SUBMITTED BY: KARANVEER SINGH CHANDANA

  
Introduction: Due to rising globalisation and competition, multinationals are looking for

expansion prospects in emerging regions. Consider whatever merchandise which you

have just purchased and fondly own. It can be the smartphone or car, the organizations and

million-dollar companies eventually fit within the standards of reasonable price and

satisfactory quality which is attributed to the company's efficient supply chain techniques and

organizational theory fundaments because these concepts lie at the centre of any product-

oriented company. Effective supply chain strategies will include implementing efficient

processes that allow products to flow easily from the producer to the consumer while

adjusting to the economy's cost, infrastructure, and market size limits. A purposeful

monitoring of supply chain operations for optimising proper market as well as valuing

consumes and generating long-term competitive edge is known as supply chain management.

It is an intentional effort on behalf of organizations to construct and manage supply networks

in some of the most efficient and streamlined way. Product innovation, procurement,

assembly, integration of IT systems as well as transportation are all covered by supply chain

activities. The orientation and sense of direction to a company is provided by organizational

behaviour. It aids in the comprehension and prediction of performance management while

comprehending the actions of individuals in any organisation.

Identifying key elements of case study: Automotive components supply chains can readily

be lumped into the category of "high volume supply chains." The key functions of Tata

Motors in the Tata Motor’s supply chain include design, manufacture, and assembly. The

supply chain of the Tata Motor’s consists of tier 1, tier 2 and tier 3 supplier and original

equipment manufacturers (OEMs) represents the supplier which includes the design group,

transmission OEMs ang engine accompanied by assembly plants representing automakers

and third-party dealers represents distribution network. The main issues existing in the supply

chain management system relates to the topics of issuance and allocation of reasonable prices
to farmers for their coffee beans. It is augmented that farmers are the real growers, cultivators

and harvesters of the actual produce i.e., coffee and hence must be fairly compensated. 

Another problem stated includes ensuring farmers gets their due price irrespective of the

competitiveness and existing of number of supply chain middlemen and agencies that tends

to drive their margin up. Atmost, final products are pipelined and finally sold via a defined

system comprising of middlemen, wholesalers, and merchants, however in this situation, the

producer is willing to market coffee outright to Nestle. As a result, excessive levels of

stakeholders and intermediaries are less involved throughout the supply chain. Every link

throughout the supply chain provides value. At times of  exporting beans, farmers sell them

to intermediaries that further channelize to co-operatives or government organizations that

are linked and sell it further to a long chain of exporters capable of accumulate demand factor

and therefore clocks in the actual value. To deal, one must have awareness of an effective

business word. It is known that roasters turn raw cocoa seeds into finished goods to meet the

increasing demand throughout the globe. Large companies, such as Nestle are actually

leading example of roasters that have expanded their network infrastructure and perfected the

supply chain operations including merchants to promote consumer sales. Various

intermediaries that are  usually specialized in the process try to bring down the competition of

overall chain by facilitating the smooth flow of operations in case of Nestle. Since various

procuring agencies and middlemen are much more connected allocating and

comprising bargaining power which allows them to make more revenue in the acquisition and

reselling it to corporates. Hence, farmers must also verify that their produce gets better

returns which will in turn help in investing for improving production and quality, as well as

being sufficient to assure the coffee supply chain according to set norms and contractual

standards, whether it be quantitative and qualitative as per Nestle's requirements. The main

problem revolves around setting and defining transactional needs as well as engaging with
producers and processing plants. Excessive regulatory restrictions might affect supply chain

efficiency, which can be a serious concern for middlemen along with government

organizations. Improper facilities to store and process coffee according to demands aided

with vigorous changes in policies and administrative fluctuations can take a bite out of the

equation. 

Various methods of research accompanied: The methods of research accompanied in

standardizing as well as evaluating the configurations that are existing in the sections of

demand planning, forecasting, procurement and marketing of the produce. Attempts inflicted

by an industry to predict market sales for the product while optimizing supply constraints to

meet any projected need is known as demand planning which is an essential part of demand

management. This procedure is vital to guarantee that existing client base is served with

accompanied high quality service. The precision of the estimations is critical in order to

provide value to the product and brand while also maximising revenues. Nestle has to be firm

and consistently enhance the activity schedule by obtaining and evaluating all relevant

customer data, including their requirements, issues, and other factors as per various studies

indulged within industry experts, monitoring rival plans and sharing supply chain information

regarding market trends and technological interventions. Forecasting of raw material required

to maintain the operations with peculiar and consistent timing, demand and other constraints

of supply chain management, dynamics must be analysed and adjusted accordingly.  A

