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Posted: January 10th, 2024

E-Supply Chain Management Course Code: ECOM402

Saudi Electronic University
College of Administrative and Financial Sciences E-Commerce Department

Student Name:
1-

Course Title: E-Supply Chain Management Course Code: ECOM402
Academic Year/ Semester: First Semester 2022/2023 CRN: 22667
Instructor Name:
Student Grade: Grade Level:

Assignment Part 2

You will find below the names of 3 companies, where students are required to analyze and write their assessments, where each of the companies requires assessment out of the 5- below-mentioned critical areas.

1) IKEA Saudi: https://www.ikea.com/sa/en
2) Alibaba: https://www.alibaba.com/countrysearch/SA/ksa.html
3) Any known Saudi based Company of your choice (( Almarai))

Kindly write your suggestions using the below critical areas for each of the companies mentioned above,

i. Identify key Supply Chain Practices from the enterprises mentioned above.
ii. Discuss Supply Chain Integration, Collaboration, and Procurement Planning adopted by the above companies.
iii. Define the Web traceability systems practiced by the companies mentioned above for your reference.
iv. Evaluate, how the present technologies (Radio-frequency identification (RFID), Cloud Computing, Enterprise Resource Planning (ERP), Customer Relationship Management, Predictive Analysis) are being used by the above companies.
v. Identify and evaluate best practices for improving Supply Chain Management

(IKEA Saudi)

i. Identify key Supply Chain Practices for IKEA Saudi:

IKEA Saudi’s supplier management is crucial to its supply chain operations. The company has implemented a comprehensive process for managing its suppliers, which includes regular assessments, audits, and development plans. This ensures that its suppliers meet IKEA’s high standards for sustainability and quality. The company’s supplier management process helps to build strong relationships with its suppliers, which enables it to work together to achieve common goals.
The transportation management system used by IKEA Saudi is also a key practice in its supply chain operations. The company uses a combination of sea, air, and road transportation to move its goods, and it has a sophisticated logistics system in place to track its shipments and minimize waste (Bäckman & Engdahl, 2022). This system helps ensure that IKEA’s products reach its customers in a timely and efficient manner while minimizing the company’s environmental impact. Using a multi-modal transportation system also helps to increase flexibility and reduce costs, which are key factors in ensuring the company’s long-term competitiveness.

ii. Discuss Supply Chain Integration, Collaboration, and Procurement Planning:

IKEA’s supply chain system is highly integrated and involves close collaboration between different departments and suppliers. This integration helps ensure that all aspects of the supply chain work together seamlessly to meet customer demand. The company has a well-defined procurement planning process, including demand forecasting, supplier selection, and order placement. This process enables IKEA to meet customer demand while keeping costs low, which is essential for maintaining its competitiveness.
In addition to integration and procurement planning, IKEA also strongly emphasizes supplier collaboration. The company has a robust supplier collaboration program that involves regular communication and joint problem-solving with its suppliers. This helps to build strong relationships and enables IKEA to address any issues that may arise quickly and effectively (Catalan, 2022). By working closely with its suppliers, IKEA is able to ensure that its supply chain is running smoothly and efficiently, which is critical for meeting customer demand and maintaining its competitive advantage.
IKEA’s supply chain integration, collaboration, and procurement planning practices are key factors in the company’s success. These practices help to ensure that the company’s supply chain is operating smoothly and efficiently, which is essential for meeting customer demand, reducing costs, and maintaining its competitiveness in a highly competitive market.

iii. Define the Web traceability systems practiced by the IKEA:

