Supply Chain Management Report Of Devondale Milk - Samples

Question: Discuss about the Supply Chain Management Report Of Devondale Milk. Answer: Introduction This report is the summary presentation of identifying underperformance of Devondale milk product which is one of the largest dairy milk food providers in Australia. They are also one the largest exporter of milk products. They deliver their products to food chains, consumers; restaurants and several other food corners (Christopher, 2016).They have number of farmers and suppliers associated with them for their daily production. However currently in 2016-17, the milk product of the Devondale is underperforming as per expected growth and the company has failed to raise expected profits. The supply chain management in Devondale milk product The supply chain management in Devondale milk product is not that complex to understand. The following are the main members of supply chain management in milk industry with their roles and responsibilities:- Roles Responsibilities:- Farmers: - The farmers are most important key members of dairy product supply chain as they grow healthy crops to feed to cow which in return provide quality milk to them. Milk transportation: - This milk produced by cows is transported to production units with the help of containers and trucks. Processing Packing: - The milk gathered in 2nd process is furthered processed for production and then finished milk product is packed for sending to distributors and warehouses. Distribution Sales: - The milk product is then transported to distributors on order based which is further sold to customers. This is the final process of supply chain in Devondale milk products. Evaluation of Supply Chain: The flowchart illustrated above indicates that the milk product is originally produced by the farmers (Monczka et al., 2015). This is moved through the specialized milk transportation that transfers the product to the processing and packaging centre after which it moves towards the final distribution and sales which enables the product to reach the final consumer. The supply chain of the Devondale milk products is very effective in nature (Stadtler, 2015). Everybody in the organization is performing its role really well keeping in view the market demand and company requirements. Challenges Opportunities: Strength: - The strength of supply chain of Devondale milk is highly commitment towards their work. All the departments are working with each other to provide best product to the consumers. Weakness/ barriers:- As the stated product is totally dependent on farmers and milk, so due to weather, seasonal changes, daily change in price of milk, poor handling of finished product, the production level of Devondale milk has decrease (Seuring, 2013). Easy available of alike product at lower cost could also be one of the major weakness of the said product. Opportunities: - Devondale product has played an important role in providing opportunities to so many classes of the society be it farmers, cattle feeder, transporters, labour class,marketing class (Ross,2015).Every working class mentioned above is directly involved in the making the product successful. Threats: -Following are the threats to Devondale milk product:- Increase in prices of milk. Alternate of milk product/similar other company product. Dependency on farmers and cows. SWOT ANALYSIS STRENGTHS WEAKNESSES Largest milk product supplier Dependency on cows and farmers Effective local supply chain Fluctuation in daily prices Experienced logistic department. Change in weather OPPURTUNITIES THREATS Satisfied Customer base Competitive firms No. of products and flavours Perishable item Large capital resources Similar product Recommendations: Strength: - The traditional strength of milk product is that it is consumed almost every day by vast population of all age groups. So, the company should focus more on providing high quality milk product to its customers at lowest prices(Gerber Tempio,2013). It should focus on producing unique flavour, specialized product rather than jumping into all types of milk product. Weakness: - The major weakness of milk product can be poor hygiene in preparation of milk product or poor handling of finished product. (Kaipia Loikkan, 2013). To eradicate this weakness, the company should take care of all the resources related to handling and preparing of Devondale milk product(Monczka et al., 2015). The company should try to produce unique product to create monopoly of their product in the market. Opportunities: - Devondale milk has provided so many employment opportunities to so many people in Australia. Farmers, cattle feeders, transporters, small food chain retailers all are making money with sale of this milk product. Minimizing threats Few of the threats which can be included in this point are explained below:- Increase in milk prices: The Devondale product is very much affected due to this factor. The increase in input cost of milk has hampered the industry a lot. Dependency on farmers contracted cows: The Company should think of purchasing their own cattle and cows for their milk needs Alternate milk product: The Company should bring uniqueness in their product taste inorder to make sure that their product recipe is not copied by any other firm. (Kamal El Aal, 2013) Use of relevant supply chain theory: Supply chain theory is a continuous process of flow of goods and services from point of origin to end user includes all the processes like procurement of raw material, production, packing and sale of finished goods (Seuring, 2013). Evidence of research Definition Explanation along withMarketing Performance: The supply chain can be a great use in order to make marketing strategies (Stadtler, 2015). Data can be collected through mails, surveys, internet which can be used by the Board in making marketing strategy of the Devondale milk (Monczka et al., 2015). The supply chain performance is directly linked with the performance of an organization (Stadtler, 2015). Based on the data collected, the management can build future strategies for success of product. Conclusion The Devondale milk product is under performing due to its chemical properties and its nature as the processing time from origin of product to its consumption is very less and important. The weather of the region also effects the chemical composition of this product. The stiff competition in market also resulted in declining the sale of said product. The company should also think to advertise themselves using social media and other media platforms in order to reach more customers and wide areas. The company should focus on providing high quality product to consumers and bring new products in the market in order to survive. References Christopher, M., 2016.Logistics supply chain management. Pearson UK. Gerber, P.J., Steinfeld, H., Henderson, B., Mottet, A., Opio, C., Dijkman, J., Falcucci, A. and Tempio, G., 2013.Tackling climate change through livestock: a global assessment of emissions and mitigation opportunities. 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