Highlights
Scenario
TIGER DRINKS
This scenario involves a supply chain where the key parties are all businesses (B2B) and does not directly involve end consumers.
You have recently been employed as the Logistics Manager at a growing company called TIGER DRINKS (”Tiger”). Tiger is headquartered in Victoria and sells imported alcoholic and non-alcoholic drinks wholesale throughout Australia.
Tiger’s Supply Chain
Company warehouses in Melbourne (Laverton), Sydney (Chullora) and Brisbane (Rocklea)
Main Suppliers:
Alcoholic drinks - EU Products(France) – pallets in containers
Alcoholic drinks – Asia Specialties(Singapore) – pallets in containers
Alcoholic drinks – USA Hospitality Supplies(Los Angeles) – pallets in containers
Warehouse leases – Charterhall & Goodman Group (Australia)
Warehouse MHE –Hyster via Adaptalift Group (Australia)
Warehouse racking – Spaceracks (Australia)
Agency Labour – Superior People
Transport – lead contractor in each state
Electricity – Origin Energy
Office & Warehouse Supplies, Kitchen & Stationery – Officeworks
Imported stock transported via Port of Melbourne in containers.
Customers are all businesses and are a mix of retail stores and hospitality businesses using Tiger’s websites for all ordering, returns, complaints & feedback. Tiger has a related website for online sales: www.yourtigerdrinks.com.auTiger’s outbound products are all packaged, palletised and shrink wrapped, with its customers taking full pallets, except occasionally in promotion periods.
At the end of Q1, Tiger has achieved some of its objectives and is focusing on those that are below targets.
Quarter 1 actuals:
Costs down by 4.1%, 8.5% reduction in corrective actions, 11 of 48 procedures have been updated, DIFOT 98.7% due to a vehicle breakdown, and the Pull system & JIT inventory have not been initiated, due to supplier delays.
Management Personnel (extract)
CEO – Bob Cunningman (your manager)
Senior Managers:
Marketing Manager - Sharon Mayer
Procurement Manager – Don Trumpet
CFO – Ka Chung
HR Manager – Dores Revolve
Legal Counsel – Abel Corrs
Logistics Manager – you
Victorian DC Manager – Kerry Wilmar
NSW DC Manager – Simon Livingston
Identify organisation objectives and the strategies to achieve them
Summarise objectives and strategies
Refer to the information in the Scenario and in the Strategic Plan in Appendix A and summarise Tiger’s strategies and objectives which apply to its supply chain management.
Comment on possible inconsistencies
Comment on whether you think there are any possible inconsistencies in the strategies and suggest how the goals could be better described to clarify them and minimise them working against each other in implementation.
2. REVIEW PERFORMANCE AGAINST SUPPLY CHAIN STRATEGIES
Your eBook contains a 4 step review process in section 1.2, which is summarised below for you:
1) REVIEW THE PLAN - check that the supply chain strategy is still aligned with organisational direction and other strategies and valid
2) REVIEW PERFORMANCE - internal and external key performance indicators - KPIs are usually used in determining if targets have been met, exceeded or missed. What other measures could be used?
3) INVESTIGATE the causes behind any missed KPIs or other performance measures
4) COMMUNICATE & ACT- decide if the strategy needs to change and have new sub-goals or if the current strategy is retained and have new actions developed to address the shortfall. Communicate these with your review to appropriate management
You have already completed step 1 in the previous task.
Use the information in the Scenario and Appendix A to complete steps 2 and 3 of the review process for Tiger’s supply chain performance for Q1. Tabulate your results, referring to the eBook’s section 1.2 E.G. for format guidance.
Strategy Activity Performance Measure
(Target Performance) Actual Performance Variance Comment
3 Operations – achieve performance targets for warehousing & distribution & improve operating efficiencies through systems, procedures and behaviours Project to implement Push supply chain systems, including JIT inventory management Track project goals monthly, quarterly and annually Review operational procedures annually 25% of procedures reviewed and updated quarterly Improve compliance to behaviours standards 10% reduction in corrective action reports by year-end DIFOT 99% 4 Financial – decrease costs every year and grow shareholder value Decrease operating costs by 5% per year Decrease operating costs by 5% per year Using your response to previous task 1 b), complete step 4 of the review process for Tiger’s supply chain strategies by sending an email to appropriate staff communicating about your review and any changes.
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