Research Paper on Designing an Efficient Supply Chain: Balancing Transportation, Inventory & Manufacturing

Paper Type:  Research paper
Pages:  7
Wordcount:  1772 Words
Date:  2023-09-25

1. Introduction

1.1 The project

A supply chain involves a network between the producers, the customers, and the organization, aiming at a prosperous supply of materials and products from one location to another. Supply chain design involves the process in which a company manages and structures its operations in the supply chain to identify the right balance between transportation, inventory, and manufacturing (Fahimnia, 2017). When designing a company's supply chain, there are several considerations like the market requirements that a company should identify for a successful supply chain. Supply chain design or redesign requires ideal decisions for the development and application of the strategies made. The policies vary depending on the functions the company performs in the supply chain sector.

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Project Objectives

  1. To develop a design of the supply chain for Ingredion Inc when dealing with sweeteners in North America
  2. To evaluate the supply chain practices which Ingredion Inc can apply in its operations in North America


The project focuses on designing and redesigning the supply chain of Ingredion Inc. The project is confined in the supply chain, where it will identify the best strategies and policies which can improve the design and operations in the company’s supply chain. The approach the project will give can help the company to enhance its supply chain by implementing them within the organization. The project's target company was Ingredion Inc, which deals with the production of sweeteners. The main aim of developing the plan was on the target company.

Project motivation and significanceThe project is essential to the employees and management in Ingredion Inc because they will understand the best ways in which they can apply to design the supply chain in their company. The project will also help the companies in the food, beverage, and pharmaceuticals industry understand the strategies they can use to improve their supply chain. The project is essential in shaping the supply chain's future in the food, beverage, and pharmaceutical industry and thus enhancing better operations that contribute to competitiveness in the market. Ingredion Inc can rely on the project for strategies in designing the company's supply chain, which can help satisfy the customers, hence improving the business's performance.


One of the main limitations in the development of the project involves a lack of adequate previous research studies which explain about Ingredion Inc. referencing before the project is helpful because it ensures that there is the completion of the project with appropriate literature that expounds on the study topic. However, depending on the company selected for the project, there are limited resource materials for reference; thus, some information will be assumed.

1.2 A Transitional Paragraph for Upcoming Sections

Ingredion Inc is a global company with operates in the food, beverage, and pharmaceuticals industry. The company has different functional areas within its premises. One of the functional areas is the supply chain, which deals with products like sweeteners. The project will explain how to design a supply chain of Ingredion Inc through the implementation of different supply chain strategies for improving the company's performance and the enhancement of competitive advantage in the company. The project describes Ingredion Incorporated and the current situation of the supply chain in the organization. The section of the design, a redesigning of the supply chain of Ingredion Inc, is included in the project. The chapter explains different supply chain strategies related to customer relationships, procurement, and administration of the supply chain. Objectives and a plan are given for the implementation of the approach in the company.

2. The firm

2.1. Firm’s introduction

The project develops a supply chain design of Ingredion Inc, which is an existing company. Ingredion Inc. is a global public company that manufactures and supplies ingredients. The company's headquarters are in Westchester in the U.S (Gourineni, 2018). Ingredion Inc. was founded in 1906 as a corn product refining company when leading U.S corn manufacturers merged. Some of the products that the company produces include oil, glucose, sweeteners, and starches. Ingredion Inc supplies its products to customers in over 120 countries worldwide. The company was initially known as corn products international until 2012 when its name changed to Ingredion Inc. The company has research and development centers located in key global markets (Nithisathian, 2018). The company has an estimated number of employees of 11000 around the world, out of which 1100 are short-term workers.

The mission statement of Ingredion Inc. involves bringing together the potential of individuals, nature, and technology to produce ingredients that enhance people’s life. The purpose of the company is to integrate passion and creativity to make life better. Ingredion Inc. works jointly with other sectors, including food, paper, beverage, animal nutrition, and other industries, by providing ingredient solutions to serve its customer base well. The company's vision eludes that the firm is committed to supplying its consumers with excellence, inventive ingredients that are on fashion, and high demand. The company upholds the virtues of bold creativity and innovation, care, and integrity, which enable the employees to take the responsibility to act in the interest and benefit of the company. Bold creativity allows workers to strive for relentless innovation and to improve performance.

