MO0494 Global Operations and Supply Chain Improvement

Module Code And Title : MO0494 Global Operations and Supply Chain Improvement

Introduction

Supply chain operations play a crucial role in enhancing business activities and it is also extremely essential in maintaining the constant flow of goods in the international market and due to this reason it may be clearly mentioned that constant improvements in this field has become vital. In this essay, a detailed discussion will be made on the various dynamic aspects of global supply chain operations and the ways in which improvements may positively impact the overall functioning of global supply chain operations.

Task 1

1. Identification of key global supply chain management practises which may impact on globalisation and Continuous Improvement (CI)

Supply chain structure

Supply chain structure is often composed of the different stakeholders who actively participate in the entire process of supply chain which includes suppliers of raw materials, distributors, sellers, manufacturers and customers. Additionally, it may be stated that the structure of the supply chain plays a vital role in improving the research and development functions which eventually enhances the performance to a considerable extent (Yoo & Seo, 2017). Apart from this, it has to be opined that production is generally marked as the most important part of a supply chain structure which serves as the backbone of an entire supply chain and therefore requires utmost care and attention.

Purchasing and strategic procurement

On the other hand, it may be mentioned that strategic procurement becomes an extremely essential aspect of the entire supply chain system which ensures availability of raw materials which proves beneficial and also helps in analysing the exact requirement of the raw materials. Furthermore, it needs to be implied that analysing the requirements and demands of the firms becomes essential in optimising the overall process of procurement which generates desired outcomes in the long run (Dong, Tang & Zhou, 2018). Strategic procurement includes several important aspects which include planning, product development and innovation, logistics, production, sales and marketing of the produced products and after sales service and support (Refer to Appendix-1).

Logistics management

Logistics management is an important part of the whole supply chain which impacts the growth and development of supply chain networks in a direct way and due to this reason it requires a lot of strategic planning and execution of the plans also becomes equally important. On a broader note, it needs to be asserted that maintaining effectiveness in logistical operations definitely aids in achieving competitive advantage in the global market (Harrison et al., 2019). In addition to this, logistics management also becomes important as it is associated with meeting the demands of the customers through on time delivery of the products and goods which requires a well- controlled movement as well as storage of the goods.

Quality management models and systems

Quality management becomes a challenging issue as it requires collaboration between the senior managers and employees of a supply chain and through implementing various policies and regulations it may be managed in a successful way. Applications of some quality management models may include following International Organisation for Standardisation (ISO) quality management benchmarks for maintaining superior quality standards. Moreover, it may be added that paying attention towards some quality management principles such as leadership, focusing on the customers and evidence based decision making may generate fruitful results in the long run (Refer to Appendix-2). However, coordination and integration are considered to be immensely essential for maintaining a constant quality of the operations which ultimately helps in improving the efficiency of the supply chain practises (Cogollo & Correa, 2019).

Six sigma and TQM

It may be asserted that Total Quality Management (TQM) and s ix sigma both have gained prominence in improving the quality of supply chain operations and both have become effective in gaining competitive advantage in the modern business world. Quality management is immensely essential as it decreases the number of damaged goods and products which benefits the supply chain in utilising its financial resources in a more effective way (Tennant, 2017). TQM is often associated with improving the existing standards which are essential for maintaining a standard quality. On the other hand, six sigma mainly pays attention towards improving the quality by analysing and reducing the defects.

Performance measurement

It may be asserted that performance measurement becomes a crucial tool for further improving the operations of the supply chain and due to this reason constant evaluation through analysis becomes important as well as effective. In other words, constant evaluation of performance helps in achieving better productivity which may be achieved through implementing six sigma, lean six sigma, cycle time reduction and continuous improvement (Harbour, 2017). Furthermore, performance measurements may also be done successfully through managing the supply chain operations through meeting the objectives along with fulfilling the checklists. In a more specific way, it may be opined that performance measurements help in interpreting and understanding the areas which need to undergo improvements (Landy, Zedeck & Cleveland, 2017).

Forecasting

Forecasting also becomes essential in order to avoid various uncertainties and risks by analysing the trends which provide guidance by using historical data in a proper way by application of certain techniques. However, it has to be implied that the quality of information and confidentiality often becomes important in managing the supply chain operations in a more strategic way (Ali et al., 2017). Along with this, forecasting also proves beneficial in allocating financial resources and their perfect utilisation for better outcomes in the future and due to this reason its importance may never be overlooked or underestimated.

2. Role of these strategies, tools or practises on both globalisation and CI

Information technology

Information and technology has always played a crucial role in enhancing the overall performance of supply chain operations where the use of Artificial Intelligence (AI) has increased significantly in the past few years. On a contradictory note, it may be argued that implementation of Artificial Intelligence (AI) has proven beneficial in overcoming various issues and challenges in a rapid manner further improving the potential for generating better outcomes (Toorajipour et al., 2021).

