Jotun Paints Supply Chain Case Study

Question

Task: This will be done at the end. What is required here is an overview of what your report will be about.
a background might include the following information : type of business; its goals and achievements and even a brief insight on its challenges ( supply chain network challenges)
For some firms, the design of the supply network or the supply chain would have been a major contributor towards many operations and supply chain related issues of the firm.
First you can highlight the issues facing the firm
Then you attempt to outline a range of supply chain strategies you might propose to address them. These strategies must include a change of the current network design with two designs to be proposed . It is best to draw them, establishing arguments for its benefits and relevance to your firm’s current challenge or position. For example : a network design with multiple supplier tiers and many distribution hubs might be a recipe for delays and increased logistics cost.
So try to understand the current network design and attempt to redo / reshape it.
An overview of Porter will do well here at first. In the case of secondary activities and their contribution, IT, for example will be required to align or configure the software to suit the new design. For example, a network that integrates the upstream vendor through vertically backward integration will see the supply side of the business fully adopting the existing software. HR can support the design by restructuring staff within the various supply chain functions. Can you give an example with the primary function's input ?
Integrating the supply chain will support the network, helping it to better meet its long term objectives. You should build on this argument. Discuss strategies that will help integrate the network. For example, vertically backward and vertically forward integration; partnership sourcing and so on.Many other strategies can be explored. What about Supplier relationship Management? Can this also help here?
The report shall not exceed 2,000 words and should include relevant examples and illustrations.
Interesting question. To shift from push to pull will require a new business model. This strategy will see a review of the existing suppliers, aligning them to the JIT model ; quality needs to be given greater focus as well a culture of quality must be adopted. A lean and agile philosophy must also be integrated here. You must make mention that this is hardly possible for all firms or all items or services provided by the firm. These pointers and more can be discussed in your plan / strategy.
Present an argument for the other approach as well, where some firms, like the one you would have chosen, have also re-shifted to Anticipatory base models.
The market ; the type of business ; your location ; culture ; cost ; capability of existing software ; your supply chain model / network
Again, explore these areas and others. supplier development ; SRM ; VMI; TQM initiatives
First you must understand the purpose of this model. In a nutshell, it promotes a high level of collaboration with key stakeholders, including marketing and sales with supply chain best practices. In terms of its contributions, the concepts aim is to : ‘improve inventory management, shorter cycle times, increase in sales revenues, stronger relationships between trading partners, better overall system visibility, customer service and improved cost structures’. See link here : https://scialert.net/fulltextmobile/?doi=ajie.2010.89.104
So in terms of its contribution, you should discuss them within the above benefits. It fights the bullwhip effect avoiding reaction to customer demand and promotes predictiveness instead
For video presenters, you are required to show a sketch of your illustrations in the video. However, your main purpose is to deliver an insightful video chat that addresses the areas below.
Learners must make reference to the organisation mentioned above in answering the following questions. Further research on your organisation’s brand might be required:
1. Examine and discuss the supply chain (cross functional) drivers of your organization’s business model. These are drivers that exist within the supply chain network, cutting across different regions, sectors, cultures etc. Examining and discussing them will involve outlining them and discussing how they are affecting or will affect your firm.
2. What are some of the challenges the globalization of your organization’s supply chain has faced over the years and in the current business context and what could or could have been done to mitigate these circumstances? The report shall not exceed 2,000 words and should include relevant examples and illustrations.

Answer

1. Examine and discuss the supply chain (cross-functional) drivers of Jotun Paints
Cost
The company considered in the present supply chain case study should also keep an eye on the prices of their products; if the price of the products is low then the customers will be more interested in buying. Using this method company can store their goods in an efficient place and deliver such products directly to the customers who prefer such products (Sen et al. 2019). If Jotun Paints deliver their products directly to their customers then the position of the distributor or dealer will be abolished. This will reduce the cost of the products and which will be more profitable for the company (Christopher, 2016). The Jotun Paints brand does not focus on the use of this method because it can lead to delays in development processes due to a major focus on transportation of the goods. But this process outlined in the supply chain case study will give the benefit both the company and the customers. Low cost than other companies will give an extra advantage to Jotun Paints.

