UGI357 MIDTERM

TASK 1

Supply Chain Management is a discipline that involves organizing, managing and supervising the
processes through which products pass from raw materials to their final form. This discipline basically
aims to process all these stages in an orderly manner, control their costs and at the same time
increase efficiency and productivity. The key components can be listed as:

1-) Planning: At this stage, tasks such as using the resources in the supply chain correctly, determining
any disruptions that may occur in the stages in advance and determining a schedule for production in
advance are organized.

2-) Sourcing: At this stage, key issues such as establishing relationships with suppliers, monitoring
supplier performance, and conducting contract negotiations are examined.

3-) Procurement: It includes purchasing, order management, supplier management and cost control.

4-) Manufacturing: Raw materials take the form of the final product. At this stage, important events
such as planning the production schedule and quality control are involved.

5-) Inventory Management/Warehousing: The most important task of this stage is to ensure that the
inventory is large enough to meet demand but small enough not to overwhelm the stock's capacity.

6-) Logistics and Transportation/Distribution: It deals with the shipping, storage and final delivery
process of the products.

7-) Order Fulfillment: Receiving orders from customers and delivering them takes place at this stage.

8-) Reverse Logistics: This is the stage that deals with returns and recycling conditions.

9-) Customer Service: At this stage, customers are contacted and it is learned whether they have any
problems with the product and these problems are tried to be resolved.

10-) Information Flow and Technology: Data flow is provided at every stage of the supply chain.
SPESIFIC ISSUES TO ADRESS

Efficient supply chain management is vital for every country since it has relevant ties with nation’s
growing industries, trade within the country and trade with regional or global partners, improving
competitiveness directly and as a result of that productivity indirectly. That’s why it is also so
important for Uzbekistan’s economic functioning. As we see above, every stage of SCM is important
and should be applied seriously. Efficient SCM can help with reducing costs, offering goods etc.

At the same time, the operation of the supply chain creates room for many business branches such as
drivers, customer service, warehouse workers, IT engineers and more. As we know Uzbekistan wants
to expand its traditional sectors and diversify the economy. Diversification of the economy is so
important for it will make the economy to be able to focus on production in terms of creating new
areas. In this way exporting can also have various benefits. Strategically positioned in Central Asia as a
transit point linking Asia and Europe Uzbekistan, can maximize its location advantage through supply
chain management (SCM) which can cut down on transit durations speed up, customs procedures
and ensure swift and dependable deliveries. Adopting digital SCM technologies, like demand
forecasting, automated warehouses, and real-time tracking, may modernize Uzbekistan's industry
and establish the nation as a center for trade and logistics innovation. Among the difficulties facing
Uzbekistan's supply chain management (SCM) are inadequate infrastructure, expensive
transportation, and a slow uptake of new technologies. Logistics are slowed down by inadequate
storage and undeveloped highways and railroads, particularly for agricultural perishables. Another
issue is the dearth of qualified personnel in the logistics industry and the low adoption of technology
by businesses, which leads to more inefficiencies. By addressing these issues, Uzbekistan's economy
may become more resilient and competitive while also increasing export potential and SCM
efficiency.
CASE STUDY:

Consider a company that experiences delays in the distribution phase. Analyze possible causes and
suggest solutions based on best practices.

If you have a problem in the distribution stage, you probably have another problems in earlier stages.
So let’s try to look at warehousing stage.

Possible Cause: Shipments are delayed because orders cannot be completed quickly due to incorrect
inventory levels or stockouts.

Solution: Check technological errors of inventory data and demand forecasting tools to improve
inventory accuracy.

Or the problem can be in the distribution stage.

Possible Cause: Delivery delays may result from unreliable transportation, poorly managed carriers,
or poorly optimized shipment routes.

Solution: Transport reliability can be increased by negotiating long-term agreements with

trustworthy carriers.
TASK 2

Discuss the principles of effective warehouse management and inventory control. Explain the types of
warehouses commonly used in Uzbekistan and the role of inventory management systems.

