Running head: KIWIBOT’S SUPPLY CHAIN DESIGN REPORT 1

Assessment Three – Client Report

Student’s Name

Course

Date
KIWIBOT’S SUPPLY CHAIN DESIGN REPORT 2

Executive Summary

Supply chain design is a pivotal force in molding diverse organizational operations,

especially during the complex process of business relocation. This comprehensive report is

dedicated to providing an in-depth exploration of Kiwibot's Next Generation Robot's supply

chain design, meticulously tracing the interlay of a multi-tier supply chain, mapping the

journey from all suppliers to the end customers, both on a domestic and international scale.

The report also explores the supply management, logistics, quality assurance, and inventory

management issues that ripple across the entire supply chain.The document culminates in a

critical analysis, probing into the potential impacts of disruptive changes, the rise of Industry

4.0 technologies, the imperative of sustainable development, and the dynamics of shifting

geopolitical power and alignments on the intricate tapestry of the supply chain.
KIWIBOT’S SUPPLY CHAIN DESIGN REPORT 3
KIWIBOT’S SUPPLY CHAIN DESIGN REPORT 4
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Kiwibot’s Supply Chain Design Report

1.0 Introduction

Established in 2017 by three colleagues (TRN, 2023), Kiwibot is an innovative robotic

company that boasts intelligent technology. The production of their robots occurs in

Colombia, with the final assembly taking place in Miami. These robots are then distributed

worldwide from Miami. The current team structure is decentralized, with five team members

located in Miami (Dahlberg, 2023). Capitalizing on the growing trend in the restaurant

delivery industry, Kiwibot specializes in providing autonomous delivery services (RTN,

2023). The primary clientele includes educational institutions, with plans for expansion into

hospital facilities. To enhance operations, Kiwibot is planning to relocate its Next Generation

Robot Research and Development (R&D) hub to a strategic location in Singapore. As the

Strategy and Operations Manager at Kiwibots, I have been assigned the responsibility of

outlining the supply chain design for the Next Generation Robot at this new facility.

Therefore this report provides a well research supply chain design for the Kiwibot’s Nest gen

robort, taking into considerations the logistics issues, quality concerns, and potential

disruptions that may impact the supply chain, thus providing a comprehensive analysis to

guide the decision-making process. The report addresses key aspects of operations and supply

chain management, including multi-tier supply chain, supply management, logistics, quality,

inventory management, and the impact of disruptive changes and Industry 4.0 technologies.

2.0 Discussion and Recommendations

A. Multi-tier supply chain and value-adding activities

The Next-Generation Robot 4.0 supply chain involves multiple tiers of suppliers and value-

adding activities. The raw materials are sourced globally, and the components are

manufactured in china and then assembled in US (Said, 2019). The assembly takes place in

Berkeley, and the finished products are distributed internationally. Materials, information,
KIWIBOT’S SUPPLY CHAIN DESIGN REPORT 6

and financial flows are crucial aspects of this supply chain. Transportation modes include sea,

air, and land, with each mode represented using appropriate icons. Key organizations

involved include raw material suppliers, component manufacturers, assembly units, and

distributors.

Table 1: Kiwibot's Supplier’s Tier

Tier Supply Supplier Materials Mode of Destination

category Transportation

1 New Various Gears, motors, Not applicable Kiwibot

materials laboratories electromechanical (developed in R&D

and worldwide actuators, laboratories) Facility

fabrication artificial muscles,

schemes compliant

materials,

advanced

manufacturing,

and assembly

materials

2 Bioinspired Functionally Materials Ships Kiwibot

and graded materials coupling sensing, R&D

biohybrid actuation, Facility

components computation, and

communication

Energy Components for Ships Kiwibot

harvesting and energy harvesting R&D

storage and storage Facility

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3 Power and Various Lithium-sulfur Ships Kiwibot

Energy suppliers batteries, Silicon R&D

anodes, Facility

Conductive

nanoporous

structures

4 Robot Various Modular robotic Varied (sea, air, R&D

Swarms Suppliers units, sensors, land) Facility in

processors, Singapore

storage devices,

communications

hardware

5 Embedded High- Air Freight Kiwibot

Computation performance R&D

Suppliers embedded Facility

computing

components

Navigation Advanced Digital Transfer Kiwibot

Software navigation R&D

Providers software (e.g., Facility

SLAM)

Multi-Robot Systems for Air Freight Kiwibot

Control System controlling R&D

Suppliers multiple Facility

heterogeneous
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robots

Robot Repair Components for Air Freight Kiwibot

and robot repair and R&D

Maintenance maintenance Facility

Suppliers

7 AI Multiple Advanced AI Digital Kiwibot

Suppliers components, Transmission R&D

Deep Learning Facility

Algorithms

8 Cloud Cloud Service Cloud-based AI Internet Kiwibot

Robotics Providers Services Transmission R&D

Facility

9 Embedded Electronic Embedded Moral Controlled Kiwibot

Systems Manufacturers and Social Shipping R&D

Data Reasoning Facility

Networks Systems

Data Providers, Large Datasets Digital Kiwibot

iot Providers for Training AI Transmission R&D

Systems Facility

10 Brain- Neuroscience Sensor Specialized Kiwibot

computer Research technologies, Transport R&D

interfaces Institutes and component Facility

Laboratories miniaturization,

biocompatible

materials

Microfabrication Implantable Air Freight Kiwibot

KIWIBOT’S SUPPLY CHAIN DESIGN REPORT 9

and Electronics sensing with R&D

Manufacturers microfabrication, Facility

packaging, and

flexible

electronics

EEG and fnirs Wireless EEG Sea Freight Kiwibot

System and fnirs systems R&D

Manufacturers Facility

The table above succinctly presents the various tiers of suppliers contributing to Kiwibot's

