TeaJava, Supply Chain, Organizational performance
Effective management is necessary for the success of a business. This is because the current business environment is large with massive competition and rivalry from other entrepreneurs. Supply chain management reflects efficient management of a business network that is involved in provision of certain goods and services for the target customers at the end of the supply chain.
It also encompasses multiple organization activities that maximize product value as well as achieving a sustainable and viable advantage. In TeaJava Company, tea products are distributed throughout numerous Indonesian islands. They include ready-to-drink products, Jtea and Fruti. The company has two major interrelated businesses, one majors in manufacturing while the other in product distribution. The problem is that Fruti has faced significant shortages recently. This paper assesses TeaJava's supply chains and gives recommendations on how TeaJava can improve its performance.
[...] Albright (2011) states that businesses also need to focus on certain four requirements; technology adoption, relationships management, leadership styles, and customer focus. All these are aimed at increasing competitive advantage during expansion and entry into newer markets. Customer relationship management entails improving customer satisfaction in order to form a sustainable relationship with the company. According to Albright (2011), customer commitments provide a sustainable advantage by forming barriers to competition. This will allow TeaJava to sustain customer loyalty and increase the value it provides. [...]
[...] In order to accomplish this effectively, a logistics company is suitable for compiling data for predicting demand in the target market in order to formulate an appropriate replenishment rate. Moreover, such companies have experienced personnel in negotiations and established relationships with vendors in order to secure good pricing on raw products required in manufacturing. This is because further expansion will require provision of more raw materials than those used currently. TeaJava executives should however ensure that the company has sufficient experience in distribution and marketing in the drinks and beverage industry. It should also have a positive reputation. Moreover, expansion comes with increased competition. [...]
[...] The company bases its supply strategies on geographical proximity where each processing plant supplies its products to the market within its geographical location. This significantly reduces supply chain complexity as well as creating the chance to shorten and streamline supply chains. Furthermore, research shows that this also improves performance in the relationship between the buyer and sellers. It also strengthens commitment levels, reduces conflict, and increases mutual trust. Sales within the geographical proximity also ensure that productivity is increased. This is because there is faster access to suppliers and customers. Besides, it also offers better visibility due to communication advantages. [...]
[...] This will also lead to increased returns and benefits to the company. References Monczka, R. M. (2010). Purchasing & supply chain management. Andover, Hants: South-Western/Cengage Learning. [...]
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