Wk 6 – Apply: Summative Assessment: Supply Chain Operations Plan
This assignment is intended to help you build a supply chain plan/diagram for a new business by analyzing factors that affect sourcing, logistics, metrics, suppliers, and risk.
Create a diagram of the supply chain plan using one of the following tools:
- Excel
- PowerPoint
- Visio
- PictoGram
- Other faculty-approved platform
Write an 875-word analysis of the supply chain. Include the following:
- Value chain and flow of structure
- Inputs
- Outputs, including customer service structure
- Inventory points and forecasting
- Sourcing activities
- Risks
- Locations
- Logistics
Cite references to support your assignment.
Introduction:
A supply chain is a network of interconnected entities that facilitate the delivery of goods and services to customers. The objective of a supply chain plan is to ensure that a company can effectively manage its supply chain by optimizing the flow of goods, minimizing costs, and improving customer satisfaction. This analysis will examine the supply chain plan for a new business that manufactures and sells specialty coffee blends. The business aims to provide high-quality coffee blends at competitive prices.
Value Chain and Flow of Structure:
The value chain for the coffee business includes the following stages: sourcing of raw materials, roasting of coffee beans, blending of coffee beans, packaging, marketing and distribution, and finally, the sale of the coffee blends to customers. The flow of the supply chain is as follows: Raw materials such as coffee beans are sourced from coffee farms and transported to the roasting facility. The roasted coffee beans are then sent to the blending facility where they are blended with other coffee beans. The blended coffee beans are then transported to the packaging facility where they are packaged in various sizes, from small individual packages to large wholesale packages. The packaged coffee blends are then sent to the distribution center where they are sorted and shipped to various retail stores or directly to customers who have ordered online.
Inputs:
The primary inputs for the coffee business include raw materials, labor, and energy. Raw materials such as coffee beans are sourced from coffee farms, which are located in different parts of the world. Labor is required at each stage of the value chain, including roasting, blending, packaging, and distribution. Energy is required for roasting, blending, and packaging.
Outputs:
The primary output of the coffee business is the sale of specialty coffee blends to customers. The business aims to provide high-quality coffee blends at competitive prices. To achieve this goal, the company plans to offer various blends to cater to different tastes and preferences. In addition to the sale of coffee blends, the business will also offer customer service to ensure that customers are satisfied with their purchase.
Inventory Points and Forecasting:
The coffee business plans to maintain inventory at various points along the supply chain to ensure that there is enough coffee to meet demand. The inventory points will be located at the roasting facility, the blending facility, and the distribution center. To forecast demand, the business will use historical sales data, market research, and customer feedback.
Sourcing Activities:
The coffee business plans to source its coffee beans from various coffee farms located in different parts of the world. The business aims to source high-quality coffee beans at competitive prices. The sourcing process will involve identifying potential suppliers, negotiating prices, and ensuring that the coffee beans meet the company’s quality standards.
Risks:
The coffee business faces several risks, including supply chain disruptions, changes in consumer preferences, and fluctuations in commodity prices. To mitigate these risks, the business plans to diversify its supplier base, offer various coffee blends to cater to different tastes and preferences, and closely monitor commodity prices.
Locations:
The coffee business will be located in a central location that is easily accessible to coffee farms, suppliers, and customers. The roasting facility will be located in close proximity to the blending facility to minimize transportation costs. The blending facility will be located in a region that is known for its coffee expertise. The distribution center will be located in a region that is easily accessible to retail stores and customers.
Logistics:
The coffee business plans to use a combination of transportation modes, including trucks, ships, and planes, to transport coffee beans from coffee farms to the roasting facility. The business will also use trucks to transport roasted coffee beans from the roasting facility to the blending facility. The blended coffee beans will be transported to the packaging facility by truck. The packaged coffee blends will be shipped to the distribution center by truck or plane, depending on the destination.