PHASE 2

CONFIGURE THE NETWORK FOR A COMPANY AND DESCRIBE THE PROCESSES

ACCORDING TO THE GSCF

PRESENTED BY:

ABRAHAM MANUEL VILLAMIZAR JACOME CC 1090400144

ANDRES FRANCISCO COLLAZOS CC

ALEXANDER ANTONIO BUSTACARA PRASCA CC 1045698902

FRANCISCO JAVIER TORO PEREZ CC 3133914

JUAN DAVID SANCHEZ OTALVARO CC 1047969350

228001_1

TEACHER

JOHANNA TRUJILLO

UNIVERSIDAD NACIONAL ABIERTA Y A DISTANCIA

FACULTY OF BASIC SCIENCES, TECHNOLOGY AND ENGINEERING

SUPPLY CHAIN MANAGEMENT AND LOGISTICS

2019
 Introduction

Logistics and supply chain is one of the key components to improve the levels of competitiveness
of companies, always keeping in mind the planning, organization and control standards of each of
the activities that make up their economic activity.

It is necessary to understand that the Supply Chain Management integrates each of the key
processes of any organization or business, starting from the end users and linking its start with
the primary suppliers who supply the products, services and information; adding the required
value for customers and all the interests involved.
 Objectives

Objective General

Set up a network for a company and describe its processes according to the Global Supply
Chain Forum

Objectives Specifics

- Develop a structural network for the company under study ARGOS, including Focus
Company, the 3 levels of suppliers and the 3 levels of customers.

Approve the 8 strategic processes according to Lambert in the company under study
ARGOS.

- Prepare a comparative table where the main approaches in supply chain management are
presented according to the SGCF, APICS SCOR and DIANMIC SUPPLY CHAIN
models.

 
 1. Configuration of the structural network for the focus company (ARGOS S.A.), with
a Diagram that includes 3 levels of suppliers and 3 levels of customers.

Illustration 1. Structural network of customers and suppliers

CUSTOMERS
Level 3

Level 2

Level 1

Level 3

Level 2

Level 1

SUPPLIERS

COLOMBIA CENTRAL
USAAMERICA
Cement plants AND THE
7Cement CARIBBEAN
plants 4
Concrete plants 48Concrete plants
Cement plants 9
2
Grinding Grinding
Concrete plants 2
48
Ports/terminals 1Ports/terminals
Grinding 9
6
Ports/terminals 1
 • Identification of network members for ARGOS S.A.

Customers

Large Construction Companies - Subsidiaries in Central America and the Caribbean

Concreteras
Big surfaces
Wholesalers
Retailers
SMEs of construction.

Standing out the most relevant

Illustration 2. Customer levels

CUSTOMERS CONSUMERS
1L 2L 3L

COVIANDES
CONCRETE AND

CONSTRUCTION
CEMENT

NACIONAL DE COMPANIES
PAVIMENTOS
S.A.S
COMMUNITY

MPO CONTRACTOR
CONCRETOS

CONSTRU DEL
SMALL BUILDERS
LLANO S.A.S.
More of 9.000
Customers

CONCRETOS
DEL META
 Suppliers

Extraction of supplies and materials in own quarries

Purchase from other quarries and registered mines
Big surfaces
Transport Companies
Capital Market

Standing out the most relevant.

Illustration 3. Supplier levels

SUPPLIERS

3L 2L
Aggregate Transport 1L
SAND
Transporte HUMADEA MITRACOL
Transporte de Transporte de
agregado agregado
Transporte Transporte
CRUSHED
13

CONCRETE AND
HUMADEA HUMADEA
GRAVICON
Aggregate Transport
Transporte de
NUMBER OF SUPPLIERS

COLTRASUA S.A.S agregado

Transporte
HUMADEA

CEMENT
FINANCIERO
SYSTEM SAND

STONE
Aggregate Transport
MURCIA Y
IBEROAMERICANO
MURCIA
MITRACOL

AGREGADOS
ADDITIVES
Transporte de agregado

SIKA COLOMBIA
Transporte HUMADEA

Transporte de
Courier Company
agregado
WATER
DHL
Transport Transporte
EAAV
BARUCH S.A.S HUMADEA
Transport
e de
ARENA agregado
MITRACOL Transport
Transporte de agregado e
Transporte HUMADEA GOODS AND SERVICES
HUMADE
ANSPORTEEndowments
MORICHAL SERDAN SERTEMPO
Industrial A
Transporte de agregado
BARUCH S.A.S
Transporte HUMADEA
• Structural dimensions of the company network ARGOS S.A (Explanation of its
horizontal structure, vertical structure and horizontal position of the company)

Horizontal Structure

It is considered as horizontal structure the amount of levels that the supply chain used by
ARGOS for its logistics administration can have, in this case and in accordance with the
information found on its website, the following levels can be inferred.
Purchase and own supply, research and development, production in own plants,
management strategies, expansion and sales, distribution through third parties,
transportation (own fleet and third parties).
Levels that correspond to the concepts of Inbound Logistics, Production, Outbound
Logistics, Distribution and Sales.

