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Accounting Information Systems


Executive Summary.

Getting Started Organization Overview..

Description of the Supply Chain Diagram..



Downstream - first layer.

Second layer.


Supply Chain Challenges.

Increased cost across the entire supply chain.

Growing consumer demand.

Supply Chain Volatility Impact.

Key Supply Chain Features.

Related order winner and order qualifier.

Organization Core Competency.

Logistics of the organization's supply chain.



Executive Summary of Supply Chain and Value Chain

Management is an art as well as science that enable members of an organization to work together to achieve business goals effectively as well as efficiently to develop as well as maintain a business environment. Operational Management not only organizes, organizes, as well as manages procedures, but also performs important upgrades to increase productivity. Adjustments as well as changes to regular activities should help your organization's key objectives as well as ensure that they no longer exist in the past through thorough investigation as well as presumption of current procedures. In addition to operating management issues, this white paper applies basic principles to design a comprehensive supply as well as value chain for 2 year old company to bring new building materials to market.

Getting Started Organization Overview

The 2 years Company entrepreneurial organization is organized to bring new products as well as services to the market. The product is a new building material that combines light weight as well as strength with carbon fibers, special cavity insulation, fire-resistant outer layers, as well as coating. Carbon fibers are supplied from the existing coal reserves of North Queensland. Processing coal into carbon fibers contributes to reducing Australia's existing carbon emissions levels. Using renewable energy as well as battery storage from solar power plants, patented processes can reduce Australian emissions by 1.1% in total, as well as transferring Australian coal to a building product can reduce Australian "export" carbon production by 2.3.Percent.

Description of the Supply Chain

When you review the supply chain, your ideas flow under different subcategories. A supply chain is a structured manufacturing process in which raw materials are converted to end products as well as delivered to end customers (Beacon, 1998).It is also a network of retailers, distributors, carriers, as well as storage facilities. Label the processes as well as organizations involved in the conversion as well as transportation of products as suppliers participating in the production, distribution, as well as sales of products that translate as well as move products from raw materials to end users from manufacturers to consumers. The new 2 year old company supply chain is shown.

Activities close to the raw material stage are not only known as upstream activities, but the activities between the manufacturer as well as the end consumer are downstream activities. Marketing distribution is related to these downstream activities (see).


The supplies of material required to produce building materials are as follows, given the downstream of the supply chain.

  1. About 85% of state coal is produced from mines in the Bowen Basin in central Queensland (Mutton, 2003) as well as coal from this mine is known as the only executable material. Suppliers usually supply one million tons a year. Later, coal is refined into carbon fibers by Townsville's suppliers.
  2. Zirconis is a small amount of zirconium silicate mineral (Bulatovic, 2015) contained in many rocks as well as is supplied for building materials from the Pilbara area, West Australia. They are then refined into plates in Townsville as well as used to manufacture products. Typically, 10,000 tons per year are obtained.
  3. Specially-reinforced glass insole wool fibers are available at 150,000 tons a year from Wollongong NSW.
  4. Silver is available at 150,000 tons a year from PNG Highland Port Mossby.
  5. Yttrium is included in most rare earth minerals as well as in some uranium ores, but on the earth's crust it is not included as free elements (R, Maksimovic et al).2010).We procure 200 tons of minerals from Chile annually as well as produce building products. When transported to the Townsville, the supplier will process it into a plate.
  6. The assembled high-density thermal filler is available in Japan at 5,000 tons.
  7. Flame-retardant coating is obtained from Korea at 15,000 tons a year. These fire-proof coatings, or other fire-proof structures as well as lining materials have been mandatory for years (Felix, 2018).

