Supply Chain

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Supply Chain Assignment

Maria Blum
Supply Chain Management refers to the stages that involves the directly and indirectly processes that delivers a final product. It begins with a customer order; it is followed by procedures depending on the organisation and finishing with a final product.

SCM consists of the materials, information and funds that will flow within the process in order to provide a lower cost and high degree final product to the customer/consumer.

Supply Chain Management is important in organizations, as this will establish the operational efficiency of the company.

Effective SC management drives costs down through efficiency, automation and investment in IT.

Aylesford Newsprint is focused on manufacturing high quality newsprint from recovered paper and therefore recycling plays a big part in the business. They work together with the local authority and communities for the collection of recycled papers.

The Procurement function within Aylesford newsprint is represented at Executive level and Board level by the Head of Procurement. This provides Procurement with a voice in the setting of the Companies key strategic objectives and ensures that Procurement is represented in playing a key part in delivering success to the Company. As a continuous production organisation as they run the business and the production 24 hours a day, 7 days a week, 365 days per year, it is vital that they maintain a simple but clear operation which aims to meet the need of the business by delivering the right quality of product, on time, at the right price and at the right place (The 4 P’s) Aylesford Newsprint is only as strong as the strength of our up and down supply chains, from our supply base to the end of the chain with our customers. The suppliers / customers are the lifeblood of the organisation because of the dynamics of the newsprint industry. To meet these objectives the Supply Chain is split into two main functions. Procurement: The sourcing of incoming goods, services and materials and Logistics: The warehousing, handling, dispatch and delivery of finished products. “Procurement has evolved over the past 10 years from a function which can be described as “an order processing role” to today where the function is highly efficient, professionally qualified and maintains a strong working relationship with our key suppliers. It could be described as evolving into more of a commercial risk management / supplier relationship management function. This change meets the medium term objectives of the business, which is to focus of increasing efficiency and focusing on professionalization of the support functions. (Aylesford Newsprint) Procurement works closely with all internal stakeholders / customers to support the on-going needs of the business. As a function Procurement aims to be proactive in managing the commercial risk. Equally Procurement works closely with the key suppliers to the business to ensure an efficient supply chain to remove risk, reduce cost and evolve.

1.3
The drivers of a supply chain consists of the following:
Logistical Drivers
* Facilities – location of storage of products
* Inventory – Quantity to produce and quantity to manufacture for stock * Transportation – The process of moving the stock from one place to another. Cross - Functional
* Information – connects different stages of the supply chain coordinating and maximising profitability. * Sourcing – involves the purchasing of the raw materials to produce the final product. * Pricing – determines the price of the intended service/product.

Supply Chain Management is a vital for Aylesford Newsprint, not only does the performance depends on the organisation but it also depends on third parties, which supply the recycled paper. So all stages in the supply chain will need to work together to achieve a flexible supply chain. This will improve efficiency, effectiveness and produce good quality for the...
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