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,Table of Content
Management Summary .................................................................................................................................................. 3
Abbreviations .................................................................................................................................................................. 4
1 Introduction ................................................................................................................................................................. 5
1.1 Company description ...................................................................................................................................... 5
1.2 Problem description ........................................................................................................................................ 5
1.2.1 Current situation ..................................................................................................................................... 5
1.2.2 Desired situation ..................................................................................................................................... 5
1.3 Research objective .......................................................................................................................................... 5
1.4 Research questions ......................................................................................................................................... 6
2 Internal analyses of West Coast Supply Group ............................................................................................................ 7
2.1 The Supply chain Umbrella-Functional Activities ................................................................................................. 7
2.1.1 Purchase order process in term of Operations .............................................................................................. 7
.................................................................................................................................................................................... 7
2.1.2 Inbound transportation........................................................................................................................... 8
2.1.3 Quality control ........................................................................................................................................ 8
2.1.4 Demand planning .................................................................................................................................... 8
2.1.5 Receiving, Materials Handling and Storage ............................................................................................ 9
2.1.8 Payment terms ........................................................................................................................................ 9
2.2 Three Pillars of Purchasing and Supply chain Excellence ................................................................................ 9
2.2.1 Human Resources ................................................................................................................................... 9
2.2.2 Organizational design............................................................................................................................ 10
2.2.3 Information Technology of WCOS ........................................................................................................ 11
2.2.4 Measurement........................................................................................................................................ 11
2.3 Financials ....................................................................................................................................................... 12
2.3.1 Overview of Finance Department. ........................................................................................................ 12
2.3.2 Rotation on Investment/ Return on Investment .................................................................................. 12
2.3.2 Overdue % trade debtors ...................................................................................................................... 13
2.4 Bottleneck in operations process.................................................................................................................. 13
2.4.1 Vendors/ Clients activation ................................................................................................................... 13
2.4.2 Items activation (ADR/ T1/T2 goods) .................................................................................................... 13
2.4.3 Warehouse issue (Leiden) ..................................................................................................................... 13
2.4.4 Rating of supplier’s performance.......................................................................................................... 14
2.4.5 Transports’ issues.................................................................................................................................. 15
2.4.6 Miscommunication between different parties ..................................................................................... 15
2.5 Integration with other departments ............................................................................................................. 15
2.5.1 Internal integration ...................................................................................................................................... 15
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, 2.6 Bottleneck summary ..................................................................................................................................... 17
3. External analysis ....................................................................................................................................................... 20
3.1 Supply management integration for competitive advantage ....................................................................... 20
3.1.1 Technology trend analysis..................................................................................................................... 20
3.1.2 Factors affects purchasing/power operations ...................................................................................... 20
3.1.3 Purchasing law and ethics ..................................................................................................................... 20
4. SWOT Analysis .......................................................................................................................................................... 22
5. Conclusion ................................................................................................................................................................ 23
6. Recommendation ..................................................................................................................................................... 24
7. Consequences of implementation ........................................................................................................................... 32
7.1 Management and Organization ................................................................................................................ 32
7.2 Marketing .................................................................................................................................................. 33
7.3 Financing ................................................................................................................................................... 34
7.4 Planning..................................................................................................................................................... 35
7. Table of Figures ......................................................................................................................................................... 36
8. Bibliography .............................................................................................................................................................. 36
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, Management Summary
This report deals with the bottlenecks of West Coast Supply Group and provides some methods/ advice
which helps the company improve its purchasing process. The company has become aware of effective
operations and the impact of technology in term of supply chain. Therefore, the goals are to identify the
real issues and create a better understanding of bottlenecks as well as alternative options that may be
applied to smooth the operating process.
Primary qualified field research is based on the company’s information as well as interviews of colleagues
or the hands-on experience of an intern. The second quantitative method includes desk research from five
main e-books and some research reports focusing on the supply chain and logistics management. The main
findings of the report describe the primary roots of the issues that the company is dealing with. To further
consider the performance of the company before suggesting solutions, an overview of its finances is
considered to see whether it has the capacity to change and develop. So far, three pillars of purchasing and
supply chain Excellence consists of human resources, organizational structure and information technology
are also mentioned as an input requirement to analyze. Findings also concerns the external factors which
are the technological development in relation to smoothen the process and make it more effective. The
SWOT analysis focuses on those as it summarizes and evaluates the company from four different
perspectives in terms of strengths, weaknesses, opportunities, and threats. The SWOT model shows that
West Coast Supply Group has developed in a stable market with many opening opportunities as well as a
few setbacks.
The recommendations have shown the suggestions/ advice as well as a new advanced technology for
applying to purchasing process at West Coast Supply Group. Therefore, it solved clearly the six mentioned
bottlenecks from human mistake to machines’ errors. The recommendations made in internal operations
focus on training, feedback, or standard operating procedures, whereas external factors such as suppliers,
forwarders, or external warehouses will consider meetings and communication methods. Furthermore, the
utilities of technology will boost the process more efficiently than manual operation or using outdated
systems. It will mitigate the bottlenecks and make it lean.
The impact of those actions on West Coast Supply Group will resolve around the implementation of its four
elements (organization and management, marketing, finance, and planning). The company will require
more manpower in this growth phase and make the process accessible to every employee. Each individual
will test the process and take responsibility for giving feedback. The marketing team will focus on the
campaign of making everyone be aware of changing and be productive (internal marketing) which shows
the customers a smooth operation in company (company’s image). This will open more opportunities to
become resilient and sustainable in the supply chain management of the company and provide the best
service for customers. The finance department should prepare to support software with an emphasis on
implementation. Finally, the planning will put the appropriate suggestions into action, and the trial phase
will last between 1-3 months.
