Supply Chain Management Final Assignment

PRESENTED BY- PRABHAKAR PANDA

TOKEN NO -RNTC0421031
GUIDED BY-MR. AJIT
CONTENTS
SUPPLY CHAIN MANAGEMENT ................................................................................................................... 2
INTRODUCTION: ............................................................................................................................................. 2
CANDIDATE INSTRUCTIONS: ................................................................................................................. 2
ASSIGNMENT CRITERIA:................................................................................................................................. 2
CASE STUDY: ........................................................................................................................................................ 4
TASK 1- SUPPLY CHAIN MANGEMENT ............................................................................................................. 5
TASK 2 – SUPPLY CHAIN SCENARIO: ............................................................................................................... 7
TASK 3 – SUPPLY CHAIN DATA ...................................................................................................................... 10
TASK 4 – SUPPLY CHAIN TECHNOLOGY .................................................................................................. 12
TASK 5a – SUPPLY CHAIN IMPROVEMENT PROJECT ................................................................................ 16
TASK 5b – Supply Chain Improvement Project: ........................................................................................ 19

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SUPPLY CHAIN MANAGEMENT

INTRODUCTION:
CANDIDATE INSTRUCTIONS:
You must successfully complete and achieve all six tasks to successfully achieve
the Level 5 Supply Chain Management (International) [OVH775]
Once you have completed and submitted your evidence your Assessor/Tutor will
review your responses and provide you with feedback. They may give your
assessment back to you and ask you to amend some of your answers if they do
not meet the criteria. If this happens, your Assessor/Tutor will explain what you
need to do. Once you have amended your answers, you will have to resubmit your
assessment to your Assessor/Tutor.
A sample of your work may also be reviewed by an Internal Quality Assurance
Verifier. Their role is not to assess your submission as this is the responsibility of
the Assessor/Tutor. The reason for this sampling is to monitor the consistency
and quality of the marking and feedback that you receive from your
Assessor/Tutor
You may upload your submissions in either Word or PDF format. Please ensure
that you reference your evidence submission accordingly to meet the criteria of
this unit.

ASSIGNMENT CRITERIA:
1.1. Articulate the functions contained within a supply chain.
1.2. Determine supply chains appropriate to different types of goods.
1.3. Evaluate the features of such chains which make them mutually beneficial
to supplier and customer.
2.1 Explain the impact of effective and efficient data exchange between
customers and suppliers on supply chain productivity.
2.2 Summarise ways in which modern technologies have impacted on supply
chain productivity.2.3 Explain the tools and techniques that might be adopted
within a supply chain improvement project.
2.4 Plan a project to improve the productivity of a supply chain

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 Total mark per
Task Component marks within tasks Total
assessment

1 10 A 2 B 5 C 3 10
2 10 A 2 B 5 C 3 10
3 10 PART-1 5 PART-2 5 10
4 10 A 1 B 5 C 4 10
5a 50 A 50 50
5b 10 A 10 10
total 70 20 10 100

FINAL ASSESSMENTMARKS SCHEME:

Final Assessment mark scheme: total mark for whole assignment = 100
Grade
boundaries

Distinction 80%
Merit 65%
Pass 50%

To achieve the unit the learners must have read the case study and then
completed all 5 tasks below. They must ensure they are including information
for each point within each task set out on each task document.
The learners must also demonstrate within their answers for the five tasks all
the criteria within for the unit at least once.

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CASE STUDY:
Toasty is a small bakery that was established in 1980. It is a traditional family-run
business that operates using a ‘middle person’ when they source their
ingredients, so they do not have a direct link with suppliers. They must pay extra
for using a wholesaler, but it does mean the company can purchase smaller
quantities when needed; this would not be possible if they contracted directly
with the supplier.
A: EXPLAIN WHAT IS MEANT BY SUPPLY CHAIN
Supply chain management is the practice of coordinating the various activities
necessary to produce and deliver goods and services to a business's
customers. Examples of supply chain activities can include designing, farming,
manufacturing, packaging, or transporting.

