Almarai supply chain management

Almarai supply chain management

Introduction

Almarai is an incorporated company that focuses on the manufacturing and supply of food and beverages. The Saudi-based company is currently the largest incorporated dairy food corporation in the world. The company enjoys an unmatched reputation within the Asian continent. With the company establishing numerous branches in different countries in Asia, it serves a broad market, therefore, becoming the leading food distributor in the world.

Challenges encountered in logistics and transportation

Just like any other company, Almarai faces several problems in the course of running. Transport and Logistics problems are challenges that a company encounters while trying to try to link the production cites to its target consumers.  Logistics problems usually arise during both the distribution and the operational course. The transport problems occur during the transportation of both the raw materials and the end products. One of the logistics problems encountered by Almarai Company is inaccuracy when measuring its logistics of performance. The phenomenon is attributed to its inability to track and trace its consignment. Since the company enjoys a broad market, the process of determining the performance of the company in recent years is increasingly challenging. This phenomenon also makes the process of planning difficult. The vast market enjoyed by the company also offers a challenge to the company.

Meeting both the demand and supply forces in different countries presents the company planning challenge. One of the transport problems faced by Almarai is the increasing costs of transport. Road transport is the most common means of transportation in many Asian countries. This form of transport is costly, especially when transporting bulky products. When transporting bulky goods, the existence of electric trains would be of more help. The problem of congestion in various cities also makes the process of delivery inefficient.

How the supply chain design helps manage the constraints and margins

One of the ways of increasing the realized profits is by reduction of both the supply and operational costs. Almarai, for instance, has an integrated plan through which they monitor their expenses. The schedule incorporates a reduction of the shipping and warehousing costs (Meharunisa, 2020).  Suppression of the supply chain expenses is attained by monitoring the phases in the supply process. It is, therefore, necessary to break down the chain into its essential elements. It enables the company to improve its space utilization, utilize multiple suppliers, transport the supplies faster, and ease the process of accessing the demand patterns. Critical analysis of the supply chain comes bis referred to as the market sourcing strategy.

The dynamics followed to satisfy customer needs

Consumer needs vary from one environment to another. However, four vital consumer needs are accepted universally. These include- fair prices, quality of products, excellent services, and appreciation of customers. Meeting the consumer needs earns a company, loyal customers who continuously use your goods or services. In a competitive market, a customer is more likely to choose a company that guarantees the satisfaction of the four vital needs. Managing customer needs can be very challenging. This is because customer needs are either implicit or explicit. Customers may also have performance expectations regarding the products or services they intend to purchase. One of the dynamics of satisfying customer needs is quality assurance. In this, a company must ensure that they offer high-quality goods or services to their customers. Communicating clearly and honestly is another dynamic to satisfy consumer needs (Wlezien, 2015). In this, a company must ensure that the target consumers access useful information about its products. Through this, customers gain the necessary information concerning the products in question. Responding to their inquiries also makes the customers feel more valued. A company must ensure that its products are readily available and at fair prices. For instance, Almarai Company enjoys higher customer preference in the market due to its ability to meet the demand forces.

Which one is focused on reducing organizational risks?

Organizational risk refers to the prospective for losses due to uncertainty. They include legal, regulatory, operational, and reputational risks. Providing reasonable assurance to the customers is likely to mitigate organizational risks (Will, 2013). The guarantee of the provision of high-quality goods cultivates customer loyalty. Through this, customers continue purchasing products from a company even when the prices increase. Having a good reputation as a company is also a better way of reducing reputational risks. For instance, the Almarai Company continues to enjoy supremacy over its competitors due to its excellent reputation. A good reputation helps companies to survive in varying economic times

Recommendations for gaining competitive advantage of the business

Competitive advantage refers to the benefits gained by a business when at the expense of their competitors (Ferdinand, 2013). it occurs when a company offers its customers superior value either by offering lower prices or by providing justified inflated prices. To gain a competitive advantage, Almarai should adopt relevant marketing dynamics. These include; speed, flexibility, reduction of operational and supply costs, increase dependability, as well improving the quality of their goods. One of the most significant ways of gaining a competitive advantage is by ensuring there is adequate supply chain management. Supply chain management allows the company to monitor all the costs associated with the supply process. The reduction of these costs is useful to increase profitability and shareholder valuation.

 

 

References

Ferdinand, A. (2013). Company-Specific Advantage and Sustainable Competitive Advantage. SSRN Electronic Journal.

Stanko, M., & Bonner, J. (2013). Projective customer competence: Projecting future customer needs that drive innovation performance. Industrial Marketing Management, 42(8), 1255-1265.

Vinodkumar, D., & Meharunisa, D. (2020). A Study on the Growth of Almarai as a Corporate Citizen in the era that seeks Sustainable. International Journal Of Psychosocial Rehabilitation, (14757192), 1553-1561.

Will, M. (2013). Successful Organizational Change Through Overcoming Risks. Academy Of Management Proceedings, 2013(1), 12311.

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