1. Name the three sectors of the supply chain. On what occasions could certain sections of the primary sector operate as retailers?
The three sectors of the supply chain are; primary sector (provides raw materials), secondary sector (manufactures the product) and tertiary sector (provides services).
Even though generally the tertiary sector operates as retailers there could be certain occasions that the primary sector needs to work as the retailers. One of those occasions could be, when a customer who does not belong to a company, who works by his/herself orders the raw material just by itself without in a form of manufactured product. In this case, the suppliers of raw materials would be the retailers because they sell it directly without the need of wholesalers or official retailers such as markets.
To clarify what I mean lets think this customer as a person walking beside the coast and he sees a fisher holding fishing line in his hands, and a fish is waggling at the end of the line. If you buy it directly from the fisherman, without waiting it to be manufactured, packaged and sent a market, then you make the fisherman that works for the primary sectors a retailer, which is a part of tertiary sector.
2. Give three examples of how Kellogg’s demonstrates good supply chain management. How can Kellogg’s make improvements both for its business and for the environment?
Kellogg’s demonstrates good supply chain management because it is successful in every business sector and it has the right strategy about the relationship between the sectors, which build up the chain. The first example can be given as Kellogg’s company being really careful about the loan production. They try hard to reduce the waste by assessing its techniques on production. Secondly, their storage is only 1 mile away from its production base and this helps them with reducing transportation cost and upgrades delivery/distribution. For the third example, Kellogg’s using the just in time system, computer based system and having contractions with large retailers helps it effectiveness of supply chain management and increasing its profits.
In order to improve for its business, the company must have a strategic planning and equip of employees, which can cope with each other and work in coordination. Also about the environment Kellogg’s must be careful about their waste of water, they must use renewable energy and never ever let the markets use plastic bags.
3. Why is it important for Kellogg’s to build good relationships with businesses in the tertiary sector?
It is important for Kellogg’s to build good relationships with business in the tertiary sector because that is the sector, which brings them the money. They are the retailers, the ones who sell the products of the company. In order to success and have a large profit, Kellogg’s must have more than one retailers and must have good reputation in the business world so it can both attract the huge market companies and the customers. So if the company wants to make money and wants to turn all the efforts of primary and secondary sector to a business, it must have good relations with the service sector.
4. Evaluate the benefits of large manufacturers like Kellogg’s handing over the logistical side of their business to specialist companies like TDG.
The benefits of large manufacturers handing over the logistical side of their business to specialists are reducing the transport cost and the carbon footprint, by being efficient in energy and time. Also, when they yield the task of storage of goods through out the supply chain, they can concentrate on their specific job/part on the chain more effectively rather than dealing with other parts. By this way both the company saves time and is able to improve the manufacture of goods and the specialists like TDG can do their professional work without anyone stepping in their business.
I learned lots of things and I had a self discussion about what I believed before and this article gave me a different point of view.
Before I read this article about the Kellogg’s company I always thought that businesses should have their own transportation systems and their own retailers under their control. I believed that otherwise everything would be complicated and the authority would be weak. Things wouldn’t be monitored by one company but by several huge agencies. Also there would be a lot of money spent and it wouldn’t be cost-effective. However, now I comprehend the idea of need to interact with other companies. By this way the main company reaches to a great success because all the sectors work on their own without any distraction or other issues to deal with.
Furthermore, I thought that every market had to have a large stock of every product and the companies were responsible of keeping track of these stocks. I believed that having huge stocks would be easier both for saving money and energy. But after reading Kellogg’s strategy my ideas changed and now I think that holding limited stocks of products will reduce warehousing costs and also
Kellogg’s using a system called just-in-time is logical to provide an efficient stock.
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