Supply Chain Management Plan

Running Head: SUPPLY CHAIN MANAGEMENT PLAN 1

Advanced Professional Logistics – MGMT 444

Embry-Riddle Aeronautical University

Professor Long Chad

Decemeber 1, 2017

SUPPLY CHAIN MANAGEMENT PLAN

Table of Contents

Summary ................................................................................................................................................ 3

Flyers Company .................................................................................................................................... 4

Country and City Selection .................................................................................................................. 5

General Logistics Impacts of Entering New Location ................................................................... 5

Supply Chain Plan ................................................................................................................................ 7

Next steps ............................................................................................................................................... 9

Conclusion ........................................................................................................................................... 11

References ............................................................................................................................................ 12

SUPPLY CHAIN MANAGEMENT PLAN

Summary

Supply chain management involves all the processes undertaken from production,

transportation, and delivery of goods and services from one place to another. The study will

explore supply chain management plan from the initiation of the supply chain management

process. The analysis will begin with a review of The Flyers Company which is an aviation

and transport company located in Canada. The analysis of the will begin from its operation

description, the location of the company, its suppliers and the consumers of its goods. Apart

from the business description, the study will also involve analysis of Canadian market with

its policies regarding importation and exportation of goods and services. Information on the

main logistics for products in the states will also be analyzed followed by a recommendation

on the favorable means of the transport system. Moreover, the plan will also include a

proposal for the best cities to conduct business in Canada. The information will be based on

the supply chain management plan for Flyers Company.

SUPPLY CHAIN MANAGEMENT PLAN

Flyers Company

Organizations with several outlets require an integrative plan in which its supply

stores have a proper management within minimal costs and effective transportation system.

Supply chain management is commonly conducted among huge organizations that may have

outlets in other countries to expand their markets. A proper supply chain management plan

often results in better production results with low costs in all organizations. Flyers Company

is an airline based in Canada and operates under cargo and passenger transport. The

production scale of the company makes it a supply chain organization with several terminals

all over the world to stop by picking or delivering goods and services. The study will analyze

the history of the company, its location and the size under which it operates. The major

objective of the study is to find out the supply chain management system and develop a

supply management plan for the organization.

As indicated earlier on, Flyers Company is a major airline in Canada. The airline is

majorly used in cargo transport for goods out of and into Canada. Flyers Company is based in

Montreal where a majority of cargo transportation takes place. The history of the company is

based on the need for faster transportation in Canada from other countries after the invention

of the air transport system. Over the recent past, the company has grown to become a

respectable organization all over the world following the number of flights made in a day and

the number of planes owned by the company. The growth of the business is also owed to its

management that grew it from being a local airline to an international airline with several

terminals all over the world.

The company has an approximate of forty-six terminals in 46 countries that have

direct flights to Canada. Moreover, the company has population 70,000 employees where

18,000 are full-time workers, and the rest are part workers. It is organized into four major

SUPPLY CHAIN MANAGEMENT PLAN

departments namely the human resource department, the marketing department, production

department, and finance department. The organization is composed of professional

employees who engage in day to day improvement of the business, also using technology as a

major factor to rise above its major competitors such as the Toronto Air. The organization

system of communication and order of activities is in a hierarchical order to allow for respect

of the higher authority and fluency in communication from one department to another.

Decision making is conducted among the directors of the organization and its shareholders

who come from different parts of the world.

Country and City Selection

In addition to that, the company boasts of its current location that gives it major cargo

market, Montreal City. Apart from Montreal City it also enjoys location on major cities of the

world such as New York in the United States, London, Johannesburg, Lagos, and Moscow.

The destinations have its stores where exported or imported goods await clearance to and

from Canada. Location of the business is, therefore, a major contribution to its supply chain

management and high business profile.

General Logistics Impacts of Entering New Location

Montreal City has an approximate population of 3.7million people, both residents and

non-residents. The city is also the major port area due to the large waters surrounding it. Due

to the availability of the water, several cargo transportations take place through the city ports.

Montreal city is also the second largest city in Canada in population and development is a

business center and administrative as well. The large population and availability of so many

cargo transport businesses make the location very reliable for the business. The size and

activities conducted in the city help Flyers Company in gaining a larger market for its

services as well as distributors. A lot of cargo gets into the country and out through the ports

SUPPLY CHAIN MANAGEMENT PLAN

which also increases the chances of the airline receiving a huge number of urgent or

perishable cargo.