One of the main strategies of Ingredion Inc. is to foster growth in the ingredient specialty by concentrating on many trends that cause changes in the beverage and food sector. According to the company website, Ingredion Inc projects to use this strategy to grow its sales by a range of 32% to 36% by 2022. Ingredion Inc can boast of its excellent value proposition and intends to combine its strength to improve its sales. The firm is aligning its operation policies with the food industry changes since they have significant effects on the company’s customer base. Ingredion Inc. stakeholders are optimistic about meeting the firm’s growth projections by using endless creativity opportunities in production and supply of high quality products. Another strategy of Ingredion combined is its unique international reach and local touch. The company supplies its products to various countries worldwide. For instance, research indicates that companies that take the necessary actions to balance their capacity and product demand continue to gain consumer loyalty (Juanamasta, 2019). Ingredion Inc. intends to use its ability of technological advantage and market model to connect to consumers locally and globally.

2.2. The current situation of the supply chain of the firm

Ingredion Inc uses supply chain analysis in its supply chain to deal with the changes in the demand of sweeteners. The company applies the hedging policy to deal with the changes in the price of corn from the Chicago board of trade. The system has enabled the company to reduce production costs and hence the cost of supply of sweeteners. According to the company website, Ingredion Inc mainly deals with the production and supply of sweeteners to various parts of the world using corn. The primary raw material in the production of sweeteners is yellow corn. The company has been facing the problem of price fluctuations in its supply chain of sweeteners. The firm anticipates that the supply of corn in the United States will continue to be steady since it affects the supply chain of sweeteners. The company website indicates that the supply chain of corn has been adequate for Ingredion Inc's domestic use, especially in its sweeteners production process. The steady supply of corn ensures that the company produces and supplies sufficient amounts of corn to its customers.

3. Design or redesign of the Supply Chain

3.1 Customer relationships

Customer relationship strategy for the firm

A customer relationship involves the method in which a company interacts with customers to improve customer experience. A company becomes successful when it concentrates on building the connection between the firm and its customers. Customer relationships involve marketing communication, customer service, sales support, and assistance in technology (Armstrong, 2018). Ingredion Inc needs to be significant in developing customer relationship strategies to improve customer experience with the company products and services. There are several elements which the company can focus on so that it can improve its customer relationship.

One of the elements is communication. The company should apply the strategy of communicating like people and not the way robots do their communication. Customers prefer a company that communicates through reflecting the primary segment of the customer (Eggert, 2018). Therefore, when Ingredion Company communicates with its customers, it should focus on the communication of its brand through words and images that inspire people's emotions. The inspiration people receive from the brand's communication makes them attracted by the business operations and thus gets associated with the firm (Stevenson, 2012, pg. 84). Another strategy for connection to building the customer relationship involves communication, which is rapid and frequent. Technology is advancing in the communication sector for companies. Ingredion Inc should focus on looking for ideal technological software to ensure prompt and regular communication between the company and its customers.

Another element of the customer relationship strategy involves forecasting. The company should come up with ideal steps to apply in the forecasting of demands (Stevenson, 2012, pg. 82). Before the company considers building a customer relationship, it needs to identify the type of customers it will serve based on the customers it wants to reach in the market. Identifying the customers makes the business analyze the profitability from the customers, thus aligning its organizational goals with the target customers (Keiningham, 2020). Another customer relationship strategy the business can apply involves evaluating the unique customer needs using its sales and marketing processes. Ingredion Inc can depend on the customers' feedback to identify the individual needs that other companies have not satisfied and focus on them as a strategy of meeting the customer needs.

Objectives to achieve the strategies

One of the objectives when achieving customer relationship strategies involves satisfying the customers. Happy customers become loyal to the products of the organization because of the satisfaction they receive. When the organization enables customer satisfaction, this is the surest way to achieve customer relationship strategies. Satisfied customers become connected to the brand, and this ensures the customer relationship strategies get achieved (Pansari, 2017). Another objective when the company wants to meet customer relationship strategies involves improving business efficiency. When Ingredion Inc concentrates on improving its operations for efficient business with the customers, it helps the company achieve its customer relationship strategies. A business needs to focus on essential objectives that ensure a strong customer relationship (Pedron, 2016). The plan set for achieving customer relationships is implemented; a set of goals should be followed to ensure the strategies' achievement.

Plan for achieving set objectives

A plan involves a method of achieving something. When an organization wants to make an objective, it focuses on how it can reach them. To achieve customer satisfaction, which is an object...

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Research Paper on Designing an Efficient Supply Chain: Balancing Transportation, Inventory & Manufacturing. (2023, Sep 25). Retrieved from

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