Effective storage management is important to avoid any problems during the storage phase. The
storage phase is one of the most important stages of SCM and requires extra care. Because any
problem that occurs during the storage phase can trigger a problem during the distribution phase. So
to establish an effective store management 3 principles should have the main focus.

1-) Efficient Layout Design: Arranging the space in the warehouse to facilitate efficient product
transportation. In order to save picking time, this involves zoning for commodities that are in high
demand.

2-) Demand Forecasting: Using past data to forecast demand lowers holding costs and helps maintain
ideal inventory levels.

3-) Safety and Security: Using surveillance systems, training staff, and putting in place appropriate
safety procedures all help to safeguard inventory and lower workplace accidents.
Warehouses in Uzbekistan:

Cold storage warehouses are vital to Uzbekistan's agriculture industry because they maintain the
quality of perishable items for both local and international markets by keeping them at regulated
temperatures.

Public warehouses are facilities owned by the government or the commercial sector that are available
for temporary or seasonal usage. Small enterprises that require flexible storage space without a long-
term commitment frequently use them.

Businesses own and run private warehouses, which provide them complete control over the security
and storage conditions. Larger businesses that have consistent demand frequently use these.

Inventory Management Systems are critical in modern warehouse operations. They enable real time
visibility, data driven decisions, inventory optimisation and automation. Adopting efficient IMS and
storage techniques can assist increase supply chain resilience, save costs, and boost productivity in
Uzbekistan, where firms confront infrastructure and technology challenges.

Automation simplifies activities in modern warehouses, increasing accuracy and efficiency. Real-time
inventory tracking is made possible by technologies like barcode scanners, RFID devices, and
warehouse management software, which minimize errors while improving stock management.
Robotic arms and conveyor belts are examples of automated picking systems that reduce labor
expenses and expedite order fulfillment. Furthermore, automated solutions for storage and retrieval
maximize available space and enhance product accessibility. All things considered, automation speeds
up processing, improves order accuracy, and boosts overall productivity, enabling warehouses to
better serve customers and optimize supply chain efficiency.
Practical Scenario:

Draft a plan for a mid-sized company in Uzbekistan to reduce inventory holding costs. Highlight
specific strategies and tools that can be implemented.

In order to reduce inventory holding costs let us asses our knowledge on current inventory levels in
given mid-sized company. We should analyze the turnover of stock to understand demand trends and
conduct routine inventory audits to find slow-moving and obsolete products. Also to prevent extra
stock, determine the ideal reorder points based on lead times and demand fluctuations. Software for
inventory optimization can assist in automatically adjusting these levels. So we can see that enhanced
technology is always makes it easier to analyze and see the details when it comes to warehousing
stage. This plan should pay attention on distribution of a budget only on technological developments.
In addition to that, developing technology must be accompanied by teaching staff how to use that
technology. So through workshops and training sessions, teach employees how to use new
technology and manage inventories effectively. Also try to ask suppliers for better terms in exchange
for quicker lead times and more adaptable ordering procedures. In this way inventory holding costs
can be more predictable and controllable.

QUIZZ:

1) At which stage, we establish relationships with suppliers?

a) Distrubition
b) Sourcing
c) Order Fulfillment
d) Reverse Logistics

2) Public warehouses generally used by which of the below?

a) Small entripises
b) Large companies
c) Mid-sized company
d) Suppliers

3) Which one can be included in a plan where you want to reduce inventory holding costs?
a) Enhance technological development
 b) Ask suppliers for better terms
c) Establish workshops for staff
d) All of the above

4) If you have a problem in sourcing stage, you are most likely to have a problem in which other
stage?
a) Planning
b) Manifacture
c) Costumer Service
d) Warehousing

5) Which one can be adressed as a challenge in Uzbekistan’s SCM?

a) Inadequate infrastructure
b) Expensive transportation
c) Slow uptake of new technologies
d) All of the above

Javlonbek Khudoyberdiev 217225006