IKEA strongly emphasizes the traceability of its products and the conditions under which they are produced. The company has a comprehensive traceability system in place that includes a combination of manual and automated processes. This system enables IKEA to be aware of the origin of its products at all times, which is important for ensuring the quality and safety of the products that it sells to its customers.
One of the key components of IKEA’s traceability system is the use of RFID technology. RFID technology enables IKEA to track products and shipments in real time, which helps to improve the accuracy and efficiency of its supply chain operations. This technology also helps to minimize the risk of loss or theft of products during transportation, which is critical for maintaining the quality and safety of IKEA’s products.
In addition to its traceability system, IKEA also has a transparent reporting system in place to ensure that its customers are aware of the source of their products. This helps build customer trust and reinforces the company’s commitment to quality, safety, and sustainability. The company’s transparent reporting system enables customers to make informed decisions about the products they purchase, which is essential for building and maintaining long-term customer relationships.
IKEA’s comprehensive traceability and transparent reporting systems are critical components of the company’s supply chain operations. These systems help to ensure the quality and safety of the products that IKEA sells while also building trust with customers and reinforcing the company’s commitment to sustainability and quality.

iv. Evaluate, how the present technologies (Radio-frequency identification (RFID), Cloud Computing, Enterprise Resource Planning (ERP), Customer Relationship Management, Predictive Analysis) are being used by the IKEA:

IKEA is constantly striving to improve its supply chain operations through the use of advanced technologies. One of the key technologies they are utilizing is Radio-frequency identification (RFID) technology (Han, 2023). This technology allows IKEA to accurately track the location and movement of its products, which has significantly improved its logistics efficiency. By having real-time visibility into the supply chain, IKEA can quickly respond to changes in customer demand and minimize waste.
Another technology that IKEA is using is cloud computing. This technology allows IKEA to store and analyze vast amounts of data related to its supply chain operations. This data can be used to identify trends and patterns, which can then be used to make informed decisions about the supply chain. Additionally, IKEA is using Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) systems to manage their relationships with suppliers and customers. These systems provide a centralized platform for tracking orders, shipments, and customer interactions, which helps IKEA to improve communication and collaboration.
IKEA is leveraging predictive analytics to identify potential supply chain disruptions and proactively address them. This technology uses algorithms and machine learning techniques to analyze vast amounts of data, which helps IKEA to identify potential risks and make proactive changes to their supply chain processes. By using these advanced technologies, IKEA is able to enhance its supply chain operations and stay ahead of the competition.

v. Identify and evaluate best practices for improving Supply Chain Management.

IKEA is known for its excellence in supply chain management and has received recognition for its best practices in the field. One of the key practices that IKEA follows is continuous improvement. The company regularly assesses its supply chain operations to identify areas of improvement and implement changes to increase efficiency and reduce waste. This approach has helped IKEA stay ahead of the competition and maintain its position as a leader in the industry.
Another key practice of IKEA’s supply chain management is its strong focus on sustainability. The company works closely with its suppliers to reduce its environmental footprint and promote sustainable business practices. This helps IKEA reduce its carbon footprint and supports its overall commitment to sustainability (Ponnana & Uppalapati, 2022). IKEA’s supplier collaboration program is another key aspect of its supply chain management success. Regular communication and joint problem solving with suppliers help IKEA quickly address issues and improve its supply chain processes. This close collaboration helps to ensure that IKEA is able to meet customer demand while keeping costs low.
IKEA invests heavily in technology to enhance its supply chain operations and improve its competitiveness. The company uses a range of technologies, including Radio-frequency identification (RFID) technology, cloud computing, Enterprise Resource Planning (ERP) systems, and Customer Relationship Management (CRM) systems to improve its logistics efficiency, store and analyze data, and manage relationships with suppliers and customers. By leveraging technology, IKEA is able to proactively address potential supply chain disruptions and maintain its competitive edge.

