Effective Supply Chain Strategies for Nina Van Diest's Growth

Supply Chain Assignment

Table of Contents 1. Introduction ............................................................................................................................................. 3 2. Scenario Analysis ..................................................................................................................................... 4 2.1 The Current Situation Of Nina Van Diest ............................................................................................ 4 2.2 Current Capabilities within Supply Chain Management ..................................................................... 4 2.3 The Opportunities with Future Growth of Nina Van Diest ................................................................. 6 3. Supply Chain Strategies ........................................................................................................................... 6 3.2 Pros and Cons of Outsourcing the Production, Supply Chain, Logistics ............................................. 9 References ................................................................................................................................................. 11

1. Introduction Supply Chain Management is an important component of the business which is widely used by the companies for carrying out business operations smoothly. Companies are greatly dependent on this important field as it provides them with crucial materials in order to survive in the market and stay ahead of its business rivals. Supply Chain Management is a system where all the business activities and functions are synchronized within a company that ensures smooth manufacturing, packaging and distributions of the products and services. For ensuring uninterrupted manufacturing, delivery of products and higher customer satisfaction, an efficient supply chain is must. This report discusses a case study of a chocolatier named Nina Van Diest who is running a chocolate business. After analyzing the case study thoroughly, it is observed that her chocolate business requires an efficient and effective supply chain management so that she can manufacture and deliver the products that meets the consumer demands and requirements. Nina Van Diest is planning to expand her chocolate business and in this process, she is facing large number of challenges. The foremost challenge that she is facing is coping up with the increased demand of the chocolate products in different countries. It has been seen that presently, the company is not having an effective supply chain but there are certain capabilities in the supply chain management of the business that has helped the company since its inception to survive in the market for so many years. Therefore, a suitable supply chain strategy has been proposed in the report to Nina Van Diest that will help her to manage the challenges and carry out smooth business operations.

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2. Scenario Analysis 2.1 The Current Situation Of Nina Van Diest From the given case study, it has been clear that before Nina Van Diest decided to manufacture a vegan chocolate bar, she was working for one of the largest European food producing companies. Until 1990, this vegan product had not gained much popularity and has very limited growth in the market but in the last few years a considerable change in the demand for this product has been observed. The demand for vegan chocolate has been increasing from few years and considering this fact, Nina Van Diest has decided to expand product range of her chocolate business in different countries. In recent years, a growing trend of people shifting their diet toward vegan has been seen which is beneficial for Nina Van Diest’s business. Therefore, she is specifically targeting those countries where people are more health and environment conscious. For this reason, she is looking for a robust supply chain model that can help her to get significant market value of the chocolate industry. 2.2 Current Capabilities within Supply Chain Management According to the study, one can conclude following capabilities surrounding the context of supply chain management in the chocolate industry.  Demand management To meet the market demands, the organization has adopted this capability of demand management. This helps the company to deal with the entire supply chain area effectively[ CITATION Abu17 \l 1033 ]. Organizational management techniques and organizational aspects are taken into account to meet the market demands. Demand management helps in creating a positive supply chain value for the company.  Order Management

Another important capability of supply chain management is order management which is known to be the order value of vegan products. Analysis has stated that the vegan products order value has increased with time and the chocolate company has accepted to take more orders and meet the demands of the consumers without creating any market fuss[ CITATION Kat21 \l 1033 ]. The concept of order management will help the organization to maintain its product range and meet the customer demands with accurate production and keep up with the supply chain.  Commitment towards the product Commitment towards the product determines the fact that the company is honest with its products and ensures the topmost quality of its products to the customers. Commitment towards a product assures the fact that in the long run customers can expect an accurate supply of the vegan chocolate range from the company.  Capacity Planning The analysis has depicted that capacity planning plays a crucial role in the culture of the organization as well as supply chain management. The gain of the organization depends a lot on the long-term value[ CITATION Abu17 \l 1033 ]. It will be clear with the example of the production channel which is known to be the market potentiality of the range of products assisting the company to properly manufacture the product in a particular way depending on the long-term market value.  Inventory management The company needs to realize the technical approach positively; hence inventory management is another capability that plays a crucial role in creating positive workers in the organization.

 Supply chain continuity planning This capability is one of the important aspects as it determines the credibility of the company and gives a clear insight into the market needs. Parameters such as managing the aspect, organization and product range, time are important in supply chain continuity planning as it has a positive impact on organizational supply chain management concepts[ CITATION Kat21 \l 1033 ]. 2.3 The Opportunities with Future Growth of Nina Van Diest After analyzing the given case study, it is seen that there are certain factors that can affect the market opportunities and future growth of the chocolate business.  A growing interest has been seen among the people towards consuming vegan products  Technology has been developing for developing manufacturing needs  Better ordering process adopted by the customers  Sustainability activities involved in producing range of products 3. Supply Chain Strategies The supply chain strategy of the chocolate business requires a modified strategy. The modified strategy would ensure the company with better supply chain performance and this is why the below section discusses Porter's value chain model[ CITATION Str20 \l 1033 ]. Porter's Value Chain Model The chocolate company has adapted to a strategic management tool that is known as porter's value chain model. Porter's value chain model can be also stated as a customer relationship- centric model and can be adopted by this company to determine the various aspects of

