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Supply chain strategy deals with mechanisms through which a business or a company uses in organizing and managing the business in order to optimize profit, be efficient in supplying the products to the customers' satisfaction and to create reliability by the customers towards the product. The e-business on the other hand involves ways of using internet technologies to improve the value of the commodity of the company and facilitate customer satisfaction.
Hence, this paper will analyze the strategies that Kellogg's company uses in distributing and transporting its products and the e-business practices it uses to move products from one place to another. Furthermore the paper will also compare Kellogg's company with Nestle Company and suggest ways that Kellogg's company can use to improve its state and finally make recommendations on how it can improve the strategies. Kellogg's company has three modes that it uses to enhance efficiency of its distribution and transportation of products; they are primary, secondary and tertiary levels.
Kellogg's company came up with the primary level that provides or supplies the raw material for the company, the raw material are passed through the secondary level for processing them into more useful commodities. The secondary level on the other hand provides transport of the products, to locate where their customers are and packaging. The secondary level deals with the amount of energy used during manufacturing of the products and where to locate the company's operations. Finally the tertiary level involves retailing commodities and storing them in outlets like to warehouses. E-commerce is also adapted to aid in marketing and online sale of its commodities.
It also uses specialist companies that organize the transportation and distribution of products by making agreements with other companies to transport their products in the same lorries thus reducing transport cost and reduction of carbon emission. The company has also focused on the transport-related energy use and CO2 emissions that have led to reduced fuel consumption. Thus these ways help Kellogg's company to ensure the supply chain is effective and ethical hence beneficial for both the environment and its customers. If Kellogg's company is compared to Nestle Company it will be seen that the company demonstrates integrity and ethnicity by being accountable for their actions and results. The company also implements creative and innovative ideas and solutions by striving to gain simplicity as compared to Nestle Company which doesn't.
The company is expected to set up realistic long-term targets as short term targets lead to disastrous decisions. The company should furthermore be consistent to the results and the cash flow accumulated over time using the proposed strategies that will exceed the results achieved by chasing unreasonable goals. The investments made in the recent years has been extensive thus should be used improve the companies efficiency and focusing on building and being innovative to the company. This will aid in automating the supply chain operations and also adopt e-commerce to aid in marketing and selling of its commodities.