Strategic Plan To Manage A Supply Chain In Nigeria

Strategic Plan to Manage a Supply Chain of BlissBurry
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Strategic Plan to Manage a Supply Chain of BlissBurry in Nigeria
Introduction
BlissBurry will be a start-up retail brand that will be launched at the end of the year 2019 in Nigeria, and it is anticipated to become as one of the leading fashion retailers across the country. The brand will offer fashionable products at affordable rates with its business model in Nigeria. The business model of BlissBurry will facilitate it to accomplish swift growth in the region (Arriaga et al., 2017). Despite that, a significant populace of consumers in Nigeria still prefer customary bricks, and mortar retail format for shopping purpose, the convenience of online stores had attracted several consumers in the country. Nevertheless, BlissBurry in Nigeria is likely to confront significant challenges because of the economic downturn as well as electronic diversion. With the rising financial pressures, it has become essential for BlissBurry to deliver the desired outcomes and at the same time, address the difficult challenges to the business. In collaboration with the local business partners and suppliers of the BlissBurry in Nigeria, the management of the retail store should emphasize on diminishing the costs, improving the performance, business growth and sustaining supreme levels of service.
The importance of the supply chain is a critical factor in the generation of value and sustainable competitiveness over time, which contribute to the development of organizations and the country. To be competitive, organizations have to design their business models and services, so that these provide the highest specialization in their sector, promote the use in clean technologies, and improve the supply for the control of their processes (Ross., 2015). The current globalization has made organizations use and develop the analytical of data and specialized search to provide industrial solutions for the control of their supply chain, and there are few specialized companies in the country with experience in the development of these related activities to provide specialized services to the sector industrial, mining and energy. Hence, the objective of a retail company is to satisfy the customer needs, providing quick solutions according to the best prices of delivery, quality requirements, advanced technology, care for the environment and safety for the environment (Esmaeilikia et al., 2016)). This particular strategic plan has been designed to manage the supply chain in BlissBurry. The aim of the plan is to present a roadmap to the retail company to accomplish the preceding objectives. This strategic plan will guide BlissBurry in enhancing its core operations and services.
Vision
The vision of BlissBurry is to ensure supply chain management excellence in Nigeria. The retail store needs to make constant efforts to integrate the best practices of supply chain management. Along these lines, BlissBurry ought to initiate noteworthy strides by structuring the organization to more completely leverage the spending and efficiencies. They need to incorporate advanced technologies in order to facilitate the sourcing as well as material management procedures. In addition, the retail store ought to constantly develop the capacities and competencies of the employees. The vision of the retail brand is not merely to implement the supply chain management techniques but also enhance the speed and consistency of the supply chain management executives in collaboration with the business partners. In order to attain a competitive advantage, it is essential for BlissBurry to be innovative and agile for optimizing the value in swiftly changing markets. The collective efforts are entrenched in the constant enhancements that not only aim to minimize the costs but also enhance revenue generation, customer satisfaction, effectiveness, and efficiencies.
Mission
The mission of BlissBurry Nigeria is to collaborate with the business partners for delivering timely, flexible, and lean supply-chain management solutions for supporting the sales goals. The retail brand will achieve this goal by establishing strong associations with the business partners, comprehending their needs as well as offering a value-added solution to augment the competitive position of the company. We engage the right suppliers with the right capacities at the right time as well as implement the lean six sigma approach for driving measurable improvement in the supply chain.
Our Values
BlissBurry will strongly emphasize on comprehending the needs of the customer as they are vital for the growth of the organization in Nigeria. The retail brand needs to strongly emphasize diversity as well as a work environment that ensure equality among the workers. BlissBurry believes in teamwork and collaborative working with local business partners, suppliers, and distributors. In addition, BlissBurry needs to support work-life balance, professional development, and at the same time, employee empowerment. They will continuously strive for quality and bracing change. The actions of BlissBurry in Nigeria will adhere to the highest moral standards.
