & Esper, T, 2010).
Working with different groups and individuals requires active measures in organizational
leadership. Besides, understanding different professionals and their roles within the business,
as well as methods to improve their abilities or make use of unique skills, is required for
efficiency in a company. A leader must understand the strengths and weaknesses of various
professionals before devising a strategy to improve the organization’s effectiveness. In
addition, leaders must strive to understand the needs and goals of followers, create and
effectively communicate a vision of the future, and project behaviors consistent with
achieving the organization’s long-term objectives. Each of these actions reinforces and
motivates employees to maintain and improve organizational performance.
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11.0 SWOT ANALYSIS
Ramly Burger was a well-known frozen food brand among Malaysians. Dato' Haji Ramly Bin
Mokni and his wife Datin Hajjah Shalasiah Binti Abdul Manap founded the company in 1984,
and it is still in great company today. I'd like to choose Ramly Burger because I'm so
impressed with how he grew his business from a small stall to a large and profitable
corporation. The company began as a small business that only operated mobile kiosks before
establishing itself in 1984 on a platform for the development of Halal, hygienic, and quality
goods. The Ramly Food Processing Sdn.Bhd, formerly known as Perusahan Burger Ramly
Mokni Sdn. Bhd, was the most popular patty, with two main flavours concentrating on beef
and chicken frozen food.
Apart from that, for sure the aim of developing a clean and hygiene as well as in highquality
Halal frozen food. They also provide frozen fast food as well such as frankfurter, seafood,
nugget and many more. Nowadays, the firm are expand about 10 groups of companies
operating under Ramly Group. There are Ramly Food Industries Sdn.Bhd, Ramly Food
Processing Sdn.Bhd, Ramly Food Marketing Sdn.Bhd, Ramly Food Services Sdn.Bhd, Ramly
Halal Logistics Sdn.Bhd, Ramly Halal Mart Sdn.Bhd, Ramly Project Mangement Sdn.Bhd,
Ramly Poultry Management Sdn.Bhd, Ramly Halal Kiosk Sdn.Bhd and Ramly Mokni
Holdings Sdn.Bhd.
Dato’ Haji Ramly does not only focused his business in Malaysia but also currently extends
in exporting his product to six countries which are Singapore, Thailand, Indonesia, Myammar,
Cambodia as well as Bangladesh too. He also planned to promote his product to other country
in South East Asian, Middle East and East Asian markets. His eagerness to expand his
company has demonstrated a few positive characteristics of a successful businessman who
may be a good example of a small business being bold enough to expand. Consequently, Dato
Dr. Hj. Ramly is a person who has taken the initiative and is working hard to expand his
company. He is also concerned about the quality of his goods, as he wants to sell the best
product possible in order to keep customers loyal to his brand.
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The story of Ayamas began in 1982 when it started its original plant in Kuchai Lama, Selangor
as KFC Food Processing Sdn Bhd. Its primary function was to supply quality, nine-piece cut
chicken and poultry based products to all Malaysian KFC outlets while remaining products
from the processing plant were sold on the open market. Ayamas was the first company in
Malaysia to sell chicken and poultry-based products in an airconditioned environment. On
December 1993, the company changed its name to Ayamas Food Corporation Berhad when
it became a public limited company. After a corporate restructuring exercise in 2004, Ayamas
Food Corporation Bhd was renamed to Ayamas Food Corporation Sdn Bhd. They broke new
