Tate and Lyle is one of the oldest brands in Britain and is well known for its sugar products, including Golden Syrup and Black Treacle. Their largest refinery is located in Silvertown, near City Airport. The refinery processes 3,500 tons of raw sugar cane per day, which is transported by ships that arrive at their dock every week. The tugs of the Port of London are required to secure the ships' safe navigation of the Thames. The Silvertown Refinery is only one step in the process of bringing Tate & Lyle products from the field to the table; therefore, coordination of their activities entails a great deal more than ensuring that ships dock safely. Tate & Lyle Company employs the services of a supply chain and logistic company and outsources the services of others in an effort to ensure that commodities flow from one location to another; as a result, they face a variety of obstacles.
According to Ganesan and Harrison, a supply chain is the system of distribution choices and facilities that acquires inputs and changes them into outputs for customer consumption (1995).
Despite the fact that Tate and Lyle’s logistics may be experiencing growth as a result of the country’s economic development, there are a number of obstacles on the horizon, ranging from structural difficulties to legislative shortcomings. This has caused the corporation to outsource some of its logistics needs to other companies, such as Abraham Lyle and sons ltd. The following are the most significant logistical issues Tate and Lyle faces:
Despite the massive initiatives being conducted by the corporation, Britain is one of the states with a good infrastructure system; nonetheless, the infrastructures connecting the Silver town Refinery's upstream supply chain and the next tier downstream to the company are inadequate. There are accusations that the lack of integration between the logistics industry and information technology slows down the company's logistical operations.
The British logistics market is highly regulated, and its opening to global competition is proceeding at a glacial pace. The state imposes laws at several levels, and these regulations vary between municipalities, so impeding the sufficiency of the networks.
The boroughs oversee every activity in Britain, and the strength of their networks with state bureaucracy is crucial to gaining approval for any logistical endeavor. There is still a degree of favoritism that necessitates the establishment of strong ties between businesses and their boroughs.
The majority of British enterprises, including Tate and Lyle, have ignored the importance of the logistic department's function by focusing on production and marketing. As a result, they hold very few workshops and practical training on the subject. They have not understood the significance of obtaining new logistics and supply strategies. Lack of implementation of strategic regulatory authorizations to promote this program has contributed to the sector's inefficiency.
In addition, information and communication systems outside of logistical hubs are unreliable, IT standards in the sector are low, and system integration with equipment is inadequate.
The British logistic business is fragmented and controlled by commodities and poor quality transit standards and warehousing infrastructure; this, in turn, provides little of a foundation for the development of a global industry.
On the other hand, the cost of delivering commodities in Britain is high due to high tolls charged on roads, as well as additional logistic costs like as warehousing and distribution fees, which make the entire process costly for the majority of businesses, including Tate & Lyle.
It is believed that approximately 20% of Tate and Lyle's sugar is lost annually due to poor handling and management, and that most stockpiles are damaged or lost as a result of inadequate warehouse facilities.
The economy of Britain is characterized by a wide range of levels of development. This in turn is a hindrance to distribution, as there is a significant imbalance in the flow of commodities, hence increasing the logistic costs.
Domestic taxation has posed a problem for the majority of British businesses, including Tate and Lyle, because commodities are subject to unofficial borough border taxes. This is especially noticeable when transporting items from upstream to downstream.
In an effort to overcome obstacles, Tate and Lyle and other comparable businesses have been compelled to experience a decline in revenue.
Tate and Lyle have also participated in advocacy efforts to urge the government to reduce taxes.
The group has filed complaints with the government about the state of the logistic industry through the organization of logistic providers. This is intended to draw attention to the activities that strain the sector and encourage government intervention, like the domestic tax levied on inter-borough transit.
The company has lately implemented a biannual workshop and training program for its logistic specialists. This program is intended to prepare the company's employees with modern logistical procedures.
In addition, the corporation has carefully analyzed the cost of the supplies, and it is contemplating outsourcing inexpensive components and services in order to maximize profits.
The company has also reduced its investment in the same logistic and supply chain till the expected economic rebound in 2011.
Tate and Lyle are also investing heavily in market surveillance and legislation to comply with state regulations on noise and exhaust pollution. This will lessen the penalties that increase logistical costs.
The company has recently begun investing in the integration of information technology with its warehousing infrastructure. This includes the construction of a state-of-the-art warehouse equipped with complex modern people lifts. This is intended to reduce sugar spills caused by poor handling and mismanagement.
Along with other businesses, the company has written to the government in an effort to prevent unfair competition from non-compliant companies and products. With this, the corporation aims to recover from global logistical issues as the economy improves, most likely through the introduction and use of mass customization in an effort to decrease manufacturing costs and enhance production rate. Unfortunately, corporations that have engaged in monopoly face turf battles when their competitors band together. As corporations strive to gain a competitive edge, price wars develop, resulting in a drop in revenue, quality, and profits. This refers to limitations in the corporate environment that are frequently caused by monopolistic actions.
The idea of constraint emphasizes that organizational accomplishments are dependent on a small number of restrictions and that there is always a constraint in an organization. A constraint is any obstacle to the attainment of the organization's goals; this can be considered as obstacles to the development of the organization. Constraints might be internal or external. At times, the market may want more from the organization than it can provide. This constraint can only be eliminated by utilizing mass customization, a trend that Tate and Lyle should employ.
