Introduction
Investing in service and delivery industry involves taking care of business activities characterized by numerous problems requiring solutions. Such kind of business is tied primarily to customer objectives based on efficiency and time-delivery. Every segment within the supply chain is normally required to contribute towards the company’s profits. Shareholders are number-one beneficiaries of efficient supply chain within any organization.
The study addresses various means used by companies to fulfil their objectives to customers within the supply chain. Such activities require appropriate use of information and communication technologies. Customer care, logistics involved in the process of delivering both goods and services are also considered part of the process (Wieland and Carl).
Supply chain management refers to the management of company’s processes from manufacturing, transportation through to delivery of products and services to customers. All the objective movements involved including storage, planning and control of various activities are used in explaining supply and demand of various goods and services. Supply chain forms the core of the company’s operational activities hence should be monitored by experts to ensure efficiency.
Service delivery enterprises are normally anchored on key assumption that management, information and communication technology are important aspects and ingredients which are very crucial for success to be realized. However, all employees are required to embrace the use of information technology since it forms crucial part a qualified member within any supply chain. This ensures efficient monitoring and delivery of intended goods and services to consumers.
Service deliveries ensure that all members of the society are reached with the intended product or services at the right time.Such companies usually operate on a designed conceptual modeltaking into account economic, social and political forces that determine resource allocation and management within companies from every region. The leadership structure is another important aspect of the supply chain (Mentzer et al).
Profile of the Company
Aramex Inc. is a United Arab Emirates-based public company established in 1982 and deals with provision ofconsumers’ related solutions based on freight, express logistics and supply chain management of businesses. The company has been under private ownership since 2002 and operates comprehensive problems on transportation and logistics.
Aramex Inc. presents one of the most prominentcompanieswithin Middle-East since its listing in international stock exchange in mid 1990s. The company appeared on the public listings of Dubai Financial Market in 2005 under ARMX trade shares. Currently, Aramex Inc. employs more than twelve thousand workers across sixty countries with strong world-wide network (Aramex Inc.).
Aramex’s transportation network covers wide region from Middle-East to United Kingdom through to Caribbean countries. Such land networks are utilized by trucks fitted with Modern GPS-tracking system and also advanced technology involving scheduled services and strategic locations for their various terminal offices (Aramex Inc.).
This creates a cost-effective service preferred by most companies as compared to shipping services. The company is involved in receiving shipments from defined points taking charge of all clearance procedures to the delivery points of the products. Aramex Inc.is capable of providing different modes of transportation depending on customer requirements. Such means include air-sea, air-land and supposedly sea-land (AramexInc.).
The company’s supply chain management team of experts ensures maximization on the product delivery processes from the factory right to retail outlets and finally to customers. The kind of customized solutions used have assisted in reducing customer’s costs on inventory and transaction speed (Harrison and van Hoek). Being one of the global leaders providing major solutions in logistics and transportation, Aramex Inc. network has continued their trend in acquiring prominent organizations in all regions.
Supply chain of Aramex
This can be described as the core of Aramex Inc. organization’s operational efficiency. Aramex’s supply team comprises of knowledgeable individuals with advanced skills in monitoring flow of goods throughout supply chain. The nature of the customized solutions the company uses has necessitated cost reduction and increase in the speed of transaction and efficient implementation of customer needs.
Aramex Inc. combines use of technology in delivering internationally standardized services that avails comprehensive solutions to requirements within supply chain and logistics. The company enjoys the services of its largest logistics and transportation networks in the world hence providing cost-effective services within the supply chain (Aramex Inc.).
Aramex Inc. Partner with Zubair Corporation (Z-Corp) headquartered in Oman for the purposes of offering businesses with integrated services such as warehousing and distribution through every means including sea, air and ground transportation. Z-Corp also offers such services as freight forwarding and customs brokerage to wide range of industries such as telecommunications, military and Information Technology related companies.
Aramex Inc. also acquired Berco Express (Pty) Ltd to assist in logistics and transportation issues within South Africa and other regions. The company has significant share of South Africa’s freight and logistics market and has over fifteen operating branches within South Africa (Aramex Inc.).
Aramex Inc. and Z-Corp operates a modern facility in Oman connecting strategic ports and regional logistic hubs. Joint Centre operated by both companies will consider building their leadership on environmental issues. However the nature of Z-Corp Supply chain can be described as complex with demanding logistics and supply chain requirements. This has made the company to have a global footprint with the ability of delivering customized supply chain solutions under affordable circumstances (Aramex Inc.).
Figure 1: Supply chain of Aramex Inc.