ground in Malaysia by introducing top quality Halal products. Today, Ayamas is one of the
biggest integrated poultry operators nationwide, specializing in the processing and retailing
of chicken for local and export markets. Ayamas operates in accordance with GMP (Good
Manufacturing Practices) requirements and has a HACCP (Hazard Analysis and Critical
Control Points) and ISO 9001:2000 systems in place within its Quality Management System
(QMS) that ensures food safety and consistent high quality products.
Ayamas supply Halal chicken meat to KFC, Pizza Hut and Rasamas restaurants across
Malaysia, as well as providing their very own products at their flagship chain retail outlets,
Kedai Ayamas. They provide 5 main types of products which include chilled whole chicken,
chicken parts, deboned chicken meat, and minced chicken meat products, frozen chicken
products, breaded freezer-tofryer products (nuggets, drummets and midwings, breaded
chicken parts, burger patties, chicken fingers, chicken meatballs and chicken popcorns), fully
cooked further processed products (sausages, cocktails, smoked wings, meatballs, meatloaf
and pizza toppings) and shelf stable products (canned curry chicken (original / extra spicy),
canned masak merah chicken, canned rendang chicken, canned oriental sauce chicken with
mushroom and 100% fresh chilli sauce. The Ayamas Food Corporation Sdn Bhd (AFCSB)
has a processing plant located in Port Klang, Selangor. AFCSB plant processes live broilers
and produces further processed chicken products. The plant has an onsite ISO/IEC 17025
accredited microbiology laboratory.
The Ayamas processing plant was the first to receive the Veterinary Health Mark (VHM)
logo from the Department of Veterinary Services (DVS) in Malaysia. They are fully equipped
with a fully integrated product development and sensory evaluation facility and with rhis
Ayamas is capable of conducting up to date Research & Development activities. Their
Research & Development team is made up of qualified, trained and experienced food
technologists that are constantly improving on the quality of their products. They have two
more processing plant in Bukit Mertajam and Bandar Tenggara, Johor. Ayamas’s target group
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not only in Malaysia but also overseas without any age range. This is because the Halal
industry has to offer to the world (The Halal Journal, July & August 2008). The Halal concept
itself that promotes qualities of safety, healthy, hygienic, and environmentally friendly, and
these are appealing to every consumer not only to the Muslims but also the non-Muslims (The
Halal Jounal, 2009). Moreover, Dato’ George Ting Yew Tong who was the founder director
of Ayamas Food Corporation Sdn Bhd and pioneered the Ayamas convenience store concept
in Malaysia. In AFCSB, there have total employees up to 1,429 people (2002).
11.1 COMPARISON BETWEEN RAMLY AND AYAMAS
RAMLY ASPECT AYAMAS
 Recognizable Brand Strength  Halal Certified
 Strong Production  High Quality
 Suitable Designed  Provide Value to
Packing Label Customers
 Lack of Ramly Halal Mart Weaknesses  Pricey
in Malaysia  Low Amount of
 Lack of Advertising Advertising of the Product
Strategy  High in Sodium Chloride
 Unhealthy Food
Production
 New Product in Market Opportunity  The Hectic Lifestyle of
 Targeting a Large Market City Dwellers is driving
 Large Scope Production up Demand
 Increase Public Demand
for Flavoured Frozen
Meals
 The Popularity of Online
Purchasing is Growing
 Trend toward Healthy Threat  Price Competition
Eating  Environment of
 Emergence of Major Fast Competition
Food Competitors  A Good Material Flow
 The Variety of Product and Supply
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11.2 SWOT Analysis for Ramly

