please no plagiarism, Create or choose any business organization of your choice
ID: 353706 • Letter: P
Question
please no plagiarism,
Create or choose any business organization of your choice and describe the organization according to the below:
1. To create a new company or find a suitable company,
to be located in the Kingdom of Saudi Arabia,
which include the followings:
Give an introduction about the company as well business unit.
Mention the kind of product(s) as well as services. Write down Company statement.
Vision and Mission of the company Understanding the concepts of SCM and logistics in a broader framework
Introduce the concepts of E-supply logistics and E-SCM, collaboration, and Integration, which demonstrates effective use of ICT. To apply a SWOT analysis to your business.
Also analyze your business and process as per below points:
Strategic Planning (SP)
Location of Supply Chain Facilities
Supply Chain Configuration
Procurement Planning
Distribution Facilities Planning
Logistics Planning
Operational Optimization (OO)
Supply Chain Inventory
Optimization Logistics Resources Scheduling
Explanation / Answer
1. To create a new company or find a suitable company, to be located in the Kingdom of Saudi Arabia, which include the followings:
Choosing the option of creating a new company
a. Give an introduction about the company as well business unit: KSA Advertising is an up and coming advertising and service marketing company serving small and mid-sized clients in Saudi Arabia. The company aims to create compelling marketing drives that helps your business succeed. The company has an office in Riyadh and resources work out of both own and client office. KSA Advertising works with clients to understand their business and their customer needs and then helps create a powerful pitch to the client’s prospective customers
b. Mention the kind of product(s) as well as services: KSA Advertising has the capability to provide end-to-end marketing solutions. The services offered by the company are as follows
1) Creative Design: Develops concepts for campaigns to that stand apart from other players in the market
2) Branding: Creating Brand Identity, Brand Design, Brand Activation, Go to Market Strategy
3) Printing Services: All types of digital and offset printing including but not limited to Flex and banner printing, roll-up stand, indoor and outdoor printing, business cards, brochures, magazines, folders, promotional gifts
4) Web and Mobile Application Design and development
5) Marketing: Competition study, product management consulting, marketing campaigns
6) Video and Media Production
7) Organizing and equipping exhibitions and events
c. Write down Company statement: KSA Advertising communicates your message, in a form everyone understands, in a way no one else can.
d. Vision and Mission of the company: Mission – We strive to create sustainable success for our customers by communicating their brand to the right audience, at the right place and at the right time
Vision - To deliver marketing services that translates into more business for our clients
2. Understanding the concepts of SCM and logistics in a broader framework: In a broad framework, Supply Chain Management has three main parts. A) Idea to Market, B) Market to Order and C) Order to Cash. SCM consists of managing the complete flow of steps from cradle to grave that generates cash for the company at the end of the cycle. Logistics is a part of SCM and involves making a material available at the right place and at the right time. In the example of KSA Advertising, the Supply Chain would include the entire flow of activities involved, from Creating Initial Concepts, prototypes, final design approval, creating and delivering marketing aids and merchandize to getting the payment for the service provided.
3. Introduce the concepts of E-supply logistics and E-SCM, collaboration, and Integration, which demonstrates effective use of ICT: E-Logistics and E-Supply Chain Management are the next generation of supply chain management techniques. It involves combining traditional knowledge with the power of modern computing and data. This reduces the information asymmetry in the process and enables quick communication. E-SCM is not people dependent but process driven. Systems are set to generate triggers and automate repetitive tasks. Any information that is relevant to the supply chain is immediately communicated to the concerned stakeholders and correct actions are taken to accommodate the change. This helps in integration of all functions within and outside the business, resulting into one connected eco-system. It helps reduce lead-time for operational activities from days or weeks to seconds or minutes.
4. To apply a SWOT analysis to your business:
Strengths: Skilled resources who are expert at communication. KSA Advertising is as accomplished at listening to customer as it is at communicating the business proposition to customer’s customers.
