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Strategic Supply Chain Management and Logistics

The purpose of this assignment is provides the learner with the understanding and skills to manage supply chain and use it as a tool to drive the organization towards achieving its strategic objectives.

This assignment will enable the learner to:
– Transform business from classic purchasing process to supply chain concept
– Manage supply chain to enhance the organization processes
– Use the organization resources efficiently and effectively
– Face the global challenges and the aggressive completion in the marketplace today

Scenario

You have been asked to submit a report to your Organisation’s Board of Directors to present and get their approval on transforming from the current primitive purchasing practices to fully IT based integrated value addition supply chain management approach; in order to improve the overall performance of the organization and support future growth, expansion, and cost minimization. In your report include the following:

Note: Select an organization and undertake a full review of how it manages its supply chain and logistics. You will need to produce a report that includes how the management of the supply chain impacts on business performance, the role of IT in managing the supply chain, and the role of procurement and logistics management. The final part of the report will be a plan for a strategy to improve the organisation’s supply chain and logistics management. [Report Format available: http://www.tidyforms.com/download/business-report-template-1.html]

Task 1

Understand the relationship between supply chain management (SCM) and organisational business objectives

LO 1.1. Explain the importance of effective supply chain management in achieving organizational objectives

LO 1.2. Explain the link between supply chain and other business functions in an organisation

LO 1.3. Discuss the key drivers for achieving an integrated supply chain strategy in an organisation

Task 2

Be able to use information technology to optimise supplier relationships in an organisation

LO 2.1. Evaluate the effectiveness of strategies used by an organisation to maintain supplier relationships

LO 2.2. Use information technology to create strategies to develop an organisation’s relationship with its suppliers

LO 2.3. Develop systems to maintain an organisation’s relationship with its Suppliers

Task 3

Understand the role of information technology in supply chain management

LO 3.1. Assess how information technology could assist integration of different parts of the supply chain of an organisation

LO 3.2. Evaluate how information technology has contributed to the management of the supply chain of an organisation

LO 3.3. Assess the effectiveness of information technology in managing the supply chain of an organisation

Task 4

Understand the role of logistics and procurement in supply chain management

LO 4.1. Explain the role of logistics in supply chain management in an organisation

LO 4.2. Evaluate procurement practices in an organisation

LO 4.3. Discuss the factors that must be considered when improving logistics and procurement practices in an organisation

Task 5

Be able to plan a strategy to improve an organisations supply chain

LO 5.1. Plan a strategy to improve an organisation’s supply chain

LO 5.2. Assess how a supply chain improvement strategy will benefit overall business performance in an organisation

LO 5.3. Explain how barriers will be overcome in an organization when implementing a supply chain improvement strategy

Grading

To gain a PASS grade, a student must satisfactorily cover the following topics according to the Learning Outcomes mentioned above:

LO 1.1 / 1.2 / 1.3: Understand the relationship between supply chain management (SCM)and organizational business objectives

Concepts: demand and supply management; push and pull models; enterprise resource planning (ERP); vendor managed inventory (VMI); efficient consumer response (ECR); value chains; lean supply; global SCM; contribution to business objectives

Development: physical distribution management; materials management; logistics management and SCM (upstream and downstream)

Organisational objectives and business functions: financial, marketing, sales, operational, manufacturing, human resource

Key drivers: facilities; inventory; transportation; information; sourcing; pricing; globalisation; technology; customer expectation

Integrated supply chain: strategic goals; culture change; roles and responsibilities of staff; organizational rationalisation; higher volume and speed of transactions; enhanced market position; reduced supply chain complexity; potential for smooth process operations following complex initial set-up; enhanced, lean and agile systems

LO 2.1 / 2.2 / 2.3: Be able to use information technology to optimise supplier relationships in an organization

Different types of relationship: alliances eg adversarial, developmental, collaborative, strategic; supplier development; e-tailing; business to business, business to consumer; intermediation and disintermediation; networks; supplier associations; supplier tiering; organisational networks; personal networks; auctions

Use of information systems: intranets; extranets and virtual private networks (VPNs) for supply chain integration; operational issues eg eliminating ‘media breaks’ to exchange supply information on a common digital platform; opportunity to use sales service staff in call centres dealing with supply exceptions; order processing, web-based EDI, tracking systems

Individual elements: the use of intranets and extranets in building value chains for organisations linked in the supply chain, order processing, web-based electronic data interchange (EDI), tracking systems

Differing applications for cost reductions and customer service: time compression, demand fulfilment, total cost of ownership reduction