STRENGTH
 Recognizable Brand
Ramly Burger is a well-known brand, particularly in Malaysia. This product is

known regardless of age because it is good for children and also adults really like
the taste of this burger. People easily can find and purchased the burger at any
burger stalls that operate at night in numerous cuties and villages around the
country. Throughout the establishment of Ramly Burger, they will open burger
stalls in certain areas that can grab the attention of many customers such as
popular hotspots, university campus, housing area, and also near the 7-Eleven
store (Min, 2022).
 Strong Production
Ramly Food own a large manufacturing capability that allows it to provide a wide
range in terms of option in products. As everyone knows that Ramly Food is a
company that having a lot of experiences in long period of time which 36 years
in food sector, the company provides a wide range of products that have evolve
wonderfully from a burger stand to a product producer which are growing bigger
than before. The company commitment to supplying good, quality, and halal meat
to consumers can be evident throughout their journey, as well as their creation of
ideas to generate a greater business potential (Min, 2022).
 Suitable Designed Packing Label.
Due to the very unique packaging design, it is able for Ramly Burgers to attract
more customers to buy their products. This is because the use of packaging
colours to differentiate each product. For example, company has been set that
blue packaging signifies for organic products which is chicken, duck, and fish.
Besides, the brown packaging is for the beef (Min, 2022). For Ramly kiosk burger,
they have been upgrading their packaging to looks more interesting to be serve to
the customer or called as regain customer attraction. By upgrading the kiosk
packaging, it will make the brand more competitive with any reputable fast food
in Malaysia
WEAKNESSES
 Lack of Ramly Halal Mart in Malaysia
In Malaysia, there are only 9 Ramly Halal Mart which available in Kuala Lumpur,
Putrajaya, Selangor and Pahang with a retail store while not the other areas in
Malaysia. In this case, for instance, some customers who live in Johor Bahru will
feel dissatisfaction as they cannot experience Ramly Halal Mart if the mart does
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not available in their areas. Then, these customer only can buy Ramly products
from Ramly’s distribution channels such as Tesco. This is because Ramly Food
uses its distributions channel such as Tesco and then supply their entire product
to Tesco like beef burger, chicken burger, French fries, hotdog and many more.
Therefore, the customers in Johor Bahru can get all the ingredient by only visit
Tesco because Ramly Halal Mart is not available in their areas.
 Lack of Advertising Strategy
Ramly Foods does not advertise their products to promote their brand and
products use TV commercial, sosial media, radio and also advertise on newspaper.
Ramly Food also does not advertising on its Halal certified products in order to
penetrate the Muslim community and market on Mulims.
 Unhealthy Food Production
Ramly Food is largely formed of high calorie, salt and fat processed foods. Such
processed foods offering prompts protests by organizations that fight obesity and
hence, decrease Ramly Food popularity. This is because consumers who take care
for their health often opt out for healthier choices.
OPPORTUNITIES
 New Product in Market
Ramly Food requires new product development. They have a wide range of
infrastructure and facilities, including a product research laboratory and a product
development department. As a result, Ramly has numerous opportunities to
market new products to consumers. Furthermore, because Ramly products are
well-known in the Malaysian market, as customers are always eager to try new
products on the market.
 Targeting a Large Market

Ramly Corporation is aiming for a large market because the product will be
marketed both in the country and abroad. This company has the potential to
penetrate a vast market because they sell Halal products, which will benefit
Muslim people all over the world. Ramly Food has the potential to rise demand
for healthier foods. Ramly Food could introduce healthier food options in its
business and turn its weakness into a strength as demand for healthier food grows.
 Large Scope Production
They export the product to Indonesia, Thailand, and Singapore. They already
have a substantial percentage there, around 30%, so Ramly company has the
opportunity to expand their production scope because they already have some
connections there, such as marketing the product to the supermarket and the mini-
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marts. Furthermore, they already have a kiosk where they can market their
products.
Ramly Food's advertising strategy should be more aggressive. Ramly Food can
use advertising to encourage viewers, readers, and listeners to buy or try on their
products. To attract customers, Ramly Food may use both traditional and
advanced technology which is digital media, particularly social media platforms.
This is because social media platforms are extremely cost-effective strategy
because many of them are free to use, and marketers can also choose to use paid
ads based on their marketing needs.
THREATS
 Trend towards Healthy Eating
Due to government and various organizations attempts to fight obesity and reduce
calorie, people are becoming more conscious of eating healthy food rather than
what Ramly Food has mainly to offer in its products. Thus, Ramly Food has to
introduce new product innovation with healthy food choices in its business.
 Emergence of Major Fast Food Competitors
Ramly Food faces threat from other major burger fast food restaurant such as
Burger King, McDonalds’, A&W and KFC. This is because these fast food
restaurants offer healthier lifestyles products such as vegetarian burger and wraps
filled with lean meats and lots of veggies. Moreover, some fast food restaurants
offer limited time offers and specials may easily switch consumer buying decision
to them.
 The Variety of Products
The company have variety of products that has evolved quite nicely from only
burger stall to a product manufacturer and getting stronger day by day.
11.3 SWOT Analysis for Ayamas