(Alibaba)

Chinese e-commerce, retail, Internet, and technology powerhouse Alibaba Group Holding Limited. Jack Ma started the company in 1999, and since then it has grown to become a global leader in e-commerce and mobile payment solutions (Vecchi & Brennan, 2022). AliExpress, Taobao, Tmall, and the Alibaba e-commerce platform all play a significant role in the company’s revenue and growth. Alibaba’s IPO in 2014 was the largest ever, and the business has since continued to grow, entering new markets and industries like the entertainment industry and cloud computing. These days, Alibaba is a big actor in the international economy and one of the largest technology businesses on the world.

i. Identify key Supply Chain Practices of Alibaba:
The company has implemented several key supply chain practices that have contributed to its success as a global player in the e-commerce and technology industries.
Digitalization: One of the key supply chain practices of Alibaba is digitalization. The company has digitized its supply chain processes, including order tracking, inventory management, and logistics, to increase efficiency and transparency. This helps the company to quickly and accurately respond to customer demands and make informed decisions about its supply chain (Han et al., 2019).
Cross border ecommerce: Another key practice of Alibaba is its focus on cross-border e-commerce. The company’s AliExpress platform enables small and medium-sized enterprises (SMEs) to access international markets, reducing the barriers to entry for these companies and helping to grow the global economy. This has allowed Alibaba to tap into new markets and reach a wider customer base, further expanding its reach and impact.
Collaborative logistic network: Alibaba has also established a collaborative logistics network, connecting suppliers, logistics providers, and customers to streamline the supply chain and improve delivery times. This network helps to ensure that products reach customers quickly and efficiently, increasing customer satisfaction and loyalty.
Data and analytics: Alibaba uses data and analytics to make informed decisions about its supply chain. For example, the company uses data to determine which products to stock and when to restock, helping to reduce waste and increase efficiency. Additionally, Alibaba is committed to sustainability and has implemented several initiatives, including reducing packaging waste and increasing the use of environmentally-friendly materials in its supply chain.
These key supply chain practices have helped Alibaba to achieve significant growth and become a leader in the global e-commerce and technology industries. The company’s innovative approach to supply chain management has set a new standard for other companies to follow.
ii. Discuss Supply Chain Integration, Collaboration, and Procurement Planning adopted by the company:
Alibaba has adopted several strategies for supply chain integration, collaboration, and procurement planning that have contributed to its success as a leading e-commerce and technology company.
Supply chain integration involves aligning and coordinating processes and systems across the entire supply chain to improve efficiency and increase transparency. Alibaba has achieved this through digitizing its supply chain processes and establishing a collaborative logistics network that connects suppliers, logistics providers, and customers. This has helped the company to quickly and accurately respond to customer demands and make informed decisions about its supply chain (Han et al., 2019).
Collaboration is another key component of Alibaba’s supply chain strategy. The company works closely with suppliers, logistics providers, and customers to ensure that products are delivered on time and to the right place. This collaboration has helped to improve delivery times and increase customer satisfaction, strengthening Alibaba’s relationships with its stakeholders.
Procurement planning involves determining the products and materials needed to meet customer demands and managing the procurement process to ensure that these products and materials are available when needed. Alibaba uses data and analytics to inform its procurement planning, determining which products to stock and when to restock based on customer demand. This helps the company to reduce waste and increase efficiency, improving the overall performance of its supply chain.
Alibaba has adopted a range of supply chain integration, collaboration, and procurement planning strategies that have helped the company to achieve significant growth and become a leader in the global e-commerce and technology industries. Its innovative approach to supply chain management has set a new standard for other companies to follow.

iii. Define the Web traceability systems practiced by the Alibaba:
Web traceability systems refer to the use of technology to track the movement of goods and information along the supply chain (Yu et al., 2022). Alibaba has implemented several web traceability systems to increase transparency and ensure the quality of its products.

1. Blockchain technology: Alibaba has utilized blockchain technology to increase transparency and accountability in its supply chain. This allows customers to track the journey of their products from the manufacturer to their doorstep.
2. QR codes: Alibaba uses QR codes to provide customers with information about the origin and quality of products. When customers scan a QR code, they can access information about the product’s history, including information about the manufacturer and the materials used in production.
3. Big data analytics: Alibaba uses big data analytics to track and analyze information about its products and customers. This information is used to inform decisions about which products to stock and when to restock, helping to reduce waste and increase efficiency.
4. Internet of Things (IoT) devices: Alibaba has implemented IoT devices in its supply chain to track the movement of goods and to monitor temperature, humidity, and other environmental factors that may impact product quality.
These web traceability systems help to increase transparency and accountability in Alibaba’s supply chain, providing customers with confidence in the quality of the products they purchase. They also help the company to monitor and manage its supply chain more effectively, reducing the risk of fraud and counterfeiting.
iv. Evaluate, how the present technologies (Radio-frequency identification (RFID), Cloud Computing, Enterprise Resource Planning (ERP), Customer Relationship Management, Predictive Analysis) are being used by the Alibaba:
Alibaba has leveraged several present technologies to support its e-commerce and technology businesses.