Supply Chain network and Strategy modification based on customer’s feedback
Jotun Paints should create its app which will help the customers to buy their needs directly from the company. As per Aguwa et al. (2017), in this kind of application, the company can add a feedback section, where the customers can give their experiences as feedback. Then the company can easily access the positive feedback as well as negative feedback. Thus, the authority of the company can enlist their plans about the up-gradation. Jotun Paints should modify their enquiry response team, by which they can help the customers within 24 hours. Besides that, the company should follow the statements of the critics which will act as guidance to rectify the negative sides of the company. Articles posted by the customers can also help the company to make a reputation in the market. Digital advertising by using other social platforms will give the company more chances to reach more customers (McStay, 2016). By using the 24 hours delivery process to the customers the goodness of the company will be increased. They should distribute templates in different areas of the country to increase the chances.

Service efficiency
In supply chain case study, Jotun Paints must always strive to give all the facilities to the customers who are buying their products like when a customer buys a product, the salesman of the company have to give the customer a complete idea about the product and have to logically explain why the customer should by the product. As stated by Tseng et al. (2018), even the returning policy of the company needs to be efficient and easy for the customers. Jotun Paints needs to create credible advertisements about their service qualities to satisfy the customers. If the knowledge about the products is easy to access able for the customers then it will attract then towards the products. Besides that, the delivery timing and returning process should be more accurate.

Efficient logistics
Jotun Paints should make several transport centres throughout the whole country from where they can provide all their services in different parts of the country. As per the supply chain case study, the authority needs to increase their contact with the local people to gather more information to cover every area of the country. An upgraded GPS centre will give the transporters all the accurate destinations (Zong and Shao, 2017). If this kind of transport system is available to the company then they can provide all their services to the customers easily which will be beneficial for the salesman too.

Different Cultures
Contractual conditions are different in different countries and some countries, constant change in tariffs, customs and labour conditions are conditions for success. This situation occurs in Brazil. However, in Central America the culture is different and workers might refuse to work until there is an exorcism that has been performed in the warehouse they thin to be haunted. They do not want to work to gather raw materials and assemble products and parts for manufacturing in those warehouses. Considered to this, continuous chaos for invasions and internal conflict has favored degradation of the supply chain. Though in some areas these factors outlined in the supply chain case study have been strength for companies since few new employees could be employed who turned out to be autocratic leaders.

There is very little tolerance for deviance and employees are expected to obey rules of production that are concerned with the existence of materials. There is an emphasis on cleanliness, authority and punctuality of manufacturing till supply.

Various sectors
The whole population's trends impact international trades and from a sectorial view, the potential impacts on different supply chains are different. The governments invest in infrastructure and demographic characteristics of the population would influence different manufacturing and supply policies. The supply chain case study depicts that supply chain is highly dependent on growth and decline of the population of a certain area Nations with declining birth rates would face a shortage in labor in different sectors like manufacturing and distribution. This difference would affect supply chain vice versa.

Different cost-cutting based on regions
Different areas have different needs in regards to the implementation of supply chain processes. Cost-cutting processes are dependent on the efficiency of the location to provide proper infrastructures. In case, the location provides a proper infrastructural design for the transportation of raw materials and transportation processes, the brand can cut costs for transportation (Pflaum et al. 2017). The availability of interlinked roads and ease of access can lead to positive effects on transport and thus can prevent the company from spending financial values in additional developments for transport options. Similarly, to ensure proper operations of the Jotun Paints brand, investments are necessary for terms of procurement of equipment for efficient paint development. However, it is also provided in this section of supply chain case study that the profits of the brand are different in various locations and thus some locations do not need investments. The financial values gained via profits in these specific locations contribute to the efficiency of the organization to buy the necessary equipment without additional investments (Pflaum et al. 2017). Similarly, procurement processes are different in various locations. In case of the availability of Jotun Paints and Jotun Petrochemicals in the same country, it can lead to efficient procurement processes which contribute to better cost-cutting. However, in locations with a lack of petrochemical subsidiaries, the Jotun Paints brand can face major losses in terms of financial values.

2. What are the challenges of the globalization faced by Jotun Paints and ways to mitigate these circumstances discussed in the supply chain case study?
Challenges of Globalism for Jotun Paints
Since technological advancements and benchmark achievements in global interconnectedness among countries, Jotun Paints have leveraged diversified business accommodations and geopolitical infrastructure. The company has developed its outsourcing services in more than 100 countries; various distinct interdisciplinary global economies have threatened regional development and the employment market. Many questions have been raised regarding the ethics and long-term feasibility through global business expansion (Heikkinen et al. 2016). Moreover, regional regulatory compliances, sustainability policies, traditional cultural values, unethical labour practices and insufficient organisational structure have created massive challenges for Jotun Paints to incorporate productivity and profitability within the international market.

