Module 3 Assignment – Case Study: Supply Chain Management Memo

Edna Ejimakor
Nexford University
BUS 6100: Global Business
Dr. Bill Reed
November 21, 2021
TO: The MD/CEO – CeeJay Coffee Shop and Restaurant

FROM: Edna Ejimakor

DATE: November 21, 2021

SUBJECT: Supply Chain Management – Recommendation

Supply Chain Management is a very important aspect in the success of any business

including one like ours. The ride from idea conception to the finished goods and the eventual

final consumption is a very complex procedure with many moving parts. An appropriate

management of these procedures would directly translate into increased profit.

What is Supply Chain Management?

As defined by Indeed, Supply Chain Management is the process of overseeing how goods

and services evolve from idea creation and raw materials into a finished consumer product. It

includes the processes of moving and storing the materials used to produce goods, storing the

finished products until they are sold and tracking where sold products go so that the information

can be used to drive future sales. The process of supply chain management involves all aspects

of business operations including logistics, purchasing and information technology. It integrates

materials, finances, suppliers, manufacturing facilities, wholesalers, retailers and consumers into

a seamless system.

Sir, Supply chain is very important in this coffee business because if well managed, our

operating expenses will be significantly reduced translating to increased profits and so I would

recommend a business partnership with Concept Nova (a software company with the best IT

solutions and services) to develop a software system to track supply chain and a Mobile App that
will allow customers track the supply journey of the coffee beans they buy and the coffee they

drink thereby personalizing the experience customers get. The software will enable the

company’s management have complete involvement in every step of the process, as coffee beans

move from farms to the cup of coffee that is ultimately sold to customers. This would bring

about transparency and improve coffee supply chain scrutiny. It would also secure more income

for the farmers.

Also, a trained supply chain professional will be essential at this point to carefully

research and develop the strategy; to source for the best cherries and coffee beans; to ensure

efficient manufacturing process to get the coffee ready for the market; to get the right delivery

mechanisms and logistics to move the coffee to consumers and distributors; and create a system

to manage return of defective or unwanted coffee.

The benefits of supply chain management include:

a) Significant reduction in operations costs – this is accomplished by reducing purchasing

and production expenses as purchasing raw materials directly from the source saves

money and ensures the right quality.

b) It builds partnership that can support future growth – the farmers can grow theirs

operations as we grow ours.

c) It helps to balance the supply of production with market demand – if we buy directly

from the farmers, we can better negotiate and adjust the quantity of cherries or coffee

beans we buy each season.

d) It allows for more efficient and effective client experience – this happens because

customers receive their products quickly and as promised.

 An efficient supply chain management will assist to eliminate the consequences of a poor

supply chain management process having to do with quality issues, safety challenges, supply

shortage issues, environmental compliance, security problems, legal and regulatory issues, etc

which negatively impact supply chain management and organizational performance. The

ultimate goal of an effective supply chain management is increased profit through improved

customer satisfaction and lower operating costs; as operating costs reduce when the costs of raw

materials and production are reduced.

This strategy, when implemented appropriately, will also integrate the operations in your

businesses around the world.

Thank You/
REFERENCE
Indeed Editorial Team. (2021). What Is Supply Chain Management And Why Is It Important?
from https://www.indeed.com/career-advice/career-development/what-is-supply-chain-
management-and-why-is-it-important