SQA/4013 Supply Chain Challenges Impacting Financial issues: Diploma In Supply Chain & Logistics Management, Assignment, WUC, Singapore

TASK 2 – 2^nd Case Scenario.

Supply Chain Challenges Impacting Financial issues

 a) You are now faced with another mammoth task, involving the review of some financial and operational challenges that needs your urgent attention. One such issue is the payment methods and poor accountability of receipt and order placements.

You must then demonstrate with in depth knowledge, the advancement and impact of digital payment methods on supply chain and logistics, making mention of their features, boundaries and terminology. This approach should bring out credible source reference, for the use of block chain payment strategy at the organisation. Other digital forms of payment can be explored.

The success or failure of other organizations must be critically reviewed, where this new strategy has been implemented. As an add on assignment, she has asked that the VP delegate some responsibility of having his procurement lead,  critically assess the financial results in a recent supplier appraisal of Rack Aircraft Bearing limited. Using techniques such as supplier appraisal, a critical stage of the supply chain cycle, evaluate the complex scenario at hand in the form an evaluation of the financial statement presented.

They must   determine realistic assumptions on the possible causes of the results, propose solutions to address them and the impact it may have on supplier relationships later on. Student will refer to the financial appraisal results in figure 1.1 below.

Summary of focus:

• Digital payment methods
• Supplier financial appraisals
• The procurement cycle
• Assessing the data presented in table
• Block chain insights

b) Identify, conceptualize and define problems and issues in warehousing and inventory management   with an action plan to address them. The inventory management shortcomings the organization now faces should be tackled with a detailed plan to correct inventory levels.

The student must also distinguish between dependent and independent demand while   discussing   what other ordering techniques might be fitting for the airline industry. These arguments must be well justified.

For example, EOQ ordering concepts and periodic review replenishment systems could be reviewed.  Some other warehousing and inventory management solutions should be explored such as VMI and

Demand Pull strategies for rotating spare parts.  For the moment, your assumption is that the airline has not accurately matched supply with demand conditions and have therefore linked this issue with working capital management, cost planning, capital expenditure investment allocation issues and current cash flow constraints.

To add, the matter regarding a poorly integrated ordering and scheduling system must also be addressed simultaneously. In doing so the student must apply a range of standards and specialized researched data which must highlight the relationship between CPFR models and AI strategies. An in-depth understanding of AI must be discussed, demonstrating ways in which a human less system can improve the current replenishment techniques.

Technological solution should be suggested & recommended, but not without highlighting the possible risks, challenges and opportunities that you would face, if implemented.

You should also present financial and statistical data, arguing the success of advance planning strategies in the airline industry while drawing learnings from other sectors. These secondary and quantitative   sources can help convince the board on   the recommendations put forward.

Summary of focus:

• Warehouse and inventory management insights
• Matching demand with supply
• Pull vs Push systems
• CPFR models working with AI strategies
• Financial and statistical data evidence for CPFR success
• Dependent vs independent stock

c) Finally, assess the impact of hidden costs to procurement in the acquisition of capital equipment, similar to the last 777 fleet and develop whole life costing model for future purchases.

In doing so, you must demonstrate originality and creativity in developing a total cost strategy for the acquisition of capital equipment for the organization, considering the implications of decommissioning, pricing and revenue management. You must conduct some research, presenting estimated figures on the cost of training, operations and so on.

Summary of focus:

• Whole life costing strategy insights
• Designing the WLC model
• Impact of hidden cost
• Revenue and asset management insights