Over the last year or so Toasty has been having some issues in
production because their ingredients aren’t being delivered on time -
specifically the strong flour required to make their bread. The delivery is
either late, or the wrong product is delivered. This halts production of
the bread in the factory - leading to a knock-on effect in the shops when
their stock is low or empty.
The company have contacted the wholesaler and they have accepted
responsibility for the late deliveries. The wholesaler has suggested that

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the delivery problems have been due to several drivers
they have hired recently who do not speak very good English and have
trouble with traffic/road signs.
The wholesaler is also experiencing other problems such as vehicle
breakdowns due to poor maintenance, and the wrong product being
delivered due to inconsistent or lack of paperwork. Order taking is also
an issue because there is a nearby bakery who also order from the
wholesaler. This bakery is called Toast and Jam and their orders have
been confused with Toasty’s
The problem with the wrong material being delivered, however, lies with
the flour mill and is nothing to do with the wholesaler.

TASK 1- SUPPLY CHAIN MANGEMENT

B: Explain the functions that may be contained within a supply chain

The functions in a supply chain include

product development:
➢ Product development is the complete process of taking an idea from
concept to delivery and beyond. Whether you are delivering a brand-new
offering or enhancing an existing product, the product development cycle
begins long before anything gets built.
Marketing:
➢ Marketing refers to activities a company undertakes to promote the
buying or selling of a product or service. Marketing includes advertising,
selling, and delivering products to consumers or other businesses. Some
marketing is done by affiliates on behalf of a company.
➢ Operations
➢ performance of a practical work or of something involving the practical
application of principles or processes Practice until you can go through
the whole operation without hesitation or thinking
Distribution:
➢ Distribution means to spread the product throughout the marketplace
such that many people can buy it.

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 Finance:
➢ financing is the process of raising funds or capital for any kind of
expenditure. It is the process of channelling various funds in the form of
credit, loans, or invested capital to those economic entities that most
need them or can put them to the most productive use.
customer service:
➢ Customer service is the provision of service to customers before, during,
and after a purchase. The perception of success of such interactions is
dependent on employees who can adjust themselves to the personality
of the customer service is the provision of service to customers before,
during, and after a purchase. The perception of success of such
interactions is dependent on employees who can adjust themselves to
the personality of the customer.
➢ Supply chain management results in lower costs and a faster production
cycle.

C: Describe supply chains that may be appropriate for the different types of
goods within the case study:
•Below are the details of supply chain management as regards to the given case
study of toast's, I have made a small change in supply chain management
considering the various issues toasty faced while buying wheat or flour from the
wholesaler. As per my flow chart toasty directly buys flour from the wheat mill,
which saves the take rate percentage of the wholesaler.
•Even though, Toasty must buy in bulk. Considering flour & wheat being non-
perishable item and can be used for longer term and stored in their warehouse.
•In this way Toasty saves Middle-men money (Extra cost buying from the
wholesaler), gets material in time and there is no confusion with other bakery-
Toast and Jam.
•I have considered to remove the wholesaler due to the lack.

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TASK 2 – SUPPLY CHAIN SCENARIO:

A: What do you think the advantages and disadvantages would be for not
having a wholesaler involved in the supply chain process and instead, the
company gets the ingredients directly from the supplier?
Advantages: -
➢ Cost efficiency: It will save time if we buy directly from the supplier as the
wholesaler keeps delaying the dispatch of the material with silly excuses,
➢ which are unacceptable & non-negotiable.
➢ If we buy directly, we will have to buy in bulk and we will get the material
in time.
➢ The advantage of having a wholesaler, is to get the flour in time and buy
short quantities whenever we want. As mills and supplier generally
prioritize their customer with quantity of flour or wheat they buy.
➢ Stock availability: when we buy from supplier, we buy bulk quantity as
flour and wheat are non-perishable item,
➢ we can keep the stock in warehouse and use it as and when required. So,
we do not have to worry about the stock, and we can smoothly function
in baking and supplying of bread.
Disadvantages: -
➢ Difficult demand forecasting: - Demand forecasting in the middle of a
global pandemic has added a new layer of complexity to many
companies’ supply chain management.
➢ Improper Implementation: - Changing a supply chain management
system requires three things: financial investment, time, and human
resources. If implementation is not conducted properly, there will be
wasted, service redundancy, and missed deadlines that may be
potentially result in significant costs.
➢ Loss of control.
➢ Impact on in house workspace

