Management

You are expected to produce materials (executive summary, report, powerpoint, spreadsheets, etc.) that would be presented to your boss/leader demonstrating your knowledge and understanding about the key logistics and supply chain issues. In developing the PowerPoint presentation, please include narration within the Notes section of the presentation. All documents should include appropriate citations and a reference list using APA style

ANSWER

For every company, the process of supply involves assessment, forecasts and making decisions on the needs of the business. For instance, as supply chain manager tasked with the duty to present key logistics and supply chain issues in a company, the process would involve determining whether or not the company needs to restructure the supply chain process to adjust to the new requirements from production, through distribution to consumption. The next step would then be to set up meetings with the company’s suppliers and find out whether they can provide new requirements accordingly including services needed to make the change in the product. Another important aspect of meetings with suppliers is to find out whether he can still produce the products at the same rate and cost as the initial process after the change which will be his major challenge.

If current suppliers are not able to sustain these changes, it will be in the manager’s main interest to explore other options including solicitation of new suppliers with the help of his procurement office. The new process should still be able to successfully compete on cost and still apply competitive bidding to select new suppliers. Competitive bidding should help him achieve and maintain innovation, costing, quality, customer service and distribution as a supply chain strategy (Takano 2018).

The key differences between suppliers to meet cost standards versus suppliers to meet quality standards is that with quality, background checks on suppliers comprising factors such as trade associations, recommendations, trade press and exhibitions apply (Urbaniak 2018). This makes looking for quality more comprehensive and a longer process than one determined on cost. For management, cost is always the greatest immediate interest but still they have to pay attention to basic aspects of quality on the product to avoid losing the already existing clientele to competitors.

Some of the key issues leadership has to consider are the different components of supply among them is establishing targets and requirements. Every supply chain project has to consider this crucial step. Supply chain requirements have to be clear and direct. A good example is when leadership targets to reduce costs in obtaining business products and services needed as supply products. This becomes the first and most important step meaning any other solution will have to compare positively with the initial process. A strategy for lowering costs, optimizing supply base and advancement also needs to be visibly outlined. Secondly is an invite to prospective suppliers to an open Request For Information (RFI). This is the physical genesis of the supply process. Old and new potential suppliers should all be invited for a Request For Information. When the goal is cost-saving, new suppliers with better production or distribution processes could offer advantageous prices for the business.

Thirdly is the requirements documentation. The reason and logic for documentation both internally and externally is to prevent potential problems and pricy misunderstanding. Fourth step includes monitoring the supply process. The stage comprises observing and taking notes of tenders given by suppliers and considering each in detail until a solution is reached on the best supplier who meets company’s goals. Follow through and award supply contracts. This step refers to rewarding tenders to the best scoring supplier through discussions and agreed time schedules.

The supply process when don online is called and e-auction. Whichever medium that supply is conducted, it poses some issues to the operation of a business. For instance, “E-auctions pose a danger to buyer and supplier long term relations to the extent of causing irreversible distrust among suppliers and buyers”. Jap (2001) in The Impact of Online Reverse Auctions on Buyer-Supplier Relationships notes that “suppliers who believe that a buyer is behaving opportunistically have fewer incentives to share information or engage in mutually beneficial cooperation, worse, suppliers who feel cheated will look for an opportunity down the road to get even” (Jap 2001). Additionally, savings that come with e-auctions can be difficult to accomplish. In the beginning, management might obtain several low-cost suppliers which can eventually push up the buyer’s total expenditure on goods. In the long term as prices continue to fall suppliers could merge exponentially to attain high economies of scale that could, “tip the balance of power to the supply base” (Jap 2001).

Butt (2019) also notes that e-auctions cause a severe absence of personal relationship in buyers and suppliers. He further points out that, “an absence of a personal relationship between managers of buying and supplying firms in the supply chain leads to reduced trust, non-sharing of important business ideas and sensitive business information, no peer mentoring, delay in resolving conflicts and low employee engagement” (Butt 2019). When personal relationships are applied appropriately, it results in personal loyalty that results in higher opportunity costs which are good for the company. It is, therefore, a negative impact that moving all supplies to online that aspect of human interaction is non-existent.

In conclusion, it is vital to not that the three major requirements of supply. One is ease of application, efficiency and effectiveness. Second is timeliness and cost and lastly is security and longevity.

References

Butt, A. S. (2019). Absence of personal relationship in a buyer-supplier relationship: a case of buyers and suppliers of logistics services provider in Australia. Heliyon, 5(6), e01799.

Jap, S. (2001, July). The impact of online, reverse auctions on buyer-supplier relationships. In Ecommerce Research Forum (Vol. 133).

Takano, Y., Ishii, N., & Muraki, M. (2018). Determining bid markup and resources allocated to cost estimation in competitive bidding. Automation in Construction, 85, 358-368.

Urbaniak, M., & Ropęga, J. (2018). The Role Of Quality And Environmental Management Systems In The Evaluation Of Suppliers. Business Logistics in Modern Management.