LO 3.1 / 3.2 / 3.3: Understand the role of information technology in supply chain Management

Role of information technology: the internet; online communication systems; online business communities; decrease in transaction costs; closer buyer supplier relationships; improved purchasing, order processing, EDI, inventory management, production scheduling; Just in Time (JIT) programmes; tracking shipments; reducing lead times; information sharing; lean organisations

LO 4.1 / 4.2 / 4.3: Understand the role of logistics and procurement in supply chain management

Procurement: supplier selection; optimal procurement policies; reliability; quality

Logistics: role within supply chain management; planning; implementation and control of the movement and storage of goods; management of raw materials; link between the marketplace and operating activity of the organisation; customer satisfaction; coordination of materials and information flows; point of origin to point of consumption

LO 5.1 / 5.2 / 5.3: Be able to plan a strategy to improve an organisation’s supply chain

Benefits: reduced stock holding; elimination of waste; improved customer service; reduced labour costs; improved manufacturing planning; Just in Time (JIT)

Barriers: inappropriate distribution networks; ineffective distribution strategies; trade-offs in logistical activity eg a full truckload of a product is ordered to reduce transportation costs resulting in increased inventory holding costs; inability to integrate processes through the supply chain to share information; poor inventory management; cash flow problems

Guidelines for the Assignment:

 Use standard Arial font size 11.
 Use 1.5-line spacing.
 Have a 2.5-centimeter margin on the left hand side of the page and a 2-centimeter margin on the right hand side.
 Include page number on the all the pages of the assignment.
 Headings: use 16-point Arial Bold for first level headings, and 14-point Arial Bold for second level headings. If a third level heading is required, use 12-point Arial Bold.
 Attach a completed Statement and Confirmation of Own Work to the front of the paper copy of your assignment.
 The first page of your assignment should be a title page, which should also state your Name, Edexcel BTEC ID number and the Name of the Centre where you are studying.
 The first page should also contain footer with page number, candidate’s name, unit number, and submission date.
 Include a table of contents.
 Start each task on a new page and include the question at the top of the page.
 Ensure any diagrams, screen shots, PowerPoint slides, etc. fit correctly on the page and are referenced, for example, Fig. 1, Fig. 2, etc.
 Check spelling, grammar and punctuation.
 You should also ensure that you proofread your document, because the above checks do not always pick up every mistake.
 Use accurate Harvard referencing and include a bibliography.
 Ensure you are aware of the word limit for the assignment (2500-3500 word limit) and any regulations that apply if you exceed the word limit.
 Include the total word count at the end of the assignment.

 Mandatory submit to ‘Turnitin’ and in case the similarity percentage is more than 20% to revise till within the range of 20%.

Note:
All work must be submitted to LMS via soft copy; all assignments should be properly referenced.

________________________________________________________________________________________________

Textbooks

Chopra S and MeindlP .– Supply Chain Management: Strategy, Planning and Operation, 4th Edition (Pearson Education, 2009) ISBN 0136094511

Christopher M .– Logistics and Supply Chain Management, 4th Edition (Financial Times/Prentice Hall, 2010) ISBN 0273731122

Stadtler, H and Kilger C – Supply Chain Management and Advanced Planning: Concepts, Models, Software and Case Studies, 4th Edition (Springer, 2007) ISBN 3540745114

Chaffey D .– E-Business and E-Commerce Management: Strategy, Implementation and Practice, 4th Edition (Financial Times/Prentice Hall, 2009) ISBN 0273719602

Harvard Business Review on Managing the Value Chain (Harvard Business School Press, 2000) ISBN 1578512344

Harvard Business Review on Supply Chain Management (Harvard Business School Press, 2006) ISBN 1422102793

Turban T, Lee J K, King D, Liang T P and Turban D .– Electronic Commerce 2010: A Managerial Perspective, 6th Edition (Pearson Education, 2009) ISBN 0137034652

Fred Sollish, and John Semanik, The Purchasing and Supply Chain Guide to CPM -, 2005

Journals

European Journal of Purchasing and Supply Management (Elsevier)

The Journal of Supply Chain Management (Institute for Supply Management)

Supply Chain Management (Emerald)

Websites

www.cips.org Chartered Institute of Purchasing and Supply

www.emeraldinsight.com/journals.htm Supply Chain Management: An International Journal

www.iwvaluechain.com Industry Week.’s The Value Chain

www.logistics.about.com/mbody News about logistics and the supply chain

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