Impact of Pandemic, Politics, and Environment on Supply Chain Assignment Sample

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INTRODUCTION

This assignment showcases how detailed research and critical analysis create a strong academic piece focused on supply chain challenges. Rapid Assignment Help offers expert support across business, supply chain management, and related fields, ensuring students meet deadlines with confidence through personalized, high-quality work.

Supply chain helps in producing, managing and storing raw material and manufacturing as well as aids in delivering the final goods to the customers. The report will base on the supply chain 5.0 that use by of the Food and beverage industry. The supply chain is affected by number of factors such as pandemic, war and political issue. The report will state about the challenges that face by the food industry and also include its causes and impact. It will also contain strategies that will be implemented by the industry to avoid challenges of supply chain 5.0. The report will highlight some skill and competencies to develop sustainable and resilient supply chain.

MAIN BODY

The supply chain 5.0 is the latest and newest in the supply chain management that combine advance technology including internet connectivity, smart robots, artificial intelligence that focus on Human machine collaboration. The food and beverage industry use the supply chain 5.0 for sourcing the raw material and ingredients, processing and for the distribution of the final good to the customers (Akundi et al, 2022). Supply chain is important for transforming raw material to production center, to sent final product to warehouse, to supply the product to retailers and supermarket so that the end user able to purchase.

Challenges of supply chain in food and beverage industry

Increasing supply chain cost- The food and beverage industry face a challenge of rising cost in the supply chain. Make a strict check on the operating cost is the challenge for the industry. Increment in the cost of supply chain is because of politics and war that increase the price of fuel and energy. Due to pandemic the cost of freight and logistics also raised. Now to make the supply chain more efficient, the industry make investment in the technology like artificial intelligence, use of robots for managing inventory and other things, it significantly increase the cost of supply chain (Aldrighetti et al, 2021). The increment in the price of fuel and energy or other kind of transportation leads to increase the price of the product of food and beverage industry that create a inflationary burden on the consumer because this cost is from the ultimate consumer.

Data security- In the era of digitalization, the companies take orders online. For this the company needs to take details of the customer about name, address as well as bank account details. These details are share to numbers of members that involve in the supply chain related to the supplying of orders to the customers. It is challenge for the food industry to secure the data of customers (Hassija et al, 2020). As the connectivity increase there is requirement for increasing cyber security as well as data security measures. The industry requires adopting security protocols so that able to protect the sensitive data. If the food industry unable to protects the data of consumer than it impact the reputation of the company and also customer lost trust in the company.

Delays and shortage- Each country is reliant for the raw material imported from the other country. Due to pandemic, war and political issue the supply chain is also influence and affected. The industry faces challenge in getting the raw material on time due to disturbance in the supply chain. In this industry the products have shorter life than other products as a result the seller need to sell the product within the less time otherwise have to bear the loss. The disruption in the supply chain leads to shortage to the food and beverage industry. Due to delay and shortage in supply chain impacts the food and beverage industry. Delay in supply affect the business and hampers the production capacity that leads to reduce the sales, revenue as well as profitability of the business. This leads to decrease the customer satisfaction as they enable to get the product and it also impact the reputation of the business.

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Increasing Regulation- There are increment in the regulation of the supply chain for food and beverage industry to protect the public, this lead to increase the cost for the company. The regulation includes electronic log and monitoring of truck driver on the regular basis. There are many rules for importing food like Iot code number and many other identities. This becomes the reason for the delays and increasing the shipping rates that impact the perishable and fresh food more than any other product. Due to this, the food industry has to suffer from big losses as well as it leads to decrease the satisfaction of the customers that impact the reputation of the business.

Complexity in order- In today`s time, the customer are more selective about what they want to eat and drink. Now consumer prefers products that are beneficial for the health. It means that the food and beverage industry has to give more emphasis on offering a wide range of products than before. It also means tracking a huge number of SKUs, so that the picker simply make the details and ensure that they have the item in the warehouse (Trends and issues in the supply chain.2024). It makes the management of inventory complex with number of SKU`s, it is difficult to forecast the demand for each SKU, that leads to create problem of overstock or under stock.

