SCM Milk Tea An Outline For Supply pptx

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1. Outline for Supply Chain Management Flow ( Milk Tea) Anjo Chan

2. Introduction Overview of Supply Chain Management (SCM) in the Context of a Milk Tea Shop Supply Chain Management (SCM) encompasses the entire process of producing and delivering a product or service, from the initial sourcing of raw materials to the final delivery to the customer. According to Jason, F.(2024), Supply chain management (SCM) is the monitoring and optimization of the production and distribution of a company’s products and services. It seeks to improve and make more efficient all processes involved in turning raw materials and components into final products and getting them to the ultimate customer. Effective SCM can help streamline a company's activities to eliminate waste, maximize customer value, and gain a competitive advantage in the marketplace. In the context of a milk tea shop, SCM involves the coordinated efforts of suppliers, manufacturers, logistics providers, and the retail operations that ensure the seamless flow of ingredients and products. This includes sourcing quality tea leaves, milk, sugar, flavorings, and other necessary components, as well as managing the logistics of storage, preparation, and distribution.

3. Importance of Efficient SCM for Managing Inventory, Ensuring Quality, and Meeting Customer Demands Shop Stated by Kelly, M.(2023), that perhaps most importantly for small businesses, effective supply chain management means saving time and money - top priorities for most small and medium-sized enterprises (SMEs). But equally, sourcing new stock quickly - or even being able to procure custom orders - improves customer experience. Being out-of-stock for too long can stall momentum and hamper growth, while having too much stock is costly, too. For businesses that are themselves part of a wider supply chain, good management can help them meet their obligations on time and within budget.

4. Efficient SCM is crucial for a milk tea shop for several reasons: 1. Inventory Management: Proper SCM helps maintain optimal inventory levels, ensuring that ingredients are always available without overstocking, which can lead to wastage, or understocking, which can result in stockouts and lost sales. 2. Quality Assurance: SCM ensures that all ingredients and products meet the required quality standards. Consistent quality is vital for customer satisfaction and brand reputation.

5. Efficient SCM is crucial for a milk tea shop for several reasons: 3. Customer Demand Fulfillment: Efficient SCM enables the milk tea shop to respond quickly to changing customer demands and preferences, ensuring that popular items are always available and new trends can be quickly adopted. 4. Cost Efficiency: By streamlining processes and reducing waste, efficient SCM can help lower operational costs, contributing to better profitability. 5. Operational Efficiency: SCM optimizes the entire production and delivery process, leading to faster service and improved customer experience.

6. Purpose and Scope of the Report The purpose of this report is to analyze the supply chain management practices of a milk tea shop and identify areas for improvement to enhance operational efficiency, product quality, and customer satisfaction. The report will cover the following aspects: 1. Current SCM Practices: A detailed examination of the existing supply chain processes, from sourcing to delivery, identifying strengths and weaknesses.

7. Purpose and Scope of the Report 2. Inventory Management: Analysis of inventory levels, storage practices, and turnover rates to ensure optimal stock levels and minimize waste. 3. Quality Control: Evaluation of quality control measures in place for sourcing, production, and delivery to maintain consistent product quality. 4. Supplier Management: Assessment of supplier relationships and performance to ensure reliable sourcing of high-quality ingredients.

8. Purpose and Scope of the Report 5. Logistics and Distribution: Review of logistics and distribution practices to ensure timely and efficient delivery of products to the shop and ultimately to the customers. 6. Customer Demand Analysis: Examination of customer preferences and demand patterns to align supply chain practices with market needs. 7. Recommendations: Based on the analysis, the report will provide actionable recommendations for improving SCM practices to enhance the overall performance of the milk tea shop.

9. Supply Chain Management Flow in a Milk Tea Shop Stage 1: Sourcing and Procurement 1. Sourcing and Supplier Selection o Identifying Suppliers: Research and select suppliers for tea leaves, milk, sugar, flavorings, and other necessary ingredients based on quality, reliability, and cost. o Supplier Evaluation: Assess potential suppliers for their ability to provide consistent quality and meet delivery timelines. o Contract Negotiation: Establish contracts with selected suppliers, detailing terms of supply, pricing, delivery schedules, and quality standards.

10. Supply Chain Management Flow in a Milk Tea Shop 2. Procurement Processes o Order Placement: Place orders with suppliers based on inventory levels and projected demand. o Receiving Shipments: Inspect and verify the received goods against the purchase order specifications. o Documentation: Maintain records of purchase orders, invoices, and delivery receipts for tracking and auditing purposes.

11. Supply Chain Management Flow in a Milk Tea Shop 3. Quality Control Measures o Inspection Protocols: Implement rigorous quality checks for incoming raw materials to ensure they meet the required standards. o Supplier Audits: Conduct regular audits of suppliers to ensure compliance with agreed-upon quality standards and practices. o Sampling and Testing: Perform sampling and testing of raw materials to ensure consistency and quality before use in production.

12. Supply Chain Management Flow in a Milk Tea Shop Stage 2: Production 1. Processing and Manufacturing o Recipe Standardization: Develop and standardize recipes for consistent product quality across all batches. o Batch Processing: Prepare ingredients in batches, following the standardized recipes and procedures. o Blending and Brewing: Combine and brew ingredients to create the final milk tea product, ensuring consistency in flavor and quality.

13. Supply Chain Management Flow in a Milk Tea Shop 2. Equipment Maintenance and Calibration o Regular Maintenance: Schedule regular maintenance of brewing and blending equipment to ensure optimal performance and prevent breakdowns. o Calibration: Calibrate equipment regularly to maintain accuracy and consistency in production processes. o Replacement and Upgrades: Replace outdated or malfunctioning equipment and upgrade to newer technologies as needed.