3 | 38
,Table of Content
Management Summary .................................................................................................................................................. 3
Abbreviations .................................................................................................................................................................. 4
1 Introduction ................................................................................................................................................................. 5
1.1 Company description ...................................................................................................................................... 5
1.2 Problem description ........................................................................................................................................ 5
1.2.1 Current situation ..................................................................................................................................... 5
1.2.2 Desired situation ..................................................................................................................................... 5
1.3 Research objective .......................................................................................................................................... 5
1.4 Research questions ......................................................................................................................................... 6
2 Internal analyses of West Coast Supply Group ............................................................................................................ 7
2.1 The Supply chain Umbrella-Functional Activities ................................................................................................. 7
2.1.1 Purchase order process in term of Operations .............................................................................................. 7
.................................................................................................................................................................................... 7
2.1.2 Inbound transportation........................................................................................................................... 8
2.1.3 Quality control ........................................................................................................................................ 8
2.1.4 Demand planning .................................................................................................................................... 8
2.1.5 Receiving, Materials Handling and Storage ............................................................................................ 9
2.1.8 Payment terms ........................................................................................................................................ 9
2.2 Three Pillars of Purchasing and Supply chain Excellence ................................................................................ 9
2.2.1 Human Resources ................................................................................................................................... 9
2.2.2 Organizational design............................................................................................................................ 10
2.2.3 Information Technology of WCOS ........................................................................................................ 11
2.2.4 Measurement........................................................................................................................................ 11
2.3 Financials ....................................................................................................................................................... 12
2.3.1 Overview of Finance Department. ........................................................................................................ 12
2.3.2 Rotation on Investment/ Return on Investment .................................................................................. 12
2.3.2 Overdue % trade debtors ...................................................................................................................... 13
2.4 Bottleneck in operations process.................................................................................................................. 13
2.4.1 Vendors/ Clients activation ................................................................................................................... 13
2.4.2 Items activation (ADR/ T1/T2 goods) .................................................................................................... 13
2.4.3 Warehouse issue (Leiden) ..................................................................................................................... 13
2.4.4 Rating of supplier’s performance.......................................................................................................... 14
2.4.5 Transports’ issues.................................................................................................................................. 15
2.4.6 Miscommunication between different parties ..................................................................................... 15
2.5 Integration with other departments ............................................................................................................. 15
2.5.1 Internal integration ...................................................................................................................................... 15
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, 2.6 Bottleneck summary ..................................................................................................................................... 17
3. External analysis ....................................................................................................................................................... 20
3.1 Supply management integration for competitive advantage ....................................................................... 20
3.1.1 Technology trend analysis..................................................................................................................... 20
3.1.2 Factors affects purchasing/power operations ...................................................................................... 20
3.1.3 Purchasing law and ethics ..................................................................................................................... 20
4. SWOT Analysis .......................................................................................................................................................... 22
5. Conclusion ................................................................................................................................................................ 23
6. Recommendation ..................................................................................................................................................... 24
7. Consequences of implementation ........................................................................................................................... 32
7.1 Management and Organization ................................................................................................................ 32
7.2 Marketing .................................................................................................................................................. 33
7.3 Financing ................................................................................................................................................... 34
7.4 Planning..................................................................................................................................................... 35
7. Table of Figures ......................................................................................................................................................... 36
8. Bibliography .............................................................................................................................................................. 36
2 | 38
, Management Summary
This report deals with the bottlenecks of West Coast Supply Group and provides some methods/ advice
which helps the company improve its purchasing process. The company has become aware of effective
operations and the impact of technology in term of supply chain. Therefore, the goals are to identify the
real issues and create a better understanding of bottlenecks as well as alternative options that may be
applied to smooth the operating process.
Primary qualified field research is based on the company’s information as well as interviews of colleagues
or the hands-on experience of an intern. The second quantitative method includes desk research from five
main e-books and some research reports focusing on the supply chain and logistics management. The main
findings of the report describe the primary roots of the issues that the company is dealing with. To further
consider the performance of the company before suggesting solutions, an overview of its finances is
considered to see whether it has the capacity to change and develop. So far, three pillars of purchasing and
supply chain Excellence consists of human resources, organizational structure and information technology
are also mentioned as an input requirement to analyze. Findings also concerns the external factors which
are the technological development in relation to smoothen the process and make it more effective. The
SWOT analysis focuses on those as it summarizes and evaluates the company from four different
perspectives in terms of strengths, weaknesses, opportunities, and threats. The SWOT model shows that
West Coast Supply Group has developed in a stable market with many opening opportunities as well as a
few setbacks.
The recommendations have shown the suggestions/ advice as well as a new advanced technology for
applying to purchasing process at West Coast Supply Group. Therefore, it solved clearly the six mentioned
bottlenecks from human mistake to machines’ errors. The recommendations made in internal operations
focus on training, feedback, or standard operating procedures, whereas external factors such as suppliers,
forwarders, or external warehouses will consider meetings and communication methods. Furthermore, the
utilities of technology will boost the process more efficiently than manual operation or using outdated
systems. It will mitigate the bottlenecks and make it lean.
The impact of those actions on West Coast Supply Group will resolve around the implementation of its four
elements (organization and management, marketing, finance, and planning). The company will require
more manpower in this growth phase and make the process accessible to every employee. Each individual
will test the process and take responsibility for giving feedback. The marketing team will focus on the
campaign of making everyone be aware of changing and be productive (internal marketing) which shows
the customers a smooth operation in company (company’s image). This will open more opportunities to
become resilient and sustainable in the supply chain management of the company and provide the best
service for customers. The finance department should prepare to support software with an emphasis on
implementation. Finally, the planning will put the appropriate suggestions into action, and the trial phase
will last between 1-3 months.
3 | 38
