Saud Usman Shaikh

Supply Chain Organization

Unit 46: P1, P2, P3, M1

P1
Supply Chain Definition:

Definition:
Supply Chain Management is primarily concerned with the efficient
integration of suppliers, factories, warehouses and stores so that
merchandise is produced and distributed in the right quantities, to the
right locations and at the right time, and so as to minimize total system
cost subject to satisfying customer service requirements.

Global Scope of Supply Chain:

The term supply chain management arose in the late 1980s and came
into widespread use in the 1990s.Prior to that time, businesses used terms
such as logistics and operations management instead.

Some definitions of a supply chain are offered below: A supply chain is

the alignment of firms that bring products or services to market.from
Lambert, Stock, and Ellram in their book Fundamentals of Logistics
Management (Lambert, Douglas M., James R. Stock, and Lisa M. Ellram,
1998, Fundamentals of Logistics Management, Boston, MA: Irwin/McGrawHill, Chapter 14)

Achieving customer satisfaction through interdependence of organizations in

a business network.
To achieve customer satisfaction one needs to know the customer needs and
implement it accordingly
Understanding the Customer
Lot size
Response time
Service level
Product variety

Price

If the above is understood clearly highest level of customer satisfaction can be

achieved.

Role of individual business in supply chain networks.

The below diagram shows the role of different business involved in the Supply Chain
Network

Supply Chain Intermediaries

Major Types of Intermediaries

Middleman
Merchant
Middleman
Agent
Manufacturers Agent

Distributor
Wholesaler
Jobber Facilitating
Agent
Retailer

P2 file is landscape so in another document

P3
Describe different job roles found in the logistics workplace

Supply chain management offers a wide variety of job options for entry-level managers
and beyond.
Gross Salaries (AED per month)
Sn
o
Role
1 Supply Chain
Director
Supply Chain
2 Manager
Demand/Supply
3 Planner

0-3 years'
experience
30,000 - 39,000

Demand/Supply
4 Planning Manager
Materials
5 Engineer
Materials
6 Manager
Procurement
7 Director
Procurement
8 Manager
Category
9 Manager
Buyer
10
General Manager
11
Operations
12 Manager
Logistics Manager
13
Warehouse
14 Supervisor
Warehouse
15 Manager
Senior Contracts
16 Engineer
Contracts
17 Manager

22,000 - 28,000

Job Desc
9+ years'
experienc
e
68,000 96,000
48,000 56,500
*

3-5 years'
experience
35,000 54,000
25,000 37,000
15,000 21,000

6-8 years'
experience
52,000 68,000
39,000 47,000
18,000 23,000

19,000 - 24,000

25,000 31,000

28,000 32,000

30,000 35,000

6,000 - 9,000

10,000 16,000
18,000 26,000
44,000 57,000
32,000 45,000
22,000 30,000
15,000 21,000
37,500 47,500
25,000 35,000
22,000 27,000
12,000 15,000
19,000 24,000
20,000 31,500

12,000 18,000
25,000 35,000
55,000 75,000
40,000 52,000
27,000 35,000
20,000 26,000
45,000 56,500
38,000 45,000
25,000 35,000
14,000 17,000
25,000 32,000
32,000 38,000

17,00019,000
*

26,000 35,000

36,000 48,000

21,000 - 32,500
8,000 - 16,000

14,000 - 20,000
30,000 - 42,000
22,000 - 35,000
19,000 - 24,000
6,000 - 12,000
30,000 - 42,000
18,000 - 28,000
16,000 - 22,000
6,000 - 10,000
14,000 - 18,000
14,000 - 19,000

75,000 95,000
48,000 65,000
*
*
58,000 80,000
40,000 57,500
32,000 42,000
*
27,000 40,000
*
45,000 55,000

Bid Manager

16,000 - 21,000

Trade Compliance
19 Manager

15,000 - 23,000

18

P4

Adding Value in Supply Chain

22,000 32,500
21,500 32,000

25,000 35,000
24,000 34,500

38,000 52,500
35,000 50,000

The purpose of supply chains is to add value to production and distribution. Depending
upon the markets and the value chains they are servicing, supply chains can be
differentiated according to criteria such as costs, time reliability and risk.
Efficient logistics contributes to added-value in four major interrelated ways:

Production costs.
This will add value if the company improves efficiency of manufacturing with
appropriate shipment size, packaging and inventory levels. In this way logistics
contributes to the reduction of production costs by streamlining the supply
chain.