Similarly, an external limitation exists when a corporation produces more goods than the market can absorb. According to Department for schools, children, and families (2010), the lack of continual training of logistical workers is a concern that gradually reduces the company's productivity. Inadequate equipment, governmental policies, and a deficient warehouse system are further drawbacks. These are some of the obstacles that contribute to the company's internal restriction. Tate & Lyle's logistical issues are best explained by this idea, according to which the organization must identify the restrictions, determine how to exploit the constraint to the company's advantage, and direct all organizational choices toward removing or altering the constraint. Scholars refer to this as the process of continuous improvement. If an organization wants to attain optimal performance, it must eliminate a limitation.
Mass customization refers to the application and usage of a computer-supported manufacturing system to generate personalized goods; the system is adaptable and decreases production costs. According to Chase, Jacobs, and Aquillano (2006), mass customization is a way for delaying the task of differentiating a product for a particular consumer until the latest possible point in the supply chain. ”Mass customisation' is defined by other supply chain experts as the manufacturing of client-specific items at the lowest possible production cost.
The concept of mass customization has been most successful in the electronic manufacturing and call center service industries. There are four primary forms of mass customization: collaborative, adaptive, transparent, and cosmetic. Tseng & Jiao (2001) propose collaborative customization as a measure, in which the client is asked to provide information about how he or she wants a product to serve his or her needs; adaptive customization entails the production of standardized outputs for the clients to make any necessary adjustments themselves. According to Duarte, transparent customisation entails delivering clients customized goods without alerting them that they are customized, whereas cosmetic customization entails producing identical products but marketing them in distinct ways (2001).
According to Aquilano (2006), mass customization offers more advantages than problems. Tate and Lyle's implementation of this strategy will allow them to maximize client satisfaction and capitalize on the available market.
The corporation will reduce inventory and material costs by utilizing mass customization. This will be accomplished by ensuring that items reach the market on time and that production will be less expensive. Reorganizing the efficiency code of ethics is a wonderful approach to make gains inefficient in this situation. Noguchi and Hernandez-Velasco (2005) note that time saved is essential, and that it can assist an organization generate more value in sales owing to on-time delivery and faster sales, particularly if demand is high and supply speed is adequate to fulfill this need.
In addition, they will create based on demand, which will reduce their warehouse costs and other expenses.
Through mass customization, companies like Tate & Lyle will be able to quickly respond to varying customer demands, hence lowering the expenses associated with delays.
Tate and Lye will also be able to supply on time at the lowest possible cost, thereby reducing their inventory risk.
Tate and Lyle, one of the oldest sugar-producing companies in the United Kingdom, can benefit from mass customization. Incorporating mass customization into the sugar packaging process and the use of bespoke folk lifting, as well as the packaging branding, will significantly reduce their product costs and enhance their production rate.
Adsit (2009) highlighted that firms face complex issues in the present day. The necessity to adapt to new technology to preserve efficiency is increasingly obligatory. Supply chain management is an essential business discipline. It is a fundamental process in marketplaces driven by the customer. Numerous firms struggle to adapt to the needs of consumers and the evolving business environment. Core processes require transitional modification. This is a transition from conventional to contemporary supply chain management approaches. This is accomplished by integrating strategy with technology.
Additionally, production rate is becoming a problem. To fulfill the increasing demand for products, corporations are falling behind their competitors in order to survive the tides and meet the production hurdles, according to Pine (1992). Again, technology is useful for overcoming such a commercial deadlock. It is the management strategy supported by sound practices and sound knowledge of how to propel a company to the next level of growth that enables the transition from inefficient to effective production. As such, according to Dawes (1994), a thorough understanding of management practices and technical requirements can go a long way toward ensuring an organization's effectiveness.
Adsit, D. (2009). The evolution of mass customization and the call center industry. Web.
Aquilano, J., Chase, Jacobs (2006). Management of Operations for Competitive Advantage (11th Ed.). New York City McGraw-Hill/Irwin.
Dawes, J, et al (1994). A Critical Analysis of Strategy Typology, Southern Marketing: Theory and Applications, AMI, Australia.
Department for schools, families, and children (2010). R11- Brief overview of the financial management skills required of school personnel. Web.
Customizing Massachusetts Institute of Technology Mass Housing: a discursive grammar for Siza's dwellings at Malagueira. Duarte, J.P. (2001). Ph.D. Dissertation.
Eliyahu M. (1984). The objectives. New York, New York: York Press.
R. Ganesan and B. Harrison (1995). Introduction to logistics and supply chain. New York City McGraw-Hill.
Noguchi, M & Hernandez-Velasco, C.R. (2005). A "mass custom design" strategy for modernizing conventional dwelling development in Mexico. 29(2) Habitat International Press, pages 325-336.
Pine, J (1992). Customizing individuals is the new frontier of business competition. Boston, MA: Harvard Business School Press.
Tseng, M.M., and J. Jiao. (2001). Mass Customization. In G. Salvendy (Ed. ), Handbook of Industrial Engineering, Third Edition. New York: Wiley.