The management of value-added chain from supplier to manufacturer down to retailer and customer requires focused goals with the objective of reducing inventory, increasing speed of transactions based on real-time data and at the same time improving on sales based on fulfilling customer requirement.
The company offers freight-forwarding and custom clearance through door-to-door efficient delivery using various suppliers. In warehousing, Aramex Inc. stores and manages various company inventories by use of strategically located modern technology logistic centres.
Aramex Inc. offers custom bonded warehouses for the purposes of catering for the different consumer needs within every consumer segment. The company offers customers with storage services while at the same time providing real-time visibility at all levels. This ensures that all stock levels and purchases are improved depending on order cycles.
Facility management services are provided with minimal waste, better utilization on available space alongside use of appropriate equipment. At the same time Aramex Inc. offers wide range of value-added services including software installation services. Distribution services are offered through GPS-equipped trucks covering wide network of the market. Visibility part of delivery is provided under shipment number tracking.
Preparation of professional designs including tender documents to appropriate vendors is services still offered by Aramex. The company offers a range of consultation services from Standard Operating Procedures to Job Operating Procedures for intended facilities. The services also include evaluation of existing facilities and supply chain strategy analysis (Harrison and van Hoek).
Reasons for current Aramex Inc. supply Chain
Aramex Inc. considers the use of several approaches for the purposes of ensuring perfect mobilization of customers towards company services. Approaches applied by the company vary in details depending on the target goal. Aramex Inc. utilizes push management for the purposes of positioning services at suitable target points based on intended need (Halldorsson et al).
Push model has made Aramex Inc.to install new state-of-art technology alongside equipped line of services based on standardized processes. This ensures efficient delivery of products and services at right points within appropriate time line. The kind of technology utilized by the company including GPS-equipped trucks assists in easier tracking and administration of activities along the supply chain. Such models make work easier since all activities down the supply chain are centrally controlled (Halldorsson et al).
Z-Corp The current supply chain seems effective due to application of pull management systems. This is since the aspect creates massive and stable foundation capable of handling logistical and other service problems of both individuals and companies. Increasing uncertainties within companies can be reduced through the kind of efficient services offered by Aramex Inc. Such as professional consultancy services (Halldorsson et al).
This can further be reinforced through application of pull models.The level of professionalism with which services are offered is the main lacking ingredient with most service companies. Consumers, normally seek high level of satisfaction from any kind of service whatsoever. In such cases it is possible for the concerned parties and partners to venture into creative ideas capable of handling contemporary issues with rising demand on logistical services.
Real-time visibility technology seeks to improve vigilance at retail level where basic tools and resources are necessary for accomplishing tasks and addressingsupply needs. Strategic location of custom bonded warehouses tends to offer constant flow of goods and services within every market segment.
Fig 2: Pulling Strategy
Maturity of the Supply chain brought by partnership between Z-corp and Aramex Inc. helped in satisfying increasing needs within the demand chain. Quick responses staged through appropriate channels have made the organization gain importance amongst its customers.
Aramex Inc. logistic and warehouse services, requires high standards of operation due to the kind of competition within Middle East and international market. Pull model ensures that all participants within the supply chain are considered based on production levels. Efficiency in management of the supply chain is required for the purposes of winning consumer confidence and building the organization’s brand image.
Fitting the overall Strategy
The supply chain fits the company’s overall strategy through focused vision and objectives. Aramex’s main objective involves facilitation of regional and global trade based on logistics and transport network. Participants within Aramax’s supply chain works towards attaining highest level of services on issues pertaining logistics and complex delivery networks.
Efficiency of Aramex’s supply chain depends on the consumer response towards new technology used. Their objective towards demand chain requirescreative approach since customers are always sensitive to the level in which certain services can satisfy their needs.
Such strategy ensures active connection between customers, employees and company’s strategic principles making easier the aspect of exploring market opportunities. However, the services are offered at affordable costs alongside convenience expected by customers.
Aramex Inc. focuses on satisfying customer curiosity based on efficiency and confidentiality accorded to goods on transit. These processes help in enhancing the Company’s image amongst consumers because of their high performance level. The Company emphasizes so much on product delivery as one of the important quality drivers.
Benefits from the overall supply chain can be identified through application of relevant partnership and service oriented goals. The kind of transport network offered by the company is considered market viable in the sense that majority of market segments have poor communication and transport network system.
Many companies from remote regions are in great demand for efficient services. Such group forms a large market base for logistic, consultant and transportation (Simchi-Levi et al). Besides, various company staffand machinery equipped with sound technical knowledge makes it possible to reach many consumers across the globe at a faster rate. Value-added and facility management services ensures that enough support is gathered from potential sources such as world organizations.
