Research Proposal on "Operations Strategy Supply Chain Management"

Research Proposal 9 pages (4095 words) Sources: 1+

[EXCERPT] . . . .

Supply Chain Automation at Imperial Tobacco Canada

Supply Chain Automation for Imperial Tobacco Canada

Imperial Tobacco Canada is in a highly competitive, turbulent and rapidly changing industry that requires their supply chain operations to be tightly synchronized with their packaging, fulfillment, and distribution channel operations. The catalyst for synchronization needs to be the distributed order management system that can enable Imperial Tobacco Canada to accomplish its supply chain operations, financial and long-term order accuracy and customer satisfaction objectives as well. Table 1, Tobacco Industry Supply Chain Measures of Performance explains the key performance indicators (KPIs) and measures of performance critical to Imperial Tobacco Canada attaining their strategic plans and objectives. All of the KPIs and measures of performance shown in Table 1 all combine to measure accuracy and profitability of orders delivered, what many supply chain experts call the Perfect Order. For Imperial Tobacco Canada their challenge is to better align their supply chain and its perishable goods to its packaging, fulfillment and distribution channel operations. The velocity of transactions that Imperial Tobacco Canada can attain is going to be directly related to the level of profitability they will reach. To be accurate, fast, and have a very high level of order accuracy from multiple layers deep in their supply chains while also being able to manage forecasts from distributors and dealers is going to be critical for the long-term financial success of Imperial Tobacco Canada. The intent of this research is to evaluate how automating their supply chain through the use of distribute
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d order management systems and better integration with suppliers and distributors will increase transaction velocity and increase financial performance of the company. To be clear, this is not saying that merely adding in technologies for their own sake is going to make Imperial Tobacco Canada more efficient; it is saying that in redefining and revising their supply chain planning, management and fulfillment functions and coordinating them more precisely with distribution partners, that the company will be more competitive and effective over the long-run. The intent of this study is to evaluate the contribution of automating supply chain operations have on transaction velocities and overall supply chain performance as measured by the metrics in Figure 1 of the Appendix.

Introduction and Description of the Organization

Imperial Tobacco Canada competes in a relatively flat Canadian domestic market for tobacco, with compound annual growth rates in the 4% range for the years of 2003 through 2007 common (Inness, Barling, Rogers, Turner, 2008). Cigarettes are 96% of the market's value, which has been estimated as worth $12.3B in 2007. From 2007 through 2012, the market is expected to further slow in terms of growth to 2.1% over this five-year period, with just a slight increase in total market value to $13.6B by 2012 (Inness, Barling, Rogers, Turner, 2008). Figure 1, Canadian Tobacco Market Value, $B, 2003-2007 illustrates the challenging environment that Imperial Tobacco Canada finds itself in, and the criticality of having an automated supply chain that can streamline their existing processes and make them more cost- and time-efficient. The slowing market growth rate can be attributed to increase global competition in Canada, and the initiatives in place to restrict under-age consumption of tobacco. Of these, the second one is the most significant in terms of its impact on the long-term costs of operating in Canada as subsidies are required in the form of taxes on Imperials' products.

Figure 1: Canadian Tobacco Market Value, $B, 2003-2007

Source: Imperial Tobacco Canada financial reports

Imperial Tobacco Canada is comprised of several subsidiaries, including Channel 2 which specializes in merchandising activities, additional brands including Imperial Brands Lt., John Player & Sons and Allan Ramsey & Company Ltd. As well. On February 1, 2000 when Imperial Tobacco Limited became part of the British American Tobacco Group, it was able to gain significant financial support for product line and distribution investment. Table 2 in the Appendix presents a ratio analysis of British American Tobacco. These ratios indicate that British American Tobacco has been successful in integrating their acquisition of Imperial Tobacco Canada. This is specifically shown by the growth of Return on Assets (ROA), Return on Investment (ROI), and the increase of one inventory turn over the years analyzed. While these results indicate a supply chain that is gradually improving, it does not illustrate one that is high performing. Inventory turns above 7 are possible in this industry (Inness, Barling, Rogers, Turner, 2008), and needs to become an objective for the company to work to attain in conjunction with driving up ROA and ROI figures.

Integral to Imperial Tobacco Canada division are processes that initiate, execute, track and analyze the performance of tobacco products delivered globally. Imperial Tobacco Canada competes in the United States and Latin American countries, so tracking supply chain performance is critical in this regard. The Imperial Tobacco Canada relies on several distributed order management systems that initiate transactions; track them, measure order accuracy and velocity, fulfillment percentage of on-time, early vs. late deliveries, and method of shipment. These distributed order management systems however are not integrated with one another and rarely are synchronized from a supply chain management and demand planning standpoint. The company has yet to fully adopt Collaborative Planning, Forecasting and Replenishment (CPFR), which would give them a significant competitive advantage in managing inbound demand from their channels (Johnson, 2008).

