SUPPLY CHAIN MANAGEMENT Name: Laikhan CASE STUDY

In this case i wanted to learn about the problem of development of the Supply Chain differences  and especially what’s  collaboration, integrated value and integrated Supply chain. Because in my opinion Mongolian trade market has a huge judgment  and i took an example of Supply Chain of Mongolian red meat market and i write about more details in Supply chain management class. Also i wrote more detail about every process between herder to Mongolian meat Supply chain . Supply chain members is  aim would be take fastest and high quality products to consumer in right time, right place. And we can not  describe Supply Chain  without logistics. There is no poor education of managers, reduce risks in company, export and import products  buy or sell products and much more actions If you take perfect control in Supply Chain.

About supply chain: Before the information age (now day’s) , company  is process and deliver to a customer from warehouse  about  30 days.  Those age company is ordering process was complicated. Company is usually use phone , fax and mail etc process measurement is series depend each other and planned the average receive and ordered time was too long. Customers want more wide choice of products and services and demand continue to growing. At That time company made often wrong process. Example long lead place in order between receive order ,  time  such as inventory out-of-stock, lost or misplaced work order, or a misdirected shipment, total time to service customers increased.  Main reason was information flow lack , calculate incorrect forecasts and also  long lead time create Bullwhip effect is not good other supply chain members. Supply chain is  one of the  aim is  reduce lead time. Every supply chain member is increase purpose value, but  there still have mentioned above problems.

 Now day is supply chain partners knows benefit of   integration and collaborating and there are collaboration each other example   supply chain channel members, trading partners, and customers and there are improve operating efficiency. Those channel work together develop as the relationship between together for better competition , reduce cost, share information , lower wastes, faster in development, production and sale,  lower cost, stable business forecast, this relationship is  become hard to break.  

What is integrated value there is have Economic value more  relative to purchase, fixed assets to achieve the lowest, total landed cost. Market value  Combination of product attractive to customers. Relevancy value at the right time, place with right products of value-adding services. After integration we will have these three value.  What is the integrated supply chain consist of Downstream distribution  network to consumer, upper stream supply network from materials, connecting each other flows .(1. information is ITC, payment or , market forecasts etc, 2. product, service is sale to SC is physical product, 3. Service is also not physical , example hotel, financial,  develop something etc, and also  4.knowledge flows ).

As I said reduce the cost of actions will directly effect to consumers and cost so it could bring much more benefit to company. Collaboration has a lot of benefits. Long-term supply chain collaboration is cost savings and increasing the benefits to both.  Also the increasing importance of collaboration has positioned the supply chain as a primary unit of competition skill and increase customers and state them.  The collaborative legislation served to facilitate       cross-organizational sharing of operating information, technology, and risk as ways to increase competitiveness.  Now i want to prove that weak side which is integration and collaboration of Mongolian meat trade . I want discuss current state of the red meat industry in Mongolia and suggests changes that need to be made in the organization of the industry, management of animals on farms and along the SCM processing system. It emphasizes that the Mongolian meat industry needs to move away from “production-focused” to become “consumer-focused”.  Mongolia must imitate the meat processing systems of competing countries and follow international safety standards. As the general level of profitability, hygiene, management and red meat production efficiency at which the Mongolian industry is operating is currently very low by world standards, it is expected that it will take Mongolia many years to become competitive in international markets. The Mongolian meat industry is a meat production and selling system and not an integrated meat industry of the kind normally seen in international marketing systems.  Compared with major meat exporting countries, Mongolia has a non-integrated, segmented supply chain, with no coordinated strategy. Businesses  the Mongolian meat supply chain appear to consider their individual  interests only and there are do not interest whole supply chain.  

The private sector must form associations, share information and work collectively to make the industry consumer-focused and thus successful. Mongolian meat industries need to collaborate and integrate , share information, more need to understand SCM.  Most of this meat comes from animals slaughtered outside the abattoir system. The Mongolian population prefers to prepare meat by traditional wet-cooking methods. By international  food preparation standards, such cooking methods are uncomplicated and do not demand differentiation of meat on the basis of tenderness, color , age, sex, fat marbling, etc. All cuts of the animal carcass are sold for the same price, or for very slight price differences, and there is no consumer demand or pressure for price differentials.. This has translated into a single  rice per kg paid to herders for animals of different quality. Herders increase their incomes either by selling more or bigger animals. They do not pay attention to animal quality, based on objective, measured specifications, as occurs in developed international meat trading nations. World production of meat will be about 283 million tons. Mongolia’s contribution to world meat exports is very small  only 0.5%.

The Mongolian meat industry is seeking to enter the international meat trade and to add value to its meat through processing it. Adding value to meat, as seen in meat exporting, is mainly through sectioning and packaging the animal carcass into individual cuts which suit the needs of retailers. Mongolia’s capability, but objective judgments will have to be made about all components of the current meat supply chain from on-farm production to handling, transport, animal slaughter, selling and marketing systems. The domestic meat market is the controlling factor for Mongolian meat production. Mongolians prefer traditionally killed meat, and due to its limited spending power the Mongolian population places downward pressure on meat prices changes. The profit margins in the Mongolian meat supply chain are not sufficient to allow any traders/abattoirs to invest in infrastructure improvements. The cost of developmental and operational finance for businesses makes borrowing for infrastructural improvements along the meat market supply chain uneconomic.  Mongolia and also need to improve logistic system an the road transport system is not well developed for collecting and moving livestock or meat over long distances in a fast and efficient manner. Knowledge, technical expertise in physical operations, communications methodology and market supply chain co-ordination are all critical for the smooth and competitive operation of a meat industry. Mongolian have total 34 export company , there are need to increase knowledge and labor skills of personnel in modern meat industry technology and world best practice. Mongolian private industries, slaughter center,  herders, there are need to study about SCM especially collaboration and integration management  and we have to increase exports to world meat market.