Vertical Structure

In its vertical structure that corresponds to the number of suppliers or customers per level,
we have:

Input Logistics: Purchase or supply process through various suppliers to acquire high
quality supplies that respond to customer needs, as well as the development of new
environmentally friendly products and important resources and injection management
strategies of capital

Production: of inputs for products through outsourcing with third parties, such as eco-
environmental packaging bags, cutting-edge technology in third-party plants for the
manufacture of inputs, which are outsourced.
Outbound Logistics: Expansion and sales strategies, has a fleet of 2,600 vehicles
nationwide and another important representation in the United States and Central America
and the Caribbean.

Distribution and sales: Supply to national customers through authorized distributors, as

well as at regional distribution points with presence in more than 800 municipalities and
especially tradings for Central America and the Caribbean from Cartagena Plant.

Horizontal Position of Argos S.A today Grupo Argos

Argos SA - Grupo ARGOS, as the initial source of supply, is positioned as the number 1
in Colombia in the manufacture of cement and concrete in 55 own plants (7 cement and
48 concrete) to supply 90% of its national production, The remainder is made through
subsidiaries acquired in partnership processes. At the same time, it has a presence in the
United States and Central America through 6 cement plants and 292 concrete plants,
especially in North America to supply its production internationally.

• Example of types of process links (managed, supervised, unmanaged and non-

participants) for the structural network of the company ARGOS S.A.

MANAGED: These are links in which the main one integrates one or more clients within
a process or several processes, in the same way it does it with its suppliers in
collaboration with companies that integrate the supply chain. With total administration of
those linked in the process and beyond the first level of the network structure.

SUPERVISED: These are the relationships that the monitored company advances with
others in which the processes do not present criticality for the achievement of the
objectives of the principal, but that are necessary to control with a lower frequency and
established in certain periods of time.
 NOT ADMINISTERED: They are companies that are linked in the linking process, but
on which the principal does not have an active relationship to manage it, since it fully
trusts and relies on them, without any investment of resources, either because it does not
require it or because you don't have the resources to monitor your management.

NON-PARTICIPANTS: These are related companies or links with the supply chain that
at any given time and / or regularly influence or affect the decisions of the principal, as in
the case of the choice of transport companies, the type or labor force to hire, the company
that advances the selection processes, the development of new products, the obtaining of
capital that can affect the normal operation or performance in a temporary way, among
others; they are companies that consciously or unconsciously decrease the performance
and efficiency of the principal in its supply chain.

2. Taking into account the 8 strategic processes proposed by Lamberte, we find its
applicability in the Argos company as shown below:

1. Customer relationship management.

The ARGOS company is committed to continue coordinating all those processes of its
service administrations, so it needs the best of its materials and resources in the best
possible time, at the lowest possible cost, with the highest return and all aimed at
improving satisfaction of clients, to be the best commercial partner for other clients
because we deliver quality services and products that meet national and international
criteria and that are part of a responsible productive chain with society and the
environment.
2. Service administration.
The company ARGOS is the one that puts the face before the client since it provides the
information for the client with the availability of products, shipping dates and the status of
the orders with the real-time information supplied to the client through the different
interfaces with the functions of the firm, such as manufacturing and logistics. It is
important to know the opinion of the clients and offer an excellent customer service, that
is why the commercial advice necessary for the orientation of your purchase decision is
required.

3. Demand management
In the company of ARGOS it is necessary to balance the client's requirements with the
supply capacity of the firm, that is why they include the purpose of the demand and the
synchronization of this forecast with the production, purchases and distribution, therefore,
this administration coordinates all business activities that have to do with demand in
manufacturing capacity.

4. Perfect orders
In the company of ARGOS the effectiveness of the products must be perfect and requires
an integration of the manufacturing, logistics and marketing plans. Therefore, partnerships
with the key members of the S.C. to meet customer requirements and reduce the total cost
of shipping to the customer. Key entries include manufacturing capacity, time cycles and
customer service requirements.