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 B: Based on what you have read in the case study, read the options below
and discuss in the space provided which option you feel would be the best
for cost saving and efficiency and why? Discuss the advantages and
disadvantages associated with your chosen option and briefly outline why
you have not chosen the other two:

Option A:
Change the supplier of flour from the current choice to another one 20 miles further away, -
keeping the same wholesaler.

Option B:
Stop using the wholesaler and change the supplier - cutting out the ‘middleman’ and getting
the product direct from a new supplier.

Option C:
Do nothing. Continue to use the wholesaler and supplier, hope something improves soon.
Option cost savings and efficiency and why?
I will select the option-B “stop using the wholesaler and change the supplier”
option because,

•It is cost saving and efficiency because if we buy directly from the supplier as
we do not have to give the extra take rate or cost of wholesaler.
•If we buy directly, we will save the extra amount of Rs.6 – 8 per kg which is
charged by wholesaler. Hence, it is cost saving.
•If we buy directly from supplier, it will save time as the wholesaler keeps
delaying the dispatch of the material with silly excuses, which are unacceptable
& non-negotiable.
•If we buy directly, we will have to buy in bulk and we will get the material in
time. Hence, it is time efficiency as well as stock availability will be more when
we buy bulk quantity as flour and wheat are non-perishable item, we can keep
the stock in warehouse and use it as and when required. So, we do not have to
worry about the stock, and we can smoothly function in baking and supplying of
bread.
Advantages and disadvantages associated with your chosen option:
Advantages for “stop using the wholesaler and change the supplier” option:
▪ If we buy from the supplier as we do not have to give the extra take rate
or cost of wholesaler. If we buy directly, we will save the extra amount of
Rs.6 – 8 per kg which is charged by wholesaler.
▪ It will save time if we buy directly from the supplier as the wholesaler
keeps delaying the dispatch of the material with silly excuses, which are

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 unacceptable & non-negotiable. If we buy directly, we will have to buy in
bulk and we will get the material in time.
▪ When we buy from supplier, we buy bulk quantity as flour and wheat are
non-perishable item, we can keep the stock in warehouse and use it as
and when required. So, we do not have to worry about the stock, and we
can smoothly function in baking and supplying of bread.

Outline why you have not chosen the other two

options:
OPTION A: There are different glitches in option A.
20 miles further means extra transportation cost and extra time consuming.
And there is chance of more and more delay as order will comes from 6 miles
further, and transportation cost will also get increases which will not be good
for toasty's business.
And there is lack of efficiency of wholesaler. And keeping the same wholesaler
means same issues will be repeated. Such as., delay in dispatch, wrong order,
etc.
So, option A is not good for business.
OPTION C:
Option c means keeping the same wholesaler or supplier ,
•Do nothing. Continue to use the wholesaler and supplier, hope something
improves soon.
•In this industry we cannot have a hope that something will change.
•If it hoped the efficiency of the toasty bakery will be reduced and so the
customer will.
•To develop the bakery there should be some actions taken to increasing the
efficiency.

C:Evaluate the features of supply chains which make them

mutually beneficial to supplier and customer.

Benefits to supplier:
•Reduces cost for customer as well as supplier.
•The order taking distributor will be in continual in touch.
•Efficiency will be increased.
Benefits to customer:
•Low cost of the product.
•Loyalty remains between both supplier and customer.
•Feedback helps the supplier.

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 Features of supplier and customer
•Better collaboration with supplier and customer.
•Better quality of the products from the supplier to the customer.
•Deliver the product on time to the customer.
•No errors in the delivery.
•Better consumer feedback.
•Better brand image and goodwill.

