Assignment 3 – Essay Example
Sunsweet Growers Cultivates Its Supply Chain What are the constraints on Sunsweet Growers’ supply chain? Supply chain entails flow of products from one end to another. Both demand and supply constrain the supply chain. Demand and supply have a significant effect on the supply chain continuity. Growing seasons and weather determine the supply of the company. On the other hand, the market is the determinant of the demand of the company’s products. Due to the expected rise in demand during the festive season, the company found it difficult to handle its supply chain. Similar to many manufacturers, the demand of the company’s products rise during the holidays such as Easter and Christmas. However, the demand gets low when there are no holidays. Thus, the market is unstable. Nonetheless, the weather sometimes is unpredictable. Storms and other climatic conditions destroy the crops, thus, giving the company losses. Moreover, owing to the rise in demand attributed to the peak season, Sunshine experienced hardships in drying and packaging its products to fulfill its orders. Finally, all departments of the company failed to follow a common operational model which made collaboration between departments difficult.
What problems did Sunsweet growers encounter as a result of these constraints? What was their business impact?
Due to the constraints, the manufacturer limits the source in a geographic area. The supply chain has variances. There as on being it has to process, store and package the fruit for delivery in the months of August, September, and October. Consequently, it has a lot of pressure in doing it. The impact in terms of business was severing. It had to shell out extra to pay workers overtime in order to match the demand. Additionally, it experienced difficulties in its planning and scheduling of the production and distribution process. The process was a complicated operation since dozens of varieties and sizes of the fruits were to be packaged in 20 different languages. Failure to adopt easier ways of handling the production made the firm to spend more money on the production process.
How did S and OP software help Sunsweet Growers better manage its supply chain?
Sunsweet adopted the S and OP software to help enhance line utilization and scheduling in a bid to minimize production costs. First, the software helped the manufacturer was by revamping its forecast meetings. Secondly, the system unified all the data of the company into one database. This enabled the firm’s planners to easily access data and come up with comprehensive, computerized reports. Thirdly, the software improved demand visibility. The demand visibility necessitated better communication and decision-making at every level. Additionally, the software enabled the manufacturer to have better planning by preparing plans for price changes, promotions and analyzing demand data. The S and OP project also brought new inventory systems that calculated current inventory and used the data about the inventory history to detect trends and predict problems before they caused significant losses.
What additional ways can you think of for Sunsweet Growers to ease its supply chain concerns?
The supply chain can reduce its complexity and that of products by being preferential in its management. The chain still has too many complex supply chain issues to ensure clear processing. Additionally, the manufacturer can optimize costs and optimize its performance. Furthermore, the supply chain can increase its collaboration with its suppliers so that it eases the penetration of the product into the market. The company can also ease the supply chain concerns through electronic invoicing. By using the electronic invoicing system, it will reduce the time that it takes for the distributors to receive a supply. Moreover, it can adopt the use of computerized tracking and ship to minimize any losses that they undergo when doing the distribution. Finally, the company can ensure that there is continuity in the business by managing its risks and improve its relationship with the authorities by complying with all the requirements.
Harold Upton and Harpal Singh, “Balanced S&OP: SunsweetGrowers’s Story,” Supply Chain Management Review, March 1, 2007; Jane Lee