SUPPLY CHAIN MANAGEMENT

Level 4 NVQ in Supply Chain Management



Level 4 NVQ in Supply Chain Management

[P.S: Completed Forms are at the end of paper in appendices]

Q1

When analysing, a conclusion is not required. However, when you want to evaluate, the outcome expected/conclusion is needed. Basically, analysing is more of a thinking process and evaluation is the conclusion after going through the thinking process(Camp, 2009:161-168). Evaluation means determining something's merit, worth, or significance, whereas analysis means breaking complex things into parts to better understand them.

Q2

In today's world of rapid technological developments, frequent design changes, and shorter product cycles, carrying as little stock as possible is crucial. The more one relies on stock, the more difficult it will be to accommodate design changes. That's why the JIT philosophy is now being integrated into the overall business strategy worldwide, changing the nature of manufacturing and business dramatically. It has expanded beyond the walls of a factory or shop to include the capabilities, skills, and cooperation of its suppliers and the insights of its customers (Forker, 2010: 243-69). This new expanded system is now referred to as the supply chain. Supply chain management comprises planning and processing orders; handling, transporting, and storing all materials purchased, processed, or distributed; and managing inventories in a harmonious, coordinated, and synchronized manner among all the players on the chain to build to order (to fulfill customer orders as they arise) rather than build to stock (to build up stock level to fulfill anticipated future demand).

As part of the collaboration with their suppliers, many companies are adopting the practice of vendor-managed inventories in which the company provides warehouse space to its suppliers for storing their components, to be delivered to the company as demand arises (demand pull basis).

Q3

The Supply Chain Agenda, based on data collected from interactions with nearly 400 companies, establishes five principles that form the foundations or “pillars” of a supply chain strategy focused on significantly impacting organizational financial performance (Kuglin, 2010: 365-374). The data reveals that CEOs, boards of directors, and financial analysts in an increasing number of organizations recognize that the supply chain serves as the primary driver of financial performance, with the ability to significantly impact revenue through customer service. Further, they note that the supply chain garners responsibility for 60-70 percent of firms' operating cost, many of the fixed facility assets, and most of the working capital inventory. The Great Recession of 2008-2010 served only to increase this focus as supply chain performance improvements can be used to cut cost and free cash reserves from balance sheets rather than depending upon increasingly restricted credit markets. There are many reasons why so few organizations have yet to recognize the potential financial impact of supply chain performance improvements.

Q4

There are a multitude of processes, subprocesses, and activities in any supply chain, whether it is made up of large or of small firms. Among the best-known and most widely used is one that is based on the Supply Chain Council's Supply Chain Operations Reference (SCOR) ...