Location.
Logistics adds value by taking better advantage of various locations, implying
access to expanded markets (more customers) and lower distribution costs.

Time.
This adds value from having goods and services available when required along
the supply chain (e.g. lower lead times) with better inventory and transportation
management.

Control.

This adds value from controlling most of the stages along the supply chain,
from production to distribution. By better synchronizing cycles and lead times,
logistics enables better marketing and demand response

A variety of factors are jointly shaping the configuration of supply chains:

Logistics costs.
Considers the full costs to make products available to the final consumer namely

transport,
warehousing and transshipment.

Costs are therefore a standard criteria where the cheapest routing option is
sought, as long as the cost structure remains stable as supply chains are
unlikely to be modified if a cost advantage is only temporary.

Transit time.
A factor that is increasingly being considered since it strongly influence
inventory carrying costs and inventory cycle time in supply chain management.
So, for cargo that has a higher value (electronics) or is perishable (food) the
routing option that is the fastest and/or shortest will be preferred.

Reliability.
Relates to a factor that is mitigated by contemporary supply chain management
practices. For several supply chains, time can be a secondary factor as long as
shipments arrive at the distribution center within an expected time frame. If
shipments are regular and that this reliability remains consistent, it is possible to
organize supply chains accordingly by having more inventory in transit.

Supply chain risk.

This factor involves the level of confidence that the shipment will reach its final
destination within expected costs, time and reliability considerations. In some
cases, risk can also involve potential cargo damage or theft. Low risks routes are
obviously preferred over higher risk routes.

Adding Value to a Product

Value-added resellers are businesses that sell products

manufactured by other companies in addition to selling their own
supplemental products and services, thereby increasing the value
of the resold product purchased by the consumer. Among the
most common value-added resellers are:
Computer retailers
Computer retailers and
computer technology service
companies typically offer a wide
range of value-added products
and services, including
extended warranties and service
contracts, supplemental
hardware, installation, setup,
training services, professional
consulting services,
customization and software
programs. One of the major
aims of companies in providing
value-added services is to
develop relationships with
customers that will lead to
repeat business.

Automobile dealership:
Automobile dealerships most
commonly offer value-added
products and services in the forms
of extended warranties and service
contracts, or custom-made
accessory parts or engine
enhancements.

Furniture stores.
To increase sales revenues and
create relationships with
customers to encourage repeat
business, furniture stores offer
additional services such as
interior decorating, Free

Delivery etc.

M1
Following the above report also analyze the effects of adding value on job roles of e.g. Supervisor,
Operator, Technician or administrator.

Value Added Work Definition:

Activities that further the purpose of an organization by
generating output that is considered more valuable by its internal
and/or external customers than the inputs consumed in producing it

What does value added work really mean?

It sounds simple enough: value added work is about getting the most out
of your effort.. It depends on the complexity of work in organizations. As
work gets more complex, it needs to be done at higher levels within the
organization. For instance, the work of a director is more complex work
than the work of a front line worker

It is imperative that organizations have a workforce engaged in their value

added work for one simple reason: Effectiveness. Its through value
added work that organizations can ensure the right use of time and the
most effective use of capital.
For example, if your director is busy doing the kind of work that could be
done by a front line worker; youre paying more for work that could easily
be completed by someone with a lower salary. From an organizational
standpoint, thats inefficient. The same is true in reverse in that if you try
to assign the work of a director to a front line worker, that person is not
likely to have the capability to do that work and therefore, will not be
successful doing it. Thats ineffective.

Work is adding value when work of appropriate complexity is delegated to

the appropriate level in the organization, and when the objectives for that
work are contributing to the attainment of the organizations strategic

plan. Learning to recognize where the work needs to be done and

ensuring it is done there thats the true value.
In todays modern organization, theres no question managers are
overburdened, overworked and every bit worn-out. Thats not to say
people in decision making positions shouldnt expect to be stretched in
every direction, but in many businesses, value added work takes a back
seat.
Its not uncommon for managers to be promoted above their level of
competence and as a result, not have the capability to do value added
work at that level.
For example, a promotion from the manufacturing line to a front line
manager requires higher order problem-solving skills. Without these
capabilities, a promoted manager will focus on the floor and getting work
done at that level. This is work they know how to do, and they excel at it.
Since they dont have the capability to do the value-added managerial
work, they wont be successful at it, so they dont do it. As a consequence,
over time, the overall quality of the whole unit suffers.

