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Assignment #2

Madhav Batra's internship at Paramount Fine Foods involved addressing challenges in inventory management, supplier coordination, and operational efficiency. He applied supply chain concepts such as Economic Order Quantity and Just-in-Time inventory systems to optimize stock levels and improve supplier relationships. His experience highlighted the importance of data analysis, interpersonal skills, and adaptability in overcoming obstacles and enhancing overall supply chain performance.

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0% found this document useful (0 votes)
25 views5 pages

Assignment #2

Madhav Batra's internship at Paramount Fine Foods involved addressing challenges in inventory management, supplier coordination, and operational efficiency. He applied supply chain concepts such as Economic Order Quantity and Just-in-Time inventory systems to optimize stock levels and improve supplier relationships. His experience highlighted the importance of data analysis, interpersonal skills, and adaptability in overcoming obstacles and enhancing overall supply chain performance.

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Student name : Madhav Batra

Student ID : 202204819
Introduction

As an Inventory/Supply Chain Coordinator intern at Paramount Fine Foods, I encountered a range of


challenges related to inventory management, vendor communication, and operational efficiency. My
responsibilities included managing inventory levels, coordinating with suppliers, and ensuring timely
order fulfillment for various restaurants. Throughout my placement, I encountered challenges that
required creative problem-solving and the practical application of the theoretical knowledge I gained
in class. In addressing these challenges, I relied on foundational concepts in supply chain
management, inventory control, and supplier relationship management, which guided me in making
informed decisions to overcome each obstacle.

Challenge 1: Inventory Management and Stockouts

One of the most pressing challenges I faced in my role was maintaining an optimal inventory balance,
especially given the perishable nature of many food items. The risk of stockouts or surplus inventory
was high, and I needed to ensure that we had the right amount of stock to meet demand without
incurring excessive waste. Early in my placement, we experienced an instance where an
unanticipated surge in customer demand resulted in stockouts for key menu items, leading to
customer dissatisfaction and last-minute procurement costs.

To address this, I applied the principles of Economic Order Quantity (EOQ) and Just-in-Time (JIT)
inventory systems that I studied in my supply chain courses (Heizer & Render, 2017). By calculating
EOQ, I determined the optimal ordering quantities that minimized both ordering and holding costs.
In addition, using JIT principles helped align inventory arrivals closely with demand, thus reducing
the need for large storage spaces and minimizing spoilage. These strategies allowed me to fine-tune
our stock ordering system, balancing the risks of stockouts and excess inventory more effectively.
Furthermore, I implemented daily stock level checks and collaborated closely with suppliers to
ensure that replenishments could be arranged quickly if needed, allowing for a more agile response
to fluctuations in demand.

Challenge 2: Supplier Coordination and Communication

Coordinating with suppliers was another significant challenge, as Paramount Fine Foods relies on
timely and reliable deliveries to maintain smooth restaurant operations. However, I quickly realized
that several suppliers had inconsistent delivery schedules, which occasionally resulted in supply
shortages, affecting the restaurant's ability to serve certain menu items. This challenge was
exacerbated during peak times, such as weekends, when demand was at its highest.

I leveraged Supplier Relationship Management (SRM) techniques to improve supplier coordination


and ensure timely deliveries. My academic background in SRM highlighted the importance of
developing strong partnerships with suppliers to enhance reliability and flexibility (Christopher,
2016). I initiated regular communication with our main suppliers to establish a shared delivery
schedule and built a collaborative relationship that allowed for adjustments based on real-time
demand changes. Through this approach, I was able to reduce delivery delays significantly.
Additionally, I applied negotiation strategies from my coursework to secure more favorable terms,
including flexible lead times and penalties for delayed deliveries. These efforts enhanced our control
over the supply chain and improved the restaurant’s ability to serve its customers reliably, even
during peak periods.

Challenge 3: Managing High Customer Demand during Peak Hours


Another challenge I faced was managing high customer demand during peak hours, especially on
weekends and holidays. The sudden spikes in demand often strained the available inventory and
required quick decisions to reallocate resources. For instance, during a particular weekend rush, we
faced shortages of high-demand ingredients, which forced us to adjust the menu temporarily. This
experience demonstrated the importance of demand forecasting and inventory flexibility.