TASK 3 – SUPPLY CHAIN DATA

A: Suggest ways in which improved data exchange between Toasty and its
wholesaler might improve supply chain performance.
According to me the data exchange between Toasty and its wholesaler might
improve supply chain performance by the following ways:
1.Automatic purchasing
2.Standardize
3.Increase Transparency
4.Gain data insight
5.Real-Time Inventory management
6.Wholesaler needs to create separate ledger for Toasty and Toasty & Jam. So
that there will not be any issue/confusion while sending the flour.
Wholesaler also needs to replace its transporter, an educated transporter who
can be reliable and easily understand the traffic rules and the one who
transports the material in time like that transporter wholesaler should appoint
for his work.

B: Explain the impact of effective and efficient data exchange between

customers and suppliers on supply chain productivity.
The impact of effective and efficient data exchange between customers and suppliers
on supply chain productivity are:
1)cost cutting: -

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 If we directly buy from the supplier as we do not have to give the extra take rate or cost
of wholesaler.
2)time efficiency: -
It will save time if we buy directly from the supplier as the wholesaler keeps delaying
the dispatch of the material with silly excuses, which are unacceptable & non-
negotiable.
If we buy directly, we will have to buy in bulk and we will get the material in time.
3)Stock availability: -
when we buy from supplier, we buy bulk quantity as flour and wheat are non-
perishable item, we can keep the stock in warehouse and use it as and when
required.
So, we do not have to worry about the stock, and we can smoothly function in
baking and supplying of bread.

Customer: -
•Physical damage from customer side
•In case of phone kept under the table
•Suddenly fall from your hand
•From customer side the product was deliver on time or before time they give
good feedback
•Once the product was delivered without any issue is good

Supplier: -
•The supplier supplies the low-quality display.
• First, we want to identify the suppliers like milk, sugar, coffee powder etc.
•Then we also plan the design of the coffee shop area, near to the supplier to
get the product easily.
•From the packer side the customer ordered was packed passed on the need.
Hence, the impact of effective and efficient data exchange will make them
mutually beneficial to the supplier and customer on supply chain productivity.

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TASK 4 – SUPPLY CHAIN TECHNOLOGY
Look at supply chain diagram below and on it circle all the areas in the chain that
might benefit from the application of modern technology, In terms of improved
performance, quality, customer service or some other factor.

Supply Chain costings as of 2018

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 Wheat is harvested and
Wholesalers makes up
milled at flour mill, then Transport from
new amount to order for
transported to wholesalers to bakery
Toasty Bakery (£500 per
wholesalers (£2500 per (£800 per month)
month)
month)

Bread is cooled and Bakery makes up dough

Dough gets baked in the
packaged (£1100 per for bulk orders (£1800
oven (£600 per month)
month) per month)

Bread is transported in Bread is displayed on

boxes to retailers shelves (£400 per
(£1000 per month) month)

Briefly describe how the application of technology could influence the costs of the
various steps you have just circled.
Briefly describe how the application of technology could influence the
costs of the various steps you have just circled.
Step 1- Wheat is harvested and milled at flour mill, then transported to
wholesalers (£2500 per month): - Here, if we use modern technology like
new machinery in harvesting and milling:
•Labour cost reduced.
•Machinery cost increased.
•However, there is a balance and raw material cost will not be increased.
Step 2- Wholesalers makes up new amount to order for Toasty Bakery
(£500 per month):
•Here, if we use e-mails and phone calls for tighter communication:
•It will be very efficient in term of time.
•So, it is also noted as cost efficient.

Step 3- Transport from wholesalers to bakery (£800 per month): -

•Here, if we use computerized tracking system:

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 •It will provide more clarity in terms of status of transport.
•One time investment for website creation & online tracking.

Step 4- Bakery makes up dough for bulk orders (£1800 per month):
•Here, use of ppt, word, excel for better information among the
employees and management to understand stock, sale, payment, work
progress schedule (WPS).
•It is cost saving method.
•It helps the business for monitoring as well as sorting the files in better
way.