Theoretical Analysis
Supply Chain Management
Supply chain management represents a new form of coalition activity. In its broadest, theoretical sense, supply chain management encompasses the flow of goods throughout the distribution channel, from supplier to the ultimate consumer. The chain is viewed as a whole, a single entity rather than fragmented groups whom each perform their own function. In practice; supply chain management can take place on a domestic or an international level. Further, all parties in the distribution channel may or may not be part of the supply chain management philosophy within that channel. The terms coalition and supply chain management will be used interchangeably throughout this research (Gattorna., 2017). Participants in supply chain management relationships recognize their interdependence with trading partners. They recognize that supply chain management is not a zero-sum game. The information sharing and uncertainty reduction that accrue from implementing a supply chain management philosophy can allow all parties involved to operate with lower cost and risk, while more closely meeting supply chain goals.
Supply chain management has numerous definitions and synonyms in the literature today. While there is some overlap between definitions, there are also differences. One author notes that a common terminology describing various supply chain relationships does not yet exist”. Some of the terms used to describe supply chain management or coalitional relationships include coalitions, collaborations, strategic alliances, partnerships, and value-added partnerships. There are both similarities and differences in the way in which these terms are used, as discussed in more depth below. In general, the definitions given for supply chain management types of relationships are not exclusive to international relationships unless preceded by the term international. Shared responsibility and maintenance of individual identities are self-explanatory concepts. The definition of strategic alliances given by Dach & Allmendinger., (2014) is more restrictive, more in line with the definition to be used in this research. Lambert & Cooper., (2000) define a strategic alliance as “a bilateral relationship characterized by the commitment of two or more partner firms to reach a common goal, and which entails the pooling of specialized assets and capabilities.
Global Supply Chain Management
The tremendous growth in international trade complicates buyer-seller relationships while creating new competitive opportunities. The growth in world trade goes beyond purchasing of raw materials and components, to include such areas as technology sharing, joint research, and development: efforts, and providing sales and service support. The idea of the globalization of the world economy has become widely accepted. Globalization of the economy means that the world is seen as one marketplace, rather than segmented by country or some other geographical criteria. The concept of a global economy is changing the way in which firms operate and compete, even for those firms which do not import or export. Due to the relative experience of the purchasing function in international trade versus other functions, purchasing may be called upon to assist in international coalitions. Participation in international coalitions represents a tremendous strategic opportunity for the purchasing function to span its healthy boundaries, and for the firm to create new competitive relationships. Coalition involvement may include such issues as managing the inbound logistics for internationally purchased goods and materials (Cooper & Ellram., 1993). Along with the growth in world trade, the concept of international coalitions has also grown. As indicated in the glossary, international coalitions are defined here as formal, long-term agreements between two or more parties from different countries, to trade or share product, process, marketing or other ideas, working together toward a common goal. This definition may include such agreements as joint ventures, licensing, and supply agreements. The key idea is that coalitions are long-term agreements that lie on a continuum in between, but not including arm's length transactions and mergers.
Significance of Forecasting in Supply chain
There are several benefits of forecasting in the supply chain. For paradigm, it plays a crucial role in ensuring customer satisfaction as it assists the businesses in predicting the current product demands. The businesses can use this information to ascertain the availability of high-demand products to fulfill customer orders within short-lead times. Forecasting further diminishes the inventory stock-outs. In the presence of Just-in-Time systems, forecasting enables the business to time their purchases according to sales fulfillment.
Environmental Analysis
SWOT Analysis
Strengths
The key strength of BlissBurry will be an e-commerce process solutions, green purchasing programs, and Strategic planning focus. The other strength of BlissBurry will include supplier diversity program, workforce development and professionalism, supplier relationships, and strategic sourcing initiatives as well as cost reductions.
Weakness
One significant weakness of BlissBurry is likely to be employee turnover and slower speed to capture supplier innovation and requirements planning.
Opportunities
There are significant opportunities for BlissBurry in Nigeria, such as the implementation of aggressive cost reductions and at the same time capitalizing in strategic alliances and partnerships and supplier innovation. Other opportunities for BlissBurry incorporating visibility and management of assets, and enhancing category strategies, improving supply chain integration as well as forecasting capacities. Furthermore, BlissBurry, Nigeria has the opportunity to maximize eco-efficiency in purchasing practices.
Threats
The threats to BlissBurry include economic and global recessions. Fluctuating fuel and prices of the raw materials also pose a threat to the profitability of BlissBurry in Nigeria. Federal laws and mandates can also adversely affect the operations of BlissBurry. The limited availability of skilled supply chain management talent also poses a threat to the performance of the BlissBurry.
