Description ‫المملكة العربية السعودية‬ ‫وزارة التعليم‬ ‫الجامعة السعودية‬ ‫اإللكترونية‬ Kingdom of Saudi Arabia Ministry of Education Saudi

‫المملكة العربية السعودية‬‫وزارة التعليم‬‫الجامعة السعودية‬‫اإللكترونية‬Kingdom of Saudi ArabiaMinistry of EducationSaudi ElectronicUniversityCollege of Administrative and Financial SciencesAssignment-1MGT322 – Logistics ManagementDeadline: 12/03/2022 @ 23:59Course Name: Logistics Management Student’s Name: SEU ELITECourse Code: MGT322Student’s ID Number:Semester: 2CRN:Academic Year: 1443/1444 HFor Instructor’s Use onlyInstructor’s Name:Students’ Grade: Marks Obtained/Out ofLevel of Marks: High/Middle/LowInstructions – PLEASE READ THEM CAREFULLY•The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.•Assignments submitted through email will not be accepted.•Students are advised to make their work clear and well presented, marks may be reduced forpoor presentation. This includes filling your information on the cover page.•Students must mention question number clearly in their answer.•Late submission will NOT be accepted.•Avoid plagiarism, the work should be in your own words, copying from students or otherresources without proper referencing will result in ZERO marks. No exceptions.•All answered must be typed using Times New Roman (size 12, double-spaced) font. Nopictures containing text will be accepted and will be considered plagiarism).•Submissions without this cover page will NOT be accepted.Logistics ManagementASSIGNMENT -1Submission Date by students: Before the end of Week- 7thPlace of Submission: Students Grade CentreWeight:10 MarksLearning Outcome:1. Demonstrate a deep understanding of the logistic function concepts and theories as well as supplychain management strategies.2. Demonstrate the ability to understand complex issues pertaining to supply chain integration andstrategic supply chain partnership.Assignment Workload:This assignment is an individual assignment.Critical WritingThe purpose of this assignment is to identify and apply Logistics and Supply Chain Managementconcepts/tools to suggest logistics performance priorities. To this purpose, you should search andreview about these companies through secondary available information. Think about how you canapply the concepts/tools that you learned in this course.Write about logistics performance priorities for “Any Saudi” fast food restaurant chain in Covid 19restrictions; explain why you have come to your conclusions:The Answer must follow the outline points below:1. Executive summary (2 Mark, word count rage 400-500)– Summarize what is logistics performance priorities, what Logistics and Supply Chain Managementconcepts/tools applied to achieve the company’s objective.2. Background information (2 Mark, word count rage 400-500)– Briefly introduce the company background (e.g., name, products, business size, location,internal/external interesting facts, etc).3. Problem Description (2 Marks, word count rage 400-500)– Describe the objectives clearly and specifically.– The objective may involve either logistics decision-making or process improvement.4. Application of logistics and SCM concepts/tools that applied (2 Marks, word count rage 400-500)– Describe what specific logistics and Supply Chain Management concepts/tools be applied to achievethe objective. This section should make it clear that you understand the concepts/tools you are aboutto use.5- Conclusion and results (1 marks, word count range 200-250 Words)– Analyze the expected results / the proposed solution.6. References at least 7 to 10. (1 Marks)Note: Use APA style of referencingExecutive SummaryThe coronavirus pandemic has led to the disruption of many lives and businesses since itsoutbreak. Business processes have changed, and supply chains have been redefined. There areunprecedented stresses on the supply chain of food and other related items with limitations in supplysources, farm labor, transport and logistics, food processing, and shifts in demand. These disruptionshave been caused by changed policies to contain the spread of the virus, such as travel restrictionsand maintaining social distancing, especially in public or social places (Luckstead et al., 2021). Amidthe stresses, food supply chains have been resilient because it is one of the essential requirementsthat support human life. The demand for food rose since people needed to stock enough to avoidfrequent visits to food stores. This also piled pressure on restaurants and other fast-food joints. Itnecessitated restaurants and fast foods to enhance their logistics performance priorities. Logisticsperformance priorities refer to objectives that a company should meet to facilitate the smoothrunning of the supply chain. These objectives include better relationships, improved customerservice, increased sales, and efficiency. The company must develop better relationships withcustomers and suppliers to ensure a constant supply and improved customer service. Due to highdemand, steady supply would enhance increased sales and increased efficiency.Achieving the aims of the business or the logistics performance priorities requires theapplication of various supply chain management (SCM) tools. SCM tools are helpful to the businessin making it understand better how to relate to its customers and suppliers. There are a number oftools relevant to