Next-Generation Robot R&D operations, detailing the materials they provide, the mode of

transportation employed, and the ultimate destination, either the Kiwibot R&D Facility in

Singapore or other relevant points in the supply chain. It offers a clear and concise overview

of the suppliers and value-adding activities involved in the production and distribution of the

product.

B. Supply management and logistics issues

Supply management and logistics are critical components in the Next-Generation Robot 4.0

supply chain, governing the efficient movement of materials and components across a

complex, global network. The reliance on a multitude of suppliers globally introduces

challenges related to supplier reliability and lead times (Gürbüz et al., 2021). Delays in the

delivery of essential components can have cascading effects on the entire production

schedule, impacting both cost and timely delivery (Gürbüz et al., 2021). A recommended

solution is to implement robust supplier relationship management strategies, as highlighted

by Baraka (2023), fostering closer collaboration, and employing technology for real-time

tracking to enhance transparency and predictability in the supply chain.

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The use of various transportation modes, including sea, air, and land, adds a layer of

complexity to the logistics network. Rising transportation costs pose a significant concern,

impacting the overall production cost of the Next-Generation Robot 4.0. To address this, the

company should conduct regular cost-benefit analyses to optimize transportation routes,

consolidate shipments, and explore collaborations to mitigate rising costs (Nomadia, 2023).

Accurate demand forecasting is another critical issue in the supply chain, particularly in the

dynamic field of robotics. Inadequate forecasting may lead to suboptimal inventory and

staffing choices, leading to part shortages, insufficient customer service, and dissatisfaction

among customers (Evans & Collier, 2021). The recommended solution is to leverage

collaborative demand forecasting with suppliers (GEP, 2017). Also, implementing advanced

analytics, machine learning algorithms, and historical data analysis can enhance forecast

accuracy, enabling the supply chain to adapt more effectively to changing market demands.

The Next-Generation Robot 4.0 supply chain contends with customs and regulatory

compliance challenges due to its international operations. Compliance with diverse customs

and regulatory frameworks is imperative to prevent delays and financial penalties. The best

solution for this is to establish a comprehensive compliance strategy, as outlined by Monczka

et al. (2015), incorporating automated documentation systems and staying informed about

regulatory changes to ensure seamless cross-border operations.

Supply chain risk management is an overarching concern, considering the interconnected

nature of the Next-Generation Robot 4.0 supply chain. The potential solution, based on Hsu

et al. (2021), involves developing a robust risk management plan. This includes

diversification of suppliers to mitigate geopolitical uncertainties, maintaining strategic

stockpiles to cushion against natural disasters, and employing data-driven risk assessment

tools to navigate market fluctuations effectively.

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Visibility into inventory levels across the entire supply chain is a challenge that requires

attention. Limited visibility can lead to inefficiencies in production and distribution. In order

to mitigate this this risk warrant implementation of advanced inventory tracking systems

(Yuva, 2021). Collaborating with suppliers to share real-time inventory data enhances

visibility and coordination, minimizing the risk of stockouts or excess inventory.

Another issue is sustainability issues within the supply chain. Addressing the sustainability

and carbon footprint of the supply chain requires optimizing transport routes and exploring

eco-friendly transportation options. Kiwibot can adopt sustainable logistics practices, which

includes implementing green transportation initiatives (warren, 2012), optimizing routes for

fuel efficiency (Nomadia, 2023), and investing in renewable energy sources to reduce the

overall environmental impact.

C. Quality issues

Maintaining product quality throughout the supply chain is imperative for customer

satisfaction. Quality issues may arise at various stages, including raw material defects,

manufacturing errors, and transportation damages. The report suggests implementing

stringent quality control measures, continuous monitoring, and collaboration with suppliers to

ensure consistent product quality. Ensuring a robust quality management system is essential

for Kiwibot's success, requiring meticulous attention to high standards throughout its supply

chain. The company is committed to maintaining the quality of raw materials and

components by enforcing rigorous inspection and testing procedures before initiating

production, aligning with industry best practices (Gavirneni & Kapuscinski, 2016). This

dedication extends to monitoring the quality of finished products, incorporating

comprehensive quality control measures to meet and surpass customer expectations.

Recognizing the potential ramifications of quality issues on supply chain performance,

Kiwibot must identify several challenges that demand careful consideration. First, the risk of
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non-conforming raw materials introduces the possibility of defective robot components,

product recalls, and a decline in customer satisfaction. Therefore to avoid these issues,

Kiwibot need to advocat for the establishment of stringent quality standards for suppliers,

forming a protective barrier against the introduction of substandard materials into the supply

chain.