Canada as a national host of the business is also a highly populated country with

several export and imports taking place from its trading relationship with so many country.

Canada is also branded the ten largest exporters in the world and the 12

largest importer

based on the goods imported into the country. The country does a lot of importation than

exportation and always has a negative balance of trade. The major exports are cars, as well as

the major imports of the country. The export and imports into and out of the country are also

based on the policies created by the country to enhance its trade with major economies in the

world. The following is an illustration of the export and import policies of Canada.

Export and Import Policies in Canada

The goods and services set for export and importation in Canada must meet all the

requirements of the country laws. The government has policies that manage the cargo either

by the water areas, road transport or airports. Failure to comply with the policies might lead

to consequences such as ferrying back the goods to the source or failure to be given direct

allowance to transport goods (Seyoum, 2013). In addition to that, the country may also

resolve to prosecution for transport of illegal goods and services. The export and import

policies are outlined as follows.

First of all, the goods and services must be legal to the country. Illegal goods cannot

pass through the borders of the country. Illegal goods include unwanted drugs, dangerous

weapons and human trafficking among others (Seyoum, 2013). One the government realizes

that such trade is conducted within its borders or may want to be delivered into its borders,

investigations may be launched to determine the proprietor of the goods and services.

SUPPLY CHAIN MANAGEMENT PLAN

Consequences such as sentencing to jail might take place for the residents who conduct such

businesses.

The goods exported or imported have to follow criteria issued by the government

under export and import requirements. An importer and exporter have to register with the

import/export account (Matsushita, 2015). After that, the business can be conducted between

the exporter and importer and successful transportation to take place after ascertaining the

legality of the business. However, for the goods to be allowed into the country, they have to

meet the standards under product standardization in Canada.

Transportation of goods into and out of Canada also must issue permits in either the

exporting or importing country for the trade to be conducted between the two countries. After

favorable permits, taxes have to be levied upon the goods for them to be rightfully imported

into the country (Matsushita, 2015). Failure to pay taxes, customs may be subjected to the

goods where they will be transported to warehouses of the owner’s desire but controlled by

the Canada Border Services Agency. The policies highlighted have to be fulfilled for either

exportation or importation of goods and services.

Supply Chain Plan

1. Inventory Management

The management of available stock is an issue affecting almost all supply chain

management organizations. Flyers Company has a huge stock due to its profile in the country

and the world as a whole. The inventory management requires a lot of labor and current

technology to enhance in proper management. High labor is needed every day since the

number of inventory increases each day (Fredendall, 2016). Moreover, the company also

needs to build up more stores where it can keep its inventory in Canada and other countries

SUPPLY CHAIN MANAGEMENT PLAN

that it has its terminals. The company requires an approximate of 2,000 new labor and new

stores in which it will conduct its inventory management.

2. Inbound and Outbound Logistics Strategy

Due to the increasing number of good held by the organization, there is a high need of

transport system. Apart from the high need of transport system, it is also critical since it is

slow in some parts of the country. Local transportation requires local airlines or road and rail

transport which consumes too much capital for the organization (Fredendall, 2016). Local

transportation is hindered by the need for more vessels of transport for the goods that are

fragile and highly perishable.

3. Customer and Human Resource Management

Flyers Company requires a competent and dedicated human resource. The company

requires several employees with skills on management of the supply chain inventory and

transportation without too many expenses. Also, the organization has to afford a reliable

means of consumer relationship with the organization to increase their participation in

activities by the organization. A good consumer relationship to the organization will enable

consumers to make their demands and the organization to respond by satisfying their

demands. In such a communication, the organization will be a consumer oriented institution.

Consumer oriented institution production is dependent on quality required by consumers.

4. Sourcing and Procurement Strategy

Flyers Company needs a proficient sourcing and procurement strategy to help in effective

provision of services to the organization. During procurement and sourcing by organizations,

a lot of controversies may arise over the credentials of a company selected for procurement or

individuals sourced. In this case, the company has to label all the requirements of sourcing

and procurement that will help in developing a clear strategy of how to select individuals or

SUPPLY CHAIN MANAGEMENT PLAN

companies to procure goods and services to Flyers organization. In this case, a lot of issues

such as the relationship of the companies or individuals to internal managers or employees of

the organization have to be identified, the ability of the companies to offer required services

and the ultimate need of the procuring organization.