STRENGTH
 Halal Certified
Ayamas Food Corporation Berhad has supplied Halal chicken meat and its
product are recognized by the Department of Islamic Development Malaysia.
Therefore, when they marketed their product among the customers, people will
choose it without doubts and uncertainties specifically for the Muslim consumers.
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 High Quaity
Ayamas is one of the top providers for high quality Halal poultry products that
have been marketed in East and West Malaysia. It shows that Ayamas operates
in accordance within its Quality Management System that ensures food safety
and consistent high quality products.
 Provide Value to Customers
Ayamas supplied their high quality products with a reasonable price with wide
range of products to choose from. They have been producing and supplying their
products which suits with the customers market requirement.
WEAKNESSES
 Pricey
The products sold by the Ayamas company are expensive when compared to the
other companies that produce the same products. The slightly expensive price of
the product that Ayamas sell to the customers is due to the reason that they use
high quality of raw material. The high quality of raw material in the production
will make the cost of production will be more expensive. In order to cover back
the high cost of production, Ayamas sell their product more expensive compare
to other company that produce the same product.
 Low Amount of Advertising of the Product
Although Ayamas is one of the strongest brands in Malaysia and this brand is
well known by the customers. They have a huge market and have a lot of outlets
around Malaysia but Ayamas company rarely do advertisement about their
product. The lack amount of advertisement will slow down the market growth.
Through regular advertising, Ayamas companies are able to find new segments
in the market as well as maintain existing market segments.
 High in Sodium Chloride
Ayamas company produce a lot of frozen food. Some frozen food is actually high
in sodium chloride which can bring harm to the human health. Consuming a lot
of frozen food that have high sodium chloride can lead to massive health problem
like heart attack and diabetes. Customers who are aware of this facts will lower
their consumption on frozen foods.
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OPPORTUNITIES
 The Hectic Lifestyle of City Dwellers is Driving up Demand
The way of life of a city dweller who is so preoccupied with work that he does
not have time to cook at home. Ayamas canned and frozen foods may be able to
assist them in resolving their issues. Ayamas products can be found at
supermarkets and grocery stores across the country.
 Increase Public Demand for Flavoured Frozen Meals
Ayamas goods that have been processed into flavoured frozen foods are in high
demand since they can be stored for a long time. Meat, fish, chicken, and other
frozen foods are included. Protein foods are a requirement for everyone in life,
resulting in significant demand.
 The Popularity of Online Purchasing is Growing
Ayamas items are widely available, not just in supermarkets and grocery stores,
but also through mobile applications and websites for online purchasing. Online
shopping is getting more popular among the general population since it is
convenient and can save consumers time from having to go to the supermarket or
food store.
THREATS
 Price Competition
Price competition is a threat to Ayamas’s business. This is because many

competitors have lower prices such as Giant and Tesco brands as compared to
Ayamas brands. When competitors prices are lower, many customers will prefer
to buy cheaper products than more expensive ones.
 Environment of Competition
Enironment competition is a threat to Ayamas's business. This is due to the fact

that numerous companies produce the same items as Ayamas companies, which
are frozen food sausage. Ramly, Chicken Dindings, Chicken Pertiwi, and
NutriPlus are among Ayamas' competitors. As a result, Ayamas's position in
Malaysia will be affected.
 Material Flow and Supply
Ayamas production can be severely harmed by stockouts or late supply of

materials, components, and services. They may lose some output, have reduced
revenues and profits, and have less consumer goodwill.
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REFERENCES
Book
Euchner, J. A. (2022). Lean Startup in Large Organizations: Overcoming Resistance to Innovation.
New York: Routledge.
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Page | 34
LOGBOOK
Group Discussion Meeting
Name Matric 31/3/2022 1/4/2022 12/4/2022 14/4/2022 16/4/2022
Number
Group A
Olivia Januai Seli 270507     
Nurul Atikah Binti 271042     
Sharifuddin
Pavitira A/P 271981     
Nilimaniam
Group B
Nelson Severinus 269776     
Nor Izati Binti 270218     
Mohammad Fauzi
Ainur Birha Binti 270845     
Ismail
Lou Kah Sin 271567     
Siti Aisyah Binti 273130     
Malik
Remark:
✔ : Present
❌ : Absent
⬤ : Late
▢ : with Dr
▢ : without Dr
Page | 35
Group Discussion Meeting 1
Date 31 March 2022

Time 9:15 p.m. – 10:45 p.m.
Venue Cisco Webex
Attendees 8/8
Meeting 1. Group 1 until group 5 had a meeting with Dr. Adam for assignment
Agenda briefing.
2. Dr. Adam explain all the details of the assignment report, slide as well
as presentation.
3. Discuss and choose 2 companies that we need to compare in the
SWOT Analysis.
4. Question and Answer session.
5. Meeting end.
Remark No absentee
Page | 36
Date 1 April 2022