These materials are procured as well as obtained from various locations as well as then transported to the company's home town of Townsville. All materials are processed, produced, as well as the final production/assembly occurs in the same place. The product as well as manufacturing process is covered by 20-year patients. Initially, this material is expected to be used in commercial buildings with prefabricated buildings of less than 10 stories high. It is also expected that the materials will be applied to residential construction within a year or three years. However, the area is well known for these natural disasters, as well as more detailed research is needed to test as well as verify the suitability of applications under various conditions, from tropical low pressure to extreme cold experienced in the northern hemisphere.


Upstream supply chain management starts with customer payment, order, as well as feedback. Feedback is sent on line from the company's official website to the company's headquarters directly by telephone. All on line orders are paid by bank transfer on a visa debit card, credit card, master card, or company name. In addition, all orders, transactions, as well as feedback are sent directly to the local warehouse where the order is sent to the Townsville manufacturing plant through the internal system. The required transactions are made through checks as well as direct deposits. The necessary raw materials are delivered from the manufacturing plant to the supplier as well as paid through direct deposit checking.

Downstream - First Layer

When considering supply chain management to produce building materials, it is important to understand the type of supplier involved. Tier 1 suppliers are described as suppliers that supply directly to the company. Therefore, suppliers of the main materials required to produce the product can be classified as primary suppliers. For new 2 year old companies, the major suppliers are:

  1. The Coal-BMA runs seven mines throughout the Bowen basin as well as is the largest coal producer in Australia (Benton, 2016).
  2. The Zircon Mineral Sand produces titanium as well as zircon sand products from mineral sands in the southwestern part of Western Australia as well as the Peel region.
  3. Specially-reinforced glass insaruwool fibers - Tufglass, a specialty of this product as well as one of Australia's major glass processing companies.
  4. A new foundry that owns as well as operates Lihir, one of the largest gold as well as silver mines in Silver-PNG.
  5. Yttrium-Chengdu Haoxuan Technology Co., Ltd. provides ferrocerium rod (Michelle Flint Rod), as well as all kinds of rare earth products as well as industrial non-ferrous products, including yttrium.
  6. Assembled, high-density thermal insulation filler - Japanese thermal insulation. The company's technology is registered with the United Nations Industrial Development Organization (UNIDO) investment's Environmental Technology Database as well as Tokyo's Technology Promotion Office.
  7. Flame-retardant coating -AkzoNobel provides an expandable fire-proof coating throughout oil as well as gas as well as construction sectors.

Other primary suppliers that provide services directly to your company are transportation companies that oversee the transportation of raw materials to the destination they need. The two main transportation organizations that tie up with the company are:

  1. Land transportation - Postage logistics (Logistics, 2019)
  2. Marine freight transportation - SHAQ logistics. (Logistics S, 2019)

Second Layer

A company that supplies materials or parts to another company as well as supplies them to a manufacturer is called the second tier. Tier 1 suppliers get resources from other suppliers that can be classified as tier 2 suppliers. Includes:

  1. Insulation materials in Japan. We also have eggshell ashes from India (Hossain, Mathur et al).2018).Used as an alternative material for silica stones to build density insulation fillers.
  2. AkzoNobel obtains biobased episelol from Solvay, which is included in many of the company's coating products (Aznobel, 2013).

Upstream supply chain management is as important as downstream supply chain management as customer feedback, complaints help redefine products, as well as transactions as well as generated revenue help fund innovation. In the upstream supply chain system, the 2 year old company works with Australia's Commonwealth Bank of Australia (CBA) to provide direct transactions as well as direct deposits that occur as a return on checks as well as production. .In addition, all transactions as well as orders are done on line, so you have the freedom to pay through options such as Visa Debit as well as Master Card, as well as you can send feedback directly from the official website.


A supply chain is a channel created between a company as well as its suppliers to promote the production as well as sales of products to consumers (Li, 2014).Because the supply chain contains a large number of activities, individuals, entities, as well as resources, it can be difficult to manage the flow of activities, so the supply chain management is introduced.