1. Radio-Frequency Identification (RFID): RFID is used to track the movement of products within Alibaba’s supply chain. This technology helps to increase transparency and accountability, enabling the company to monitor the location and status of products in real-time (Yu et al., 2022).
2. Cloud Computing: Alibaba uses cloud computing to store and process large amounts of data. This allows the company to quickly and easily access information about its products, customers, and suppliers, helping to inform decisions about its supply chain.
3. Enterprise Resource Planning (ERP): Alibaba uses ERP to manage its financial and operational processes, including inventory management, order tracking, and logistics. This helps the company to increase efficiency and improve the performance of its supply chain.
4. Customer Relationship Management (CRM): Alibaba uses CRM to manage its relationships with customers and to track customer behavior and preferences. This information is used to inform decisions about product offerings and marketing campaigns, helping to increase customer satisfaction and loyalty.
5. Predictive Analysis: Alibaba uses predictive analysis to forecast demand for its products and to inform procurement and inventory management decisions. This helps the company to reduce waste, increase efficiency, and improve the performance of its supply chain.
Alibaba has leveraged a range of technologies to support its e-commerce and technology businesses. These technologies help the company to increase transparency and efficiency, improve the performance of its supply chain, and provide customers with a better experience. The company’s innovative approach to technology adoption has set a new standard for other companies to follow.

v. Identify and evaluate best practices for improving Supply Chain Management.
Improving supply chain management is crucial for ensuring the efficiency, effectiveness, and competitiveness of a business. The following are some of the best practices for improving supply chain management:
1. Collaboration: Encouraging collaboration between suppliers, logistics providers, and customers can lead to a more efficient and effective supply chain. Collaboration allows for the sharing of information and resources, and can help to reduce waste and improve customer satisfaction (Yu et al., 2022).
2. Visibility and Transparency: Improving visibility and transparency across the supply chain can help to increase accountability and reduce the risk of fraud and counterfeiting. This can be achieved through the use of technologies such as radio-frequency identification (RFID) and blockchain.
3. Data Analytics: The use of data analytics can provide valuable insights into supply chain performance and inform decisions about procurement, inventory management, and logistics. By analyzing data, businesses can identify trends, inefficiencies, and areas for improvement.
4. Supply Chain Integration: Integrating processes and systems across the entire supply chain can improve efficiency and increase transparency. This can be achieved through the use of technologies such as enterprise resource planning (ERP) and customer relationship management (CRM) systems.

5. Lean and Green Supply Chain: Implementing a lean and green supply chain can help to reduce waste, improve sustainability, and increase efficiency. This can be achieved through the adoption of environmentally friendly practices and the use of technologies such as renewable energy sources and IoT devices.
6. Risk Management: Developing and implementing a robust risk management strategy can help businesses to identify and mitigate potential risks in their supply chain. This can help to reduce the impact of unexpected events and ensure the smooth operation of the supply chain.
The implementation of these best practices can help businesses to improve the efficiency, effectiveness, and competitiveness of their supply chain management. The adoption of innovative technologies and the implementation of effective processes and systems are crucial for achieving success in today’s fast-paced and rapidly changing business environment.