KSA Advertising provides customers an end-to-end marketing solution. From conceptualizing ideas to executing the marketing campaign to deliver results.
Weakness: Resource constraint. Still very much unknown outside of Riyadh.
Opportunities: More and more multi-nationals who want to do business in Saudi Arabia need a partner who understands the local business. Hiring a marketing services company is a much easier and preferred option than entering Saudi Arabia with a joint venture with a local company.
Threats: The world of advertising is fast changing. Skill set getting out dated at a fast pace. Companies need not hire a marketing services company based out of Saudi Arabia. E-SCM has made remote services very easy. Companies now Design Anywhere, Build Anywhere and Source Anywhere. The three pillars of business no longer have to be co-located.
Strategic Planning:
Location of Supply Chain Facilities: KSA Advertising woks with the strategy of Stay Local, Buy Local, Serve Local. The strategy is tailor made to suit an up and coming company with resource constraints like this one. The head-office is in Riyadh and the office is the center of excellence for creative design and printing. KSA Advertising sources most of its stationery for prototyping from Thoughts and Notes based out of Riyadh. Volume purchases for paper is done from Dammam, which is about 400 km from Riyadh. Ink and color is sourced from Jeddah. KSA Advertising has a storage space in the Riyadh back-office and a warehouse in As Sulay
Supply Chain Configuration: KSA Advertising works with a simple Kan Ban 2 bin Model for art supplies. As soon as the supplies in the back-office go down below a certain level, a request for refill is triggered at the AS Sulay warehouse. The required goods are then taken from the AS Sulay warehouse inventory and the back-office storage is refilled. For electronic goods and components, no inventory is maintained. Purchases are made based on annual negotiations with a supplier in Jazan. In case of ad-hoc requirements, the fulfillment is done via local sourcing.
Procurement Planning: The procurement team operates out of the AS Sulay facility. Procurement planning is done by taking into account previous years ‘consumption and forward demand forecasts. KSA Advertising has a single and sole source model. This allows them to leverage the volumes and get discounts. Products like paper, ink, CDs, Merchandise whose annual demand can be estimated are purchased from factory outlets. Electronics products and upgrades for design purposes are purchased via preferred suppliers on an annual basis. Besides the company has a partnership with Thoughts and Notes for sourcing needs during rapid prototyping. Thus, Procurement has a balanced hybrid model.
Distribution Facilities Planning: This is a non-critical area as the company works on project and deliverable basis. Most of the deliverables are created in client office or in KSA Advertising’s Riyadh head office. Distribution happens over Secured Server Transfer (for digital content) and Express Shipment (for material content)
Logistics Planning: Logistics Planning can be divided into type sub-types a) Inwards Logistics and b) Outward logistics. For inward logistics, the company has a weekly delivery run from its warehouse to the back-office. The order triggers to the warehouse (2-bin) are collected over the week and delivered in a single shipment every 7 days. The deliveries to Client location take place on a need basis. Outward logistics is outsourced to Arabco Logistics who deliver shipments on express mode with full insurance. This reduces the risk exposure to the company.
Operational Optimization:
Supply Chain Inventory: Real Estate costs in Saudi Arabia is always going up which is why Supply Chain Inventory Optimization is extremely important. However, purchasing at volumes can get discounts. Hence, inventory planning is done using TCO – Total Cost of Ownership technique. The storage space in the Riyadh office is kept to a minimum as it is a prime location. Kan-Ban is used for inventory fulfilment there. The AS Sulay warehouse on the other hand has a larger space to accommodate the purchases for annual requirements. Thus, the advantage of Volume purchases can be taken without compromising on real estate expenditure.
Optimization Logistics Resources Scheduling: Logistics runs from warehouse to back-office is done based on weekly runs. Orders for multiple items are combined in a single shipment. This allows maximum truckload per run. Outward logistics that is supply of final product to customer or site is outsourced to third party logistics provider Arabco Logistics. The final material is insured and delivered on express shipments.
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