Lean and agile supply chain

Lean supply chain aims at providing best quality service to the customers through providing service in the most accurate way where loss of resources is minimised and regulated strictly along with maintaining flexibility. On the other hand, an agile supply chain helps in increasing the speed of delivery of the products through using the latest software’s and the teams choose small batch sizes to deliver the orders as quickly as possible. In other words, integration of lean and agile supply chain principles becomes fruitful in achieving sustainability which also improves the quality of operations (Ciccullo et al., 2018).

Location and decision making

Location plays a crucial part in supply chain operations as it directly impacts the various logistical activities and proves beneficial in understanding the demands and requirements of the customers of a specific region. Decision making also impacts supply chain operations by making real time decisions based on the changing situations and circumstances of a particular region. Moreover, analysing the risk factors associated with the location becomes important in manufacturing and avoiding those risk factors directly impacts the growth and development of supply chain activities (Huang et al., 2020).

Cross functional activities and integration in supply chain

Cross functional teams help in generating better outcomes by working towards a clear objective which also becomes necessary to achieve goals and targets which may be difficult to achieve without a team effort. Using as well as utilising the resources also becomes necessary in achieving desirable results through cross functional activities and integration in supply chain operations. Using innovative models and frameworks have become common in achieving economic prosperity through enhancing supply chain operations in the global competitive market (Sabet, Yazdani& De, 2017).

Collaborative supply chain

Collaboration is regarded as an essential aspect of the supply chain which further improves the quality of operations where two or more firms collaborate to achieve shared goals and objectives in the long run. This type of approach often generates mutual benefits which eventually assist in gaining trust of the customers through maintaining transparency and clarity of the operations. However, having a thorough knowledge of the supply chain activities and operations proves to be an added advantage in overcoming various barriers while forming active collaboration (Nimmy, Chilkapure&Pillai, 2019).

Sustainability in global supply chain

Maintaining sustainability has become truly significant in achieving a good reputation in the international market where customers have also become aware about the importance of maintaining environmental regulations and rules. Furthermore, attaining sustainability in supply chain operations eventually assist in maintaining transparency of activities which increases the scope of operations associated with supply chain (Gardner et al., 2019).

Global sourcing

Global sourcing proves to be an effective way in reducing the cost of procured materials which generates a positive economic impact on the entire supply chain by overcoming the barriers which exist in the global markets. In other words, global resource acquisition strategy includes sustainability concerns which become truly essential in improving the quality of operations along with aligning with the trends of globalisation (Arrigo, 2020). Global sourcing is a well-known procurement strategy which aids in acquiring essential skills and technologies for the betterment of businesses by reducing the costs to a great extent (Refer to Appendix-3).

Task 2

1. Global supply chain management practises which may impact sustainability to promote both an environmentally friendly and socially responsible global organisation

Social

Supply chain sustainability has been one of the most critical factors to analyse the values and impacts of the company in a global scenario. Global supply chain management refers to the different activities such as production of goods, management of the annual inventory, outsourcing and several channels of coordination that together define the Supply Chain structure. There is a global perspective on Supply Chain Management (SCM) that has been considered and discussed, where the impact on globalisation has been given preference. The Six Sigma practice usually goes according to the TQM practises, where the performance on the organisation becomes more aligned (Lamine & Lakhal, 2018). The Total Quality Management (TQM) refers to the efforts of several management layers as well as the top management to execute a specific business strategy that has been quite effective to maximize the quality of the output produced.

The different models that comprise the quality management refer to assistant through Malcolm Baldrige Criteria for Performance Excellence, European Foundation for Quality Management and maintenance of the ISO quality management standards to promote social sustainability. However, there still lies several risk related factors that have become quite important to the SCM for a firm (Xu et al., 2019). The environmental and the human factors have been taken into consideration first to understand and critically evaluate the SCM. Sustainability has been defined as yet another process of developing and upgrading the business needs to align with the current market scenario and have a quality maintained without compromising with the different supply chains (Karmaker et al., 2021). The lean and agile supply chain management practice usually is viewed as the specific strategies that involve better and efficient use of the existing resources of a business organisation (Raji, Rossi & Strozzi, 2021).