In essence, delivery models that are technologically driven are relevant for current generation because the information and communication technology tools are consumer-centric and involve use of frameworks that make it possible the involvement ofall stakeholders during decision making processes (Larson and Halldorsson).
Currently, the world and specifically Middle East Region Companies are facing shortage of efficient logistical and transport services, and this demand for establishment of customer friendly companies with affordable costs.
Transportation problems extend to a wide geographical area since it is a global phenomenon that affects delivery of services to many communities in the entire world. Rural communities are the most affected, especially those from the developing countries. The problems that poor people from the developing world face include lack of quality and affordable products and services (Lavassani et al).
Managing the supply chain
ARAMEX Management of Aramex’s supply chain entails several approaches capable of ensuring perfect mobilization of resources and efficient services towards company’s objectives. The available strategies vary in details depending on the region where services are offered but basically shares common objective of improving overall organization’s services. Aramex’s management utilizes push model within their management portfolio due to the model’s efficiency in delivering high quality products and services(Larson and Halldorsson).
Fig 3: Centralization and information flows between Aramex Inc. group companies
The general manager of the organization has to write down his expectations and preferences because good deals are always expected from the simplest idea. The management team usually analyses references from similar projects, which are ultimately used in providing record of questions answerable to the top management team.
Any form of communication is not allowed to proceed in any direction other than intended target, it is important to get information that is needed to make a decision. Additionally, the CEO normally ensures that every feedback is documented as required and expectations well-conceived (Larson and Halldorsson).
Decisions made by the board of directors determine the direction of events within the company including all projects. Furthermore, other project managers are allowed to handle a doubtful project to ensure that senior management’s position and understanding are upheld. When project managers are laying out their plans, information is usually received from the top management. Such decisions do not necessarily involve the small details on how projects should be managed during the engagement period (Larson and Halldorsson).
Senior management team of Aramex Inc.is fully involved in leadership of the project management since project management skills are mandatory for good results to be realized. The company achieves this by providing weekly financial report; status report and at the same time identifying changed order opportunities.
Project managers are usually required at various points for the purposes of checking variations occurring between the project success and excellence. Any point within the chain with less than less than expected outcome based on company’s objectives attracts questions on whether success of the project equals to excellence.
A number of factors contribute to the success of projects including on time delivery, delivery according to budget plans and management’s level of satisfaction. On the other hand, excellence on delivery of services is derived from regular delivery of the revised schedules (Movahedi et al).
Efficient Supply chain
The company uses fully revised, detailed and up-to-date schedules. Excellence could also be manifested in various leadership programs within the chains. The project manager is always believed to be confident leader hence capable of maintaining detailed control of their segments all the times.
Otherwise managers who have difficulties in making key decisions throughout the supply chain always fail in propagating the company’s vision. Various financial budgets should relate to the target segments for the reasons of helping in resource allocation.
It is known that those involved in the supply chain management, manage tasks, critical paths, budgets and several Gantt charts. Ability to efficiently and effectively manage resources has a direct bearing on the project delivery process staying within the allocated budget, which is major determining in the success of any delivery (Blanchard).
The company’s enterprise managers usually check the project status weekly for update to ensure that employees are accountable to their assigned duties.
Managers focused on regular checks on the budget prevent the project from delays. Focusing by managers should be based on the knowledge of the past, present and future expectations. Such activities should change on a weekly basis depending on the progress details. An effective manager often informs his team by providing them with continuous update both on forecast and actual budget financial.
Fig 4: Efficient Supply Chain
Main Issues and Problems
Variety of transport facilities offered by Aramex Inc. from sea, air to ground enables easier communication with the target areas despite poor road transport networks within some regions. Since Aramex Inc. provides software services, most of the services can be analysed under the software, hosting and web service options among others.
Comprehensive packages such as Java are lacking and should be used to provide database support, since they can help in providing application development platforms that allow clients to write and install tender application forms. These include open source applications deployed to the cloud and commercial application deployed in-house.
Aramex Inc. Network plans to incorporate cloud computing in its data Centre platform so as to get faster applications that are easier to manage and maintain. It also facilitates the IT resources adjustment according to the unpredictable or fluctuating demands of business services (Larson and Halldorsson).
In the case of Aramex, all plans are focused on the targeted customers and services provided and the means of delivery. The vision of Aramex Inc.is to provide quality and affordable logistical and transportation services to their customers.
