NOTE: – This assignment is designed to test your knowledge and understanding of Strategic Supply Chain and Logistics Management. There are Two tasks given below, and each task relates to an aspect of Strategic Supply Chain and Logistics Management. Task 1 and Task 2 are written answers. You will be required to attempt all tasks. It is expected that a participant writes a minimum of 3000 words for Task 1 report and a minimum of 1000 words for Task 2. However, some questions might require more detailed answers You must support your answers with evidence from acknowledged academic sources. Personal experiences can also be used to illustrate the application of a topic/theory, but the participants must still provide evidence from acknowledged sources to support their answers. The sessions and activities conducted during classes are not the only sources of information. You are encouraged to draw on as many appropriate sources as you can. The more you engage with the literature of the topic, the better the likelihood of achieving a higher grade/ award.
Assignment Task 1: Report (50 marks)
Case study on Starbucks
Starbucks is pretty much a household name, but like many of the most successful worldwide brands, the coffee-shop giant has been through its periods of supply chain pain. In fact, during 2007 and 2008, Starbucks leadership began to have severe doubts about the company’s ability to supply its 16,700 outlets. As in most commercial sectors at that time, sales were falling. At the same time, though, supply chain costs rose by more than $75 million.
Supply Chain Cost Reduction Challenges: When the supply chain executive team began investigating the rising costs and supply chain performance issues, they found that service was indeed falling short of expectations. Findings included the problems such as fewer than 50% of outlet deliveries were arriving on time, several poor outsourcing decisions had led to excessive 3PL expenses and the supply chain had, (like those of many global organisations) evolved, rather than grown by design, and had hence become unnecessarily complex.
Further reference for this case study: –
• Logistics Bureau
• Starbucks Global Supply chain
Based on the given case study of Starbucks and their Supply chain challenges, learners are asked to prepare a report by answering the following questions: –
a. Provide a brief introduction on the Starbucks Global Supply chain and the role of supply chain function in the context of a Multinational Company such as Starbucks. (8 marks)
b. Develop a 10-point plan that will ensure that the supply chain function and its strategies remain relevant to Starbuck’s organizational objectives in future. (12 marks)
c. Discuss 3 Supply chain management strategies that are likely to aid Starbucks in achieving its goals. (10 marks)
d. Evaluate the effectiveness of strategies used by Starbucks to maintain supplier relationships and analyse the Information Technology used by Starbucks to create strategies in developing relationships with suppliers. (10 marks)
e. Conclude your report by providing adequate recommendations as a result of your above analysis done on Starbucks supply chain. (5 marks)
f. Harvard Referencing and Citations (5 marks)
Assignment Task 2: Shipping Scenario (25 marks)
BACKGROUND AND OBJECTIVE
Power Plant International is scheduled to import a GT 6 Bladed Rotor. Exported in April 10th 2019, it is now ready for importation and installation at the power plant. Timely arrival is critical since the non-availability of the unit is costing the company 1 million US dollar penalties per day. The unit is scheduled for installation on November 1st 2019.
1 Pickup and inland – 1 day
2 Sailing – circa 15 days
3 Local clearance and delivery – 2 days
1 Houston / Port of Guaira / PTL
POTENTIAL LOGISTICS CHALLENGES AHEAD
1 – At the Houston port, delays in loading cargo may arise
2 – The vessel is being shipped in the hurricane season and stormy weather is anticipated on the day of loading
2 – Offloading from the vessel at Point Lisas port
3 – Possibility of damage at Houston port
4 – The agent or supplier not following proper lifting protocol
5 – Sea blast during inclement weather
6 – Industrial unrest at the Port of Guaira
7 – Unsuitable incoterms for the shipment
8 – Injury of workmen causing delay in loading
9 – Poor choice of shipper leading to damaged ship and incompetent crew
10 – Berthing delay due to rough seas
Freight forwarder’s plan:
1. Collect cargo on the 10 of October.
2. Deliver to Houston port on the 14th October
3. Load on the ship on the afternoon of the 16th October
4. Arrive at port in Venezuela on the 25th October
5. Deliver to port of Point Lisas on the 28th October
a. Develop and discuss a risk assessment plan for the foreseeable challenges ahead. Consideration must be given to the choice of incoterms and transport mode applied in your review. All other considerations can be explored in the shipping of the cargo. A risk assessment template will be provided for this activity, which MUST be followed. (10 marks)
b. Learners must also develop a plan B, which must be well defined, in the event that the shipment does not go according to plan.(6 marks)
c. Describe the necessary shipping documents that are needed for clearance of cargo at the port. (3 marks)
d. Discuss the various payment options that the client can explore, highlighting the advantages and disadvantages to both the shipper and the importer (client)
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