5. Manufacturing administration.
The company of ARGOS in the manufacture of products and the establishment of the
necessary flexibility in the manufacture necessary to serve the bushes of the market in
argos the process includes all the activities necessary to manage the flow of the process
through all the activities of variety and getting implement and managing flexibility.
6. Shopping.
In the company of ARGOS it is the process that defines as that company that interacts
with its suppliers, its image in the mirror of the administrations of the relations with the
clients. The most detailed provisioning plan. What makes a good order planning and
delivery times good with relations with its suppliers, as well as proper inventory
management is extremely useful considering the conditions of proper handling of
aggregates, cement and other relevant components. To achieve the quality problems of
cement argos, it is necessary to avoid producing products of low or poor quality, that is to
say, applying the correct aggregates (sand, stone and additives) for that reason a supply
management is due and these are some.

- Review corporate marketing and manufacturing marketing strategies.

- Identify criteria to categorize suppliers.
- Test parameters for the degree of customization of products and services.
- Develop metrics structure.
- Develop parameters to improve the process and implement benefits with suppliers.

7. Development and packaging of products.

The success of the company ARGOS continued in the signature of development of new
products and having them in the market efficiently is the best component for corporate
success and all these products have been developed according to the needs of customers
what has Generator of resistance in sales and corporate success. That is why, from those
mixed designs requested by our customers, the suppliers have made their deliveries
according to the specifications of each mix design requested by our customers have
generated process agility and customer satisfaction.
8. Returns
With the latter, it will allow the firm to identify opportunities for productivity
improvement and break through in its projects in addition to the SC administration that
includes returns, reverse logistics and all other managed within the company through the
companies for ARGOS to increase the ability to obtain a good level of the resources
involved in the process, in addition to constant improvement of current resources such as
equipment and human capital that increases the reliability of the processes. Among its
threads are:

- Determination of goals and return management strategies.

- Development of environment network and flow options.
- Development of credit rules.
- Determine secondary markets.
- Measurements and statistics.
 3. Comparative table where the main approaches in Supply Chain Management are presented as follows:

a. The strategic focus of the GSCF,

b. The transactional approach of APICS SCOR MODEL,

c. The approach of John Gattorna (Dynamic Supply Chain).

Table 1. Comparative table of the main approaches of the SCM

Global Supply Chain Forum Supply Chain Operations Reference Dynamic Supply Chain
GSCF Model SCOR John Gattorna
Definition The integration of key business The SCOR (Supply Chain Operations The logistics chain is something
processes from end user through Reference model, SCOR-model) is a tool integral and dynamic that has to do
original suppliers that provides to represent, analyze and configure with all the activities carried out by
products, services, and information Supply Chains; It was developed in 1996 a company.
that add value for customers and by the Supply Chain Council (SCC).
other stakeholders (Lambert, D. et Therefore, each company must
al 1998:1). The SCOR model allows you to describe properly understand and segment
the business activities necessary to meet a its customers, and then, conversely,
This model was chosen to be a customer's demand. The Model is perform an internal engineering
framework for the organized around the five Main process that allows it to align with
recommendations as it Management Processes: Planning (Plan), its customers in a specific way for
 encompasses all areas of the Provisioning (Source), Manufacturing each specific case.
organizations, valuing input from (Make), Distribution (Deliver) and
the stake holders. It will focus the Return (Return).
organization on key issues, and
highlight areas that either not
operating to full potential or that
are wasting resources.
Processes 1) Customer relationship 1) Plan 1) Logistics must be something
management (CRM) integral and dynamic.
2) Source
2) Supplier relationship 2) Understand and segment your
management (SRM) 3) Make customers properly.

3) Customer service management 4) Deliver 3) Business culture for products

(CSM) and services.
5) Return that can be implemented
4) Demand management (DM) 4) Adaptation of strategy
according to the market.
Processes Levels:
5) Order fulfilment (OF)

 Level 1: defines the number of

6) Manufacturing flow
supply chains and performance
management (MFM)
metric.
  Level 2: provides definition for the
7) Product development and planning and execution process in
commercialization (PDC) material flow.

8) Returns management (RM)  Level 3: is the process element

that defines the inputs, outputs, and
information flow.

 Level 4: provides the

implementation details for supply
chain processes.
Range 1) Product development 1) Increase the speed of system 1) Fully flexible supply chains that
implementations adapt to the needs of innovative
2) The demand generation customers
2) Improve business agility
3) Relationship management 2) Agile supply chains to meet the
3) Accelerate business process requirements of demanding
4) The cancellation of returns. effectiveness customers

4) Improve inventory turns

 3) Supply chains that base their
management on LEAN systems
5) Support organizational learning goals

6) Improve overall operational

for customers seeking
performance
efficiency.