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profitability[ CITATION Dub201 \l 1033 ]. Five primary activities fall under Porter's value chain model which has been discussed below. The primary activities of the value chain model are discussed below. 1. Inbound logistics This process deals with warehousing and related inventory control of the raw material in the business. This is an effective process that helps in determining the nature of the relationship with the supplier. 2. Operations Operations are one of the most important primary processes of the value chain model that helps a company to process the raw materials to a finished product[ CITATION Dub201 \l 1033 ]. The operation process assists the company to make the product ready for sale, branding and packaging. 3. Logistics Logistics helps the company to distribute the product to the customer. This process includes storage and distribution of the product to cater to the needs of the customer orders. 4. Marketing and sales Marketing and sales is a crucial process that aims to increase the product visibility to the target audience. The process is heavily dependent on customer relationships[ CITATION Str20 \l 1033 ]. 5. Services

These include any processes that happen after the purchase of a product by the customer like service, repairs, refunds falls under the service category. Secondary activities The value chain model comprises four secondary activities to assist the primary activities which are common to most the business 1. Company infrastructure Company infrastructure is one of the most important secondary activities that involve any processes that assist the business operation of the company for example, financial, clerical, administration and line management[ CITATION Str20 \l 1033 ]. 2. Human resource management Another important activity in supply chain is human resource management that deals with training, creation and termination of employees. HRM has the power to recruit talented and motivated staff that would help the company to have any competitive advantage. 3. Research and Development Research and development involve technology that helps the company to stay ahead of its competitors and the value chain can help in integrating important processes[ CITATION Dub201 \l 1033 ]. 4. Procurement

Procurement involves processes that are acquired by the goods and services. Raw materials and price negotiation of the product purchase contracts is one of the most typical examples of procurement. 3.2 Pros and Cons of Outsourcing the Production, Supply Chain, Logistics There are advantages and disadvantages of outsourcing the production in the business which is discussed below. Pros/Advantages:  Outsourcing supply chain management helps in competitive advantage With outsourcing, facilities, knowledge and capabilities are accessible and affordable[ CITATION Blo15 \l 1033 ]. Hence leveraging these resources means you stay ahead of your competitors.  Reduce the cost Outsourcing helps you to reduce the overall cost because if you are outsourcing a professional it means they will imply their knowledge and expertise to reduce the overall cost.  Customer demands are met The supply chain management will take the initiative of providing the number of products that the customer has demanded[ CITATION Ibo21 \l 1033 ]. The SCM will help in dealing with the raw materials planning so that the production schedules can be easily met.  Enhance flexibility and electability Businesses that consider outsourcing can adapt to the changes quickly. Moreover, outsourcing allows you to expand or downsize faster and you do not have to worry about labour and labour laws[ CITATION Blo15 \l 1033 ].

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Cons/Disadvantages of outsourcing  Quality issues If the SCM partner does not have proper knowledge of the product the quality of the offerings may go down.  Setbacks Outsourcing an SCM is a complicated process and gives more chances for setbacks.  Unpredicted cost When you consider outsourcing SCM you have to experience unexpected costs such as taxes, shipping cost, hidden fees which becomes difficult to monitor[ CITATION Ibo21 \l 1033 ]. Moreover, you might also experience hidden costs such as labelling, pick, boxing etc.

References Abualrejal, H. M., Abu Doleh, J. D. & Mohtar, S., 2017. Supply-Chain Management Capabilities Practices in Industrial Organization in Republic of Yemen. Int. J Sup. Chain. Mgt, 6(4), pp. 98-109. Bloem, N. & Bean, W., 2015. The application of outsourcing decision-making methods in a logistics context in South Africa. Journal of Transport and Supply Chain Management, 9(1), pp. 168-194. Dubey, S. et al., 2020. A BRIEF STUDY OF VALUE CHAIN AND SUPPLY CHAIN. In: A BRIEF STUDY OF VALUE CHAIN AND SUPPLY CHAIN. Varanasi: Mahima Publications, pp. 177-183. Iborida, E. et al., 2021. The Pros and Cons of Outsourcing Logistic Functions among Manufacturing Firms in Southwest, Nigeria. International Journal of Innovative Science and Research Technology, 6(5), pp. 442- 450. Katsaliaki, K., Galetsi, P. & Kumar, S., 2021. Supply chain disruptions and resilience: a major review and future research agenda. Annals of Operations Research , pp. 1-38. Straková, J. et al., 2020. Use of the Value Chain in the Process of Generating a Sustainable Business Strategy on the Example of Manufacturing and Industrial Enterprises in the Czech Republic. Sustainability, 12(1520), pp. 1-15.

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