Drawing on my understanding of the Bullwhip Effect from in-class learning, I implemented a buffer
inventory system for critical items that tended to have unpredictable demand patterns (Simchi-Levi
et al., 2019). The Bullwhip Effect, a concept explaining how small changes in demand can lead to
large variations in supply chain orders, helped me recognize the need for more precise demand
forecasts and efficient stock allocation during high-demand periods. By keeping a buffer stock
specifically for peak times, I was able to reduce stockouts without maintaining excessive inventory.
This proactive approach not only improved customer satisfaction but also reduced the pressure on
the kitchen and waitstaff during busy times, allowing the team to serve customers more efficiently.

Challenge 4: Navigating Interpersonal Dynamics

Working as an intern presented additional challenges related to workplace dynamics and relationship
building. Although my responsibilities required me to coordinate closely with team members across
different departments, I sometimes encountered resistance when proposing process improvements.
Long-term employees were often accustomed to traditional workflows and were reluctant to adopt
new methods I suggested based on academic theories. This resistance occasionally created friction
and slowed down the implementation of new strategies.

To overcome this, I drew upon techniques from organizational behavior courses that emphasized the
importance of active listening, empathy, and clear communication. I took the time to understand my
colleagues' perspectives and carefully explained the benefits of the proposed changes in a way that
addressed their concerns. Demonstrating the positive impact of small-scale improvements helped
me gradually gain their trust and buy-in. By fostering a collaborative environment, I was eventually
able to integrate my ideas into the workflow, improving operational efficiency while maintaining a
positive team dynamic. This experience underscored the importance of interpersonal skills and
adaptability in a professional setting, especially when introducing changes to established routines.

Challenge 5: Data Analysis and Reporting for Supply Chain Decisions

A significant challenge in my role was analyzing and interpreting data for decision-making, especially
given the limitations of our current data management system. The available data was often
incomplete or inconsistent, which complicated the process of generating accurate demand forecasts
and adjusting procurement strategies. Accurate data analysis was crucial for maintaining efficient
stock levels and ensuring that our supply chain met the restaurant's operational needs.

My coursework in Supply Chain Analytics provided valuable skills for data handling and interpretation
(Cachon & Terwiesch, 2020). To overcome data limitations, I applied data validation techniques
learned in class to identify and fill missing data points, enabling me to create more reliable demand
forecasts. I also used Excel and other software to analyze historical sales data and detect seasonal
trends that could influence future demand. These data-driven insights enabled me to make informed
decisions about stock levels, which minimized waste and helped the restaurant operate more
efficiently. The ability to work with data and generate actionable insights was one of the most
valuable skills I developed, as it improved our inventory management and contributed to more
precise decision-making.
Conclusion

Reflecting on these challenges, I recognize that some of these issues could have been prevented with
improved initial planning and stronger communication strategies. For example, establishing clearer
delivery schedules with suppliers early on might have reduced initial delays, and implementing data
validation processes from the start could have minimized inconsistencies in demand forecasts. My
academic training provided the foundation needed to identify these gaps and develop preventive
measures. Overall, my experience as an intern at Paramount Fine Foods allowed me to apply my
theoretical knowledge to real-world challenges, enhancing my problem-solving abilities and
preparing me for future roles in supply chain management. The skills I developed through this
experience are directly applicable to my career goals, and I am confident that the lessons learned will
continue to benefit me in my professional journey.
References

• Cachon, G. P., & Terwiesch, C. (2020). Matching Supply with Demand: An Introduction to
Operations Management. McGraw-Hill Education.

• Christopher, M. (2016). Logistics & Supply Chain Management (5th ed.). Pearson.

• Heizer, J., & Render, B. (2017). Operations Management: Sustainability and Supply Chain
Management (12th ed.). Pearson.

• Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2019). Designing and Managing the Supply
Chain: Concepts, Strategies, and Case Studies (4th ed.). McGraw-Hill.

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