Question

Create a detailed process flowchart that includes process inputs, process outputs, activities, activity times, processing and labor requirements for a fictional retail chain of coffee shops.

Capacity analysis of the process, including the strategies used to address expected customer demand.

Suggested metrics used to measure the process performance.

Identify the process problem and make suggestions on how the process can be improved

Answer 1

Answer:

While there are important lessons that Fortune 500 companies can glean from the coffee retail chain approach, there are also crucial insights that can help the operators of small and medium-sized businesses take their retail chains to the next level. For the operator of a small commercial enterprise, there are a lot of urgent business priorities that seem to trump supply chain. One of your “must-do” tasks, however, should definitely be mastering how the affordable movement of ingredients, materials, products, and services coalesces to help make your offerings spectacularly unforgettable to customers. Let’s take a closer loop at the at the below methods and then explore some ideas about how to “caffeinate” your approach to supply chain excellence. The transformation continues to be cited as a leading example of how to get the retail chain right, even in the face of overwhelming complexity and staggering growth. In the 2000s, coffee business was already a racehorse. Coffee Business supply lines struggled to keep pace with that rapid expansion, and the cost of running it was getting out of hand. This situation was exacerbated by the economic downturn of the late 2000s.

Reorganize

In the latter stages of 2008, coffee business took an important step to simplify and centralize its previously fragmented supply chain. The team reorganized it so that every role fell into one of four basic functional groups: plan, source, make, and deliver.

Coffee Retail chain Flow chart :

Improvement to the process and current challenges:

Cut Cost and Improve Service:

With the reorganization accomplished, each functional group to be tasked with finding improvements. The sourcing group, for example,has to work on identifying the factors that are causing price increases. Through research, it better understood what products should cost, and as a result, could negotiate better contracts. For its part, the manufacturing group can determine that it could reduce cost as well as delivery time by opening a fifth roasting plant. Another important aspect of the transformation is the introduction of weekly scorecards with very clear service, cost, and productivity metrics.

Future Capabilities:

With systems established to ensure supply chain execution in the present and into the near future, the retail chain has to begin a process of taking particular care to hire only the best talent available to replenish its supply chain, leadership team. The company has to be committed itself to onboard training for existing staff. It also has to adopt technology with an eye to improving customer experience, such as through online ordering, as well as supporting other digital innovation at its new megastores.

Eliminate Unneeded Complexity:

Complexity, in the form of numerous outsourced relationships and other lost synergies will be roadblocks spectacular growth. Think about how you can simplify your operation by getting your business organized and providing a clear vision, as well as defining roles and responsibilities. In a small business, employees may fulfill multiple supply chain functions rather than specialize in just one, but organize your supply chain with a clear focus on what is important for overall success. Work to identify and eliminate non-value adding activities.

Know Your Costs First, and Then Act:

Do you have a grasp of the cost drivers for the goods or materials you buy or the cost drivers for the goods or services you offer? In the case of coffee business, they have to build “should cost” models to better understand input costing, allowing them to strike better deals. As a smaller business, you may be more of a price "taker" than a price maker, but by understanding cost structure, you may discover new opportunities. For example, is there a possibility to negotiate a better freight rate if you can expedite faster unloading at your dock, or take delivery at a different time of day? Instead of shipping out all parcels by courier service, how about switching to cheaper LTL for the full pallet shipments?

Use of Scorecards:

The use of scorecards can help you track the most crucial metrics or key performance indicators for organizational success. Scorecards provide a powerful method to align activities within your company and among third-party relationships. The use of frequent scorecards that track leading indicators can enable you to identify emerging problems. While scorecards are no panacea in their own right, they can be powerful tools if care is taken to ensure that the most important metrics are identified, and then acted upon as required.

Commit to Sustainability:

You have to find a healthy mix of sustainability aspirations and profitability. It will boost your retail chain, from farms and its distribution network to its retail outlets. It believes that customers and employees alike will resonate with their values and support it. Think about how you can you make your supply chain greener through such steps as a reduction of energy usage in your store, achieving LEED certification in your facility, undertaking the sourcing of certified products, or the elimination of supply chain waste.

Make Your Facility Your Innovation Laboratory:

Whether you have one business location or several, never lose sight of the importance of systematically supporting innovation and the opportunities to help improve the customer experience as well as reduce costs in the process. The key to the success of coffee retail chain has always been its customer experience, and over the years, it should be able to leverage its retail chain not only to support but also to enhance customer delight—while better managing its retail chain expenditure. You may have much less control over your retail chain , but by better understanding and actively managing it, you are helping to ensure the success of your company.