a restaurant or fast-food business, which include such processes and concepts asorder processing, lean inventory, warehouse management, and supplier management. These tools areapplied by managers to achieve various aims, such as cost reduction. Organizations reduce costs toensure increased profits. Cost reduction can be enabled within the supply chain by engagingsuppliers to offer friendlier terms and competitive prices for supplies. Transport and storage facilitiesalso help in ensuring a continuous supply of goods, translating to efficiency in customer service. It isimportant to forecast demand to learn what quantity the market needs to avoid shortages in foodstock and loss of revenue. Customers need to get what they want to purchase at any time they need itand in the right quantity and value, especially during the covid-19 period when most businesses wereaffected and demand for food increased. Therefore, supply chain and logistics are generally essentialin ensuring the flow of products from the producer to the consumer, passing through various levelsand stages, is done smoothly and effectively (Mangla et al., 2019).Background InformationThis paper focuses on Al Baik, a Saudi Arabian fast-food restaurant that has been establishedin many parts of the country but is headquartered in Jeddah, Al Baik sells broast chicken, friedchicken, Cold and hot beverages, and a variety of fast-foods and snacks. The company evolved in1986 as a brand name, spreading its operations to foreign nations within a short time. The fast-foodrestaurant chain accounts for a larger market share in the Middle East, despite the fierce competitionthat it is facing from other market players. It serves a large population with a variety of fast foodswhose demand is growing rapidly. As a registered trademark, Al Baik has established a strong brandin Saudi Arabia, competing with most restaurants and remaining as a leader in the fast foodsindustry. The company opened two branches in Bahrain in 2020, marking its first expansion to theforeign markets outside Saudi Arabia. The restaurant played a significant role in popularizingchicken within the industry, especially in the Muslim region, since it deals in permissible food. Thenumber of units and branches in the chain restaurant has grown, and currently, it boasts of more thanforty branches in Jeddah. There are also other branches spread across Saudi and externally.The popularity and robustness of Al Baik has been attributed to the great logistics and supplychain management strategies it has adopted over the years. It has maintained a steady supply ofquality chicken as one of the major delicacies it provides to customers. The sale of fast food hasgrown and expanded immensely to develop more branches due to a number of successful strategies.In the wake of covid-19, a number of businesses were affected, including restaurants and other foodeateries, since movements were restricted and transportation became a challenge. However, Al Baikmanaged to wade through the tough times to serve its customers without a hitch. This is due to itsstrong supply chain. It has involved suppliers and strengthened communication with its customers,helping it understand the consumer needs and serving them effectively.The restaurant also has a strong management team that ensures activities run effectively,skilled staff who work professionally and contribute to quality products, enhancing customersatisfaction. The efficiency and effectiveness have been supported by the committed and motivatedstaff, who are skilled in various areas of their engagement within the company. Cooks prepare firstclass meals with unchallengeable standards, which are highly competitive. During the restrictionsprompted by the pandemic, the supply chain was redesigned to meet the customers’ needs andconvenience. Today, Al Baik restaurant has gained immense popularity due to its great supply chainmanagement strategies and logistics. The standards set in the food industry have attracted manycustomers and made its brand stand out among other players. It continues to open many branchesglobally, increasing the customer reach and generating higher revenues. One of the strategiesadopted by Al Baik to beat its rivals in the fast-food industry is the encryption of its activities withinthe hidden outlets, making it difficult to learn its secret. In the foreign countries where it isregistered, the restaurant has registered its trademark to avoid the chances of misusing its brand.Problem DescriptionAl Baik restaurant started as a local outlet selling fried chicken. Today, the company hasgrown to be one of the world’s most significant restaurant chains, spread across more than eightycountries globally. The company continues to pursue specific objectives to propel it to betterstandards and achieve more growth and expansion. These objectives include improved customerservice, better relationships, increased sales, and efficiency, as described in this paper;Improved customer service is important in any organization. It involves getting to understandthe customers and managing their expectations by providing what they need. Customers havechanging needs, tastes, and preferences. With the changing needs, the company must learn themarket and understand their behavior, how they respond to changes, and what needs to be