Step 5- Bakery makes up dough for bulk orders (£1800 per month):
•Here, use of ppt, word, excel for better information among the
employees and management to understand stock, sale, payment, work
progress schedule (WPS).
•It is cost saving method.
•It helps the business for monitoring as well as sorting the files in better
way.

Step 6- Bread is cooled and packaged (£1100 per month):

•Here, use of social media presence to increase more customer by
showing/uploading video clips while doing the process, when and how
bread is cooled and packaged in their bakery.
•It will not affect in cost. So, it is cost saving method.
•It will bring Add-on business.

Step 7- Bread is transported in boxes to retailers (£1000 per month):

•Here, use of computerized tracking system:
•It will provide more clarity in terms of status of transport.
•One time investment for website creation & online tracking.

Step 8- Bread is displayed on shelves (£400 per month):

•Here, use of modern service like telephone and e-mails for better
feedback,
•It will not affect in cost. So, it is cost saving method.
•It is time efficient. As presence of proper/tight communication will save
time.
Summarise ways in which modern technologies have impacted on supply
chain productivity.

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 In step 1, Wheat is harvested and milled at flour mill, then transported to
wholesalers (£2500 per month). Here, if we use modern technology like
new machinery in harvesting and milling:
Labour cost reduced- As new machines will introduced with the new
technology, it brings fewer human efforts as well as less lab ours. So,
labour cost reduced.
However, there is a balance as labour cost reduced with new machinery
and raw material cost will not be increased.

In Step 2, Wholesalers makes up new amount to order for Toasty Bakery

(£500 per month). Here, if we use e-mails and phone calls for tighter
communication:
Presence of tighter communication, it will be very efficient in term of time.
As there is proper communication between wholesaler and Toasty, so
there will not be any confusion for wrong order as well as get the order in
time.
It is also noted as cost efficient as toasty will get the order in time so there
will be no loss.

In step 3, Transport from wholesalers to bakery (£800 per month). Here, if

we use computerized tracking system:
It will provide more clarity in terms of status of transport. So, toasty as
well as wholesaler will understand where exactly the product is reached.

In step 4, Bakery makes up dough for bulk orders (£1800 per month): -
Here, use of ppt, word, excel for better information among the employees
and management to understand stock, sale, payment, work progress
schedule (WPS).
It is cost saving method.
It helps the business for monitoring as well as sorting the files in better
way.

In step 5, Dough gets baked in the oven (£600 per month). Here, use of
modern technology and machinery for baking,
Time efficient as new technology as well as new machines will get
installed, it will save time. Production will also get increased with new
machines.

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 In step 6, Bread is cooled and packaged (£1100 per month). Here, use of
social media presence to increase more customer by showing or uploading
video clips while doing the process when and how bread is cooled and
packaged in their bakery.
It will not affect in cost. So, it is cost saving method.
It will bring Add-on business.

In step 7, Bread is transported in boxes to retailers (£1000 per month).

Here, use of computerized tracking system:
It will provide more clarity in terms of status of transport. So, toasty as
well as retailer will understand where exactly the product is reached.
One time investment for website creation & online tracking system, which
will benefit both in all the way.

In step 8, Bread is displayed on shelves (£400 per month). Here, use of

modern services like telephone and e-mails for better feedback,
It will not affect in cost. So, it is cost saving method.

TASK 5A – SUPPLY CHAIN IMPROVEMENT PROJECT

You must create a project plan to improve the productivity of a supply chain, it must include
staff training to improve performance with a minimum of one function of the supply chain
where improved training will have a positive impact. You must explain the tools and
techniques that you would adopt within the supply chain improvement project.
The project must include appropriate success criteria so improvements can be identified
and measured and a tracking process to measure success. Please refer to the supply chain
diagram and the costings where necessary.
SUPPLY CHAIN IMPROVEMENT PROJECT:
ABSTRACT:

This paper hypothesizes that, whilst Six Sigma as a change and improvement
strategy is delivering significant business benefit to practitioner organization, it has

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not been successfully adapted to deliver similar benefits across supply chains. It
demonstrates by reference to the literature that most published applications of Six
Sigma in supply chains are related to the application of traditional internal Six Sigma
methodologies to the internal processes of a supplier to the “Six Sigma
Organization”.
You must create a project plan to improve the productivity of a supply chain, it must
include staff training to improve performance with a minimum of one function of
the supply chain where improved training will have a positive impact. You must
explain the tools and techniques that you would adopt within the supply chain
improvement project.