The intent of this research is to evaluate how communication and information technologies can contribute to higher levels of order accuracy and velocity throughout Imperial Tobacco Canada and its supply chains and distribution network. Distributed order management systems specifically created for services companies share process commonalities with manufacturing-based Enterprise Resource Planning (ERP) and distributed order management processes and system attributes (Stecke & Zhao, 2007, et.al). Imperial Tobacco Canada relies on a comparable make-to-stock process workflow that seeks to optimize the freshness of each product being produced (Stecke & Zhao, 2007, et.al). The theory of constraints as it relates to the defining and evaluating of processes within manufacturing-based ERP systems has even greater significance in the context of Imperial Tobacco Canada as its four operating divisions, where accuracy and velocity are the catalysts of their unique value proposition and foundation of trust with its consumer and commercial customers (Williford & Chang, 1999, pp. 204, 205, 206).

Constraint modeling is used within Imperial Tobacco Canada to optimize logistics and global supply chain coordination with corporate accounts including the streamlining third-party logistics functions (Alghalith 2007, pp. 297-303) and (Babcock, 2006, et.al). Combining distributed order management systems is the means by which Imperial Tobacco Canada can synchronize their time-based product deliveries while also relying on an optimization engine that can determine the optimal routing, pricing, and potential for delivery delays gives the company a unique competitive advantage (Nichols, 2003, et.al).

A second major aim of this research is to evaluate the effectiveness in terms of increased accuracy and velocity global distributed order management systems have within the Imperial Tobacco Canada operating divisions and the resulting impact on key performance indicators (KPIs) and metrics of performance as shown in Figure 1 of this paper. The ability of Imperial Tobacco Canada to attain a high level of logistics and supply chain performance quantified by the perfect order metric (Novack & Thomas, 2004, et.al.) is also an objective of this study. Imperial Tobacco Canada is a culture that relies heavily on analytics and business intelligence including the use of dashboards and scorecards as well. The adoption of the KPIs introduced in Table 1 of this document will experience a relatively high rate of user adoption as a result.

Assumptions and Scope

The following are the key assumptions of this research effort to understand how distributed order management (DOM) systems when integrated with each other are going to deliver higher levels of performance at Imperial Tobacco Canada:

The greater the level of process and system integration the higher level of ROI and ROA achieved over time.

The development of an integration strategy between distributed order management systems at Imperial Tobacco Canada will have a direct effect on the ability of the company to keep its distribution channels adequately stocked with products.

The more real-time the integration between systems the greater the inventory turns over time.

The development of ERP integration points for the distributed order management systems will lead to a greater level of order accuracy over time.

The use of metrics within Imperial Tobacco Canada will eventually transform the internal culture to concentrate more on the ability of the company to develop strategies for optimizing perfect order performance.

The scope of this report is global, as Imperial Tobacco Canada's operations. The concentration is on how tight integration of distributed order management systems specifically and supply chain management systems in general can increase transaction velocities across broad geographic regions.

Major Issues

The two most critical issues that are facing Imperial Tobacco Canada is the adoption of the change in day-to-day processes that will be required when the systems are integrated together and go live. Undoubtedly there will be… READ MORE

Quoted Instructions for "Operations Strategy Supply Chain Management" Assignment:

Topic - Operations Strategy - Supply Chain Automation for Imperial Tobacco Canada

Please Note the following:

Dave ***** wrote the proposal of this research paper, please ensure that he writes this paper for consistency.

Please follow the instructions on the structure and content of the paper

Structure and Content

1) Executive Summary (5 points)

Having read the executive summary, the reader will know:

*****¢ Why the report is needed *****“ the situation

*****¢ What the objectives and perspective(s) are (issues or criteria may be included)

*****¢ How the problem was investigated *****“ the methodology

*****¢ What is recommended to resolve the situation *****“ the plan of action.Nothing that follows in the body of the presentation should be a surprise to the reader. The executive summary can be considered analogous to the abstract of an academic paper.

2) Introduction and Description of the Organization (5 points)

Provide the reader with the context necessary to understand what follows. Trends in technology, demographics, regulation, or consumption might be mentioned. Maps or organizational charts may be useful. Summaries of products or services, markets, and the competitive landscape may be mentioned. Originality is not a requirement in this section. Text written for previous papers, organization documents, marketing materials, and such are fine to draw from*****”with appropriate referencing, of course (1). Occasionally there may be situations or organizations that are so unique that more than a couple of pages may be required.

