Read the following case and answer the questions that follow.
Assume that you have been appointed to assist the Logistics and Supply manager of a large retail firm in Abu Dhabi (for example, Lulus). The firmsells a wide variety of consumer goods. The firm needs you to analyze their suppliers. They want you to measure the performance of their suppliers. They also want you to determine who the important suppliers are and to make recommendations to them about the performance of their suppliers. The firm wants to know with which suppliers they should integrate across the supply chain and what the benefits will be. The firm also wants to know which suppliers they should replace with other suppliers. You will advise them by answering the following questions.
You can work in groups of 1 students to do this assignment. No more than two students. The assignment must also be hand written. No typing. Use your own words. You will be penalized with 10% if you submit a typed assignment. Submit your answers on this printed form. It should take you no more than 90 minutes. Theoretically, you have that time available on Tuesday (from 19:00 to 21:50) and on Wednesday (from 3PM to 4:50PM).Now answer the following questions:
1. Briefly explain supply chain delivery reliability as a supply chain performance key performance indicator (KPI).
Observe the following information and answer the questions that follow.
Inventory bought per month from each supplier
(Value) Number of suppliers who can also offer product
(Risk) Supply chain delivery reliability
Total number of Orders placed Orders received on time Orders received with no damages Orders received in full (complete)
ABC 10000 Many 10 9 10 10
CDE 20000 Few 20 19 20 15
EFG 240000 Many 15 12 15 13
GHI 10000 Few 10 8 9 9
IJK 450000 Few 10 10 9 10
KLM 10000 Many 20 16 18 16
MNO 50000 Many 12 9 12 9
OPQ 110000 Few 10 9 9 10
QRS 70000 Many 20 20 18 20
STU 30000 Few 20 19 19 19
2 Do an ABC analysis for the firm (where A= 80%, B=15% and C=5%). Which suppliers are the most important suppliers? With which suppliers will you consider to integrate your supply chain externally?
3 Do a portfolio analysis and indicate in which quadrant you will position each supplier.
4 Briefly explain what supply chain integration means. Explain the benefits of supply chain integration.
5 Calculate the supply chain delivery reliability for each supplier for each of the following categories:[YOU CAN WRITE THE ANSWERS IN THE TABLE ABOVE.]
5.1 Percentage (%) on time
5.2 Percentage (%) with no damages
5.3 Percentage (%) of orders complete
5.4 Perfect order percentage (%)
6 You have the following performance benchmarks:
– 90% or more = excellent performance
– 80% to 90% = acceptable performance
– Less than 80% = poor/unacceptable performance
Based on this information and the supply chain delivery reliability performance of each supplier, answer the following questions: Which suppliers(and which performances) are:
6.4 What are your recommendations for each of these suppliers’? Why do you say so?
6.5 Which suppliers will you approach to integrate your supply chains? Why?
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