Module 8 Summative assessment 8.1
MODULE 8
SUMMATIVE ASSESSMENT 8.1
MODEL ANSWER
100 MARKS
THIS ASSESSMENT COVERS:
UNIT 252288 – ALIGN LOGISTICS ACTIVITIES TO ACHIEVE COMPETITIVE ADVANTAGE
Please read the following case study and answer the 5 questions that follow.
Januahttp://www2.isye.gatech.edu/~jjb/wh/tidbits/top-sc-disasters.pdfry 2006January 2006
http://www2.isye.gatech.edu/~jjb/wh/tidbits/top-sc-disasters.pdf
The 11 Greatest Supply
Chain Disasters
Introduction
Many of us rightly take pride in the growing recognition role of supply chain both
within companies and in the public markets. An increasing number of companies
cite supply chain initiatives and prowess in annual reports and meetings with
financial analysts.
But of course the opposite effect must then also occur – supply chain snafus are
increasingly cited by CEOs and CFOs to explain poor financial performance.
Which got us thinking, what have been the greatest supply chain disasters we’ve
seen in the 20 years or so since that term started being used? SCDigest did a lot of
research to find out.
First, some caveats: we focused only on “man made” disasters, and so excluded
such things as Mother Nature and factories burning down, even though these often
Version 2 Dated: 07 July 2012
Page No: 1
Module 8 Summative assessment 8.1
evidence holes in supply chain strategy and risk reduction plans. Second, we
looked for examples that had a significant impact on the company in terms of
finances, stock price, brand equity, etc. Third, it’s still subjective, and we probably
missed a few “good” candidates.
Below you will find a summary table of our “Top 11,” ( weird number, yes, but we
just
couldn’t find one to cut) in order from worst to not quite as worse, as well as more
detailed stories of the nature and impact of each disaster.
Interestingly, none of our Top 11 occurred after 2001. Coincidence? While at one
level we see more public attention to supply chain issues, it appears the lessons
from failures
6. Toys R Us.com Christmas 1999
It’s 1999, and on-line retailing is finally starting to heat up. The
on-line division of the leading toy retailer, Toys R Us,
advertises heavily, and promises it will make Christmas
deliveries for any orders placed by Dec. 10.
Toys R Us.com is swamped with tens of thousands of orders.
Though the inventory is mostly in place, the company simply
cannot pick, pack and ship the orders fast enough – though it
was close.
“We’d have been OK if Christmas was on Dec. 26,” one company executive
says.
Some employees work 49 straight days
Just a couple of days before Christmas, the company sends out thousands of
now infamous “We’re sorry,” emails, telling those customers their orders will not
arrive in time for Christmas. The media has a field day, and customers are irate.
“How do I explain to my four-year-old that his present will be coming a week
late?” is typical of more gentle complaints in the avalanche of mail and calls the
company receives. “I’ve never been exposed to fouler language,” says then vice
president Joel Anderson.
The Toys R Us brand generally takes a big hit, even though other e-tailers have
some similar problems. In fact, the Christmas of 1999 causes hundreds of
companies to analyze their e-fulfillment capabilities in more detail the following
year, and put in capabilities that significantly reduce the issues in 2000 and
beyond. The Toys R Us.com failure really was a wake up call to the rest of the
industry.
Toys R Us.com later outsources its fulfillment to Amazon.com.
About SupplyChainDigest
SupplyChainDigest™ is the industry’s premier interactive knowledge source,
providing timely, relevant, in-context information. Reaching tens of thousands of
supply chain and logistics decision-makers each week, our flagship publications SupplyChainDigest and SupplyChainDigest – Logistics Edition, and web site
(www.scdigest.com) deliver news, opinions and information to help end users
improve supply chain processes and find technology solutions.
Subscribe today – it’s free.
Version 2 Dated: 07 July 2012
Page No: 2
Module 8 Summative assessment 8.1
For more information, contact SupplyChainDigest at:
PO Box 714
Springboro, OH 45066
937-885-3253
www.scdigest.com
email: info@scdigest.com
Please answer the following 5 questions:
1. How would you implement supply chain strategies with specific reference to the article above? (20
marks)
2. How would you optimising supply chain functions with specific reference to the case study above? (20
marks)
3. Explain how you would measure the supply chain operation with specific reference to the case study
above? (20 marks)
4. Explain how you would enable supply chain operations with technology with specific reference to the
case study above. (20 marks)
5. Explain how you would maximise returns on supply chain investments with specific reference to the
case study above. (20 marks)
*********************************************************************************
MODEL ANSWER
The weighting of the marks must be 50/50 where the assessor determines where the key
knowledge criteria have been expressed and described within the responses to equal approx 50%
of the marks, and thereafter award the balance of 50% of the marks to the application of that
knowledge by virtue of analyses, comparison, critique, or any other.
The Blooms taxonomy rose may be utilised to identify the appropriate verb for the application of
knowledge.
Q1. The student must identify elements of the organisation's supply chain for the purpose of
integrating them
The student must create conditions for collaboration between all parties by defining the nature of
the relationship between the strategic partners and players
Version 2 Dated: 07 July 2012
Page No: 3
Module 8 Summative assessment 8.1
The student must create a demand network by aligning key organisational functions to customers
demand
The student must incorporate agility, flexibility and responsiveness into the supply chain to
prevent loss of sales
The student must incorporate supply chain forecasting and visibility into the organisation's
information systems by the use of collaborative information sharing and enhanced accessibility
The student must apply supply chain auditing, modelling and planning through the use of
analytical tools, management exercises and management team integration
The student must manage relationships with supply chain providers through the allocation of
resources (resources may include but are not limited to in-house, partnership, co-source,
outsource to fourth party logistics provider, subcontract to third party logistics provider)
Q2. The student
The student must build distribution networks in order to satisfy cost and service level criteria
The student must structure inbound logistics systems in order to meet the requirements of the
demand network
The student must develop freight forwarding solutions to integrate with the international
procurement requirements of the organisation
The student must apply optimisation tools to manage the organisations inventory
The student must execute a logistics management strategy which integrates upstream and
downstream operations
The student must implement strategic sourcing and procurement strategies with strategic
suppliers of goods and services
The student must implement an integrated transport for maximum up and downstream integration
at least cost in use of final product
The student must integrate warehousing operations with the overall supply chain
Q3. The student must conduct a supply chain audit to identify areas for continuous improvement
(reference models may include but is not restricted to Stock and Lambert, Porter and integrated
framework model)
The student must source best practices used by local and international companies within an
organisation's field in order to assist implementation of the organisations best practice
The student must carry out a structured, measurement driven process to continually monitor and
improve supply chain performance
Version 2 Dated: 07 July 2012
Page No: 4
Module 8 Summative assessment 8.1
Q4. The student must integrate information systems across the supply chain to follow for
maximum visibility by all functions
The student must organise the information system of the organisation to achieve maximum
integration between key supply chain elements (supply chain elements may include but are not
restricted to key products, key customers and key processes)
The student must integrate operational Information Communication Technology (ICT) systems to
provide and optimise supply chain integration [operational ICT systems may include, but is not
limited to Enterprise Resource Planning (ERP), Systems Application Programme (SAP), Materials
Requirement Planning (MRP), Electronic Data Interchange (EDI)]
Q5. The student must mapped, audit and benchmark the supply chain of the organisation
benchmarked in order to monitor costs
The student must review fixed assets in order to achieve maximum agility and responsiveness to
the needs of the demand network
The student must identify risk elements in the supply chain in order to manage them
Version 2 Dated: 07 July 2012
Page No: 5