P5

Definition

Supply Chain Management (SCM) is a total systems approach to

managing the entire flow of information, materials and services
from raw-material suppliers through factories and warehouses to
the end customer. A supply chain is a network of nodes or
locations.

P6 & M2
In the report from above consider a logistics company of your choice and examine:

At least four technologies practiced within the choice of your organization.

How supply chain relate these technologies to enable the activities within the choice of your
organization.

RSA Logistics:
RSA takes pride in being a one-stop shop that delivers integrated solutions
to its clients. The company currently owns and operates a multitude of
assets that cater to a variety of industries. Ranging from temperature
controlled facilities, chemicals, automotive and project logistics among
others.
Four Technologies Practiced by RSA Logistics are:
WM 4000 by Infor: Warehouse Management System
Infor WMS is a world class warehouse management system that enables
distribution management to control merchandise throughout the
warehouse. By instating Infor RSA, as a 3rd Party Logistics Company,
gained an edge that separates them from competition. This user friendly
system features graphical user interface (GUI), powerful query
capabilities, multiple data views, built-in security, fully integrated RF Task
Management, graphical label design, internet accessibility and more. The
product excels at high-performance receiving, putaway, replenishment,
allocation, picking, shipping and labor management. The system also
allows for connectivity to the most popular ERP, transportation solutions,
and call centres

Online WMS Portal

The online WMS portal by RSA is a powerful tool which gives transparency
to clients by making their inventory accessible to them on the web. It
offers personalized capabilities providing a pathway for sharing
information whilst making the whole process coherent from stem to stem.
The extensive features of the portal allow clients to check the status of
their stocks and shipments, create new SKUs and requests as well as the
extensive search and sorting features. Clients can also access

personalized reports that are available in various formats as well the

option to schedule reports.
ERP
A software initially developed for UAE market to meet its unique regional
needs now supports RSA globally. This software provides complete
feature-rich end-to-end logistical support for powerful freight forwarding
system.
The said software can be accessed through the web. It provides flexibility
and visibility of procedures and documentation whilst retaining total and
instant financial control at all stages of freight movement. It is simple and
user friendly and has a comprehensive interface.
Some of the Key Features are as listed below
Auto-trigger of emails and SMS on arrival/departure/proof of delivery
eBooking, eShipping Instruction, and eBL
Real-time track & trace, milestones, and client specific web reports
Various analysis reports available in all common formats
Ports and customs related EDI including ACI, AMS, INTTRA, ISF, WWA,
Traxon, Cargo-IMP, and eFreight
Proration of cost between consolidated and individual shipments,
trans-shipments, and sea-air shipments
Purchase order management using ePO
Process and user role-based exception reports and monitoring
system
Capable of handling multiple locations and currencies with the ability
to customize zones and regions
Barcode and PDA features on WMS and CFS handling

 All modules fully integrated, hence making it an end-to-end solution

AES Weblink certified application
EDI with eManifest (Canada Border Services Agency) for automatic
data transfer
Customizable workflow configurations
Business Intelligence tool for customizable reports and detailed
analysis
IT Infrastructure
The IT infrastructure at RSA is the best in its sector with state-of-the-art
hardware and software that in today's challenging, complex and rapidly
changing environment provides the most timely and efficient response
while supporting our business strategy. RSA strives to continually enhance
and evolve our multi-platform & multi-technology environment. They also
offer innovative and specialized solutions to help achieve high
performance and deliver business value to our client.

The Supply chain Process for RSA

Supply Chain Distribution & Transportation
Global supply chain management is a critical success factor for
manufacturers and retailers in many industries. Customers can take
advantage of the integrated suite of services offered by RSA to manage
their supply chain. From raw materials to retail distribution, their analysts
and operations personnel work closely with customers to manage the
entire supply chain, providing tailored services and meeting agreed
performance benchmarks.
They have their own fleet of 3 ton vehicles and also work with reputed
Transport Vendors who own very large fleets of Heavy Haulage Vehicles

and related equipment such as Cranes & Fork Lift Trucks and have the
capacity to place as many trailers at a time should that be required.
Raw Materials
Global freight management
Consolidation
Warehousing and storage
Inventory/materials management
Tracking system
Production & Finished Goods
Testing
Sample preparation
Batching / Sequencing
Quality control
Warehousing and storage
Inventory management
Value-added Services
Promotional packaging
Labelling
Ink-jet printing
Component assembly

Order Processing
Receipt and consolidation of purchase orders
Inspection
Distribution
Transport management
Multi-modal transportation
International freight forwarding
Import and export control
Tracking system