SEPTEMBER 2018 SESSION:

1) Logistics is the design and administration of systems to control movement and geographical
positioning of raw materials, work-in process (WIP), finished inventories at the lowest total
cost.

a) Explain and provide relevant example for goals of logistics.

b) Discuss on why does customer return back their goods to the manufacturer.
PAST YEAR….DONE

2) Supply Chain is the design and management of seamless, value-added processes across
organizational boundaries to meet the real needs of the end customer.

a) Illustrate and explain the process of Supply Chain Management(10m).

1PL A farmer who deliver eggs to a grocery store for sale

2PL A courier deliver eggs from farm to grocery store
3PL A fulfilment company with a fleet of trucks cartons eggs & transport them
from farm to grocery store.
4PL A logistics company strategically manages a 3PL on behalf of the farmer to
package & deliver eggs to grocery store.
5PL A logistics company manages a farmer’s complete supply chain network
from production to delivery.
b) Supply Chain Management is really important in order to deliver the goods
to the end consumer. Discuss the THREE (3) impact on the company if there
is issues in Supply Chain. (15m)

Costing, the costs of raw materials, energy and labour have increased due to
economical constraints. In order for operations to continue production and provide
customers with good quality items at affordable rates, adjustments have to be
made to keep operations running.

Solution: The best solution to this issue would be improving your cost control by
executing your plans efficiently through constant monitoring. Through efforts in
providing warehouse efficiency you would be able to do so.

Supplier Relationship By creating a mutually sound and harmonious relationship

with your partners or suppliers, you will be able to provide your customers with
products of high standards in a timely manner. This also allows you to create
opportunities for improvement in terms of performance.

Solution: By building a strong working relationship with your supplier, you would
be able to work efficiently and come up with a better output in a short period of
time.

Quality Customer Service,The supply chain management is centralized on the

needs of the customers. It is about giving the right quantity and the right quality of
the product for the right amount of money. All this, in perfect timing and setting.

Solution: It might seem simply, but on the contrary, it isn’t. Customers have
different preferences and we have to always adjust to the customer’s needs. Being
able to provide customers unique solutions make a difference entirely. Companies
that actually excel in this field are the ones that make an effort to learn and invest
in new technologies.
 3) Outsourcing has become a major trend in human resources over the past decade.
a) Define Outsourcing
b) Discuss the FOUR (4) benefit of outsourcing for small businesses and provide example
for each:

Control Capital Cost,

 Cost-cutting may not be the only reason to outsource, but it’s certainly a major factor.
 Outsourcing converts fixed costs into variable costs, releases capital for investment
elsewhere in your business, and allows you to avoid large expenditures in the early stages
of your business.
 Outsourcing can also make your firm more attractive to investors, since you’re able to
pump more capital directly into revenue-producing activities.
Reduce labour costs,
 Hiring and training staff for short-term or peripheral projects can be very expensive, and
temporary employees don’t always live up to your expectations. Outsourcing lets you
focus your human resources where you need them most.
Reduce risk.
 Every business investment carries a certain amount of risk. Markets, competition,
government regulations, financial conditions, and technologies all change very quickly.
Outsourcing providers assume and manage avoid risk.

4) Procurement involves fundamental sourcing activities.

a) Explain the challenges in procurement (5m)
 Procurement chain network is often very complex
 Procurement chain partners have conflicting objectives.
 Consequently, making everyone to agree is not an easy task.

b) Analyse the FOUR (4) conflict of objective in procurement chain and support your
answer with relevant answer. (20m)

1. Purchasing wants:

• Stable volume requirements

• Flexible delivery time 4. Customers want:

• Minimal quantities • Short order lead time

2. Manufacturing wants: • High in stock
• High quality 3. Warehousing wants:
• Enormous variety of
• Low cost • Low inventory products

• Reduced transportation costs • Low prices

• Quick replenishment capability