Analysing the Supply Chain Integration of Murray Gourlburn
An integrated supply chain can be a powerful tool, especially as market competition increases and value is focused through the chain as opposed to the individual firm. A successful integrated supply chain can reduce barriers and costs as well as increase value and growth, yet this is only possible if all parties work to the benefit of and are aware of the pressure points impacting each other. In practicality, integrating activities along the supply chain can be a major challenge, with efforts extending beyond the traditional product-process design and functions. Essentially the firm must focus on producing ‘supply chain enhanced’ products and services, with extra-organisational links to suppliers and customers. Analysing the supply chain of Murray Gouldburn highlights the difficulty of integration. This report discusses two main instances that show how internal firm decisions and external customer activities have critically impacted the integration of this supply chain. Noting the market share and influence of Murray Goulburn within the dairy industry, recommendations are industry focused and acknowledge the need for governmental interventions as well direct actions the firm may undertake to ensure greater transparency and communication.
As competition increases across the Australian agricultural sector, especially for the dairy industry, numerous organizations within this sector face increasing challenges particularly surrounding their supply chain management practices. When an organization closely monitors and adapts its supply chain practices, these challenges can be minimised or mitigated. Focusing on one area of issue within supply chains, this report will discuss supply chain integration as analysed through the company of Murray Goulburn. The basic theory of integration refers to the mutual benefits of all parties within that supply chain. In the case of Murray Goulburn, the main parties of the supply chain include its producers, Murray Goulburn, its logistics and distribution arms, retail customers, food service customers and international export customers. As outlined further in this report, Murray Goulburn has faced many challenges with integrating its supply chain, some of which occurring from external industry forces and internal organization and management decisions. The impacts of actions taken to either expand their market share, both domestically and internationally, or respond to increased international demands have created supply and capacity issues to Murray Goulburn itself and all parties downstream the supply chain.
Data collection is a fundamentally crucial process for this analysis ensuring reporting reliability and high quality standards. Qualitative and quantitative data has been collected, however, due to the limited resources and access to primary data, most data is accrued from secondary...