corporation with forecasting knowledge and proper execution of functioning with reduced

inventory levels while segregating and managing funds and capital in allied sectors that will

in turn increase returns. The cocoa seeds are indeed the basic demand, while the packaging

and other components added throughout the production process which illustrates dependent

demand in the coffee business. The second stage is to be aware of any potential demand

fluctuations so that the supply stocks and contingency inventories are proper fed. After all of
these variables have been thoroughly examined, the organisation must select a forecasting

model into which the data will be entered and forecasts generated. Simple moving average,

which is based on recent demand and does not function well for seasonal items, is one of the

approaches that give superior quantitative and qualitative insight. Weighted moving average

and exponential smoothing are both essential and crucial. Procurement is a critical

component of a well-managed supply chain. Following the process of estimating future

demands, safety stock levels, and forecasting the needed amount of each dependent and

independent raw material and component, the organization must ensure that those materials

are available in the correct quantity and at the appropriate time. And because Canada cannot

grow coffee beans, everything must be imported from tropical nations, this is crucial for

Nestle. This complicates the procedure and lengthens the time between placing an order and

receiving the product. Globalization has allowed new rivals to enter the market worldwide

during the previous two decades, increasing competition for items of higher quality and

cheaper pricing. Due to the rise of lower-cost and higher-quality competition, procurement

became even more strategic, and it is now commonly referred to as strategic sourcing which

ensures s Stronger purchasing power, a focus on cost-benefit, a tighter and more meaningful

connection with suppliers, a focus on process improvement, and more competent and better

collaboration. Aside from that, increasing the production and effectiveness of the sector

requires the employment of new tools and technology. A strategic sourcing approach is

indeed an extensive process that includes evaluating specific needs as well as various

supplies, constructing various strategies, comprehension of price strategies, using economies

of scale, marketing techniques, and continuous improvement through the development of a

consistent and inclusive work breakdown structure along with scheduling activities to take

timeline considerations. The following step is to choose the supplies based on the
requirements. In the coffee sector, it is crucial for getting grades and satisfactory audits that

are professional and well approved by administrative compliance bodies. 

Evaluating relevant case study to reality: There can be a variety of components based on

different circumstances. Small farmers frequently sell their produce to collectors, who then

sell it to a processing mill, which turns the coffee seed into an unroasted ground coffee sold

straight to local roasters and other businesses, or market their exporters sometimes to local

wholesalers. The network might have a huge number of components. Companies such as

Starbucks and Nestle frequently purchase farmlands, processing plants, and warehouses in

order to create their own supply chain. This allows them to reduce the cost of transporting

coffee from origin to consumer while also maintaining complete control in terms of quality

and yields. Each link in the chain adds value to the coffee and raises the price as it moves up

the chain. That is one of the reasons why coffee costs higher in the United States than in

nations where it is produced, such as Brazil. A series of values are assigned to coffee industry

with every involves step and implementation plan involved.

REFERENCES:

Business Case Studies. (n.d.). Coffee - The supply chain: A Nestlé case study. Business Case

Studies. Retrieved from https://businesscasestudies.co.uk/coffee-the-supply-chain/

Heizer, J., Render, B., & Griffin, P. (2014). Operations management (Canadian Edition). Don

Mills, Canada: Pearson Canada.

Jones, G. R., Mills, A. J., Weatherbee, T. G., & Mills, J. H. (2005). Organizational theory,

design, and change (Canadian ed.). North York, Canada: Pearson Canada Inc.
The general framework of Tata Motor's supply chain consists of tier 1, 2 and 3 suppliers and original

equipment manufacturers (OEMs) representing the suppliers; the design group, 52 engine and

transmission OEMs along with the assembly plant(s) representing the automaker itself; and the third

party dealers, representing the distribution network. However, the Tata Nano's supply chain has

some distinct features within this supply chain design that separate it from the other car brands'

supply chain designs at Tata Motors. These unique aspects of the Nano supply chain have been put

in place to specifically bring down costs in order to justify the car's price tag. The suppliers also took

part in the design process through unique vendor initiatives such as 3P: Production, Preparation and

Process Methodology. In addition, the suppliers were also asked to set up facilities near the

assembler. Analysis of Tata Nano's Supply Chain The Tata Motor’s supply chain has very different

and innovative aspects that are set to adapt to the Indian market conditions as well as to reduce

costs. However, the analysis of the case study reveals the following main characteristics. 1. The Tata

Nano's supply chain adopts both U.S. and Japanese car-manufacturing processes. 2. The Tata Group

provides the benefits of vertical integration for Tata Motors.