Subscribe Now and Get Discount 10%
Be the first to learn about our latest trends
Supply Chain Management
Insert name
Institutional affiliation
Supply Chain Management
Introduction
Supply chain management refers to the flow of goods and services within an organization and all the processes involved in the transformation of raw materials to finished products. It comprises of the processes involved in the operations of an organization to streamline its supply activities and promote customer value in addition to providing competitive advantages to the organization. Supply chain refers to the organizations and individual business entities that facilitate the transformation of a product from raw materials to the final product. Some supply chain activities include designing, manufacturing, refining, packaging, and transportation (Mangan, & Lalwani, 2016). This paper will discuss the supply chain management of Almarai, Emirates Airlines, and Al Baik. It compares and contrasts the supply chain of the three companies and provides for improvement of the supply chain of the companies
Almarai is a Saudi conglomerate that specializes in the production and distribution of food and beverages. The company is headquartered in Riyadh Saudi Arabia. It is listed in the Tadawul stock exchange. On the other hand, Emirates Airline is largest airline in the Middle East. It is the flag carrier of the United Arab Emirates. The company’s headquarters are located in Garhoud, Dubai, UAE. Emirates Airlines is a subsidiary of the Emirates Group, which is owned by the Investment Corporate of Dubai, the investment arm of the government of Dubai. Albaik is a fast food restaurant chain that mainly sells broasted and shrimp with different sauces. Albaik is one of the main consumers of chicken in Saudi Arabia. The company headquarters are located in Riyadh, Saudi Arabia.
Purchasing
Purchasing refers to the procurement of goods and services by the internal and external agencies of a company (Carr & Smeltzer, 2015). Almarai has a wide network that enables it to provide high quality food and beverage products in Egypt, Jordan, and other Middle East countries. On the other hand, Emirates Airlines has various payment options. The company provides excellent flexibility especially on issues related to the payment of tickets and online booking of flights. Albaik looks for the best sources of chicken that meet the highest quality standards that the company demands. The company purchases chicken from supplies who meet Saudi and international specifications and standards of health in its own standards.
Supplies
Almarai is an integrated company whose operations range from food and supply chain from dairy farms to stores and retail shops. The company produces approximately one million liters of fresh milk from more than 70,000 cows in the Saudi Arabian desert. On the other hand, Emirates has one of the best supply systems. The company has well-structured channels that provide it with a competitive advantage in the market. The company issues travel tickets from its head offices to the booking section, which improves the availability of the tickets to customers. It also ensures the company maintains a grip on its operations. As one of the major fast food restaurant chains in Saudi Arabia, Albaik has an efficient supply chain network that enables it to supply fast foods through various restaurants across Saudi Arabia and other parts of the Middle East.
Logistics
Almarai is a vertically integrated dairy organization that specializes in the sale and distribution of food and beverages. The company uses logistics to gain visibility, reduce holding costs, and enhancing the reliability of its supply chain networks. The company tracks transportation of its products using inventory management. Inventory management also enable the company to reduce holding costs. On the other hand, Emirates has various activities related to inbound and outbound logistics. For instance, Terminal 3 in the Dubai International airport is built for the exclusive use of the company. The company also focuses on management yields and strives to reduce its dependence on supplies. Emirates SkyCargo and Emirates Executive are the outbound services of the company. The company has a large fleet that serves about 10 exclusive destinations for cargo. Albaik has a production model that enables it to meet the health needs of health conscious people. The company’s supply chain supports the production function and ensures its stores get important components, which include chicken parts, when they need them.
Information Systems
Almarai uses Swisslog’s System operation services to facilitate smooth warehouse operations. Swisslog service supports and maintains the company’s on-site systems. Emirates is one of the most innovative airlines in the world. The information systems of the company are used to determine the routes and airfares. Some of the information systems used by the company include AIRMAN, AIRN@V, and AIRTAC. AIRMAN is used to monitor the health of the jetliners of the airline. AIRN@V is used to create modules that are dedicated to engineering, navigation, repair and maintenance planning systems. AIRTAC is used by specialists and engineers at a site to serve Airbus operators handle any technical issues that the aircraft may have to minimize on-the-ground time of the aircraft. Albaik uses transaction processing systems, decision support systems, and management information systems that support in its supply chain management. The use of these systems enables the company to organize its operations to gain a competitive advantage.
Quality
The three companies offer high quality products and services. This has provided them with a competitive edge in their respective industries. The company is committed to meet the needs of their customers, which has helped in creating a sense of trust with their customers. High quality products and services helps in improving customer loyalty.
Customer Service
Customer service is one of the most important aspects of the operations of any business. Good customer services facilitates the success of an organization in the marketplace. Excellent customer service makes helps customers build trust in an organization, which improves their loyalty to the organization’s products (Stevenson, 2018). The three customers are associated with excellent customer service, which helps them build and maintain a strong image and reputation both locally and internationally. Offering excellent customer service is the secret to the continued success of the three companies.
Comparison of Supply Chain of the Companies
There are several similarities in the supply chain of the three companies. The companies have individual functional networks that help in improving the distribution of their resources. in addition, the companies use production and advertising strategies to market their products both locally and internationally. The three companies have a good reputation both locally and internationally. They have efficient public relation strategies, which helps in maintaining their image and reputation. The supply chain of the three companies differ in the strategies used since the companies’ operations are based in different industries. For instance, Emirates operations are based in the transportation whereas Almarai engages in the production and distribution of food and beverage.
Strategies for Improvement
Emirates can modify its supply chain management strategies by increasing its focus on promotion of good public relations and customer service. Albaik can modify its supply chain management strategies to ensure it provides high quality products to its customers. It should ensure it is conscious of the safety of the products within the supply chain. Finally, Almarai can improve its supply chain management strategies by ensuring it incorporates the current technologies in the distribution of products within the supply chain.
Conclusion
Supply chain management facilitates the seamless operations of an organization. It may be a source of competitive advantage. Companies should ensure their supply chain management enables them to access the right products in the right quantity at the right time. Emirates, Almarai, and Albaik are some of the companies that use supply chain management to gain a competitive advantage in their respective industries.
References
Carr, A., & Smeltzer, L. (2015). The relationship of strategic purchasing to supply chain management. European Journal of Purchasing & Supply Management, 5(1), 43-51.
Mangan, J., & Lalwani, C. L. (2016). Global logistics and supply chain management. Hoboken, NJ: John Wiley & Sons.
Stevenson, W. (2018). Operations management (13th ed.). New York, NY: McGraw-Hill Irwin.