Supply Chain Challenges

The modern supply chain needs to evolve to address not only supply chain challenges, but also new demands. To improve business performance in a rapidly changing environment, supply chain agility can be a key requirement to address responsiveness issues, especially in a highly customizable environment (Um, 2017).Therefore, supply chain managers must plan ahead to ensure a successful plan. The combination of consumer expectations, market routing, international complexity, as well as other factors creates a major challenge across the supply chain network. These faults include:

Increased Cost Across the Entire Supply Chain

As is well known, the supply chain is comprised of different tiers from suppliers to consumers. Working seamlessly is always expensive. The transportation as well as logistics of goods are part of a major area of rising costs, making it very difficult to deal with (Russel et al, 2020).Especially for 2 year old companies, our development.

Growing Consumer Demand

Advances in technology can lead consumers to high expectations for faster delivery, product quality, as well as service improvements. A country because the company sells products directly from the headquarters/manufacturing warehouse, it is very difficult to see all of these things first because there are no intermediaries or retail stores near all of the cosmonors. It's not super fast.

Supply Chain Volatility Impact

Due to the political situation, tariffs are imposed throughout the trade route, resulting in increased surcharge, delay, as well as customs clearance hours (World Economic Forum, 2020).Both internationally as well as domestically, prices are not only a little expensive, but also can be delayed.

Key Supply Chain Features

The supply chain as well as its management plays an important role in maintaining the relationship between the company as well as the customer. Some of the key features of the supply chain are:

  1. Purchasing is the first feature of supply chain management. This includes retrieving the materials as well as other resources required to manufacture the product. Coordination with suppliers is important to ensure delivery on time (Planettogether, 2019).
  2. Operations: In the supply chain, the operations team is responsible for demand planning as well as forecasting. This allows you to order markets properly across inventory control, production, as well as shipping (Planet Together, 2019).
  3. Logistics: Logistics is the management of transportation or information from one place to another. Logistics includes many things, including transportation, inventory, packing, supply, as well as security (Planet Together, 2019).
  4. Resource Management - Because resource management is done by a very specialized team, all processes, such as raw materials as well as labor, are done internally, as well as are effective as well as efficient (Planet Together, 2019).
  5. Information Workflow: Information sharing as well as distribution is a way to get all the other capabilities of supply chain management back on track. If the information workflow as well as communication is inadequate, the entire chain can be broken (planet together, 2019).

Related Order Winner and Order Qualifier

We have our own order modifiers as well as order winners. Customers have competitive advantages such as quality; delivery date, reliability, product design, flexibility, as well as images (see) that let corporate customers choose their products or services. This is the main reason why customers buy their products. Our customers may include (1) a customized prefabricated panel that can be shipped within 10 days of the CAD order, (2) a very light, strong, rust-free, termite evidence as well as "shape" to fit. Innovative architectural shapes as well as forms, (3) a very small environmental footprint, (4) a fully recyclable component through a buy-back to all customers, a recycling incentive, as well as (5) a global emissions reduction. This not only separates our products from other products, but we are more environmentally friendly as well as help improve our environment. This is important for competition because many major companies are beginning to take advantage of the potential for supply chain collaboration in implementing green strategies (Choi as well as Hwang 2015).

An order qualifier is a competitive advantage that a company must demonstrate to become a viable competitor in the business field (see).For example, if we do not meet the minimum order qualifier criteria, you will ignore or reject our products as well as services. With respect to operations, we simply meet the minimum standards to be considered part of a competitive set. For example, quality is considered an order qualifier in most industries. So, for example, the construction material industry is faced with consumers who expect quality as a matter of course, but who are not recognized as the winner of the order. If the construction material company has a report of quality issues or recall, the business is not desirable as well as is not considered as part of the consumer selection set (see).

