The Peanutty Food & Company
To start off Peanutty should first establish an integrated vision of their supply chain. This will give them some kind of direction needed to progress. In order to ensure the supply of raw materials for its operations, I think it’s a great idea to try and gain more customers that will supply them with raw materials. It states that some companies do send them some raw materials because they are also a service provider. This includes the preparation of food items for large companies in the sector such as fillings and marshmallows. These companies provide them with packaging and labels. Having more companies helping them out will ensure that they receive their supply. They would always have a backup supply readily available.
In order to keep production cost they should only bring in the amount of raw materials that are needed. Doing this will save money on resources that are not ...view middle of the document...
They could change this by letting the workers know the direction and goals of Peanutty. The supervisor complains a lot that the production plans are not met, so if they let the workers know what the plans is this would give them a stronger image.
A way that they could maximize cost would be
I think that they should have a matrix type structure. There should be a top manager for every department; R&D, Production, Logistics and Management. Within each department they should also have a project manager. For example, since the production department is where most of the work is done they should a few project managers. They could have manager in charge of both of the peanut lines while another manager is in charg of fillings, caramel and coloring. This would take some responsibility off of some of the managers and surely increase production time. In the logistics department, someone should be in charge of imports and someone should be in charge of exports. This will also allow for some responsibility to taken off the shoulders of some managers. Taking this responsibility away will give them more time to discover new opportunities to maximize profit and minimize risk.
When it comes to supplier management they should definitely use a performance measure to test our efficiency of their suppliers. By evaluating supplier performance, Peanutty can hope to identify suppliers with exceptional performance or developmental needs, improve supplier communication, reduce risk and manage the partnership based on an analysis of reported data. They could use total cost of ownership (TCO) as a measuring tool. It the combination of the purchase or acquisition price of a good or service and additional cost incurred before or after product or service delivery. This would be a great way to better understand cost and opportunity.
They should also establish a customer relationship management system. This will allow them assess the abilities of their customers. They could measure customer loyalty, customer satisfaction and average sales revenue. This would be a great strategy for managing and optimizing all customer interactions across their organization.