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MSc. International Logistics & Supply Chain management International Logistics and Operations Performance (BM723) Coursework 1 “Export Fresh Fruit from Thailand to Tesco in the I-JK” Tutor: Katie Ellis By: Nattapon Srichiangsa ID: 21300004 Contents Exclusive Summary Introduction 2 3 1 . lntroduction of the supply chain of the product 1. 1 . Supply chain flows 1. 1. 1 . Material/ physical flow 1. 1. 2. lnformation flow 4 2. The discussion of the challenges faced by the supply chain and the organisation’s performance objectives 2. . The challenges faced by the supply chain 2. 2. The organisation’s performance objectives 5 6 3. Critically appraise and recommendations of some ideas about improving the supply chain Conclusions Referents 7 8 10 Hgure 1 ??? Diagram 0T supply cnaln mows Figure 2: The Polar diagrams of five operations performance of exporting fruit from Thailand to Tesco in the IJK6 objectives The purpose of this report is to demonstrate the fresh fruits that are being exported from Thailand to Tesco in the I-JK.

There is a providing of a brief introduction to the supply chain and a drawing of the diagram of the both material flows and information flows through the supply chain. Tesco have their own regional distribution centre (RDCs) and use Electronic Data Interchange (ED’) which makes the supply chain flows efficiently. The report also demonstrations the challenges faced by the supply chain and the company’s performance objectives of the supply chain in terms of the five performance objectives that could delay delivery and effect satisfaction of the customers.

Moreover, there is a critical appraise and recommend some ideas of an improvement of the supply chain which Tesco already use technology and have contracts under the supply chain function but they should oncern more in government support, Efficient Consumer Response (ECR) and going green. from developing county which is Thailand to Tesco in the LJK. There is a giving a brief introduction to the supply chain and a showing of the diagram of the both material flow and information flow across the supply chain.

The report also shows the challenges faced by the supply chain and the company’s performance objectives of the supply chain in terms of the five performance objectives. Moreover, there is a critical appraise and recommend some ideas of an improvement of the supply chain. 1. Introduction of the supply chain of the product One of the most important exporting markets in South- East Asian is an exporting fresh tropical fruits. Thailand is considered as one of the most significance country which is exporting tropical fruits to all around the world.

The export value of Thailand to tne glooal market growtn rate nas Increased stea011y slnce tne year year 2012 Thailand exports of fresh tropical fruits to the world market as the total value of 122. 85 million pound sterling. The I-JK is one of the most important markets that imports tropical fruits from Thailand. Tesco Company in the I-JK imports Thai ropical fruits for example mango and lychee in campaign of “Taste of Thailand” with more than 200 branches participated in this campaign.

Moreover, importing fruits from Thailand is expected that it will be worth not less than 2. 4 million pound sterling in the year 2013. 1. 1. Supply chain flows There are two key flows in the supply chain which are: Material/ physical flow is the physical process from suppliers to end customer. Information flow is the demand data from the end customer back to purchasing and to suppliers, and supply data from suppliers to retailer. Figure 1: Diagram of supply chain flows 1. 1 . Material/ physical flows It can be seen in the fgure 1 that the physical flow of exporting fresh fruit to Tesco in the I-JK from Thailand starts from fruit planting by producers or farmers and then after harvesting they will be transported by trailers to the supplier which is called pack house to prepare them and packing. Next, they will be transported by temperature- controlled trailer to Tesco Lotus’s regional distribution centre (RDCs) which is the temperature controlled distribution in Thailand and they will be shipped also with the temperature controlled to the I-JK for example to the RDCs of Tesco at

Southampton. The final flow is transportation with temperature- controlled trailer to Tesco stores all around the I-JK (Chomchalow et al. ,2008), . 1. 1. 2. Information flows According to Tesco Company (2012), they are using Electronic Data Interchange (ED’) to place the orders with suppliers. In consequence, the suppliers will receive the orders immediately and they will know the customer demands straight away. It can be described form the figure 1 that Tesco make the orders to Tesco’s RDCs in the I-JK.

After that it will make the shipping orders to RDCs of Tesco Lotus in Thailand and at his point there is a forecast of requirement for the products. Then it makes the packing house orders and after that it will makes the orders to the farmers. In addition, not only the information can flow from the end customer to producers but it can flow from the producers back to the end customers for sharing the information to show the process of exporting. 2. The discussion of the challenges faced by the supply chain and the organisation’s performance objectives 2. . The challenges faced by the supply chain In the supply chain, it might have risks that could delay delivery and effect satisfaction of the customers. It can be discussion as follow: Natural disasters and extreme weather: it might happen to the producers that can affect to the planting for example, flooding. As a result of that it could not satisfy the customer demands because there are not enough products. Moreover, it could affect to the transportation which is impact to delivery. Fruit Diseases: it might affect to the planting.

This means that there are not enough products to satisfy the customer demands. ProDlem wltn rotten Trul . t’ I nere mlgnt nave a proDlem wltn rotten Trult during the transportation or stock keeping which might be caused by lacking of ontrolling the temperature and it will effect to the customer demands. Labor strike: the workers strike might impact to the flow process of supply chain which affect to transport and producing. This means that it will effect to the customer demands. Accident: the accident can happen in both transportation and production process.

In consequent, it might delay delivery and effect satisfaction of the customers. Quality of Packaging: the damage of fruit might be caused by the lacking of the quality of packaging that might effect satisfaction of the customers. Seasonality: in some season, it cannot plant the products. Therefore, in some season it could not satisfy the customer demands. 2. 2. The organisation’s performance objectives The function of the operations can deliver a competitive advantage which is performance in terms of the five competitive objectives.

