Supply Chain Management
Many organizations are experiencing constant growth in their operations. This has been contributed by the growth of the businesses locally and internationally. With many inventions and innovations, the supply chain has faced a lot of dynamics due to the constant flow of inventories from one region to another. This has forced many organizations to be flexible, transparent, and focused on customer satisfaction. Organizations are forced to develop strategies for managing costs, lean processes, and effective collaboration between partners and suppliers. An integrated supply chain is essential in managing these factors. This report will focus on the supply chain management of Middle Eastern companies, including Al Baik, Almarai, and Emirates Airlines.
Overview of the companies
Al-Baik was formed in 1974 in Saudi Arabia when Shakour AbuGhazalahsa saw the need to provide high-quality food in an inviting environment. Shakour used his savings to sign an exclusive agency that would provide fried and broast chicken in Saudi Arabia. Initially, the company used to burn the chicken on spicy souse when making broasting. Al Baik differentiates itself from the competitors by offering the lowest prices as possible. The company uses raw materials meaning that there are no overhead costs (Al-Baik, 2019). The company has low labor costs as determined by market rates. Over the years, Al Baik maintains a high level of the customer by standardizing the work process. Hygiene is also an essential factor to consider in the food industry.
Almarai is a food company founded in 1977, and it’s located in Saudi Arabia. Specifically, the company specializes in the manufacturing of dairy products. Almarai has formed various partnerships, including Alastair McGuckian, a company that manufactures agri-foods. In 2005, the company was incorporated into a cheese company where it began bakery business. Recently, Almarai began the construction of a bakery facility in Al Kharj is a way of increasing its revenues (Saeed, 2015). Over the years, the company has received numerous awards for its successful operations in Saudi Arabia. The company has acquired various companies, including HADCO, to increase its revenues. Additionally, Almarai has formed a partnership with Pepsico, which enables it to produce Juice. The main products that Almarai produces include poultry, yogurt, bakeries, and juices.
Emirates Airline is an aviation company that was formed in 1985. The company has grown from operating two aircraft to hundreds of fleets. Emirates has grown at a rapid speed, which has enabled it to develop a specific niche in the food industry. The government of Dubai wholly owns Emirates Airlines. The intense competition of airline companies has enabled the company to develop high-quality services. Emirates Airlines has various divisions, including food, beverages, retail, tourism, and real estate businesses (Nataraja & Al-Aali, 2011). It is also regarded as an international company since it operates in 160 countries across the world. Because of its large size, the company has employed over 84,000 members across six continents.
Supply chain management
Al-Baik has a unique supply chain diversification in the area of operations management. This strategy involves forming a partnership with various suppliers in different regions to risks associated with the supply chain. Al-Baik is committed to providing consistency in service delivery every time the customers visit the restaurants (Al-Baik, 2019). The company’s delivery trucks are an essential part of the supply chain, which ensures that customers receive their orders when they need it. This is what keeps the company growing and develop customer loyalty. Al-Baik management systems ensure that the manufacturing process is linked with the service chain.
The Almarai production process can be performed through three definite processes, which include input, transformation, and output approach. The company uses milk, fresh cream, butter, and ghee to manufacture daily products. It is essential to mention that Almarai uses the best qualities of products in its production. The location of this company is also appropriate in outsourcing raw materials needed for production (Saeed, 2015). The supply chain of Almarai helps the company in increasing profitability and shareholder valuation. The management of Almarai uses sourcing strategies to attain maximum financial performance. Additionally, the supply chain manages its constraints by ensuring that regulations and practices are in place. Supply chain management of Almarai reduces risks in the demand and supply. Through this, the short and long term goals are balanced to ensure that the desired profitability is achieved. With more supply chain designs, Almarai will reduce costs and increase profits.
The SCM of Emirates Airlines has evolved over the years as a way of maintaining a competitive position in the market. Initially, the company had an operation and procurement department that was aimed at managing material data and information flow. It also formed a strong internal value chain for the company. This ensures a connection between suppliers and customers. However, the company experienced challenges in using this model in 2004, where it was forced to restructure its logistics (Nataraja & Al-Aali, 2011). The procurement and operations department was now considered as a separate function. Emirates Airline has an advanced engineering department that it’s involved in repairing and servicing the airlines. The company also outsources the maintenance contracts from third parties as a way of providing adequate engineering support. To meet the industry standards, the quality assurance, planning, maintenance, and logistic departments are effectively integrated to ensure smooth operation. Emirates Airlines employs highly trained and experienced personnel to ensure efficient SCM.
Almarai has a direct customer relationship with customers. Negotiating deals forms a critical part of the company’s production, warehousing, and logistics business. The company’s suppliers charge fair prices to ensure business continuity (Saaed, 2015). Almarai offers maintenance contracts that supply the company with spare parts and other inventories. The company has a ready team of technicians who are available all the time. This ensures that the company’s production and transportation processes are not disturbed. These activities ensure that the company’s operations are not disturbed. Additionally, Almarai products can easily be found anywhere while still fresh. This allows the company to meets its customer’s demands. Almarai forms partnerships with various supermarkets as a way of distributing its products. Apart from creating a partnership, the company closely monitors how the products are displayed on shelves. This enables the company to differentiate its products from those of competitors. Almarai products can be trusted for quality due to its efficient supply and logistics network.
In 2016, Emirates launched the longest non-stop commercial flight from Dubai to Auckland. According to Guardian (2016), the flight will last for about 17 hours. This is one of the strategic moves that the company has achieved in connecting people from different continents in the shortest time possible. This is considered an innovative strategy as Emirates Airlines attempts to increase and maintain its market position in the Aviation industry. Emirates relies mostly on outsourcing and developing its products and services. For example, Emirates Airline depends on specific companies that provide it with aircraft spare parts. This strategy is essential in ensuring that it does not compromise its products and services. Other things that the company outsources include fleet management airframe systems and power plants. Outsourcing enables the company to provide high-quality products and services to customers. Additionally, Emirates Engineering division outsources its materials from specific manufacturers.
Among the three analyzed companies, it’s evident that Emirates Airlines is the most successful company in using supply chain management compared to Almarai and Al-Baik. However, Emirates need to increase the number of non-stop flights to attract many business travellers. Al-Baik and Almarai need to form more partnership with local food suppliers to ensure that it does not lack food. Specifically, Emirates forms numerous partnerships with various companies to supply aircraft equipment and other materials. This has enabled the company to provide high-quality services to customers in the most efficient way.
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