SUPPLY CHAIN REPORT
IBA-C03
Thi Ky Duyen Nguyen, Saman Hannani, Quinten Van den bosch,
Daffa Fahrelza Hedian
,Table of Contents
Management Summary ...........................................................................................................................2
Introduction .............................................................................................................................................3
Overview of situation...............................................................................................................................4
Supply Chain Mapping .........................................................................................................................4
Geographical Flow Diagram .............................................................................................................4
Network Flow Diagram ....................................................................................................................7
Review of Previous Management Decisions and The Strategy into actions .......................................8
Key Decisions ...........................................................................................................................................9
Round 1 ................................................................................................................................................9
Round 2 ................................................................................................................................................9
Round 3 ................................................................................................................................................9
Round 4 ..............................................................................................................................................10
Round 5 ..............................................................................................................................................10
Round 6 ..............................................................................................................................................10
Team Reflection and Collaboration. ......................................................................................................11
Results and conclusions. ........................................................................................................................12
References .............................................................................................................................................15
Appendix A .............................................................................................................................................16
Table A1 .............................................................................................................................................16
Table A2 .............................................................................................................................................17
Table A3 .............................................................................................................................................18
Table A4 .............................................................................................................................................19
Table A5 .............................................................................................................................................20
Table A6 .............................................................................................................................................21
Appendix B .............................................................................................................................................23
Table B1 .............................................................................................................................................23
Table B2 .............................................................................................................................................24
Table B3 .............................................................................................................................................25
Table B4 .............................................................................................................................................26
Table B5 .............................................................................................................................................27
Table B6 .............................................................................................................................................29
1|Page
, Management Summary
The previous management team on The Fresh Connection had made some decisions that were not
beneficial for the company. For the past couple of years before a new management team stepped in,
The Fresh Connection was incurring a loss of -3.9% in ROI, caused by bad supply chain performance.
The new management team Team2victory has been gradually gaining ROI in the past 3 years with a
final weighted ROI of 4.31%, because of an optimized supply chain and good management decisions.
Also, the new management team had formulated a strategy based on analyzing the decisions of the
past management team and produced a list of poor decisions. And a further analysis was made to
find out ways to fix the problems and put forward a better strategy in the supply chain planning. An
observation of the whole supply chain’s process from the suppliers to the customers was done, and
a better process is created for the components of the supply chain process. Along the way,
team2victory faces some challenges, such as bad decision making, and false predictions that had an
impact on the ROI growth. But the team actively discusses solutions to find a way out of problems.
In this report an evaluation of key decisions will be the most important finding, these decisions will
then be used for future references which will be beneficial for the company. In every 6 months (1
round) an evaluation will be made on which decisions have the most impact.
An overview of the management team’s dynamic and decision-making process to reach a common
objective from the management role will also be discussed. Furthermore, an evaluation of the team
is important to understand inefficiencies in the team’s processes, which then can be discussed for
further improvements.
2|Page
, Introduction
The Fresh Connection has 4 management roles, and each role is responsible to make decisions that
align with the strategy chosen, that will ensure a positive ROI. The management team is responsible
for making the best supply chain strategy. And to have a good strategy a deep understanding of the
supply chain process needs to be achieved.
Firstly, to understand the flow of components from the suppliers to the customer a diagram is used
to illustrate the supply chain process:
Starting from the suppliers, the component will then be delivered to the inbound warehouse. An
inbound warehouse is a storage facility for the components before it is being used in the production
process. If the inbound warehouse cannot hold the inflow of components, then an external space
will be used to store those components. The mixing process will be used to mix the components
required for each of the products, which will then be packaged in the bottling process. The flavors
are then divided into two categories: 1-liter pack and pet bottle. These finished products will then be
stored in the outbound warehouse before delivering it to the respective customers. If the outbound
warehouse overflow from the production, an external space will then be used to store the products.