(Almarai Company)
Almarai is a leading food and beverage company based in Saudi Arabia. Founded in 1977, the company has grown to become one of the largest dairy companies in the world, with operations across the Middle East, North Africa, and Asia (Khalil & Seliem, 2013). Almarai’s product portfolio includes a wide range of dairy products, juices, baked goods, and other food and beverage items. The company is committed to producing high-quality, nutritious products that are enjoyed by consumers of all ages. Almarai’s success is built on its commitment to quality, innovation, and customer satisfaction, and the company continues to invest in research and development to maintain its position as a leader in the industry (Stensvold et al., 2015a).

i. Identify key Supply Chain Practices for Almarai:
Almarai is known to follow several key supply chain practices, some of which are:
1. Vertical Integration: Almarai has vertically integrated its supply chain by controlling its own dairy farms, processing facilities, and distribution network. This enables the company to have more control over its supply chain, ensuring quality, consistency and reliability.
2. Local Sourcing: The company sources raw materials locally, where possible, to minimize transportation costs and ensure the freshness of its products (Sadi & Henderson, 2007a).
3. Traceability: Almarai has implemented a traceability system that allows it to track the entire supply chain, from the farm to the final product. This helps the company ensure the quality and safety of its products, and also helps it quickly respond to any issues that may arise.
4. Collaboration: Almarai has built strong relationships with its suppliers and works closely with them to ensure the quality and reliability of its supply chain (Khalil & Seliem, 2013).
These are some of the key supply chain practices followed by Almarai that have helped the company achieve success in its operations and maintain its position as a leader in the dairy industry.
ii. Discuss Supply Chain Integration, Collaboration, and Procurement Planning:

Almarai has adopted several strategies to integrate its supply chain, collaborate with its suppliers, and plan its procurement effectively.
1. Supply Chain Integration: Almarai has vertically integrated its supply chain by controlling its own dairy farms, processing facilities, and distribution network. This has helped the company streamline its operations, reduce costs, and improve the quality of its products.
2. Collaboration: Almarai has built strong relationships with its suppliers and works closely with them to ensure the quality and reliability of its supply chain. The company also collaborates with its customers to understand their needs and ensure that its products meet their requirements.
3. Procurement Planning: Almarai has a well-established procurement process that helps it plan its purchasing activities effectively. The company uses sophisticated procurement software to track its suppliers, manage its inventory levels, and optimize its purchasing decisions. The company also evaluates its suppliers on a regular basis to ensure that they meet its quality, safety, and sustainability standards (Mohamad & Asfour, 2020).
These strategies have helped Almarai achieve a high level of supply chain integration, collaboration, and procurement planning, which have in turn, contributed to its success as a leading dairy company.

iii. Define the Web traceability systems practiced by the Almarai:
Web traceability systems refer to technology-based solutions that allow companies to track and monitor the movement of products through their supply chain. Almarai has implemented a web traceability system to ensure the quality and safety of its products, as well as to quickly respond to any issues that may arise.
The key components of Almarai’s web traceability system include:
1. Barcode scanning: Almarai uses barcode scanning technology to track its products as they move through its supply chain. This helps the company quickly and accurately identify the location of its products and ensures that they are properly managed and stored.
2. Electronic Data Interchange (EDI): Almarai uses EDI to exchange information with its suppliers and customers, allowing it to quickly and accurately track the movement of its products (Stensvold et al., 2015a).
3. Real-time monitoring: The company’s traceability system provides real-time monitoring of its supply chain, allowing it to quickly detect and resolve any issues that may arise.
4. Data analysis: Almarai uses data analytics to analyze the information collected from its traceability system, providing it with insights into the performance of its supply chain and helping it to identify areas for improvement (Singh et al., 2017).
These are the key components of Almarai’s web traceability system, which help the company ensure the quality and safety of its products, respond quickly to any issues that may arise, and improve the efficiency of its supply chain operations.

iv. Evaluate, how the present technologies (Radio-frequency identification (RFID), Cloud Computing, Enterprise Resource Planning (ERP), Customer Relationship Management, Predictive Analysis) are being used by the Almarai:

Almarai has adopted several advanced technologies, including Radio-frequency identification (RFID), Cloud Computing, Enterprise Resource Planning (ERP), Customer Relationship Management, and Predictive Analysis, to improve its operations and better serve its customers.
1. Radio-frequency identification (RFID): Almarai uses RFID technology to track its products as they move through its supply chain. This helps the company quickly and accurately identify the location of its products and ensures that they are properly managed and stored (Al Mheiri et al., 2020).
2. Cloud Computing: Almarai has adopted cloud computing technology to improve its data management and analysis capabilities. This allows the company to access and analyze data from anywhere, in real-time, and make informed decisions quickly.
3. Enterprise Resource Planning (ERP): Almarai has implemented an ERP system to manage its business operations, including procurement, inventory management, and financial reporting. This helps the company streamline its operations and make better use of its resources (SADI, 2014).
4. Customer Relationship Management: Almarai uses customer relationship management (CRM) technology to manage its relationships with its customers. This helps the company understand its customers’ needs, preferences, and behaviors, and provides it with the information it needs to make informed decisions.
5. Predictive Analysis: Almarai uses predictive analytics to analyze its data and identify trends and patterns. This helps the company make more informed decisions about its operations and better predict customer demand.
These technologies have helped Almarai improve its operations, better serve its customers, and remain competitive in an ever-changing market. By adopting these technologies, Almarai is able to enhance its supply chain processes, minimize waste, and increase its efficiency and productivity.

v. Identify and evaluate best practices for improving Supply Chain Management:

Improving supply chain management is crucial for any company looking to stay competitive and meet the demands of its customers. Here are some best practices for improving supply chain management:
• Collaboration and partnerships: Companies should build strong relationships with their suppliers, customers, and other stakeholders in the supply chain. This includes sharing information, working together to solve problems, and aligning objectives to achieve a common goal.
• Visibility and transparency: Companies should have real-time visibility into the entire supply chain, from raw materials to the final customer. This helps companies detect and resolve problems quickly, reduce waste, and ensure the quality of their products.
• Technology and automation: Companies should invest in technology and automation to improve the efficiency of their supply chain processes. This includes implementing software such as enterprise resource planning (ERP) systems, customer relationship management (CRM) systems, and predictive analytics tools (Stensvold et al., 2015b).
• Lean principles: Companies should adopt lean principles, such as continuous improvement and waste reduction, to improve the efficiency of their supply chain operations. This includes reducing lead times, improving delivery times, and increasing the speed of order processing (Sadi & Henderson, 2007b).
• Sustainability: Companies should take a sustainable approach to supply chain management, taking into account the environmental impact of their operations and ensuring that they meet the needs of future generations. This includes reducing waste, using renewable energy sources, and working with suppliers to implement sustainable practices.
• Risk management: Companies should have a comprehensive risk management plan in place, to minimize the impact of supply chain disruptions, such as natural disasters, labor strikes, and economic downturns. This includes having contingency plans, diversifying suppliers, and having adequate insurance coverage (Zhou et al., 2020).
• By implementing these best practices, companies can improve the efficiency and effectiveness of their supply chain operations, reduce waste, minimize the impact of supply chain disruptions, and ensure the quality and sustainability of their products.

References
• Bäckman, M., & Engdahl, A. (2022). Integration of Planning Functions to Improve Operational Supply Chain Planning-A case study of the facilitators and obstacles at IKEA.
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• Yu, Y., Brady, D., & Zhao, B. (2022). Digital geographies of the bug: A case study of China’s contact tracing systems in the COVID-19. Geoforum, 137, 94-104.
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• Al Mheiri, W., Al-Mahmoud, M., Sultan, F., Juma, F., Al-Kaabi, M., Al-Alawi, H., & Nobanee, H. (2020). Financial Analysis of Al Marai Company. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3594800.
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• Zhou, L., Xi, Y., & Lochtman, K. (2020). The relationship between second language competence and willingness to communicate: the moderating effect of foreign language anxiety. Journal of Multilingual and Multicultural Development, 34(12), 24–30. https://doi.org/10.1080/01434632.2020.1801697.

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