1. Diagram the SES/BAG supply chain. What stages are adding value? What stages are not?
2.Using the primary SES suppliers (60 percent of business), what is the minimum performance cycle for the supply chain diagrammed above and what is the maximum?
3. Can the performance cycle be improved through the use of 25 percent and 15 percent suppliers? What trade-offs must be made to use these suppliers?
4. If you were Maxwell Stevens, What changes would you make in SES operations? Why? What problems do you foresee as you try to implement these changes?
5. Assuming you can make the changes mentioned in question 4 how would you “sell” Tyler Pinto on BAG’s next bid? What will likely be the “qualifying criteria” and “order winning criteria”? Will these change over time? What does this suggest about supply chain management?
Sample Solution
The SES/BAG supply chain consists of several stages, each of which adds value in some form. The primary stages that add value are the sourcing and procurement stage (where materials are acquired), the production or manufacturing stage (where materials are transformed into products) and the distribution or delivery stage (where products reach their intended destination). Other stages such as research and development, quality assurance, marketing and customer service also add value by helping to ensure that a product is fit for purpose.
Sample Solution
The SES/BAG supply chain consists of several stages, each of which adds value in some form. The primary stages that add value are the sourcing and procurement stage (where materials are acquired), the production or manufacturing stage (where materials are transformed into products) and the distribution or delivery stage (where products reach their intended destination). Other stages such as research and development, quality assurance, marketing and customer service also add value by helping to ensure that a product is fit for purpose.
The minimum performance cycle for the supply chain diagrammed above is dependent on factors such as lead times for sourcing materials and components, production run lengths, availability of transportation options etc. Generally speaking however it can be said that with an efficient system in place involving just primary suppliers with good inventory control it should take between 4-8 weeks from start to finish depending on volume involved. The maximum performance cycle could be significantly longer depending on various delays related to material availability or transport delays among other things.
In order to improve the performance cycle through use of 25 percent and 15 percent suppliers certain trade offs need to be made regarding lead time vs cost savings versus greater product variety/flexibility etc. In addition there needs to be a balance between having sufficient stock levels available while also managing storage costs efficiently so as not to incur too much wastage due poor demand forecasting practices.
If Maxwell Stevens were in charge he would likely focus his attention firstly on improving efficiency throughout each step of the supply chain from sourcing raw materials all the way down stream towards customer delivery. This could include implementing lean principles throughout operations but particularly at points where inventory is held up within either warehouse facilities or upstream processes such as component assembly lines causing delays further downstream in terms of execution speed when orders come through. He may also look at how technology advancements can help reduce waste both financially but also from an environmental standpoint such as considering ways in which digital technologies can reduce paper usage on paperwork related tasks such as invoices etc., or alternatively increasing focus towards utilizing renewable energy sources wherever they may be applicable within operations itself.
When selling Tyler Pinto on BAG’s next bid Maxwell Steven’s pitch would need to revolve around key order winning criteria such as offering competitive prices with regards to goods range, being able provide goods consistently within tight timelines whilst still being able satisfy very specific customer requirements over time if needed thereby providing superior levels of customer satisfaction over competitors bidding against them plus any additional unique offerings SES has available compared its rivals i.e faster response time when queries arise or technology integration capabilities otherwise unavailable elsewhere perhaps.. Qualifying criteria would likely include demonstrating appropriate ISO standards compliance across different aspects of operations e.g Quality Assurance & Control procedures , Financial Viability & Risk Management protocols , Environmental Impact Assessment policies amongst others . It should also go without saying that continuous improvement efforts will prove essential here whereby “order winning” criteria must continue evolving over time based upon changes taking place both internally within SES but more importantly externally keeping track changing market trends driven by customers buying habits etc.. Ultimately this process highlights importance placed upon effective Supply Chain Management especially monitoring & responding accordingly whenever new opportunities arise requiring businesses like BAG needing remain ahead competition
