Assignment 1
Logistics Management (MGT 322)
Due Date: 16/03/2024 @ 23:59
Course Name: Logistics Management Student’s Name:
Course Code: MGT 322 Student’s ID Number:
Semester: Second CRN:
Academic Year: 2023/24
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: /Out of 10 Level of Marks: High/Middle/Low
General Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
• Submissions without this cover page will NOT be accepted.
Learning Outcome:
1. Demonstrate a deep understanding of the logistic function concepts and theories as well as supply chain management strategies. (Lo.1.1)
2. Demonstrate the ability to understand complex issues pertaining to supply chain integration and strategic supply chain partnership (Lo 1.2).
3. Apply essential elements of core logistic and supply chain management principles. (Lo 2.1)
Critical Thinking
The purpose of this assignment is to identify and apply Logistics and Supply Chain Management concepts/tools to suggest logistics performance priorities.
Use Saudi digital Library (SDL) search engine.
Search Title: New Approaches to Supply Chain Management Concept. Logistics Integration of “Hub and Spoke” Model.
Authors Name: MINCULETE, Gheorghe; OLAR, Polixenia
Source: Valahian Journal of Economic Studies. 2014, Vol. 5 Issue 2, p21-32. 12p.
Read out the research paper carefully and based on your understanding you should answer the following questions.
Questions:
1. A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer’s request. Explain with an imaginary Saudi manufacturing company. (400-500 words)- (3 Marks)
2. Why in the current modern business, the integration of economic affairs from design to completion is an important priority for every Manufacturing company? (400-500 words)- (3 Marks)
3. Define the parties involved directly and indirectly in the supply chain and their role in the smooth running of the business. (400-500 words) -(3 Marks)
• APA Reference should be included. -(1 Marks)
Answers
1. Answer-
2. Answer-
3. Answer-
Supply Chain Integration: A Case Study of the Saudi Manufacturing Sector
Introduction
Supply chain management has become an increasingly important business strategy in the modern globalized economy. Efficient integration across the various entities involved in transforming raw materials into finished goods and delivering them to end customers is crucial for competitiveness. This paper will examine the importance of supply chain integration through the lens of a hypothetical Saudi manufacturing company. A case study approach is utilized to demonstrate how effective coordination across suppliers, producers, and distributors can optimize operations and maximize value.
Supply Chain of a Saudi Manufacturing Company
Consider ABC Manufacturing, a mid-sized company based in Riyadh that produces household appliances like refrigerators, washing machines, and air conditioners. ABC relies on a network of domestic and international suppliers for key components and raw materials. Major suppliers include a steel producer in China that provides sheet metal for appliance bodies, an electronics firm in South Korea that supplies circuit boards and controls, and a plastic injection molding plant in Jeddah that manufactures various plastic parts (Minculete & Olar, 2014).
Internally, ABC’s production process involves metal stamping, assembly, quality control testing, and packaging. Finished goods are then shipped to one of ABC’s three regional distribution centers in Riyadh, Jeddah, and Dammam which store and deliver products to retail partners across Saudi Arabia. ABC also exports a portion of output to other Gulf markets through third-party logistics providers. After-sales service is handled through ABC’s own nationwide service center network.
This simplified example illustrates the complex web of relationships that characterize modern supply chains. Raw materials undergo transformation through multiple business entities before reaching end consumers. Ensuring seamless coordination between each link in the chain is crucial to the company’s success.
Importance of Integration
There are several compelling reasons for ABC to prioritize tight integration across its supply chain partners and internal functions. First, integration allows for improved demand forecasting and production planning by sharing timely sales data upstream (Minculete & Olar, 2014). Suppliers can adjust output to match ABC’s requirements, avoiding stockouts or excess inventory carrying costs. Second, integration facilitates just-in-time delivery of components, reducing warehousing expenses for ABC and its suppliers. Third, common quality management systems and transparency of processes help identify and resolve issues more rapidly.
Fourth, integrated IT systems and data sharing platforms promote operational efficiencies. For example, electronic data interchange (EDI) enables automated order transmission and fulfillment tracking between ABC and distributors. Fifth, collaborative product design and joint problem-solving across organizational boundaries fosters innovation. By involving suppliers early, ABC can leverage their specialized expertise and manage development risks. Finally, strategic partnerships built on mutual understanding and trust enhance flexibility to respond to demand fluctuations or supply disruptions.
Roles in the Supply Chain
The key entities in ABC’s supply chain and their roles include:
Suppliers: Provide raw materials and components on schedule as per ABC’s requirements. Share demand signals to align production.
Manufacturer (ABC): Transform inputs into finished products using efficient production processes. Coordinate upstream and downstream activities.
Distributors: Store, transport and deliver finished goods to retail partners and end customers on time. Provide point-of-sale inventory and sales data back to ABC.
Retailers: Sell ABC’s products to end consumers. Provide feedback on market trends, product performance to help ABC refine offerings.
Customers: Purchase products for personal or business use. Provide feedback that guides new product development and quality improvement efforts.
Conclusion
In today’s competitive business environment, supply chain integration has become a strategic imperative rather than an operational afterthought. The case study of ABC Manufacturing demonstrates how coordination across entities from raw material sourcing to final delivery creates value by optimizing operations, enhancing responsiveness and fostering innovation. Future research could evaluate metrics to quantify benefits of integration initiatives.
References
Minculete, G., & Olar, P. (2014). New approaches to supply chain management concept. Logistics integration of “hub and spoke” model. Valahian Journal of Economic Studies, 5(2), 21-32. https://search-proquest-com.ezproxy.uaeu.ac.ae/docview/1635429751?accountid=62373