Time 9:30 p.m. – 10:30 p.m.
Venue Google Meet
Attendees 8/8
Meeting 1. Discuss and divide the task for every group member, make sure all
Agenda the members understand the chapter.
2. Leader explain more about the report details.
3. Every member sharing opinion on how to find a point for certain parts
of the report.
4. Meeting end.
Remark No absentee
Page | 37
Date 12 April 2022

Time 9:30 p.m. – 10:00 p.m.
Venue Google Meet
Attendees 8/8
Meeting 1. Review progress of the report.
Agenda 2. Discuss SWOT Analysis for two company.
3. Meeting end.
Remark No absentee
Page | 38
Date 14 April 2022

Time 9:30 p.m. – 10:30 p.m.
Venue Cisco Webex
Attendees 8/8
Meeting 1. Chapter reviews by Dr. Adam.
Agenda 2. Report review by Dr. Adam.
3. Dr. Adam explain more details on chapter.
4. Question and Answer session.
5. Meeting end.
Remark No absentee
Page | 39
Date 16 April 2022

Time 9:30 p.m. – 11:00 p.m.
Venue Google Meet
Attendees 8/8
Meeting 1. Recheck the slide and report.
Agenda 2. Slide and report correction.
3. Discuss and divide the task for presentation.
4. Meeting end.
Remark No absentee
Page | 40

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BJMP 3073 PURCHASING MANAGEMENT AND SUPPLY CHAIN

SCHOOL OF TECHNOLOGY MANAGEMENT AND LOGISTICS (STML)

PURCHASING MANAGEMENT AND SUPPLY CHAIN

SECOND SEMESTER SESSION 2021/2022 (A212)

7.2 Organizational Structures for Supply Management………………………….. 11

11.0 SWOT ANALYSIS………………………………………………………………. 25-27

CHAPTER 3: SUPPLY ORGANIZATION

2.0 SIGNIFICANT OF THE TOPIC

3.0 PROBLEMS STATEMENT

5.0 CONTRIBUTIONS OF THE ARTICLES OR CHAPTERS

Figure 1: Organizational Theory.

The organizational theory identifies organizational behavior patterns based on scientific-

Figure 6: The Characteristics of Organizational.

6.0 LITERATURE REVIEW

activities. (Mrugan, M. & Dharmalingam, M., 2016) Individual component integration,

7.0 PROCESS FLOW

Improve the Provide an uninterrupted Keep inventory

Standardize, where Find and develop

Purchase required Achieve Accomplish supply

Figure 7: The Nine Goals of Supply.

7.1.1 Improve the organization’s competitive advantage

7.1.3 Keep inventory investment and loss at minimum

7.1.8 Achieve harmonious, productive internal relationships

7.2 Organizational Structures for Supply Management

Figure 8: Typical Supply Organization in a Single-Location for Medium-Sized Company.

Figure 9: Three Common Organizational Models.

Figure 10: Advantages and Disadvantages of Centralization.

Figure 11: Advantages and Disadvantages of Decentralization.

Figure 12: Advantages of Hybrid Structure.

Figure 13: The Job Description of CPO.

Figure 14: Reporting Relationship.

7.4 Supply Activities and Responsibilities

Figure 15: The Role and Responsibilities of Supply.

Figure 16: Supply Chain Activities.

7.5.1 Leading and Managing Teams

7.5.5 Commodity Management Teams

7.6.4 Co-location of Suppliers in the Buying Organization

The development and membership in purchasing consortia are primarily motivated by

❖ Installing sufficient safeguards to avoid real and perceived threats concerning

8.0 IMPORTANT FINDINGS

11.0 SWOT ANALYSIS

11.2 SWOT Analysis for Ramly

Ramly Burger is a well-known brand, particularly in Malaysia. This product is

 Suitable Designed Packing Label.

 Lack of Ramly Halal Mart in Malaysia

 Lack of Advertising Strategy

 Unhealthy Food Production

 New Product in Market

 Targeting a Large Market

 Emergence of Major Fast Food Competitors

 The Variety of Products

11.3 SWOT Analysis for Ayamas

 Provide Value to Customers

 Low Amount of Advertising of the Product

 High in Sodium Chloride

 The Popularity of Online Purchasing is Growing

Price competition is a threat to Ayamas’s business. This is because many

Enironment competition is a threat to Ayamas's business. This is due to the fact