5. Availability and Quality of Suppliers

Every chain management has to have a consistent supplier who provide quality goods and

services of required amount at required times. Suppliers of an organization determine their

productivity as well as quality of products. For instance, Flyers organization have suppliers of

replacement tires, suppliers of human resource and containers. The company has to ensure

the suppliers offer quality services for quality outcome. Also, the organization should ensure

the suppliers are aware of their needs, identify if they can satisfy the needs at appropriate

time and quality before issuing a contract of business.

6. Performance Management Strategy

Performance management is the key to a quality outcome and an organization to achieve its

objectives. The process requires an organization to identify its plans and communicate them

effectively to every individual within an organization. After that, the organization should

ensure it observes performance of every individual and appraised every performance.

Compensations are at times beneficial in terms of employee performance appraisal. Flyers

Company should implement the performance management strategy to ensure every employee

within the organization is aware of the plan and is working towards achieving the goals of the

organization. Also, the performance of every employee has to be identified and quality

performance compensated.

Next steps

SUPPLY CHAIN MANAGEMENT PLAN

1. Communication

Communication is an essential aspect of the business that has to be conducted reliably for

business prosperity. Communication in businesses is dependent on the organizational

structure. As a hierarchical organization, the flow of command is always downwards from the

highest rank to the employees (Christopher, 2016). Communication from the employees to

the highest rank is normally destabilized in the middle where the supervisors and directors are

available. For an efficient communication between the employees and the management, a

wheel system of organization should be encouraged where information can be either way and

is easy to implement due to lack of burden of information.

2. Transport and Inventory Management

As a result of growth, the business continues to face challenges in inventory management

and transportation of the cargo to the warehouses. Since the business is undergoing its

growth, it should not be reluctant in creating more warehouses for its products. The

safekeeping and management of the inventory help in protecting inventory from damages

resulting in losses by the business, loss of count of the inventory as well as theft (Christopher,

2016). In addition to that, the use of technology must be encouraged for the organization to

ensure the quality of management and activities conducted to the inventory.

On the other hand, transport system has to be improved by the purchase of more transport

vessels that are accessible to all the parts where the warehouses are located. Furthermore,

Flyers Company should also ensure the transport cost should be low for an increase in profits

accumulated by the business (Christopher, 2016). Improvement of the transport system in

Canada and improving accessibility will increase the number of inventory as well as users of

the services offered by the Flyers Company.

3. City and Location

SUPPLY CHAIN MANAGEMENT PLAN

Montreal is a busy city and is very strategic for cargo transport due to the availability of

cargo transportation business around the ports of the city. The convenience comes from the

availability of other companies that may offer inland transportation to its warehouses and

various destinations of goods. However, the business should also expand its services to

Toronto, which is the capital city of Canada and has the largest population in the country.

Toronto, being a business city has a market for passenger transport which is one of the

services offered by Flyers Company. The company may also obtain market for its cargo since

several businesses have to transport their cargo from the cities nearing the ocean where ports

are available. The availability of air cargo will not only increase the number of users but also

increase the business income in the country.

Conclusion

To conclude, Flyers organization is different airline situated in Canada, one of the

world’s major importers/exporters. The business has been analyzed from its composition on

the number of workers, the location of the business and the management system. Information

in the study is based on a strategic plan for its supply management as it has a base in several

countries where direct import and export services are conducted by Canada. Furthermore, an

analysis of Montreal, the city hosting the airline has realized its impact on the business as it

has major cargo businesses. Further explanations on the import and export policies in Canada

have been discussed on enlightening on the rules that have to be considered by the business

as it conducts its services to rest of the world. Furthermore, information based on issues

affecting the business have been indicated with further illustrations of the recommendations

laid down for the business. In summary, the information in entire study is essential for supply

chain management and planning for businesses operating under supply chain management.

SUPPLY CHAIN MANAGEMENT PLAN

References

Christopher, M. (2016). Logistics & supply chain management. Pearson UK.

Fredendall, L. D., & Hill, E. (2016). Basics of supply chain management. CRC Press.

Matsushita, M., Schoenbaum, T. J., Mavroidis, P. C., & Hahn, M. (2015). The World Trade

Organization: law, practice, and policy. Oxford University Press.

Seyoum, B. (2013). Export-Import theory, practices, and procedures. Routledge.

Wisner, J. D., Tan, K. C., & Leong, G. K. (2014). Principles of supply chain management: A

balanced approach. Cengage Learning.

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