Assignment of the Week – Supply Chain Management

Assessment Information Subject Code: MAN203 Subject Name:Logistics and Supply Chain Management Assessment Title:Individual Report: developing a supply chain based on a case study Weighting:30% Total Marks:30Assessment DescriptionLength: 1000 words Introduction: For this assessment, students will work individually to develop a supply chain for a firm. Students will need to draw on the readings and concepts from the first six weeks of the course, as well as additional information about the firm provided in the case study. Students will need to demonstrate that they understand the fundamentals of what’s involved in logistics and supply chain management. This report should stick to the format provided to them in class. The Scenario: The report will be divided into two sections: the supply chain section and a short open-ended discussion section. The supply chain section will involve students describing how to come up with a list of suppliers, how stock is to be ordered, how delivery arrangements are made, and how other relevant logistical information is integrated. The open-ended discussion will ask students to justify their decisions by using the course’s readings and their own independent research. All research should be relevant to the case study. Students will need to demonstrate they have an understanding of the following modules (by drawing on the modules’ readings and ideas):

• Introduction: Logistics and Supply Chain Management.
• Inventory Management and Strategic Planning.
• SCM in a Globalised World.
• Sustainable Practice in SCM.
• Managing Inventories: Part 1.
• Supply Chain Management: The Impact of Information Technology.

It should be noted that during each tutorial class, the background theory of supply chain and logistics will be discussed and students will have the opportunity to ask any questions they might have about such content. Students will also be clearly instructed on the practical skills and applications required to complete each task and the tutor of each class will be available to offer any further guidance.

