Operation systems and Concept to Solve Problem

• As we mention before, The Cups Corporation are involved in manufacturing beverage and food and their products are classified under fair trade. In other words, they are market their product both locally and globally with oversight by certain body/organization that will ensure that the price are fair, the information at the packaging are disclosed properly and so on. As they involved with international market of course there are certain problem that arises during running their business effectively and efficiently but they take the problem as a challenge and try to solve it as they can. Some of the problems that we have identified are lack of raw material at certain time, storage and distribution problem and other problem with external environment especially competitors. Here, we proposed some of the operation system and concept that we have learned which is able to solve the problems.
• As the business is global market, it must be able to compete with other rival in the same industry. Therefore, it must improve the value of their products and services through enhance process and capabilities, lower cost, better quality, and greater timeliness. Supply chain management (SCM) can be adopted because it’s able to enhance value and reduce cost. Besides that, because SCM is linked to suppliers and customers, so the company is able to manage their production, raw material needed and handle their transportation and storage capacity effectively and efficiently. Through the SCM, raw material shortage can be avoided by have close relationship with suppliers and build a network with the. With technologies advancement, the information of raw material needed can flow directly from The Cups organization to any suppliers and suppliers have direct access to the company’s sales data. As a conclusion, SCM can be used to solve all problems that we have identified.