Environmental

Environmental supply chain management has been a significant part of the total management process related with the network of the continuous improvement of the different supply chain structure. There are different standards that provide environmental sustainability in the supply chain management where the different companies mostly engage with the manufacturers and work to have better performance. The Green SCM has been effective in the innovation to bring in better management related to the environmental sustainability and the performance of the organisation (Hong et al., 2019). The collaborative supply chain has a better performance in the viewpoint of organizational regards where the mechanism of the different markets lie in the totality of the management of the supply chain. The six sigma and Total Quality Management (TQM) helps to offer a great help in the reduction of cost, sort out different kind of waste particles and the several inefficiencies in the organization that have been related to the environmental issues (Ruben, Vinodh & Asokan, 2018)

2. Impact of global supply chain management practice on social and impact on environmental sustainability

Social

The impact on the social culture of the organisation has been discussed with reference to the several different and contrary attitudes of the supply chain management practices. Supply chain structure understanding is crucial, mostly with reference to the fact that the information that flows usually through an organization is not presented or hidden from the competitors in the market to have a greater competitive advantage. Social sustainability has remained as one of most important concerns for the differences in the operating mechanism of the business organization, where the protection of employees from work related exploitation have remained a greater issue (Venkatesh et al., 2020). The social impact constitutes the fact that the total quality management (TQM) usually goes under several lines of competition and the quality of the information that has been presented remains distorted. The sustainability in the supply chain is usually presented with a better framework to improve the location decisions making option of the firm and enhance the performance of the organisation. The logistics management of the global supply chain consists of several firms, multi suppliers and several third parties whom operate for the flow of goods and storage in the line of focus of management (Koberg & Longoni, 2019).

The social aspect of the global supply chain relates directly to the human element of the business organisation, where the daily sustainability needs are to create greater volumes of goods at much lower costs, which is a lean supply chain. Although, if the discussion is made on the global perspective of SCM, the critical cases of medical emergencies need to be included where the flexibility and degree of responsiveness, which is part of Agile supply chain, impacts social sustainability to a huge degree. However, a company before selling any product of its own needs first to understand the importance of critically evaluating the different channels of the supply chain which directly forms the performance measurement of the organization. There are different components involved in selling a product, and most parts of it relate to the purchasing and strategic procurement.

Environmental

Several companies such as automobile companies or any other kind of industry focus mostly on the production of such commodities that have a larger scope of emission related issues, which needs a change in the Supply Chain structure for a negative impact on the environmental sustainability. Environmental sustainability refers to the better management of the issues and the different amendments made to check global warming, where the continuous increase in the emission of carbon dioxide is a major cause (Hosseini et al., 2019). The improved Logistics Management in respect to the environmental aspect affects millions of human lives in total in the process of procurement and releasing the appropriate elements of the supply chain. The Six sigma and the TQM help to identify the Master Black Belts and Green belts where such a process helps to reduce the carbon emissions and help to save energy. The forecasting of the different environmental factors and the choice of collaborative supply chain management channel helps in have better assessment to understand the climate changes that may reduce the profitability ratio (SardainSardain & Leung, 2019).

3. Analysis of the way and impact of Inter-face or trade – off on improvement or management measures to promote sustainability

The different aspects of the structures and the dimensions of the global supply chain management usually face an impact of the inter-face elements, which are increasingly resilient to the supply chain management. The trade-off usually lies in the fact that the social and environmental performance has been quite much in the strategic choices to have a suitable impact on the supply chain management (Haffar & Searcy, 2019). The SCM is usually having different sorts of issues with the components of the quality of the products manufactured, different locations, the impact of the production directly on the environment and several other impacts to cause potential trade-offs in the inventory levels. The necessity that has caused the several undertakings of the supply chain management practises and build a more better business environmental approach towards the solution to overcome the challenges faced by a sustainable supply champion management serves greater (Yadav et al., 2020).

The involvement of the Information Technology department has a higher role to play to implement successful steps about the implementation and analysis of the supply chain management processes. However, apart from these management measures to improve the sustainability, other practices may be adopted to serve the critical management field, by the better assessment of the risk factors that are present in the supply chain. The capability of the analytics has been better improved to have a close improvement of the strong and agility of the supply chain management, where the flexibility lies in analytics based conclusions and the application of such (Srinivasan & Swink, 2018). The TQM practice and SCM practice have been addressed as superlative philosophies to achieve a major performance in the supply chain management system (Basheer et al., 2018).

4. Real world examples and their critical analysis

The company Coca Cola has a very unique supply chain management technique, where the different elements such as beverage concentrates, aluminium and carton packing are used by the logistics department of the company. Coca Cola usually ensures one of the quality management structures of the supply chain by having a better quality of food safety and adopting secure ISO standards. The Colgate PalmoliveCompany has been quite empowering in managing the supply chain management of its company, where the majority of the system is usually monitored by artificial intelligence. Amazon company have been having a model example of the SCM, where the vendors of the company arte usually taken into consideration to have a better warehousing facility of the goods placed near metro stations and quick tracking in the logistics department. The goals usually lie in the fact that the development of the smart factory reduces the time and responds to the consumer’s demand to increase productivity (Abdirad & Krishnan, 2021).

Conclusion

From the above discussion, it may be concluded that the key global SCM strategies have been monitored as discussed with details of the impact on globalisation, including the social and environmental factors.

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