For example- The supply chain 5.0 increase the cost of doing business for the food and beverage industry. The Morrison company face this challenge of the supply chain 5.0 and seen a significance rise in the cost due to use of artificial intelligence and robots in the supply chain. The company use Blue Yonder`s artificial intelligence for stock planning. It use by the company to forecast customer demand, ordering stock at the right time so that able to maintain an efficient supply chain. It is a good option for the Morrison but it leads to increase the cost of doing business because, the company need to invest in technology and also needs to maintain this technology as well as giving training to the employees who interact with this. As a result there is a rise in the cost.

Impact of Pandemic, Politics, and Environment on Supply Chain Assignment Sample

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Strategy to avoid these challenges

The strategy aids the business in solving the challenges that face by the food industry due to supply chain 5.0. The strategies are as follows:

Optimize company owned inventory-To overcome the challenge of the supply chain in food industry regarding shortage and delay of the raw material as well as food supplies. For this the food industry need to use the inventory optimization strategy. In this process, the industry needs to maintain and manage the right amount of the stock. It assists the company in meeting the demands of the raw material at the right time. As the problem of war situation or any pandemic condition arise at any time and the dependence of one country on another is also must keep in mind (Li , Ji & Arreola-Risa, 2020). This inventory optimization strategy helps the company in keeping the cost of logistics low and also keeps away from the problem of stockouts, overstocking as well as backorders. This strategy enables the business to produce their finished product efficiently and effectively and maintain the profitability and customer satisfaction.

Embrace Automation- The food industry is facing the challenge of increasing cost of supply chain. To overcome this challenge in the industry, it needs to improve the IT system and automation so that able to decline the cost of the supply chain in terms of operating cost as well as data processing. The automation assists the food industry in maintain the inventory level and the cost of warehouse. The automation system is useful as it recognize the location of all items that ordered, this automation leads to speed up the order fulfillment as a result the order delivered on the time to customer. Also, it helps in forecasting the demand for raw material at the right time so that there is no shortage or delay face by the food industry. For instance- The Nisa retail store use the automation technique for managing their warehouses. The use of this technique by the company helps in forecasting the raw material as well as finished product. Also, it reduces the workload of workers and this helps them to giving emphasis on other work. Thus, it helps in solving the problem of shortage as well as fulfilling the orders on time.

Supply chain risk assessment- For the data security in the supply chain, the companies need to assess the members involve in the supply chain. For this the company requires to identified the number of individuals who participate like suppliers of raw material, distributors , wholesalers, retailers as well as person who directly supply good to customers. The risk assessment is an important component for the effective management of the supply chain. With the help of risk assessment, the companies able to recognize the expected and potential threat in the supply chain (Liu, Ji &Wei, 2022). It assists the food company in taking corrective actions like multiple authentications, encryption protocols etc. For this, the company needs to make a partnership with the trusted vendor as well as distributors that give priority to the cyber security so that able to secure the supply chain as well as private data of customers.

Optimizing supply chain Network- The challenge of complexity in making order of the food industry, it companies of food industry needs to use efficient supply chain network. The companies need to make a efficient planning for placing order on time. It is important to make a good supply-chain network. When warehouse of the food companies are near to the cities or the other hubs, then there is less distribution distance (Kumar, Singh & Kumar, 2021). This will solve the challenge of complexity of the order as it solve the problem by reduce the distance and making food or on time which reduce the chances of food spoilage and contamination.

Increase supply chain visibility- The shortage and delay as well as complexity in order occur due to lack of information in throughout the supply chain. The industry can able to improve the visibility by using techniques of automation. In this activation set up that make aware the company about receiving of raw material, make a better control on good so that there is no problem of shortage.

Use of Block chain technology-The block chain technology aids in tracing the food supply chain. It is a technology where user share and store information. So, the supplier as well as the food industry always informed about where the raw material reach or where the finished product reach (Venkatesh et al, 2020). The advantage of this strategy is that once information added, it becomes permanent and it cannot be corrupted or hacked. Thus, it provides information of the supplies to the producer, distributor and suppliers.