The preceding SWOT analysis revealed the need to minimize the risks associated with the changes within the competitive markets, constant cost reductions, sustainable and environmental solutions, keeping pace with swiftly altering customer requirements or expectations.
PESTLE Analysis of BlissBurry
Political Environment
Over the decades, there are interrupted civilian governments operating in Nigeria. There are several nearly 10 political parties operating in Nigeria, whereas only two parties dominate the system. In terms of Politics, Nigeria is deemed to be a stable market for BlissBurry. Nevertheless, the escalating terrorism rate in the country can pose a significant threat to BlissBurry in Nigeria. The Nigeria Corruption Index is at 26 points as per the Transparency International. On the other hand, the business confidence factor has moved to -10.30 in 2016. The present Nigerian government is making continuous efforts to eradicate corruption from the country altogether.
Economic Environment
The economic environment in Nigeria at present is not challenging for multinational companies such as BlissBurry. The economy of Nigeria to a great extent, depends upon the revenue generated from the oil and gas industry. Nevertheless, the drastic decline in the prices of oil worldwide has diminished the revenue coming to Nigeria. This can affect the profitability of BlissBurry. The unemployment rate in Nigeria is also likely to influence the performance of BlissBurry. In addition, the rising unemployment rate can narrow down the target market of BlissBurry. BlissBurry can take advantage of the cheap workforce in the country and can become the predominant source employments in the country (Gupta et al., 2003).
Social Environment
The estimate populace in Nigeria, as recorded in 2015 was 182milion, which reflects the highest population country. For that reason, Nigeria is often referred to as the giant of Africa. There is a huge market potential in the regions. Over the past few years, regardless of the instability in the country, there has been a rise in the foreign direct.
Technological Environment
The people of Nigeria are becoming increasingly interested in new technologies. On the other hand, the consumers are looking for different e-commerce platforms for making desired purchases. This is advantageous for BlissBurry in Nigeria as by creating a robust online presence, the retail brand cam earns significant revenues.
Legal Environment
As per the Nigerian law, the minimum wage of the worker should be eighteen thousand nairas. However, still, some organizations pay salaries below the minimum wage. Furthermore, there is a progressive tax system for regulating the personal income tax. The higher the income of the individual, the higher the amount of taxes he has to pay. On average, a person has to pay 24 percent of the income tax. On the other hand, the company income tax rate is approximately 30% whilst the value added is 5%.
Environmental Factors
The government of Nigeria is concerned regarding the ecological conditions in the country. It has introduced several initiatives to protect the environment. For instance, the government has devised and implemented laws or policies that ensure a clean and safe environment. BlissBurry needs to adhere to local environmental laws and regulations.
Strategic Improvement Approach
Strategic Objectives
In terms of the strategic planning objectives of the supply chain, these must be aligned to the strategic plan of the corporation in such a way that advantage is achieved competitive within the organization (Lummus., et al., 1998). According to the Council of Logistics Management (1992), the significant elements of this definition are the following: Long-term objectives that involve customer satisfaction, the advantage of competitive management and supply chain management. Achieving these objectives means generating value and customer service. The process to achieve these objectives is to anticipate, manage, and develop the objectives of the company. Strategic planning seeks to formulate a plan to build different scenarios in the internal and external environments of the corporation. All with the aim of anticipating through strategies of correct use of resources and adequate planning of needs of user demand to achieve excellent customer satisfaction, what generates a competitive advantage over other supply chains and alignment to the objectives of the company or corporation. The management of the supply chain of a BlissBurry Nigeria should facilitate the operation of continuous supply of the products and activities.
This particular strategic plan will facilitate BlissBurry to manage its supply chain and associated processes effectually. Along these lines, it is essential that the structure of the retail stores, strategic initiatives, and programs are in line with the business requirements of the BlissBurry. The strategic plan will intend to enhance the communication processes allied with supply management. It will facilitate the deployment of the tools for boosting the knowledge of the suppliers, internal business partners, and employees. In addition, the strategic plan will identify and at the same time, support the sales opportunities with the supply base to boost the sales revenue of BlissBurry.
Improving Organizational Performance
In order to compete in the current business environment, it is significant that the organizational structure of BlissBurry, as well as its resources, are flexible, responsive and adaptable to the changing business needs of the retail sector. This strategic plan will assist BlissBurry in efficiently maintaining the competitive, responsive, and agile supplier base that m...