3) Assumptions and Scope (5 points)

Assumptions provide context for the analysis. Any factors outside the analysis that could impact its applicability and resulting recommendations should be listed here. Government policy, mergers, demographics, weather, funding streams, competitive activity, and medical trends are examples of assumption areas.

If something in the situation is unclear or contradictory, state an interpretation here as an assumption. If you know it to be true (or false), it is not an assumption.

Somewhere between zero and five assumptions should suffice. A bulleted list is fine. Justification in the paper is not required, but any assumptions should be necessary, realistic, and consistent with other information in the paper.

Scope provides focus for the analysis. Are all services and markets included or only a subset? What time horizon is appropriate? Is design included or only assembly? Scope defines what is clearly inside and what is clearly outside the analysis.

In a paper this short, a tighter scope is often advantageous in that it generally allows for greater depth in the analysis.

4) Major Issues (5 points)

Issues are addressed in the analysis and recommendations section of the paper. What are they and why are they important? They should already have been identified, at least in a general way, in your preliminary proposal.

Issues may be problems or opportunities. Select two to five, the resolution of which will have the most impact on the organization. Write a paragraph or two of explanation as required, but state each issue succinctly first.

If applicable, consider issues from several perspectives. Examples of perspectives include:

*****¢ Managers and Funders *****“ what the situation looks like from the administration of the organization, from the top down (e.g., strategy, facilities, growth, costs, staffing, etc.)

*****¢ Customers and Suppliers *****“ what the situation looks like from the outside looking in (e.g., order winners and qualifiers)

*****¢ Employees and Service Recipients *****“ what the situation looks like from the operation of the organization, from the bottom up (quality, responsiveness, workload)

*****¢ Community and Competition *****“ trans-organizational issues, or what the situation looks like across the contextual landscape (e.g., privacy, market share, access, ethics, regulations, etc.)

5) Objectives (5 points)

Objectives are the results your recommendations are designed to positively influence. They are the key result areas of the organization or operation under study. Thus, objectives often transcend issues and survive the implementation of recommendations as ongoing organizational concerns.

The quality of the recommendations is determined by their impact on these key results areas. Any recommendation, not just those in your paper, will be evaluated against these desired outcomes. The preferred recommendation (or set of recommendations) is the one that best satisfies these objectives.

The form of outcomes must be SMART:

Specific *****“ an observable behaviour or outcome which is linked to a rate, percentage, or frequency

Measurable *****“ usually a numeric indicator of progress toward the objective

Achievable *****“ will reasonable effort, properly directed, produce the desired result?

Relevant *****“ do those charged with the objective have the necessary knowledge, authority, and skill?

Time bound *****“ start, finish, or milestone date(s)

A balanced set of objectives:

*****¢ are mutually exclusive

*****¢ collectively represent operational success

*****¢ reflect the interests of all major stakeholders

*****¢ are weighted according to their relative importance.

Examples of operations objectives might be ROI, quality, inventory turns, or throughput. Managerial objectives might be cost, staff turnover, occupancy, or certification. From a consumer perspective, objectives might be price, availability, or lead time.

There should be no hint of assumptions or recommendations in objectives. Issues are explored in the analysis; recommendations are assessed against the objectives. A bulleted list of no more than six items is fine.

6) Analysis (30 points)

This is where you will apply rigorous analysis to the issues you have raised. Arguments are based on data that has been developed and an*****d. Here you will demonstrate your critical thinking ability, creativity, and insight as well as the appropriate use of the ideas provided in the texts. Strong papers evaluate several (three to five) courses of action, contrast and compare perspectives, identify chains of causality, and consider costs and benefits.

Every issue identified should be carefully explored in light of the qualitative and quantitative data generated. Ensure that you cite your sources (2). Label opinion as such. Tables, diagrams, or graphs may be used to display data; follow each with a statement of the conclusion to be drawn from it.

This is likely to be the major portion of the paper, so logical ordering and clarity are important. Make the rigour of the investigation evident, but avoid overwhelming your reader with pages of unrelieved, dense text.

First, state the analytical frameworks you will use to investigate the issues. These frameworks must draw upon and incorporate appropriate concepts and techniques from the course which are relevant to the issues at hand. Some or all of these frameworks will have been identified in your preliminary proposal. Non-OPMT tools such as cost/benefit or ROI may also be used.

Second, use the frameworks to describe the issues in quantitative terms. Statements as to the quality and limitations of the data are appropriate. Graphs, diagrams, and tables are appropriate here. Summarize the relevant points that may be drawn from each. Spreadsheets usually are best put in an appendix so as not to interrupt the flow.

Third, summarize and draw logical conclusions from what has been presented in the second step.