Ethical Business Practices
As per the studies considered to prepare this supply chain case study, the growing concern for ethical standards and business practices in various distinct areas such as labour, product safety, corruption and regulatory compliances have challenged the business development of Jotun Paints to confine potential regional markets. Various unethical labour policies, low wage workers, poorly designed organisational norms in developing nations have created comprehensive limitations for Jotun Paints which affected brand image and reputation. Inappropriate implementation of regional and international trade laws and ISO certified standards have negatively influenced bribery and corruption especially in developing countries (Petschow et al. 2017). Pressure from local peers, locally accepted malpractices and child labour recruitments have significantly disrupted JP's production and distribution channels.

Legal and Regulatory Structure
Uniqueness in regional trade laws and business regulations policies alongside inadequate government support have threatened the company's collective objectives due to insufficient knowledge regarding applicable regulations and customs duties. Lack of expertise in legal advisory systems, fluctuating investment policies and international trade conventions have disrupted the supply chain and logistics which resulted in a shortage of resources, and significantly affected strategic operations. Differences in taxation policies and tax return laws have created complications in revenue streams and forced the organisation to face lawsuits and penalties.

Lack of Leadership
The present supply chain case study examines that globalization has facilitated Jotun Paints to uncover potential markets in developing nations. However due to geographical location, fluctuating global economy, inflation rates and availability of resources have increased the shortage of effective organisational leadership. Differences in core business administration such as language barriers, social segregation, cultural diversity and management style have challenged Jotun Paints to develop appropriate leaders with concurrent knowledge and diversified skills to approach a given geographical market (Ituarte et al. 2016). Due to poor educational programs in regional areas, the shortages of leaders with high intellectual competencies have affected the company's global business strategies.

Public Relations
In this supply chain case study, Jotun Paints has gained a significant reputation in developing countries, and poorly maintained corporate social responsibilities and public relations have created massive limitations to localise the message. However, the company has provided extensive employment opportunities for local communities and gained significant momentum.

Lack of Resources and Expertise
Lack of resources in regional areas and less support from the government has affected the procurement of necessary supplies for productions and lowered the quality standard. These challenges have forced Jotun Paints to overspend on the procurement process. In addition, globalization has affected the regional economy which resulted in factory closures, layoffs and high unemployment rates. These factors have pushed skilled labours to shift towards other industries for the betterment of society and individual wellbeing (Pflaum et al. 2017). Moreover, climate change and global pandemic like COVID 19 has disrupted commercial activities and supply chain and logistics services. Lack of proper technology in training and transportation services, poor communication facilities and inadequate technology have created limitations for Jotun Paints to leverage workers.

Regional Society Structure
The insufficient infrastructure of regional economic frameworks with minimal availability of high-quality transportation routes, water supply, electrical grids and telecommunication have blocked sustainable development programs of Jotun Paints (Zong and Shao, 2017). Various other inadequate services such as property rights, juridical system, financial systems and basic social services are becoming more fragile as transportation and logistics services are interrupted more frequently.

What are the mitigation strategies for Jotun Paints presented in this supply chain case study?
Globalization has emerged as a new trend with upgrading techno-centric visionaries for multinational companies to expand business across geographical and cultural barriers. Of Course fluctuation in the regional economy and regulatory compliances has raised concerns for Jotun Paints. However, Jotun Paints can explore new geographical marketplace with adequate leadership and social awareness attributes to turn uncovered opportunities into profitable ventures while complying with international and regional perspectives (Amankwah-Amoah et al. 2018). The company needs to create standardized organizational capabilities, train local workers and incorporate undisrupted supply chain management to minimize occupational hazards and labour shortage.

Cultural Differences
The readings used to prepare this supply chain case study signifies that cultural challenges are significant for business ventures, and Jotun Paints needs to localise their products by giving cultural identity to serve regional purposes. Various demographic barriers such as language, social infrastructure and religious diversity need to be taken into consideration to encourage consumerism in specific geographical locations (Khan, 2018). Recruitment of local workforce, use of translators and dual-language interpreters can be incorporated to enhance organizational objectives.