The mission centres on timely delivery and affordable value-added, consultation and delivery services to customers with the best efficiency and reliability and the strategy is targeting developing countries in order to offer them quality and affordable services. The services are extended online by the use of communication tools such as internet websites and mobile phones, customers across regions are reached through air and sea services (Larson and Halldorsson).
General evaluation and alternative Solutions
The overall performance of the company is analysed by use of various performance measurement tolls. Various targets are analysed by use of double bottom line, triple bottom line and balanced scorecard. Among these performance measurement frameworks, the most appropriate one for the enterprise is balanced scorecard.
The marketing approach based on social performance target is the balanced score card.General evaluation can also be done by use of some business and revenue models employed by online software enterprises.
Online social enterprise applies the use of tools such as the Business Model Canvas to create, deliver and capture values. Aramex Inc. generatesits revenue through various delivery and consultancy services. Other means of generating revenue for the enterprise include promotional campaigns using the firm’s website (Blanchard).
For the purposes of improving network with customers, the company can also utilize social media, public relations approaches and other marketing approaches. Social networks used by Aramex Inc. andpartners include Facebook and twitter. The enterprise can as well use other media channels such as real time television shows.
Apart from the tradition public relations, the enterprise can make use of online public relations. Online networking can be utilized in promoting the image and brand identity of the enterprise at the global scale.
Other marketing approaches include building business relationships through alliances with other logistic related companies. This ensures that Aramex Inc. has more business strength in terms of human resources capital and finance enabling it to acquire more customers as well as maintaining the existing ones (Blanchard).
The skills and competencies of employees within the supply chain should be based on performances. The enterprise should also focus on selection and recruitment of third-party salesmen to enhance contact with customers. Areas that require attention should involve key skills and competencies which include strong analytical and communication skills for those working down the supply chain.
Strong analytical and communication skills are very necessary within every segment of the supply chain. There is also need to involve traditional channels in the recruitment process which includes adverts in the local newspapers. Among these selection and recruitment processes, online chances would be the best for Aramex Inc. and partners (Jacoby).
Nevertheless, when there is a negative outcome, it is advisable to separate some failure from the team. Reasons such as change in market needs and fund shortages can be used to justify the position. It is sensible to set up other assignments for online project management experts from Aramex Inc. and associates.
The CEO may as well lay strategies by removing the experts from the project so that attention shifts to other projects. However, such moves usually weaken the expert’s desire in bringing crucial changes to the project, especially if they are required to take part on priority projects. Such moves results into indefinite suspension of the project. Therefore, the Chief Executive Officer should come up with a strategy of saving the experts from public embarrassment and motivating them towards efficient service delivery.
Works Cited
Aramex Inc 2011. Products and services. Web.
Blanchard, David. Supply Chain Management Best Practices, 2nd. Edition, London: John Wiley & Sons, 2010. Print.
Halldorsson, Arni, Herbert, Kotzab and Tage Skjott-Larsen. Inter-organizational theories behind Supply Chain Management – discussion and applications, Berlin: Physica Verlag, 2003. Print.
Harrison, Allan and van Hoek, Remko.Logistics Management and Strategy: Competing Through the Supply Chain, London: Prentice-Hall, 2008. Print.
Jacoby, David.Guide to Supply Chain Management: How Getting it Right Boosts Corporate Performance (The Economist Books), London: Bloomberg Press, 2009. Print.
Larson, Paul and Halldorsson, Arni. “Logistics versus supply chain management: an InternationalSurvey,”International Journal of Logistics: Research & Application, 7 (2004): 17-31. Print.
Lavassani, Miri, Movahedi, Bahar and Kumar, Vinod. “Developments in Theories of Supply ChainManagement: The Case of B2B Electronic Marketplace Adoption,” The International Journal of Knowledge, Culture and Change Management, 9 (2009):85–98. Print.
Mentzer, John, William, DeWitt, Keebler, James, Soonhong, Min, Nix, Nancy, Carlos, Smith, and Zach, Zacharia.“Defining Supply Chain Management,”Journal of Business Logistics, 22(2001):1–25. Print.
Movahedi, Bahar, Lavassani, Miri and Kumar, Vinod. “Transition to B2B e-Marketplace Enabled SupplyChain: Readiness Assessment and Success Factors,”The International Journal of Technology, Knowledge and Society, 5 (2009):75–88. Print.
Simchi-Levi, David and Kaminsky, Philip.Designing and Managing the Supply Chain, thirdedition, London: McGraw Hill, 2007. Print.
Wieland, Andreas and Carl, Marcus, Wallenburg.Supply-Chain-Management, Berlin, stĂĽrmischen Zeiten, 2011. Print.