Analysis is not an exercise in expressing opinion, no matter how informed. This paper is not an editorial*****”it is a scholarly undertaking. It is an investigation into an issue, based on data, at a deep enough level that the reader knows that the paper has gotten to the heart of the matter. Each of the recommendations must be thoroughly supported by this analysis. More than half the effort of your paper should go into the analysis and recommendations.

7) Recommendations and Plan of Action (20 points)

This is the statement of how to address the issues. Often, several different approaches may be taken to address an issue as clarified in the analysis. Multiple choices, carefully differentiated, generally increase the satisfaction of the chosen alternative.

Are the recommendations provided corrective (fix the leak in the roof), adaptive (put a bucket under the leak) or reactive (move out)? Each type may be appropriate given the circumstances and the objectives. Justify your choice.

Outline the specific steps to be taken for implementation, when and how they will be completed, and by whom. Include cost/benefit calculations, timelines, tables of responsibility, and sequencing as appropriate.

Edit your collective recommendations by asking yourself these questions:

*****¢ Do these steps collectively address all the issues?

*****¢ Do they positively influence the objectives?

*****¢ Are they justified by the conclusions of the analysis?

State each recommendation as the first sentence of a paragraph beginning with "I recommend..." or "It is my recommendation...." Be decisive, declarative, and definitive. Avoid using weasel words such as 'could,' 'might,' or 'perhaps.'

The rest of the paragraph is supportive explanation: key data, impact on objectives, and alternatives considered. Previous exposition need not be repeated, but may be incorporated by reference. Avoid multiple recommendations in a single statement.

If there are contingencies or uncertainties beyond the scope of the analysis, address them in *****If..., then...***** statements. Avoid recommendations suggesting further study; no credit will be given for them. Use diagrams, flow charts, and so on, as required (e.g., a Gantt chart of an implementation plan).

Often, fewer recommendations have more impact than many. The reader should be left convinced that the recommendations represent the best course of action.

The action plan will specify who will do what by when in the implementation of the recommendations. Include sequencing and costs.

8) Conclusion (5 points)

The conclusion does three things.

First, it highlights the major conclusions of the paper and their significance. It pulls the paper*****s arguments together and defines their impacts; that is, it states what the paper has demonstrated. The overall impact of the recommendations on the objectives should be stated and balanced against the cost of implementation.

Second, it points out the limitations of the paper. Additional issues may have surfaced or areas for further investigation have become apparent. A review of the assumptions and scope chosen may prompt some specific cautions. The methodology of the analysis or the extent of the recommendations in a paper of this length may have introduced some limitations. What additional data would strengthen the analysis? Are there directions for further research?

Third, it should provide closure, leaving the reader satisfied that the paper explored a situation that led to a meaningful conclusion. Many times, readers will skim the executive summary and conclusion to determine whether or not to read the entire paper. Make sure that the conclusion leads the reader to confidence in the paper*****s scope, methods, and recommendations.

Aim for one to three paragraphs.

The proposal wil be sent via email. *****

How to Reference "Operations Strategy Supply Chain Management" Research Proposal in a Bibliography

Operations Strategy Supply Chain Management.” A1-TermPaper.com, 2008, https://www.a1-termpaper.com/topics/essay/supply-chain-automation-imperial/895712. Accessed 5 Jul 2024.

Operations Strategy Supply Chain Management (2008). Retrieved from https://www.a1-termpaper.com/topics/essay/supply-chain-automation-imperial/895712
A1-TermPaper.com. (2008). Operations Strategy Supply Chain Management. [online] Available at: https://www.a1-termpaper.com/topics/essay/supply-chain-automation-imperial/895712 [Accessed 5 Jul, 2024].
”Operations Strategy Supply Chain Management” 2008. A1-TermPaper.com. https://www.a1-termpaper.com/topics/essay/supply-chain-automation-imperial/895712.
”Operations Strategy Supply Chain Management” A1-TermPaper.com, Last modified 2024. https://www.a1-termpaper.com/topics/essay/supply-chain-automation-imperial/895712.
[1] ”Operations Strategy Supply Chain Management”, A1-TermPaper.com, 2008. [Online]. Available: https://www.a1-termpaper.com/topics/essay/supply-chain-automation-imperial/895712. [Accessed: 5-Jul-2024].
1. Operations Strategy Supply Chain Management [Internet]. A1-TermPaper.com. 2008 [cited 5 July 2024]. Available from: https://www.a1-termpaper.com/topics/essay/supply-chain-automation-imperial/895712
1. Operations Strategy Supply Chain Management. A1-TermPaper.com. https://www.a1-termpaper.com/topics/essay/supply-chain-automation-imperial/895712. Published 2008. Accessed July 5, 2024.

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