donedifferently to maintain their loyalty. The business environment is volatile, and competition isinevitable, necessitating emotional and mental competencies for managers to deal with emergingcorporate challenges (Vaidya et al., 2020). This implies that competitors develop new strategies tocapture the market. This necessitates efforts to innovate and improve the services to retain the marketposition and avoid customers shifting to rivals. The restaurant needs to address any gaps that mightexist within the customer service needs. During the covid-19 pandemic, there was need to reach thecustomers in different geographical locations. The restaurant developed a delivery strategy thatenabled food delivery to the customers’ doorsteps. As much as this strategy added to the cost ofservice, the restaurant needs to protect the customers from these extra costs. This strategy, asadopted, has been found to be effective, and there is a need to retain it in a more competitive way.Better relationships are also key to business growth. The restaurant relates with suppliers andcustomers in various capacities. There is a need for constant communication with suppliers to ensurethere is a continuous supply of raw materials and other necessary items to manage production.Suppliers need to be paid promptly to avoid delays and stoppages. When there is a delay in payingfor goods already supplied, the suppliers become demotivated and stop supplying since they cannotstock adequately to continue. Delays or any hitch need to be communicated to minimize suspicionand lack of trust. The relationship with suppliers should also be strengthened to allow the companyto enjoy more extended credit periods and continuous supply. While the relationship with supplierslasts, customers should also be part of the company. The relationship with them must bestrengthened through communication to learn them and build their confidence. Once customerloyalty is built, the company can be sure to maintain a competitive advantage.Increased sales are one of the strongest desires of many organizations. As sales increase,chances of higher profitability grow. The company is also assured of growth and becoming morecompetitive. Sales increase when the company is able to capture larger markets and enhancecustomer satisfaction (Otto et al., 2020). Most companies invest in marketing strategies and salesefforts that increase sales. For example, advertising is a strong strategy that the restaurant can use.Marketers are keen on approaches that popularize companies and create an image that captures theirattention. Advertisements can also personalize the brand and make it a community brand, associatingthe company with what attracts people’s emotions. This increases sales, leading to profitabilitypotential.Additionally, efficiency is critical to customer satisfaction. It is another objective that mostbusinesses pursue to improve their standards. During covid-19 restrictions, reaching suppliers andmarkets was a challenging task. However, with strategic efforts, businesses designed means ofcommunicating to and reaching their customers and serving them conveniently. One of the strategiesas mentioned was to reach them at their doorsteps. Customers ordered products, and the retailerdelivered conveniently at the right time and place. They also ensured they communicate constantly tokeep their customers informed of what was available and any changes that could arise, such aschanges in price.In many aspects of the business, the restaurant performed well. There are areas that needimprovement. To increase customer service. These areas will also improve the supply chain processand allow customers to be served conveniently. Al Baik restaurant has not established adequatestores or warehouses to enable the fast-food chain to store enough food to seasons of low supply,such as the covid-19 period. As the company expands, there is a need to establish as many stores asthe size of the market dictates. It is necessary to have a constant supply by creating a buffer tocushion the restaurant during shortage and ensure customers do not lack what they need.Application of Logistics and SCM conceptsAs much as Al Baik restaurant has been successful in its operations, more strategies areneeded in supply chain and logistics concepts to be developed to increase efficiency. Some of thesupply chain management concepts that can be applied to strengthen the restaurant’s operationsinclude; order processing, Lean inventory, warehouse management, and supplier management.Order processing is supported by certain supply chain optimization tools that automateactivities using software and similar technologies to capture data relating to sales or purchasing. It iscritical to the supply chain since it provides these essential tools that make tasks easier and moreefficient. The functions supported by these tools include order management, sales processing, billing,order fulfillment, and order to cash. Order processing tools contribute immensely in saving the timeto process orders by eliminating manual processing of purchase orders or invoices and sending them.The tool also reduces the chances of human error which are committed due to manual processing.Since order processing uses electronic devices, which support Online-Realtime processing,customers can order foodstuff