Regulatory Problems
As illustrated in the supply chain case study, globalization has facilitated the regional economy and influenced regional governments to assist multinational companies to conduct ethical businesses. However, the company needs to continually update and enforce regulatory policies to diminish uncertainties and miscommunications. Effective understanding of sustainability policies, taxation laws and international trade Conventions are essential for Jotun Paints to streamline operations globally (Milovanovic et al. 2017). The company also needs to provide fair wages, implement ISO standards, and eliminate child labor involvements to incorporate ethical corporate governance system.

Resources Limitations and Supply Chain
Resource limitations are massive constraints for multinational companies which forced organizations to develop better quality and innovative workforce to execute business strategies. To survive within the global economy, it is mentioned in the supply chain case study that Jotun Paints needs to evaluate the availability of various resources such as raw materials, skilled labor, services while leveraging properly with sustainability and legal obligations. The company needs to create standardized learning programs to educate international and domestic workforce regarding company's functionalities (Kashem et al. 2016). Development of localized supply chain attributes, undisturbed logistics network and selection of transportation modes are also necessary to take into considerations for futuristic progress within the global economy.

Implementation of Technology
Jotun Paints consider exponential and disruptive technologies in production and R&D pipelines to shapely reduce the cost of entry by developing new products and training programs for regional areas. The company explored in the supply chain case study needs to consider a distributed information system to streamline operations across the globe while mitigating energy consumption, counterfeit products and deceptive involvements.

Reference List
Aguwa, C., Darlington, E., Etu, E.E. and Monplaisir, L., 2017. Fuzzy-Based Integrated Customer Satisfaction Index to Enable Engineering Change. Supply chain case study In IIE Annual Conference. Proceedings (pp. 1036-1041). Institute of Industrial and Systems Engineers (IISE).

Amankwah-Amoah, J., Osabutey, E.L. and Egbetokun, A., 2018. Contemporary challenges and opportunities of doing business in Africa: The emerging roles and effects of technologies. Technological Forecasting and Social Change, 131, pp.171-174.

Christopher, M., 2016. Logistics & supply chain management. Pearson UK.

Heikkinen, H.I., Lépy, É., Sarkki, S. and Komu, T., 2016. Challenges in acquiring a social licence to mine in the globalising Arctic. Polar Record, 52(4), pp.399-411.

Ituarte, I.F., Khajavi, S.H. and Partanen, J., 2016. Challenges to implementing additive manufacturing in globalised production environments. International Journal of Collaborative Enterprise, 5(3-4), pp.232-247.

Kashem, S.B., Wilson, B. and Van Zandt, S., 2016. Planning for climate adaptation: Evaluating the changing patterns of social vulnerability and adaptation challenges in three coastal cities. Journal of Planning Education and Research, 36(3), pp.304-318.

Khan, H.A., 2018. Globalization and Leadership Challenges. In Globalization and the Challenges of Public Administration (pp. 69-99). Palgrave Macmillan, Cham.

McStay, A.J., 2016. Digital advertising. Supply chain case study Macmillan International Higher Education.

Milovanovic, G., Milovanovic, S. and Radisavljevic, G., 2017. Globalization-The Key Challenge of Modern Supply Chains. Ekonomika, Journal for Economic Theory and Practice and Social Issues, 63(1350-2019-2767), pp.31-40.

Petschow, U., Rosenau, J. and von Weizsäcker, E.U. eds., 2017. Governance and sustainability: New challenges for states, companies and civil society. Routledge.

Pflaum, A., Bodendorf, F., Prockl, G. and Chen, H., 2017. Introduction to the digital supply chain of the future: technologies, applications and business models minitrack.

Sen, A., Mishra, T. and Jain, S., 2019. REDUCTION OF COST AND TIME OF A PRODUCT USING SUPPLY CHAIN MANAGEMENT.

Tseng, M.L., Lim, M.K., Wong, W.P., Chen, Y.C. and Zhan, Y., 2018. A framework for evaluating the performance of sustainable service supply chain management under uncertainty. International Journal of Production Economics, 195, pp.359-372.

Zong, X. and Shao, H., 2017, March. Design of cold chain logistics remote monitoring system based on ZigBee and GPS location. In AIP Conference Proceedings (Vol. 1820, No. 1, p. 090013). Supply chain case study AIP Publishing LLC.