Supply Chain Integration Essay

As a market leader in the fruit drinks industry. Delicious Fruity Company ( DFC ) offers fresh juice. long life fruit juice and juice dressed ores to the consumer market. It has been set up in twelvemonth 2001 located at Butterworth. Penang and with 12 old ages of experience. Delicious Fruity Company serve their consumers with the highest honor by practise uninterrupted betterment and invention in the fruit production procedure.

The vision of Delicious Fruity Company is ‘To become one of the taking company in fruit drink makers and develop healthy and high quality merchandises to function our clients. ’ There is a broad distribution of web that enable clients to buy fruit juice and juice dressed ores of Delicious Fruity Company as the company situated their merchandises in the most biggest supermarket in Malaysia which they are Tesco. Giant. Carrefour. Sunshine. Aeon. Jusco. Pacific and Econsave.

The chief consumer market that is target by Delicious Fruity Company is consumers in Malaysia which Delicious Fruity Company concentrate on local distribution channel. Description of Product Harmonizing to The Times of India. benefits of imbibing fruit juice such as oranges will maintain your tegument freshness and maintain you off from cold. Besides that. fruits juice contains indispensable foods that is much higher than a repast usually consumed by an person.

Delicious Fruity Company formulates fruits juices. long life fruit juice and juice dressed ores that is high in foods and besides quality as a promise to their client where they think of quality. they will believe of Delicious Fruity Company. They use fresh oranges. apples. lemons and etc. to pull out the natural spirit of the fruit which there is no unreal flavorer used in the procedure of explicating the fruit juice and juice dressed ores. This would reflect the safety of ingredient used by Delicious Fruity Company as it is insured from inordinate usage of chemical in their merchandises.

Problem Statement As reference before. Delicious Fruity Company utilize the extraction of fruits to transform the unrefined fruit juice to go long life fruit juice. The chief natural stuff that is mostly used by Delicious Fruity would be fresh fruits like oranges. apples. lemons. grapes and etc. Repeated telling from local agriculturists below a important clip would probably to raise the cost of telling. transportation and retention of fresh fruits and besides the handiness of stuffs which is ever a major issue for Delicious Fruits Company.

However. in the last two old ages. General Manager of Delicious Fruity Company. Ms Serena had come out with a program which natural stuff would be order in majority. which this thought would efficaciously assist to convey down the figure of cost of telling and transporting. guarantee the handiness of natural stuff but it would do an addition in keeping cost as those natural stuffs were about to maintain under Delicious Fruity Company’s warehouse and installations like immense icebox would hold to be ready for the reaching of those fresh fruits.

The benefit of the determination seems to be higher than the cost of the determination which in the terminal. Delightful Fruity Company started pattern Ms Serena’s program. Economies of graduated table would sound pleasant to Delicious Fruity Company but there is a serious job arise from this determination which this attack creates overstocking jobs. and as those fresh fruits are perishable trade goods. the issue transform from bad to worse as the fruits lifespan ends. Proposal of Solution

Presents. corporation with supply concatenation spouses seems to be a new and better option for most of the company to run their concerns. The job faced by Delicious Fruity Company would be able to be solve by utilizing some of the schemes in supply concatenation integrating which they are transverse moorage. collaborative. planning. prediction. refilling ( CPFR ) and joint merchandise development. These schemes would be explain in inside informations in the undermentioned paragraph.

Cross Docking As cost of keeping and managing stuffs is rather expensive which Delicious Fruity Company is non merely pay for the lease of warehouse but they besides pay for other overhead cost such as public-service corporations of warehouse. insurance of natural stuffs and etc. Cross Docking would assist to cut down this cost to minimum which cross moorage is the practise of lading goods from an incoming truck and switch the goods straight in to another truck. dawdlers or rail autos.

It is a combination of cargo and warehouse are non function as a storage house but it act as a distribution Centre that receive cargo in majority and interrupt them into specific packaging and so direct them out instantly to the maker. As a fruit drink fabrication company. natural stuffs of Delicious Fruity Company are largely perishable points which they are better suited to traverse docking than others. Cross moorage will guarantee the freshness of those fruits that needs to be procedure.

As the fruits needed to be kept in wooden crates and held in refrigerated cool suites which the clip required to be stored would diminish the lifetime of those fruits. hence. fresh fruits is indispensable for Delicious Fruity Company which with this. telling in big measures and in big volumes would non work. The benefit that comes with this scheme would be cut down the clip from the beginning of production which natural stuff could be deliver in a short period of clip and the finished goods would be able to direct out to clients faster which would maintain the freshness of the fruit juice that brings out client satisfaction.

But to truly implement this scheme. Delicious Fruity Company need to understand the demands in the market so that prognosis would be carryout and accurate appraisal of demands in the market would supply sufficient information to those local agriculturists so that the measure of each cargo can be send right and besides the freshness of those fruits would be ensured. Joint Product Development One of the grounds that causes the General Manager. Ms Serena to do the incorrect determination is because of deficient information sing Delicious Fruity Company.