Organization Core Competency

Prague as well as Hamel suggested that core competencies are not the skills of the organization's technology or products, but the skills of applications as well as their products or technologies. Hafeez et al (2002) recognizes that core competencies are more flexible in the company's strategy. They believe that the core competencies of the company are to incorporate the key skills into the company's business activities. This simply means that core competencies are a unique strength of an organization that spans many markets as well as products (Hafeez et al). 2002).We're a new business, so we haven't met all of our core competencies yet. However, we are striving to make our products very innovative, providing new environmental concepts as well as designs, as well as selling a variety of green building materials both at home as well as internationally. Our new building materials use light weight as well as strength, special cavity insulation, fire-resistant as well as resistant outer layers, as well as innovative new technologies that combine carbon fibers for coating. We aim to meet all three criteria for core competency proposed by Prague as well as Hamel (1990).Our impressive design as well as innovation skills enable us to enter different markets in a way that no one can imagine.

Logistics of The Organization's Supply Chain

Creating value across the supply chain is essential to the success of an organization, as well as using a strategy is one way to guarantee it. Organizations need to identify core competencies throughout the supply chain, enabling each member of the supply chain to determine how to deliver differentiated value products to end customers (Li, Ragu-Nathan, Rao, 2004).This strategy allows our organization to gain competitive advantage over our competitors as well as encourage customers to purchase specific products over other products. This is where our organization needs to implement marketing capabilities to create value. These areas include cost, delivery, flexibility, innovation, as well as quality. For example, we need to ensure that our building materials are created through innovation, cost effective, delivered to customers as soon as possible, as well as of exceptional quality.

Conclusion on Supply Chain and Value Chain

Operational Management is a key component of a manufacturing operation that enables organizations to effectively leverage resources such as labor, raw materials, money, as well as other resources. It is important to clearly understand the key features of the supply chain to ensure that the operation manager flows smoothly. Successful operational management ensures a strong connection between your organization as well as suppliers, ensures high quality materials, as well as delivers them to the right place on time. In addition, successful operations management addresses all the challenges in the supply chain as well as creates unique order modifiers as well as winners. This can create key competencies that enable your organization to generate value. Therefore, it is very important to ensure that our company has a strong operational management process, especially because we are a 2 year old company.

References for Supply Chain and Value Chain

Anastasia. (2019, September 23). Operations Management: Definition, Principles, Activities, Trends. Retrieved from

Aznobel, 2013. Retrieved From:

Benton,2016. Retrieved From:

Bulatovic, 2015. Retrieved From:

Choi, D. and T. Hwang (2015). "The impact of green supply chain management practices on firm performance: the role of collaborative capability." Operations Management Research 8(3): 69-83.

Chopra, S. and M. Sodhi (2004). "Managing Risk to Avoid Supply-Chain Breakdown." MIT Sloan Management Review. Retrieved From:

Faiz,2014. Retrieved From:

Felix,2018. Retrieved from:

Hill T. (2000) Order-winners and Qualifiers. In: Manufacturing Strategy. Palgrave, London. Retrieved From:

Hossain, S. S., et al. (2018). "Rice husk/rice husk ash as an alternative source of silica in ceramics: A review." Journal of Asian Ceramic Societies 6(4): 299-313.

Leveling, J., et al. (2014). Big Data Analytics for Supply Chain Management.

Li, X. (2014). Retrieved From:

Mutton. (2003). Retrieved From:

Planet Together, 2019. Retrieved From:

R, K., et al. (2010). "Rare earth elements: Yttrium and higher plants." ZbornikMatice Srpske za PrirodneNauke 118.

Russel et al, 2020. Retrieved From:

Springer Inder, 2013. Retrieved From:

Um, J. (2017). "The impact of supply chain agility on business performance in a high-level customization environment." Operations Management Research 10(1): 10-19.

Waters, 2010. Retrieved From: file:///C:/Users/61438/AppData/Local/Packages/Microsoft.MicrosoftEdge_8wekyb3d8bbwe/TempState/Downloads/Improving_management_of_supply_chains_by%20(1).pdf

World Economic Forum, 2020. Retrieved From:

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Accounting and Finance Assignment Help

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