The food industry can use this strategy to solve the challenges of increasing cost, data security and so more. This strategy helps the industry in saving the cost, forecasting the right demand so that able to meet the consumer satisfaction. An effective supply chain management always makes the company efficient in doing business as well as increase the profitability of the business. This strategy helps the company in using the raw material in a efficient manner so there is no problem of shortage as well as delays.

Recommendations of skills and competencies to develop resilient supply chain

There is various challenges face by the food industry in the supply chain 5.0. This challenge is a crucial part of food industry business and the industry need to cope up with these challenges so that able to maintain revenue, profits and satisfaction of the consumer. The industry can overcome these challenges by using some strategies like optimize owned inventory, automation, efficient supply chain network and so more. For implementing the strategies as well as to face the challenges the company needs a number of skills and competency to manage these challenges.

Communication- The communication skill is important requirement for managing the supply chain because there is a need to properly communicate with the suppliers, stakeholders as well as customers. The supply chain 5.0 plays an important role in the food industry and any other industry (Mageto & Luke, 2020). The lack of communication leads to create problems like over-inventory or shortage of inventory if the employees not communicate well about the inventory, it leads to make a loss of company like food wastage as the food as shorter life. If the employees not communicates well about the demand of raw materials to the supplier than it leads to creates problem of shortage as well as delays. This hampers the working of the food industry and affects its profitability. Therefore, the communication skill is required for efficient supply chain management as well as for negotiation and conflict resolution.

Problem-Solving- As there are many problems face by the industry in the management of the supply chain. There are many problems in the supply chain of food industry including handling and storage of food product during shipment, managerial, technical difficulties, delays in placing order and so more. The problem-solving skill helps the professional and industry in identified the problems and gaps in the supply chain and finding an appropriate solutions. It aids in implement the solution and monitor the result an according to it improve their supply chain (Zhu & Krikke, 2020). For example-The Morrison face a problem of increasing cost due to increase in the price of fuel, technology in the supply chain. To solve this problem, the company uses their problem solving skills and reduces other expenses such as reducing food waste, buying in bulk and so more. Thus, problem- solving skill is important for effective management of supply chain.

Time management- To manage the good supply chain in the food industry, the time management skill is required. The time management skill helps the food companies by making proper schedules for the raw material by forecasting the demand, it aids in handling the unexpected delays and make sure that the order is delivered on the time. The time management skills is helpful for the employees as by making to-do list, the employees of the food industry able to provide better services to the customers while reducing waste and avoiding error and able to increase productivity and maintain an efficient supply chain.

Leadership- For developing an efficient supply chain in the industry, leadership skill plays a quite important role. For managing effective supply chain, there is a need to efficiently manage the team and motivate them. The leadership skill is important to understand the issues that face by the industry in the supply chain. With this skill, the company able to make a strategic, timely and efficient decision that help in smooth operation of the business (Tordecilla et al, 2021). The leadership skill build a value to the supply chain as it assists in making the culture of coordination, collaboration as well as accountability and innovation. It leads to enhance and improve relation with the supplier that aids in getting timely supplies, better risk management as well as saving cost.

Knowledge of transportation and logistics- For developing effective supply chain in the industry there is a need of number of skill, competencies as well as knowledge. Therefore, the knowledge of transportation and logistics is important for the supply chain management. The industry should have proper information of various mode of transportation, freight forwarding as it essential for the company. It related to company because any changes in this leads to increase the cost for the industry which significantly impact the profitability (Nazam et al, 2020). The industry should have information and knowledge regarding custom clearance of export and import of raw material and finished good. The industry should have knowledge of management of warehouse so that able to deliver goods on time while reducing food wastage. For example- The Nestle Company has knowledge of transportation and logistics that help the company in doing timely deliveries of food. It use fast mode of transportation like sea and rail rather than road. It also use ERP based supply chain management so that able to produce and deliver the products on time.

