Supply Chain Management

Supply chain management is the method for developing the process and the role of the series of enterprises in order to deliver goods and services after production in a manufacturing unit. In relation to the modern day context, a large number of organizations operate their supply chain management independently throughout the same region or beyond the national boundary. There are various functioning areas that have been observed during the process of supply chain management of an enterprise such as, production planning, marketing, manufacturing, sales and distribution to clients or customers along with purchasing activities with other vendors (Chidambaram, Whitman, & Cheraghi, “A Supply Chain Transformation Methodology”). I will provide a brief discussion about supply chain management of Ben & Jerry’s, an American ice-cream manufacturing enterprise along with its transformation methodology of providing their products in the global context.

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The organizations in the present day context are highly focused to deliver their offerings according to the desires of the customers due to the immense growth in the communication networks along with changing face of globalization. Therefore, the competition within the enterprises can be considered to be extended globally in the modern business environment (Chidambaram, Whitman, & Cheraghi, “A Supply Chain Transformation Methodology”). The supply chain management system of Ben & Jerry is one of the effective tools for the organization in its endeavor to expand to more than 30 countries of the world. With the concept of effective global supply chain management system, the strategy of Ben & Jerry’s consigns transformation methodology along with making use of appropriate management techniques that help the enterprise to lead among the various competitors around the globe (Ben & Jerry’s, “Company”).

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In order to address the transformation related challenges on a global basis, Ben & Jerry’s focuses on various transformation steps for efficient supply chain management around its different units of enterprise. Moreover, the organization sets long-term goals and prepares effective strategies to successfully achieve its objectives along with preparing strategies that result in significant changes in its business environment. The supply chain management of Ben & Jerry’s initiates effective models to be considered as the world class parameters around the different units of the organization in different countries (Ben & Jerry’s, “Company”).

The transformation strategy within the supply chain management system of Ben & Jerry’s has become highly advanced with the usage of technological advancements in their storing and manufacturing process. The organization has already acquired several steps to develop energy efficiency at their various ice-cream processing plants situated in the different countries across the world. Additionally, Ben & Jerry’s had made upgradtion of more than 2 million refrigerated and frozen cases to supply to its retailers and vendors to sell their products. The effective supply chain management strategies and the technological advancements facilitate the company to be regarded as a USD 7.2 billion enterprise by selling ice-cream globally (Environmental Leader LLC, “Ben & Jerry’s May Make Warm Ice Cream to Reduce Emissions’).

Supply chain management of an organization entails the method of delivering the appropriate products to the customers at the right time at the appropriate place. A properly developed supply chain strategy enables to enhance the satisfaction level of the customers, minimize the inventories along with reducing manpower of the enterprises. The appropriate and effective supply chain strategy can assist the organizations such as Ben & Jerry’s to attain the height of helms within the actions of the organization.


Ben & Jerry’s. Company, 2012. Web. 03 Jul. 2012.

Chidambaram Solayappan, Whitman Larry & Cheraghi S. Hossein. A Supply Chain Transformation Methodology. Supply Chain Management, Nov 17-20, 1999. Web. 03 Jul. 2012.

Environmental Leader LLC. Ben & Jerry’s May Make Warm Ice Cream to Reduce Emissions, 2009. Web. 03 Jul. 2012.


Strategic Importance of Forecasting and Keys to better Forecasting

Since this week we are learning about forecasting so I read an article about it. Forecasting is extremely important for any business from a strategy point of view because having inventory (whether physical or product) at the right time is essential for making profits. A business must buy right amount of raw materials to produce right amount of goods for consumers. If this is not the case then either the business will not be able to serve the customer due to shortage or will have to hold extra products and incur storage costs.

Many companies do not understand the strategic importance of forecasting. Having the right resources available at the right time is essential for efficient functioning. In today’s tough business environment where businesses are trying to save costs it is needed that every penny is saved. Forecasting is one way to save costs as from forecasting only companies can guess the future demand and can manage their resource accordingly. Any mismanagement in forecasting can lead to great loss in both small and large businesses.

All large companies use forecasting when formulating their strategy because without it no decisions can be made. It is true that no one can predict the future accurately but forecasting can give a general idea about future on which present decisions can be made. Forecasting is therefore an important strategic tool for all businesses.

In the article ‘7 keys to better forecasting’ the authors have stressed the importance of forecasting and have given 7 suggestions to make better forecasting decisions (Moon, et al. 45). The article also argues that better forecasting can increase the financial health of a firm significantly (44).

The first key to better forecasting is to understand what is forecasting. The article suggests that forecasting should not be viewed as a computer program but as a management process. The second key to better forecasting is to forecast demand and then plan supply. Many firms restrict their supply forecasts to their capacity. This is not a good practice according to the article as first firms should forecast demand of the product and then plan supply.

The third key is to communicate, cooperate, and collaborate because forecasting involves input from all levels of organization. The fourth key is to not waste time on redundant activities. There are some activities that are performed by many departments and this should not happen because valuable time and effort is wasted on these activities and they do not add value to the firm.

The fifth key to better forecasting is to use tools of forecasting wisely (Moon, et al. 45). Some companies rely on qualitative tools too much and ignore quantitative tools of forecasting. A balance should be maintained between the two tools in order to predict future demand better. The sixth key is to make forecasting important by making people who are involved responsible for their decisions. The seventh and the last key to better forecasting as discussed by the article is to measure performance, feedbacks, and standards (Moon, et al. 45). All these suggestions can improve the forecasting in a firm.

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Works Cited
Moon, M. A., Mentzer, J. T., Smith, C. D., & Garver, M. S. Seven keys to better forecasting. Business Horizons, 44–52, (1998)