Figure 2: The Polar diagrams of five operations performance objectives of exporting fruit from Thailand to Tesco in the UK It can be seen from the figure 2 that there are five competitive objectives of exporting fruit from Thailand to Tesco in the UK which are cost, dependability, flexibility, quality and speed. According to Tesco Company (2012) it can be discussion of those five ompetitive objectives as follow: Cost: the cost of exporting fruit from Thailand to Tesco in the I-JK might high because the cost of planting of Thai fruit is quite high.

Due to the fact that there is the complicated in the planting, enriching and protecting from diseases. Moreover, the process of transport is also quite high which transports by controlling temperature. Dependability: Due to Tesco is using ED’. This means that the suppliers in Thailand will know the demands immediately that how many they have to produce and also the suppliers could share the shipping information hich helps the delivery on time. Flexibility: Due to the fact that fruit has the short life cycle that could be rotten quickly and some time there is a natural disasters and extreme weather which might damage the crop.

Consequently, it quite difficult to be flexibility in terms of operation and transportation which has to transport by controlling temperature. However, it can be more flexible when it is in the season for harvesting to satisfy the customer demands. Quality: Tesco has their quality standard for importing fruit from foreign countries. In fact they have the contract ith the producers in Thailand or farmers and they will only purchase the products which are in their quality standard. Speed: As it mentioned before that Tesco is using ED’.

As a result of that the speed of the operation and transportation process is quite fast because there is a shearing in formation and if there is any problem, it will be able to solve the problem immediately. 3. Critically appraise and recommendations of some ideas about improving the supply chain It can be noted that the export process of fruit from Thailand to Tesco in the I-JK is quite efficient in terms of organising the supply chain. However, there are some ideas that can improve the supply chain even better.

Government support: in a an , tne government nas Deen nelplng tne Trult export already. I nere Is a glvlng the direction and helping supply chain strategy to the company’s overall strategy . However, if Thai government reduces tax for transport, it might improve the supply chain. For example, Tesco might use more transporting fruit by plan if there is a reducing tax. This means that it will make the process faster. For that reason, the Company might concern about this.

Technology: according to Tesco Company (2012), hey are using EDI that they can share information between them and suppliers immediately and that makes the supply chain very effective. Contracts under the supply chain function: according to Tesco Company (2012), there is the contract between Tesco and suppliers, producers or farmers. It is not only making the business relationship between both of them but also making the right quality for the products as Tesco have their quality standard for fruit products.

Efficient Consumer Response (ECR): according to Tesco Company (2012), for the fast moving consumer goods, they only make an order to meet tomorrow’s demand only. Moreover, they should concern the ECR which is a strategy to raise the level of services to customers through close by collaboration amid retailers, wholesalers, and manufacturers. This means that it will reduce the stock cost, reduce the opportunity loss and also satisfy the customer demand.

Go green: Tesco should concern more about going green because it is not only environmental friendly but also reducing the cost, making the supply chain process faster, reducing the cost and improving the company image. For example, modifying the trailer by using the fiber spoiler to reduce the wind esistance will reduce the energy cost or making smaller packaging also reduces the cost . Conclusions The report shows how the fresh fruits that are being exported from developing county which is Thailand to Tesco in the I-JK.

There is the showing of the flows in both material and physical flow and information flow. The report also shows the challenges faced by the supply chain which are natural disasters and extreme weather, fruit diseases, problem with rotten fruit, labour strike, accident, quality of packaging and seasonality, and the company’s performance objectives of the supply chain in terms f the five performance objectives that could delay delivery and effect satisfaction of the customers..

Moreover, the report note that the export process of fruit from Thailand to Tesco in the I-JK is quite efficient in terms of organising the supply chain and shows some ideas of an improvement of the supply chain which Tesco already use technology and have contracts under the supply chain function but they should concern more in government support, ECR and going green. ReTerents Ahmad, S. and Schroeder, R. G. (2002) Dimensions Of Competitive Priorities:Are They Clear, Communicated,And Consistent? Journal of Applied Business Research. 18 (1), pp. 77-86. Chomchalow, N. , Somsri, S. nd Songkhla, P. N. (2008) Marketing and Export of Major Tropical Fruits from Thailand. Assumption University Journal. 11 (3), pp. 133-43. Engel, B. (2011) 10 best practices you should be doing now [online]. supplychainquarterly. Available from: http://www. supplychainquarterly. com/topics/ Procurement/scq201101 bestpractices/ [Accessed: 5 November 2013]. IGD (2012) Sustainability driving efficiency in supply chains [online]. IGD. Available from: http:// www. igd. com/our-expertise/Supply-chain/Logistics/4689/Sustainability-driving- fficiency-in-supply-chains/ [Accessed: 3 November 2013].

International Institute for Trade and Development (2012) The role of Thai exports of fresh fruits and vegetables to the European Union [online]. International Institute for Trade and Development. Available from: http://www. thaifranchisecenter. com/download_file/flles/ groupl 2720130102143938. pdf [Accessed: 3 November 2013]. lean-manufacturing- japan (2008) ECR (Efficient Consumer Response) [online]. lean-manufacturing-Japan. Available from: http://www. lean-manufacturing-]apan. com/scm-terminology/ecr- efficient-consumer-response. ml [Accessed: 5 November 2013]. Referenceforbustness (2013) SUPPLY CHAIN MANAGEMENT coniine]. Referenceforbusiness. Available from: http://www. referenceforbusiness. com/ management/Str-Ti/Supply-Chain-Management. html [Accessed: 4 November 2013]. Tesco Company (2012) Making it happen [online]. Tesco Company. Available from: http://www. tescoplc. com/index. asp? pageid=168 [Accessed: 4 November 2013]. Thairath (2013) Import fruits from Thailand [online]. Thairath. Available from: http:// www. thairath. co. th/column/eco/market/263276 [Accessed: 3 November 2013].

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