Decision- making skill- To develop a human-centric as well as sustainable supply chain in food industry, it is important to have a decision making skill. This skill is important because in the supply chain, there is need to take decision regarding the transferring and moving the goods from raw material of supplier to industry as well as industry to the customers. The industry need to take timely and rapid decision. The decision making skill helps the industry in managing goods to meet the demands of the customers as well as maintain the cost of distribution. Therefore, the decision- making skill is important to develop a good supply chain. When decision taken on the time, it help in effectively manage supply chain as well as reduce extra expense and wastage to the food industry. For instance- The decision-making skill of the Nestle Company, helps in developing better supply chain as the company make quick decision to reduce the cost of supply by replacing the fossil fuel with the natural gas in the trucks that use for delivery (Negri et al, 2021). It leads to solve the problem of increasing cost as well as impact of it on environment.

Thus, this skill is important requirement for the food industry to develop a sustainable and resilient supply chain.

CONCLUSION

As expressed, entrepreneurship plays an important role in commencing and organizing a business with the uncertainties and risk to make a profit. The report based on the supply chain 5.0. It stated about the challenges that faced by the food industry in the supply chain including rising cost, data security, increasing regulation and shortage and delay. The report also covered the strategy that implement by the industry to solve the challenges. The strategy included optimizes company owned inventory, automation, optimizing supply chain network and so more. It also recommended skills like communication, time management, leadership, problem solving and knowledge of transportation and logistics to develop a sustainable supply chain.

References

Books and Journals

• Akundi, A., Euresti, D., Luna, S., Ankobiah, W., Lopes, A., & Edinbarough, I. (2022). State of Industry 5.0—Analysis and identification of current research trends. Applied System Innovation, 5(1), p.27.
• Aldrighetti, R., Battini, D., Ivanov, D., & Zennaro, I. (2021). Costs of resilience and disruptions in supply chain network design models: a review and future research directions. International Journal of Production Economics, 235, p.108103.
• Hassija, V., Chamola, V., Gupta, V., Jain, S., & Guizani, N. (2020). A survey on supply chain security: Application areas, security threats, and solution architectures. IEEE Internet of Things Journal, 8(8), pp.6222-6246.
• Kumar, P., Singh, R.K., & Kumar, V. (2021). Managing supply chains for sustainable operations in the era of industry 4.0 and circular economy: Analysis of barriers. Resources, Conservation and Recycling, 164, p.105215.
• Li, B., Ji, Q., & Arreola-Risa, A. (2020). Optimizing a production-inventory system under a cost target. Computers & Operations Research, 123, p.105015.
• Liu, C., Ji, H., & Wei, J. (2022). Smart supply chain risk assessment in intelligent manufacturing. Journal of computer information systems, 62(3), pp.609-621.
• Mageto, J., & Luke, R. (2020). Skills frameworks: a focus on supply chains. Journal of Transport and Supply Chain Management, 14(1), pp.1-17.
• Nazam, M., Hashim, M., Baig, S.A., Abrar, M., & Shabbir, R. (2020). Modeling the key barriers of knowledge management adoption in sustainable supply chain. Journal of Enterprise Information Management, 33(5), pp.1077-1109.
• Negri, M., Cagno, E., Colicchia, C., & Sarkis, J. (2021). Integrating sustainability and resilience in the supply chain: A systematic literature review and a research agenda. Business Strategy and the environment, 30(7), pp.2858-2886.
• Tordecilla, R.D., Juan, A.A., Montoya-Torres, J.R., Quintero-Araujo, C.L., & Panadero, J. (2021). Simulation-optimization methods for designing and assessing resilient supply chain networks under uncertainty scenarios: A review. Simulation modelling practice and theory, 106, p.102166.
• Venkatesh, V.G., Kang, K., Wang, B., Zhong, R.Y., & Zhang, A. (2020). System architecture for blockchain based transparency of supply chain social sustainability. Robotics and Computer-Integrated Manufacturing, 63, p.101896.
• Zhu, Q., & Krikke, H. (2020). Managing a sustainable and resilient perishable food supply chain (PFSC) after an outbreak. Sustainability, 12(12), p.5004.
• Online
• Trends and issues in the supply chain. 2024. Online. Available through: < https://koerber-supplychain.com/about-us/blog/blog-series-trends-and-issues-in-the-supply-chain-sku-proliferation/#:~:text=Challenges%20associated%20with%20SKU%20proliferation&text=The%20biggest%20concerns%20that%20arise,serious%20innovative%20efforts%20to%20overcome.>