Also, it is important to realize the responsibility of each role which can be described in the table
below:
Purchasing Operations Supply Chain Sales
+Negotiating supplier +Inbound warehouse +Components +Negotiation with
agreements +Mixing +Production customers
+Bottling +Products +Order Management
+Outbound
warehouse
(Weenk, 2019)
The sales manager will be responsible for ensuring the service level agreement is met with the actual
service level. Also making sure the number of obsolete products is low and a high gross margin is
3|Page
IBA-C03
Thi Ky Duyen Nguyen, Saman Hannani, Quinten Van den bosch,
Daffa Fahrelza Hedian
,Table of Contents
Management Summary ...........................................................................................................................2
Introduction .............................................................................................................................................3
Overview of situation...............................................................................................................................4
Supply Chain Mapping .........................................................................................................................4
Geographical Flow Diagram .............................................................................................................4
Network Flow Diagram ....................................................................................................................7
Review of Previous Management Decisions and The Strategy into actions .......................................8
Key Decisions ...........................................................................................................................................9
Round 1 ................................................................................................................................................9
Round 2 ................................................................................................................................................9
Round 3 ................................................................................................................................................9
Round 4 ..............................................................................................................................................10
Round 5 ..............................................................................................................................................10
Round 6 ..............................................................................................................................................10
Team Reflection and Collaboration. ......................................................................................................11
Results and conclusions. ........................................................................................................................12
References .............................................................................................................................................15
Appendix A .............................................................................................................................................16
Table A1 .............................................................................................................................................16
Table A2 .............................................................................................................................................17
Table A3 .............................................................................................................................................18
Table A4 .............................................................................................................................................19
Table A5 .............................................................................................................................................20
Table A6 .............................................................................................................................................21
Appendix B .............................................................................................................................................23
Table B1 .............................................................................................................................................23
Table B2 .............................................................................................................................................24
Table B3 .............................................................................................................................................25
Table B4 .............................................................................................................................................26
Table B5 .............................................................................................................................................27
Table B6 .............................................................................................................................................29
1|Page
, Management Summary
The previous management team on The Fresh Connection had made some decisions that were not
beneficial for the company. For the past couple of years before a new management team stepped in,
The Fresh Connection was incurring a loss of -3.9% in ROI, caused by bad supply chain performance.
The new management team Team2victory has been gradually gaining ROI in the past 3 years with a
final weighted ROI of 4.31%, because of an optimized supply chain and good management decisions.
Also, the new management team had formulated a strategy based on analyzing the decisions of the
past management team and produced a list of poor decisions. And a further analysis was made to
find out ways to fix the problems and put forward a better strategy in the supply chain planning. An
observation of the whole supply chain’s process from the suppliers to the customers was done, and
a better process is created for the components of the supply chain process. Along the way,
team2victory faces some challenges, such as bad decision making, and false predictions that had an
impact on the ROI growth. But the team actively discusses solutions to find a way out of problems.
In this report an evaluation of key decisions will be the most important finding, these decisions will
then be used for future references which will be beneficial for the company. In every 6 months (1
round) an evaluation will be made on which decisions have the most impact.
An overview of the management team’s dynamic and decision-making process to reach a common
objective from the management role will also be discussed. Furthermore, an evaluation of the team
is important to understand inefficiencies in the team’s processes, which then can be discussed for
further improvements.
2|Page
, Introduction
The Fresh Connection has 4 management roles, and each role is responsible to make decisions that
align with the strategy chosen, that will ensure a positive ROI. The management team is responsible
for making the best supply chain strategy. And to have a good strategy a deep understanding of the
supply chain process needs to be achieved.
Firstly, to understand the flow of components from the suppliers to the customer a diagram is used
to illustrate the supply chain process:
Starting from the suppliers, the component will then be delivered to the inbound warehouse. An
inbound warehouse is a storage facility for the components before it is being used in the production
process. If the inbound warehouse cannot hold the inflow of components, then an external space
will be used to store those components. The mixing process will be used to mix the components
required for each of the products, which will then be packaged in the bottling process. The flavors
are then divided into two categories: 1-liter pack and pet bottle. These finished products will then be
stored in the outbound warehouse before delivering it to the respective customers. If the outbound
warehouse overflow from the production, an external space will then be used to store the products.
Also, it is important to realize the responsibility of each role which can be described in the table
below:
Purchasing Operations Supply Chain Sales
+Negotiating supplier +Inbound warehouse +Components +Negotiation with
agreements +Mixing +Production customers
+Bottling +Products +Order Management
+Outbound
warehouse
(Weenk, 2019)
The sales manager will be responsible for ensuring the service level agreement is met with the actual
service level. Also making sure the number of obsolete products is low and a high gross margin is
3|Page