PROJECT PLAN:
This output versus input definition covers achievements of the workforce, results
from the use of equipment, time spent the hours needed to manufacture a product
and return on capital.
Managing Motivation to be More Productive:
Most employees need motivation to feel good about their jobs and perform
optimally. Some employees are money motivated while others find recognition and
rewards personally motivating. Motivation levels within the workplace have a
direct impact on motivation to feel good about their job’s employee productivity.
To improve the productivity of a supply chain, below measures should be taken: -
Customer relationship management:
•In term of the supply chain diagram, toasty can put their marketing team for after
sale service in which they can engage with their existing customer and get to know
proper feedback from their customer which will help the business to grow.
Product development:
•Provide online training and assessment for staff to use new technology and use of
new machinery & equipment for baking bread.
•By taking feedback positive & negative from the customer and using the feedback
for quality and research & development purpose.
Order fulfilment:
•Use of e-mails, What’s-app, phone calls to get in touch with customer, giving real
time assessment and status of their product dispatch.
•They should start taking payment in online payment mode such as., UPI
transactions, Net banking, NEFT and RTGS, etc.
Return:
•They can engage with their existing customer and get to know proper feedback
from their customer which will help the business to grow.

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To engage and create a good reputation among the customer by listening to their
praises & complains and get proper feedback.
To solving these problems related to business can use tools such as DMAIC which
is a 5- step process that can be used to find the solution for this problem and control
the productivity.

Step 1: Define, the first step is to define the problems in the supply chain.
In our organization there are number of problems are:
1.Delayed in delivery
2.Different products are delivered in wrong places
3.Lack of paper works are confusing in delivery time
4.No proper training for employees
5.No motivation for employees
Step 2: Measure
After defining the problem, we must confirm that there is a need for change and
that it is this area that needs work. For taking corrective action, we need to collect
proper information and data for both analysis and for comparison.
Step 3: Analyse
1.Improve the values
2.Continuous training for employees
3.Scheduling the timing for each department to work properly
4.Improve the communication technology
5.Increasing the supply chain productivity
6.Implementing the technical person as worker.
7.Use GPS tracker for finding the routes
8.Improve the working process
9.Use the application for taking order
10.Fast delivery method
11.Identifying the risk in productivity
12.Improving communication skills to the workers
Step 4: Improve
In this step, we must implement the improvement steps that have been stated in
previous step Once. it has implemented in supply chain management; we take
measure the current performance with standard performance to see if there has
been any improvement.
Step 5: Control
In this step, controlling the process which means making sure the problem doesn’t
happen again and that the new improved process is maintained and monitored.

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TASK 5B – SUPPLY CHAIN IMPROVEMENT PROJECT:

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 You must complete the project charter on the next page. You
must clearly outline the aims and how you will identify if there has been an
improvement. Where you are unable to fill in a box in the project charter, you
must suggest tools and techniques you could use to obtain the information

IMPROVEMENT IN SUPPLY PRABHAKAR 15/02/24 Employee development

PRABHAKAR PANDA TUSHAR Result oriented constant
ABHISHEK Improvement
SUBRATA 20/02/24

Improper Training Continuous Training

Improper Improving Communication
Communication Implementing GPS

Improper Communication between supplier and

Manufacturing
Late delivery
Implementing GPS

Trained employees are increased the productivity Delay in delivery and Maximum resource
Fast deliver for customer satisfaction low productivity utilization proper
instruction should be
By implementing the given

The scope of the project is to increase productivity technology many works

Give proper training for employees and gain are reduced and make.
easier PRABHAKAR

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