Small Tutorial Exercise 2
International Business Administration
Global Supply Chain Management
1. The flow of information has become more and more important in supply chain
management. Describe the key impacts of information on supply chain performance in terms
of responsiveness and efficiency with reference to the logistics industry.
Information in supply chain management can better the responsiveness and efficiency at the same
time. For instance, regarding efficiency, information can be used to lower transportation costs and
inventory costs. This can heighten the responsiveness, by using information to improve product
availability and deliver faster.
Tracking data, transportation, customers throughout the supply chain.
2. Discuss the following proposition with reference to an automobile garage handling
maintenance and repair: “Modal choice decisions could improve the responsiveness of the
supply chain performance.”
Modal choice decisions are important, since every mode of transportation has different characteristics
and has a different cost. Thus, modal choice decisions could improve the responsiveness by choosing
a mode of transportation that is faster or more flexible. Also depends on distance.
3. Consider a retailer like Marks & Spencer (M&S), which is outsourcing parts of its delivery
services to a logistics provider. When should such a company choose to operate its own
account operation to provide delivery services?
When this would heighten either their responsiveness or efficiency, whichever is in line with their
supply chain strategy and if this heightens the overall supply chain surplus.
Insource: more expensive, but more responsive because they have more control.
4. How can the full set of logistical and cross-functional drivers be used to create strategic fit
for a furniture manufacturer, specializing in kitchen cabinetry, targeting both time-sensitive
and price-conscious customers?
Strategic fit, in this case, can be accomplished by focusing on both responsiveness and efficiency
through a tailored supply chain for the two types of customers they wish to target. They should use a
menu of shipping options and prices. Information should be used to target both responsiveness and
efficiency. With sourcing, different suppliers can be used that are either very efficient or responsive.
They can also decide to perform some of the functions in-house or outsource it, to raise their
responsiveness and their efficiency for some of the products. Different transportation modes can be
used to again target both customers. With facilities, cross-docking can be used for some products to
enhance efficiency and a warehouse with larger inventory can be used to target the time-sensitive
customers.
5. What effect does the geographic disparity of customers in a large country, like India or
China, have on selecting the number of distributors needed to supply, for example, electrical
white goods such as fridges to retailers? Refer to the supply chain costs that such a decision
might lead to in your answer.
International Business Administration
Global Supply Chain Management
1. The flow of information has become more and more important in supply chain
management. Describe the key impacts of information on supply chain performance in terms
of responsiveness and efficiency with reference to the logistics industry.
Information in supply chain management can better the responsiveness and efficiency at the same
time. For instance, regarding efficiency, information can be used to lower transportation costs and
inventory costs. This can heighten the responsiveness, by using information to improve product
availability and deliver faster.
Tracking data, transportation, customers throughout the supply chain.
2. Discuss the following proposition with reference to an automobile garage handling
maintenance and repair: “Modal choice decisions could improve the responsiveness of the
supply chain performance.”
Modal choice decisions are important, since every mode of transportation has different characteristics
and has a different cost. Thus, modal choice decisions could improve the responsiveness by choosing
a mode of transportation that is faster or more flexible. Also depends on distance.
3. Consider a retailer like Marks & Spencer (M&S), which is outsourcing parts of its delivery
services to a logistics provider. When should such a company choose to operate its own
account operation to provide delivery services?
When this would heighten either their responsiveness or efficiency, whichever is in line with their
supply chain strategy and if this heightens the overall supply chain surplus.
Insource: more expensive, but more responsive because they have more control.
4. How can the full set of logistical and cross-functional drivers be used to create strategic fit
for a furniture manufacturer, specializing in kitchen cabinetry, targeting both time-sensitive
and price-conscious customers?
Strategic fit, in this case, can be accomplished by focusing on both responsiveness and efficiency
through a tailored supply chain for the two types of customers they wish to target. They should use a
menu of shipping options and prices. Information should be used to target both responsiveness and
efficiency. With sourcing, different suppliers can be used that are either very efficient or responsive.
They can also decide to perform some of the functions in-house or outsource it, to raise their
responsiveness and their efficiency for some of the products. Different transportation modes can be
used to again target both customers. With facilities, cross-docking can be used for some products to
enhance efficiency and a warehouse with larger inventory can be used to target the time-sensitive
customers.
5. What effect does the geographic disparity of customers in a large country, like India or
China, have on selecting the number of distributors needed to supply, for example, electrical
white goods such as fridges to retailers? Refer to the supply chain costs that such a decision
might lead to in your answer.