Second, the prospect of poor quality management by suppliers represents a critical concern

that could lead to non-conforming parts or finished products, thereby compromising the

quality of the end product. Kiwibot must addresses this by putting more emphasis on the

development of comprehensive supplier quality management programs, incorporating audits,

performance monitoring, and training initiatives to enhance supplier quality and reduce the

likelihood of subpar materials (Evans & Collier, 2021).

Third, inadequate product testing during manufacturing or final inspection poses a risk of

undetected defects that may only surface once the product reaches the customer. Kiwibot

contemplates the implementation of quality assurance programs, integrating thorough product

testing and inspections at various stages of the manufacturing process to proactively identify

and address potential quality issues.

To address these quality problems, Kiwibot may considers a range of strategic measures,

which involves setting definite standards of quality for suppliers and products that only high-

quality materials make it to the supply chain (Evans & Collier, 2021). Also, quality assurance

programs that require for thorough product testing and inspections at every turn in the

production process are viewed as essential tools in identifying issues of poor quality

efficiently
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D. Inventory management issues

Effective inventory management as already mentioned is crucial for minimizing costs and

ensuring product availability. Inventory management poses a significant challenge for

Kiwibot, particularly due to extended lead times for crucial raw materials in the production of

the Next-Generation Robot 4.0 (Cao et al., 2018). Balancing adequate inventory levels with

the risk of excess inventory is crucial to mitigate impacts on cash flow and working capital.

Challenges include the risks of overstocking, leading to higher carrying costs, and

understocking, resulting in lost sales and diminished customer satisfaction.

Accurate forecasting is pivotal, given the dynamic nature of the robotics industry, to prevent

imbalances in inventory levels. Lead time management is critical to avoid stockouts or

overstocking due to delivery delays, emphasizing the need for effective coordination with

suppliers. The lack of visibility into inventory levels across the supply chain can lead to

stockouts, excess inventory, and suboptimal decision-making, making advanced inventory

management software essential (Simchi-Levi et al, 2017). Effective planning and forecasting

are required due to the difficulty of managing seasonal and cyclical demand. As such Kiwibot

can should use Just-in-Time (JIT) inventory management, putting a Vendor Managed

Inventory (VMI) system in place, getting an Investment into the software of managing

inventories and building effective relationships with suppliers. The strategies match

Kiwibot’s dedication to efficiency and top technology.

E. Potential impacts of disruptive change and Industry 4.0 technologies

The potential impacts of disruptive change, coupled with emerging Industry 4.0 technologies,

sustainable development, and shifting geo-political power and alignments are crucial

considerations for Kiwibot's supply/value chain.These trends are anticipated to shape

Kiwibot's supply chain dynamics in various ways, necessitating strategic foresight and

adaptability.
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Disruptive Change

Disruptive change poses multifaceted challenges and opportunities for Kiwibot's supply

chain. According to Christopher (2016), the entry of new market players, cyber security and

evolving regulations can significantly impact the supply chain landscape. In response,

Kiwibot must cultivate agility and responsiveness to navigate these changes effectively.

Adaptable supply chain strategies, such as dynamic forecasting and rapid reconfiguration

capabilities, will be essential to maintaining a competitive edge in the rapidly evolving

robotics market.

Emerging Industry 4.0 Technologies

The integration of Industry 4.0 technologies, including artificial intelligence, big data

analytics, and the iot offers significant opportunities for Kiwibot's supply chain. Similar to

Bobcat Limited (Christopher, 2016), investing in these technologies can enhance supply

chain efficiency and effectiveness. Artificial intelligence can optimize route planning for

Kiwibot's delivery robots, iot can provide real-time tracking of inventory and delivery status,

and big data analytics can enable data-driven decision-making. Adopting these technologies

aligns with the company's commitment to innovation and could contribute to competitive

advantages in the rapidly evolving robotics industry.

Sustainable Development

Given the increasing importance of sustainable development to customers and regulators,

Kiwibot must ensure that its supply chain practices align with environmental responsibility.

Sustainable practices, such as efficient use of resources and reduced carbon footprint in

transportation, can enhance the company's reputation and appeal to environmentally

conscious consumers. Integrating sustainability throughout the supply chain will require

strategic planning and collaboration with suppliers who share Kiwibot's commitment to

sustainable development (Li & Ye, 2014).

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Shifting Geo-Political Power and Alignments

The impact of shifting geopolitical power and alignments on the supply chain, as observed in

the case of Bobcat Limited (Sarkis et al., 2011), necessitates proactive measures by Kiwibot.

Changes in tariffs, trade regulations, and political instability can disrupt the smooth flow of

materials and components. Kiwibot must stay vigilant, continuously monitoring geopolitical

trends, and develop strategies to mitigate potential disruptions. Building flexibility into the

supply chain design and diversifying suppliers strategically can help navigate the

uncertainties associated with geopolitical shifts.

KIWIBOT’S SUPPLY CHAIN DESIGN REPORT 16

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