14. Supply Chain Management Flow in a Milk Tea Shop 3. Health and Safety Compliance o Sanitation Protocols: Implement strict sanitation protocols to maintain a clean and hygienic production environment. o Employee Training: Train staff on health and safety standards, proper handling of ingredients, and emergency procedures. o Compliance Audits: Conduct regular audits to ensure compliance with local health and safety regulations and standards.

15. Supply Chain Management Flow in a Milk Tea Shop Stage 3: Inventory Management 1. Inventory Control Techniques o Just-in-Time (JIT) Inventory: Implement JIT inventory practices to minimize stock levels while ensuring timely availability of ingredients. o Economic Order Quantity (EOQ): Calculate EOQ to determine the optimal order quantity that minimizes total inventory costs. o ABC Analysis: Perform ABC analysis to prioritize inventory management efforts based on the value and turnover rate of different items.

16. Supply Chain Management Flow in a Milk Tea Shop 2. Storage and Handling o Storage Conditions: Ensure proper storage conditions for all ingredients, including temperature control and humidity management. o FIFO Method: Utilize the First-In, First-Out (FIFO) method to minimize spoilage and waste by using older stock first. o Handling Procedures: Implement standardized handling procedures to prevent damage and contamination of ingredients during storage and retrieval.

17. Supply Chain Management Flow in a Milk Tea Shop 3. Inventory Tracking Software o Inventory Management System: Use inventory management software to track stock levels, manage orders, and monitor inventory turnover. o Real-Time Updates: Enable real-time updates on inventory status to facilitate timely reordering and prevent stockouts. o Reporting and Analytics: Generate reports and perform data analysis to gain insights into inventory trends, usage patterns, and areas for improvement.

18. Supply Chain Management Flow in a Milk Tea Shop Stage 4: Distribution and Logistics 1. Supply Chain Management o Coordination with Suppliers: Ensure timely delivery of ingredients and materials from suppliers to the milk tea shop. o Distribution Channels: Establish efficient distribution channels for the movement of goods from suppliers to the shop and from the shop to customers (for delivery orders). 2. Route Optimization o Delivery Planning: Plan delivery routes to minimize travel time and fuel consumption, ensuring timely and cost-effective deliveries. o Technology Utilization: Use route optimization software to analyze traffic patterns and select the most efficient routes for delivery.

19. Supply Chain Management Flow in a Milk Tea Shop Stage 5: Retail Operations 1. Ordering Process o Order Taking: Implement an efficient system for taking customer orders, whether in-person, online, or via phone. o Order Customization: Allow customers to customize their orders with various options for tea base, sweetness level, toppings, etc.

20. Supply Chain Management Flow in a Milk Tea Shop 2. Beverage Preparation and Customization o Standardized Recipes: Ensure staff follows standardized recipes to maintain consistent quality and taste. o Customization Options: Offer a variety of customization options to cater to different customer preferences.

21. Supply Chain Management Flow in a Milk Tea Shop 3. POS Systems and Payment Processing o Point of Sale (POS) Systems: Use modern POS systems to streamline the ordering process, manage transactions, and track sales data. o Payment Options: Offer multiple payment options, including cash, credit/debit cards, and mobile payment solutions.

22. Supply Chain Management Flow in a Milk Tea Shop Stage 6: Customer Service and Fulfillment 1. Order Processing o Efficient Handling: Ensure quick and accurate processing of customer orders, whether for in-store consumption, takeout, or delivery. o Order Accuracy: Implement checks to ensure that orders are prepared correctly according to customer specifications.

23. Supply Chain Management Flow in a Milk Tea Shop 2. Customer Service Strategies o Training Programs: Train staff in excellent customer service practices, including polite communication, problem-solving, and efficiency. o Customer Interaction: Foster positive interactions with customers to enhance their overall experience and build loyalty.

24. Supply Chain Management Flow in a Milk Tea Shop 3. Feedback Collection and Improvement o Feedback Mechanisms: Provide easy ways for customers to give feedback, such as surveys, suggestion boxes, and online reviews. o Continuous Improvement: Analyze feedback to identify areas for improvement and implement changes to enhance service quality and customer satisfaction.

25. Technology Integration in SCM 1. Use of Technology for Inventory Management o POS Systems: Utilize POS systems to track sales and inventory levels in real-time, aiding in accurate inventory management. o Inventory Tracking Software: Implement software solutions to monitor stock levels, manage orders, and forecast demand.

26. Technology Integration in SCM 2. Role of ERP Systems in Streamlining Operations o ERP Integration: Use Enterprise Resource Planning (ERP) systems to integrate all aspects of the supply chain, from procurement to sales. o Operational Efficiency: Streamline processes and improve coordination between different departments, leading to better overall efficiency.

27. Technology Integration in SCM 3. Benefits and Challenges of Technology Adoption in SCM o Benefits: Improved accuracy, efficiency, and data insights; better inventory management; enhanced customer experience. o Challenges: High initial investment, need for staff training, potential technical issues, and cybersecurity concerns.

28. Green Logistics Integration 1. Sustainable Practices o Eco-Friendly Packaging: Use biodegradable or recyclable packaging materials to reduce environmental impact. o Energy-Efficient Equipment: Invest in energy-efficient brewing and refrigeration equipment to minimize energy consumption.

29. Green Logistics Integration 2. Transportation and Delivery o Efficient Routing: Optimize delivery routes to reduce fuel consumption and carbon emissions. o Eco-Friendly Vehicles: Consider using electric or hybrid vehicles for deliveries to further reduce the environmental footprint.

30. Green Logistics Integration 3. Waste Reduction o Recycling Programs: Implement recycling programs for packaging materials and other waste generated in the shop. o Waste Management: Train staff on proper waste segregation and disposal practices to minimize landfill contributions.