Ms Serena fail to do prognosis of the market demand and concentrating on merely cost effectivity and left the most of import issue behind which is the equilibrium of the consumer market. Joint merchandise development is an confederation between two or more parties in the supply concatenation. Delicious Fruity Company could implement this scheme with their retail merchants as retail merchants understands more on how consumer behave. this is because of retail merchants are the 1 who have daily contact with the concluding consumers and they portion some of the customers’ penchant by better apprehension and maintain up-date the consumers’ behavior.

With the aid of Delicious Fruity Company’s spouses such as Tesco. Giant and etc. Delicious Fruity Company should be able to calculate the demand of fruit juice drink more accurate than earlier. Collaborative. Planning. Forecasting. Replenishment ( CPFR ) This scheme ease the demand prediction procedure which the demand forms and program publicity activities for merchandise were run hand in glove with supply concatenation spouses. As CPFR non merely merely calculating market demand and making logistics material to assist a house. alternatively. it proactively articipate the whole procedure of concern between the house and its supply concatenation spouses. For Example. may be the ground for majority ordination to be fail is non cause by the inaccurate of calculating market demand. but it is cause by the economic crisis that hits the consumers. Hence. if CPFR is about to implement. providers of natural stuffs would assist in diminishing the monetary value of fruits and the retail merchant of the company would present publicity to the concluding consumers so that the market demand would non fall excessively aggressively from normal season.

There is a few stairss that need to be followed while implementing CPFR which the first measure would be Front-end understanding where take parting company such as those local agriculturists and retail merchants such as Jusco. Tesco agree to confidentiality and difference declaration processes. develop a scorecard to track cardinal supply concatenation prosodies relative to success standards. and set up any fiscal inducements or punishments.

The 2nd stairss would be joint concern program where providers. retail merchants and besides Delicious Fruity Company develop programs for publicities. stock list policy alterations. shop gaps and shuttings. and merchandise alterations for each drink class as to follow the alterations brought by CPFR. After that. retail merchants such as Tesco. and Delicious Fruity Company portion consumer demand prognosiss. and identify exclusions that occur when the programs that design do non fit. or alteration dramatically. Delicious Fruity Company and their retail merchants resolve exclusions by finding causal factors. seting programs where necessary.

This procedure is known as gross revenues forecast coaction. The following stairss would be order forecast coaction. which Delicious Fruity Company and its retail merchants and besides natural stuff providers portion the refilling program that had been design collaboratively with the retail merchant and so place and deciding exclusions that would change the initial program. Finally. Order coevals or bringing executing will be performed and the consequences from database of the retail merchant such as point of gross revenues ( POS ) . orders. cargo informations and etc. s widely shared among supply concatenation spouses. This would decide the issue that reference before by this paper such as prognosis truth jobs. overstock or understock conditions. and executing issues. Challenges of Implementing Supply Chain Integration Although supply concatenation integrating had been recognized as a successful scheme to pull off the job face during the operation procedure from a maker to a retail merchant. nevertheless. there are issues and challenges that face by most of the industry to execute supply concatenation integrating.

Delicious Fruity Company need to get the better of some of these barriers so that the execution of supply concatenation integrating would be successful. Trust would be the first component that a Delicious Fruity Company had to maintain practising once the house went into a supply concatenation integrating which with if Delicious Fruity Company do non maintain in religion in their providers. they will be unwilling to portion informations with their providers. In the terminal. the supply concatenation integrating would non be able to execute.

As a company is about to implement new policy. some phases of alterations within the company will be required. As Delightful Fruity Company will implement this new scheme in the hereafter. the direction personal should see the adaptiveness of the house upon the execution of new schemes. Besides that. there will be an addition in mutuality as Delicious Fruity Company prosecute in supply concatenation integrating which providers. retail merchants and the house are dependent on each other to last in the market topographic point.

Yet. this mutuality would lift another issue which in world there will be one or few parties or stakeholders in supply concatenation would break off and they enjoy the supply concatenation integrating scheme the most. this state of affairs been known as uneven spouse benefit which Delicious Fruity Company needs to chasten their emotion while they face such sorts of state of affairs in world. Last. most of the supply concatenation integrating schemes requires extended information engineerings which Delicious Fruity Company need to fit themselves with hardware and package that is needed to implement a trade name new supply concatenation integrating policy.

This would really intend that Delicious Fruity Company needs to apportion a big sum of hard currency flow as the restructuring cost that will be invested into the relationship with their supply concatenation spouses. Conclusion Implementation of supply concatenation integrating by Delicious Fruity Company is needed in order to maintain up with its company vision which is ‘To become one of the taking company in fruit drink makers and develop healthy and high quality merchandises to function our clients. This is because of supply concatenation integrating create more value for Delicious Fruity Company and besides its clients. which can make stronger attractive force for its merchandises and services as excess competitory advantage. As stated in this proposal. where some of the practise of supply concatenation integrating may take Delicious Fruity Company to a better platform of functioning their clients. But obstacles that faced by Delicious Fruity Company necessitate to be overcome so that the prosperity of implementing supply concatenation integrating scheme would be ensured.