remotely via online platforms such as applications or electronicmailing systems, the tool has been helpful during the covid-19 pandemic when physical contactswere minimized (Alzaydi, 2021).The concept of lean inventory has been applied since the 1940s when Toyota companycreated it and was inspired by Ford under a concept known as just-in-time. This concept advances theidea that companies only create what they need at the moment (Taghipour et al., 2020). They need tostudy the current demand for the market and project the future to determine what they need toproduce. This concept is critical to being economical and avoiding wastage. The lean inventoryconcept has solved the problem of inefficiency in the production of goods. Before this concept wasadopted, companies produced in surplus and increased production and storage costs. It hassuccessfully answered the optimization question in many production enterprises. In food production,the Al Baik restaurant has used this concept to efficiently plan for its supply chain and produce onlywhat the customers need.Al Baik has succeeded in managing its food reserves and constant supply of raw materials tosustain consumer demand. However, with the impact of the coronavirus pandemic, which interferedwith most business operations, the restaurant needs a well-established warehousing system that canassure its customers of a more stable supply in the future. The company operates in well-establishedpremises in different localities. Once customers increase in number and more demand is realized, theneed for a warehouse that can help stock adequate food for continuous supply. Solutions provide awide range of capabilities for warehouse management, which can be specific or broad, depending onwhat the company requires; for example, some advanced supply chain planning tools are provided toallow users to handle complex logistics that relate to product tracking, receiving of goods, routeplanning, and cycle counting. The warehouse management tools also help in managing the bundlingprocess, kitting, and multiple warehouse locations. Where multiple products are located in differentwarehouses, the tool can help in bundling them for easy management.Supplier management is another essential tool and a widely used concept in maintainingefficient suppliers who are capable of sustaining a company’s stable procurement process. Toestablish a robust supply chain, companies establish strong relationships with suppliers. Suppliermanagement tools show the business partnership history and how the supply chain is affected by thishistory. The tool uses supplier performance analysis to help the user assess the contributions ofdifferent suppliers to a business model (Salam & Khan, 2018). This helps decision-makers to actwith confidence in changing or managing supplier relationships. Additionally, the tool offers aworkspace to bid conveniently and negotiate for more centralized procurements.Conclusion and ResultsAl Baik has invested efforts in developing the company’s supply chain management. Thecovid-19 has necessitated more improvement since a number of changes have taken place in thebusiness environment. The company needs to adequately scan the business environment and takenote of the changes that can affect the business both currently and in the future. Changes that havetaken place include the desire by the customers to get convenient deliveries. This strategy has beendeveloped by many competitors and has become a new trend that improves customer service. It canbe used by competitors to snatch the market and render the company weak. Therefore, it is one of theimprovements necessary for the restaurant. Companies that have adopted the right supply chainmanagement strategies have been successful in their operations and have maintained or improvedtheir market share and networks, enabling them to expand rapidly and remain competitive.ReferencesAlzaydi, Z. (2021). The effect of intangible service quality on retailing during the COVID-19pandemic in Saudi Arabia. Management Science Letters, 11(8), 2279-2290.Luckstead, J., Nayga Jr, R. M., & Snell, H. A. (2021). Labor issues in the food supply chain amid theCOVID‐19 pandemic. Applied Economic Perspectives and Policy, 43(1), 382-400.Mangla, S. K., Sharma, Y. K., Patil, P. P., Yadav, G., & Xu, J. (2019). Logistics and distributionchallenges to managing operations for corporate sustainability: a study on leading Indiandiary organizations. Journal of Cleaner Production, 238, 117620.Otto, A. S., Szymanski, D. M., & Varadarajan, R. (2020). Customer satisfaction and firmperformance: insights from over a quarter century of empirical research. Journal of theAcademy of Marketing Science, 48(3), 543-564.Salam, M. A., & Khan, S. A. (2018). Achieving supply chain excellence through suppliermanagement: A case study of fast moving consumer goods. Benchmarking: An InternationalJournal.Taghipour, A., Hoang, P., & Cao, X. (2020). Just in time/lean purchasing approach: an investigationfor research and applications. Journal of Advanced Management Science Vol, 8(2).Vaidya, D. R., Prasad, D. K., & Mangipudi, D. M. R. (2020). Mental and Emotional Competenciesof Leader’s Dealing with Disruptive Business Environment-A ConceptualReview. International Journal of Management, 11(5).
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