4) Continuous supply chains for

clients seeking collaboration.
 4. According to Gattorna, "Generic configurations", Identify and explain the
generic structure that, according to the collaborative working group, identifies
most of the supply chain or value network of the company under study.

Based on the general configurations of the supply chains proposed by John Gattorna,
we find that for the vast majority of the attributes evaluated, the type of robust supply
chain, detailed below, fits best:

Table 2. SCM configuration according to Gattorna

Attribute According Applied on Argos Type of
Gattorna configuration
Focus Economics of scale, BEST program, asset base Robust supply
high production optimization as a growth lever chain
volumes and cost
reduction
Value Mutual trust with It is differentiated according to the
proposition customers and segment, whether massive or Continuous
suppliers, strategic industrial. Being an ally of the replenishment
alliances, and long- client, a reference brand and with supply chain
term relationships a privileged and integrated
logistics network.
Organizational Groups organized Hierarchical structure composed Robust supply
design around main of 7 organizational levels, and in chain
processes each vice presidency human talent
is managed by competencies.
Process Standardization of Generation of value through Robust supply
processes, with efficiency. chain
emphasis on cost
reduction
High capital High presence of technology in all Robust supply
Information investment in ERP its organizational links, with ERPs chain
technology technologies and such as SAP, Sinco and even
 other IT systems mobile applications where
customers can place their orders.
Incentives According to A total compensation plan (fixed Robust supply
established policies pay, variable pay and benefits) is chain
managed for the attraction,
retention and satisfaction of
employees.
Training and Agile supply
Development Focused on problem It has two training modalities, chain
solving, and proper corporate and technical.
management of
resources
Recruitment Teamwork oriented Priority is given to those who are
already linked to new positions, Continuous
and their pillars are respect, replenishment
leadership and transcendence. supply chain
Leadership Goal-oriented, Agile supply
style facing change, in It focuses on the growth and self- chain
search of continuous development of its employees,
growth with clear goals and objectives to
meet.

Conclusions
 Logistics and supply chain allows us to plan, organize and control the activities of a
company regardless of its activity.

 Logistics and supply chain provide capabilities for planning, organization and control
of activities such as: transportation, inventories, order processing, purchases, storage,
customer service, among others.

 It is important that companies have their structural network defined, defining their
suppliers and key customers, as this will allow to find greater opportunities for
improvement in the processes of the supply chain of the company.

 The construction sector, is a sector that grows with the needs of the communities, so it
is necessary to have strategic allies in all areas of influence, allowing to meet high
demand, guaranteeing standardization of costs, thanks to a chain of efficient supply.

 The Argos company, as evidenced by this work, is developing a robust supply chain,
which allows to respond to different market conditions efficiently, ensuring that you
can have different strategic allies in all areas of operation and at all levels, according
to the needs faced by the company

Bibliographic References
Mohammadi, M. mohsen@esfarayen. ac. i., & Mukhtar, M. mm@ukm. m. (2017). Synthesising
Supply Chain Processes based on GSCF Framework. Pertanika Journal of Social Sciences
& Humanities, 25 S, 175–190. Retrieved from: http://bibliotecavirtual.unad.edu.co/login?
url=http://search.ebscohost.com/login.aspx?
direct=true&db=hus&AN=128701625&lang=es&site=eds-live

Gattorna, J. (2009). Dynamic Supply Chain Alignment : A New Business Model for Peak
Performance in Enterprise Supply Chains Across All Geographies. Farnham, UK:
Routledge. Retrieved from: http://bibliotecavirtual.unad.edu.co/login?
url=http://search.ebscohost.com/login.aspx?
direct=true&db=nlebk&AN=298581&lang=es&site=eds-live

- Presentación corporativa. (febrero de 2019). Cementos Argos. Recuperado de:

https://argos.co/Portals/1/Temp/1590/Corporativa%204T18.pdf

- Política de gestión humana. (28 de marzo del 2011). Cementos Argos. Recuperado de:
https://ir.argos.co/portals/1/documentos/politicas/es/Politica-de-Gestion-Humana-001.pdf

- Argos one. Cementos Argos. Retrieved from: https://colombia.argos.co/one

- Pedidos de cemento a un clic. (mayo de 2017). Cementos Argos. Retrieved from:

https://colombia.argos.co/Acerca-de-Argos/Actualidad-para-constructores/Pedidos-de-
cemento-a-un-clic

- Así es el avanzado sistema de contratación de Cementos Argos. (20 de agosto de 2017).

Revista Dinero. Retrieved from: https://www.dinero.com/edicion-
impresa/caratula/articulo/cementos-argos-sistema-de-contratacion/247660