Table of Contents Logistics and supply chain management ----------------------------------------------2 Diagram illustration of typical supply chain of a manufacturing company-------- 3 Supply chain report -----------------------------------------------------------------------4 Logistics and supply chain management Logistics and supply chain management are terminologies that have wide application field of production. The two are crucial towards the achievement of the goals and objectives of any business enterprise. Most of the firms have developed a comprehensive network to ensure there are effective logistics and supply chain management systems. The term logistic is widely used in most firms to describe the ability of the organization or an institution to acquire the required product at the right time, quantity and the desired cost. For logistics to be effective, it should integrate the following proper production planning, good customer relationship, well-organized modes of transportation of the goods, well-developed communication network between the supply and the potential customers (Lavassani, Movahedi &Kumar, 2008). On another hand, the term logistic management is concerned with the management of day-to-day running of the producing firms. In logistics management, the manager of the firm should be able to control the production of the goods, selling as well as controlling the staffs in a given firm. Supply refers to the process of delivering the product to the potential customers. Supply chain refers network of the firms that are concerned with delivering the product to the customers. Supply chain management involves coordination of various aspects of the firm such as production, bookkeeping, and transportation in order to have proper marketing of the product. Across the world, there are different firms that are a concern with logistic and supply chain management. This paper outlines the significance of logistics and supply management to a firm by using an example of the operations of Kate and Lisa Company. Supply chain important manufacturing companies because it ensures there is organized deliverly of the products from the producer, warehouses and the retailers. The companies should embrace effective supply chain in order to compete favourably with other products in the market. Diagram illustration of typical supply chain of a manufacturing company From the diagram the firm can obtain raw material from different supplier basing on the choice. The raw materials are taken to manufacturing industries where they are converted to new product. The firm can choose to sell the products to the customer direct or to the wholesaler at large quantity. The wholesaler can distribute product in large quantity to retailer. Finally is the retailer who seller the product to the customers in small and large quantities. For the product to reach the customer at the right time the manufacture should be guided by supply chain network pattern. The diagram below represents typical supply chain of a manufacturing company. From the diagram illustration, there is network of manufacturers and supplier, in between the manufacturer and the retailer there is an agent (distributor) who links the manufacturer and retailer. The retailer sells the products to the customer either in large or small quantities. The manufacturer has option selling product to customer direct without involving distributor or retailer. Supply chain report In selecting a company to offer logistics and supply chain management services, the client should consider the reputation of the company. There are factors to consider when selecting the supplier and they include, the trust of the supplier, reputation, and quality of the product supplied based on the supply history (Poluha, 2016). The selected supplier should have market experience and conversant with the current trend in the field of business. In addition, the supplier should be flexible to changes if the occur at any given time. The supplier should be able to fit in a given culture, that is he or she should have values that do not contradict with the culture of a given society, the supplier should be reliable at all time as well as being able to deliver the product without any undue technicalities. Finally, the supplier should offer service at an effective cost, which does not strain both customer and the supplier. The client should be aware that not all cheaper suppliers are the best; the supplier should have the value of money not too expensive or too cheap (Blanchard, 2010). There are defined procedures that the client should consider when shortlisting the supplier. Firstly the client should think strategically when selecting the supplier, the supplier should be able to match the ordered goods or exceed but not reducing the specified order of the goods. The client should be sure that the supplier would deliver the goods required at the right time. Secondly, the supplier should be financially stable and in addition, he or she should have financial security. Thirdly, the client on the firm should consider the time that the potential supplier has been offering the supply service. Fourthly, the customer should be convinced that the supplier is registered or authorized to deliver a particular service or goods. Finally, the client should check recommendation of the supplier by other firms. After shortlisting the potential suppliers, the client or the firm should request or advertise quotation to the potential supplier. After receiving the quotation, compare price quoted by the short listed supplier. As mentioned earlier the client should select the supplier who is the cheapest instead, one should consider the intended price then considered the most quoted quotation price. Negotiate the terms and condition with the selected supplier to avoid any future conflict. The agreed terms should be recorded for future references. There are a different methods that are used when placing an order to the supplier. Firstly, client can request for tender for the service ordered, or he or can acquire goods directly of the producer. The tender can be requested or advertised in the media for interest parties to apply (Bowersox, Closs & Bixby, 2012). The client should be clear when specifying the quality and the quantity of the ordered good, there should have a signed declaration document between the client and the tenderer. The order should be accompanied by a copy of goods or the services requested. In a time of delivery, the supplier should deliver goods at the right time, quantity and the quality. The delivered goods should be accompanied by a copy of the delivery note and the invoice. It is important to have proper booking keeping in a given organization. All inventory records and other documents should be filed for future use. In addition, these inventory records act as a witness in event of conflict between the supplier and the client. After the order has been placed, the organization should prepare for store keeping which involves, cleaning and repairing the stores. Upon the delivery, the goods should be received by the storekeeper. The storekeeper has to record the good delivered and checking whether they are the right based on the quality and the quantity. The goods delivered should be stored properly for easy retrieval when the need arises. The goods should be stored in such way that they are easily retrieved without any delays. Proper storage is important to avoid losses resulting from theft or other mistakes. In order to make supply chain decisions, the manager of the firm should incorporate the logistical information like proper customer care service. The firm should have clear channels of getting feedback from the customers. Secondly, the firm should have proper production planning and warehouse management. Finally, the firm should develop proper communication and transportation networks for the firm. The idea Kate and Lisa of expanding their services in China may pose several challenges to them. One challenge is market competition bearing in mind that most of the manufactured goods are sold at cheaper prices consequently the profit made will be minimal compared to a state like the US and other developed nation (Blanchard, 2010). Open-ended discussion on impact of technology on supply chain and logistics management In order to make supply chain management effective the Kate and Lisa should embrace new technology in production and selling of their products. The profit margin has increased with the introduction of new technology in the field of business. For example, by using mobile phones or internet browsing the firm manager can manage and coordinate all business activities without being present on the site. Secondly, it is easy to find potential customers of the manufactured goods using information technology (IT). Marketing of the products can do easily using internet exploration and other social media sites (Mentzer et al., 2010). For radio-frequency identification technology has enabled the manager to track their good as they are delivered, this technology has reduced cases theft and other losses. In RFID technology has ability carry out smart packaging and promotional of the produced goods. This technology is being used by big firms in China in improving security, productivity and inventory control. References Anderson, David L., Britt. Frank E., and Favre. Donavon J., (2013). The seven principle of Supply Chain Management, Logistics Management. New York: Wiley and sons Blanchard, David (2010). Designing and Managing the Supply Chain, third edition. New London: Mcgraw Hill Bowersox, D., Closs, D. & Bixby, C. (2012). Supply Chain Logistics Management, New York: McGraw-Hill 2012 Lavassani, M. K., Movahedi B., Kumar V. (2008) Historical Developments In Theories Of Supply Chain Management. New London: Mcgraw Hill Mentzer, J.T. et al (2010). Defining Su= pply Chain Management. Journal of Business Logistics, Vol. 22, No. 2, pp. 1-25 Poluha, R. G. (2016). The Quintessence of Supply Chain Management: What You Really Need to Know to Manage Your Processes in Procurement, Manufacturing, Warehousing and Logistics (Quintessence Series). First Edition. New York: Springer Heidelberg