Logistics Paper on Supply Chain Management

Logistics Paper on Supply Chain Management

How Would You Explain the Concept of Supply Chain Management to Your Children? They Are 8 and 10 Years Old. Provide an Example That They Would Understand.

The best way of making my young ones to comprehend the concept of supply chain management is by presenting a question to them. I will ask them to think about where their lunch comes from. The children are likely to say “mommy” or “daddy.” I will explain that the product (bagged lunch) is only successfully delivered to them due to a justly multifaceted logistical network that consist of a supplier (the grocery store), an intermediary (me) who brings the product, and a fixed place for storage (the fridge). The process of getting the food from the grocery store (supplier) by me (intermediary), the storing in a fixed location (fridge), and transporting by school bus is an example of supply chain management (from the producer to the consumer of the food).

You Are the Supply Chain Manager at The Los Arms Hotel. During an Accreditation Review by the AAA, You Are Asked How You Select Suppliers and Measure Supplier Performance. As You Begin to Take Out Your Performance Charts, the Lead Examiner Tells You to Put Them Away and Speak from the Heart. What Do You Say?

Before selecting suppliers, I seek the stakeholders’ opinions and outline the standards for the selection procedure. The bench of stakeholders comprises fellows from research and development, purchasing, marketing, and quality assurance departments. We engage in the activity of identifying a small number of suppliers to evaluate their competencies and compare pricing. The group engaged in selecting the suppliers works with the prospective suppliers to establish stipulations. For instance, they need to demonstrate the manner in which the suppliers’ material would be utilized in our products and within the manufacturing process. The final objective is a win-win situation for the suppliers and the manufacturers. Thus, honest and clear communication is vital. The key principle in choosing the right supplier is value. Cost is not supposed to be the only determiner. I consider the total cost of ownership, which considers the supplier’s delivery assurances, dependability, receptiveness, and resource savings.

I measure supplier performance by creating an audit and evaluation program. I conduct an audit before signing the contract to ensure that the supplier does not have any substantial compliance or quality stem failures that can influence my ability to generate top-quality products. I also conduct an audit earlier to understand the suppliers’ strengths and weaknesses before formalizing the relationship.

Your Company Is Applying for a State-Sponsored Quality Award, and the Application Needs a 300-Word Ethics Statement from the Supply Chain Management Department. You Are Asked to Submit One. What Does It Say?

The company’s purchasing and supply chain management process is transparent within commercial and legal constraints. We are open to all individuals involved, so that everyone, particularly suppliers, comprehends the elements of the process: procedures, schedules, prospects, obligations, and standards for selection. Suppliers’ personal details are not revealed to any third party or utilized in any way without their approval. Particularly, it is not disclosed to other suppliers. This is especially significant when an output-based requirement is being created. Despite the fact that it is a permitted business practice to share opinions amongst suppliers in order to establish a proper solution, suppliers’ confidence needs to be respected.

Everyone participating in purchasing and supply management must comprehend the repercussions of commercial confidentiality, and the purchasing and supply management professional is in charge of restating this to coworkers at the beginning of every new project. Important information is not supposed to be purposely withheld by either party (except if it has been acquired from a different supplier in commercial confidence). Additionally, misleading information should not be issued. Generally, when a supplier requests for an explanation during the procurement process, the purchasing and supply management professional needs to provide all the suppliers involved with the information asked. Nevertheless, if a supplier poses an insightful question, the answer must not be disseminated to other suppliers since doing so may eliminate the competitive advantage the supplier wants to offer. The purchasing and supply management specialist is compelled to employ the best judgment in each case, consult others if not sure, and function in a proper and professional way. Unsuccessful suppliers are not supposed to be debriefed with a lot of transparency concerning the procurement process, for example, on the weaker part of their tender. Each supplier needs to be treated justly at all phases of the procurement process.

Your CFO Reads an Article in an Airline Magazine About the Changes Happening in Warehousing. Upon Her Return to the Office, She Asks You for a Brief Report on the State of the Warehouse of the Future. What Do You Write?

There are changes in the potential and role of warehousing since the development of e-commerce. Improved technologies will continue being introduced. Barcodes will be substituted with advanced, easier scanning solution to link physical commodities to digital information. Employees will be in a position to become more mobile with wearable technology. Warehouses will have complete separate segments that are reduced in size to focus on effective product storage and delivery. Inventory tracking will also be split further, with additional specific location information. E-commerce will last for a long period, and provided that physical goods are still in circulation, warehouses will remain essential. Therefore, they will be more developed and technologically incorporated. Additionally, warehouse storage and inventory processes are expected to experience a seismic shift, shifting from current, predominant pen-and-paper processes to automated and mechanized inventory solutions. Through such new, automated procedures, cycle counts can be conducted several times and easily to increase inventory visibility, resulting in perfect fulfilment, reduced out-of-stock incidences, and reduced lost sales. Furthermore, increased assurance in inventory accuracy will result in a new emphasis on enhancing a mix, increasing selection and hastening inventory turns.