Frozen Food Case Study

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Table of Contents
Answer 1: Supply Network Prospective4
Failure to integrate the facilities5
Vertical integration5
Horizontal Integration: Single Company Strategy6
Product range7
Lack of customer consciousness and commitment to service7
Poor internal and external communications8
Answer 2: Customer service9
The components of customer service9
Answer 3: Inventory Management11
The poor solution – the economic order quantity (EOQ) ‘fix’12 ABC analysis13
Material Requirement Planning (MRP)13
Enterprise resource planning (ERP)14
Just-in-time management14
The effect of JIT on operations16
Answer 4: Operations Performance Objectives17

United Biscuits is a leading European manufacturer of biscuits and bagged snacks. It has 14 geographical locations in the UK with revenue of £1.1 billion in 2007. No of employees:
7,200 people in the UK
Business Sector:
Food manufacturing
IT was founded in 1948 following the merger of two Scottish family businesses — McVitie & Price and MacFarlane Lang. In 1960, United Biscuits added to its portfolio with the acquisition of Crawford's Biscuits and MacDonald's Biscuits. In 2000 UB was bought by Finalrealm, a consortium of investors, and reverted to private limited company status. United Biscuits (UB) is one of the world’s pre-eminent branded snacks businesses. They produce some of the best known and loved sweet and savoury snacks, with products ranging from biscuits and crackers to cakes and savoury snacks. Their unrivalled portfolio of brands has been meeting consumer needs for well over 100 years and includes such favourites as McVitie’s, Jacob’s, Carr’s, McCoy’s, Hula Hoops, McVitie’s Jaffa Cakes, KP, Mini Cheddars, go ahead!, Verkade, Sultana, BN, and Delacre. UB holds leading or strong number two positions in its core markets of the United Kingdom, the Netherlands, France, Belgium and Ireland. Moreover their brands and products have global appeal. They have a rapidly growing international business unit serving consumers from North America to the Middle East, Africa, and Australia. (Source:

Answer 1: Supply Network Prospective
First of all we will understand the importance of total supply network perspective. The advantages of thinking about how operations fit into the total supply network are long term and strategic (Lars-Erik Gadde, Håkan Håkansson, 2009). They are, oIt helps a company to understand how it can compete.

oIt helps to identify the particularly significant relationships in the network. oIt helps a company to focus on long-term issues.
Following figure explains the meaning of supply network, it distinguishes between the immediate supply network, which is the collection of suppliers and customers with which the operation deals directly, and the total supply network, which includes customers’ customers and suppliers’ suppliers. In fact, no doubt second tier suppliers have third tier suppliers who are supplied by fourth tier suppliers and so on. Similarly, there may well be further tiers of customers (Nigel slack, 2009).

Flow of servicesource: (Nigel slack, 2009)
Flow of information
There should be ethical considerations in supply chains. One of the motives for companies taking a greater interest in their supply networks is that they may not wish to be associated with companies several stages back upstream in the supply chain. Supply network perspective enhances understanding of competitive and cooperative forces. Any operation has only two options if it wants to understand its ultimate customers at the end of the network. It can rely on all the intermediate customers and customers of customers, which forms the links in the network between the company and its end customers to...
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