Homework answers / question archive / You are a global sourcing manager for a UK-based supermarket

You are a global sourcing manager for a UK-based supermarket

Business

Share With

You are a global sourcing manager for a UK-based supermarket. The company has 750 supermarket stores in UK major cities. The company imports grocery products (e.g., fresh vegetable and fruits, processed food and beverages) from within the UK and different countries. The company has a central warehouse at, Reading, UK. You are being asked to source a new grocery product from outside of the UK to be sold at the 750 supermarket stores.

Produce a 3,000-word report to address the following tasks:

1.Perform a research to explain why the chosen product is suitable for the supermarket and its customers. Choose a country of origin for the product and explain why it is a suitable supply source.

2.Suggest suitable transportation mode(s) (i.e. air, sea, rail, road, etc.) for importing the product (all the way from the supplier at the country of origin to the central warehouse in the UK, and finally the supermarket stores). Support your suggestions with convincing theoretical/practical arguments.

3.Suggest suitable port(s) of export in the country of origin and the port(s) of import in the UK and design effective supply and distribution networks for the product. Critically support your suggestions with convincing arguments and additional information about each port and network design.

4.Illustrate, using a process diagram, all the parties involved, main activities and all documentation required to manage the imports of the product all the way from the supplier in the country of origin to the central warehouse in the UK, and finally all supermarket stores.

5.Considering recent developments, suggest how the company might govern and control the supply risk, sustainability and cost of imports and the reliability of the delivery of the chosen product in the future.

(Semester 2, 2020/2021) Assessed Coursework LUBS5231M Managing Global Logistics and Supply Chains 100% Assignment You are a global sourcing manager for a UK-based supermarket. The company has 750 supermarket stores in UK major cities. The company imports grocery products (e.g., fresh vegetable and fruits, processed food and beverages) from within the UK and different countries. The company has a central warehouse at, Reading, UK. You are being asked to source a new grocery product from outside of the UK to be sold at the 750 supermarket stores. Produce a 3,000-word report to address the following tasks: 1. Perform a research to explain why the chosen product is suitable for the supermarket and its customers. Choose a country of origin for the product and explain why it is a suitable supply source. 2. Suggest suitable transportation mode(s) (i.e. air, sea, rail, road, etc.) for importing the product (all the way from the supplier at the country of origin to the central warehouse in the UK, and finally the supermarket stores). Support your suggestions with convincing theoretical/practical arguments. 3. Suggest suitable port(s) of export in the country of origin and the port(s) of import in the UK and design effective supply and distribution networks for the product. Critically support your suggestions with convincing arguments and additional information about each port and network design. 4. Illustrate, using a process diagram, all the parties involved, main activities and all documentation required to manage the imports of the product all the way from the supplier in the country of origin to the central warehouse in the UK, and finally all supermarket stores. 5. Considering recent developments, suggest how the company might govern and control the supply risk, sustainability and cost of imports and the reliability of the delivery of the chosen product in the future. Assignments should be a maximum of 3,000 words in length. All coursework assignments that contribute to the assessment of a module are subject to a word limit, as specified in the online module handbook in the relevant module area of the MINERVA. The word limit is an extremely important aspect of good academic practice, and must be adhered to. 1 of 2 Subject to approval from the External Examiner LUBS5231M Unless stated specifically otherwise in the relevant module handbook, the word count includes EVERYTHING (i.e. all text in the main body of the assignment including summaries, subtitles, contents pages, tables, supportive material whether in footnotes or in-text references) except the main title, reference list and/or bibliography and any appendices. It is not acceptable to present matters of substance, which should be included in the main body of the text, in the appendices (“appendix abuse”). It is not acceptable to attempt to hide words in graphs and diagrams; only text which is strictly necessary should be included in graphs and diagrams. You are required to adhere to the word limit specified and state an accurate word count on the cover page of your assignment brief. Your declared word count must be accurate, and should not mislead. Making a fraudulent statement concerning the work submitted for assessment could be considered academic malpractice and investigated as such. If the amount of work submitted is higher than that specified by the word limit or that declared on your word count, this may be reflected in the mark awarded and noted through individual feedback given to you. An electronic copy of the assignment must be submitted to the Assignment Submission area within the module resource on the Blackboard MINERVA website no later than 12:00:00 noon prompt on the deadline date. Faxed, emailed or hard copies of the assignment will not be accepted. Failure to meet this initial deadline will result in a reduction of marks, details of which can be found at the following place: https://lubswww.leeds.ac.uk/TSG/coursework/ SUBMISSION Please ensure that you leave sufficient time to complete the online submission process, as upload times can vary. Accessing the submission link before the deadline does NOT constitute completion of submission. You MUST click the ‘CONFIRM’ button before 12:00:00 noon for your assignment to be classed as submitted on time, if not you will need to submit to the Late Area and your assignment will be marked as late. It is your responsibility to ensure you upload the correct file to the MINERVA, and that it has uploaded successfully. It is important that any file submitted follows the conventions stated below: FILE NAME The name of the file that you upload must be your student ID only. ASSIGNMENT TITLE During the submission process the system will ask you to enter the title of your submission. This should also be your student ID only. FRONT COVER The first page of your assignment should always be the Assessed Coursework Coversheet (individual), which is available to download from the following location: http://lubswww.leeds.ac.uk/TSG/index.php?id=27 STUDENT NAME You should NOT include your name anywhere on your assignment END 2 of 2 Example 1 Example 2 Example 3 Example 4 Example 5 Example 1 Example 2 Example 3 Leeds University Business School Global Logistics & Supply Chain Management Seminar S7 Polymedic Ltd. (with example solutions) Dr Deepak Arunachalam (d.arunachalam@leeds.ac.uk) Centre for Operations & Supply Chain Research (http://lubswww.leeds.ac.uk/coscr/) Three delivery options 1. Option 1: Shipment of the full consignment in one load in November or December 1995 to get ready for the January opening 2. Option 2. Shipment of half of the consignment in November or December 1995 and the rest in May or June in the next year 3. Option 3. Shipment on a regular monthly basis of equal size commencing November or December 1995 Leeds University Business School 2 Seminar Tasks • The goal is to find lowest total landed cost for transportation modes for suitable delivery options • How? Based on the quotation in the case study, estimate the total landed costs involved in suitable delivery options for each of the transportation modes: 1. Sea freight 2. Overland transport 3. Air freight Leeds University Business School 3 Tips: How to estimate the total landed cost of international freight? • Surface transport/freight costs from supply source to port of loading/export and port of arrival/import to final destination – – – – Plus freight cost for main carrier (port-to-port) Plus freight insurances & documentations Plus surcharges (if any) and demurrage1 (if there is delay) Plus import/export duty/tax • Plus inventory cost (trade-off with freight cost) – At supply source – In-transit – At destination 1 Leeds University Business School See Wood et al. (2002) page 135 4 More tips: Where to get input data? • Slide on page 4 as a guide of the data you need to establish the total cost • For freight cost, check the units used in the quotation – tonnage? volume? cartons? • Work out tonnage / volume / carton for each delivery option – Total cargo worth £250,000 (for 500 cartons), each carton costs £500 • Work out freight costs for each delivery options for sea, overland and air freight (quotation case study page 351) – Some quotations include more options – choose the cheapest one • Not to forget documentation cost • Work out insurable value (see case study page 352) – Insurable value = (value of goods plus freight charges) x 10% x insurance rates Leeds University Business School 5 Excel Spreadsheet? Estimating transportation cost Estimating inventory holding cost Value of shipment No. of cartons COSTS OF TRANSPORT Transport options Sheffield to Istanbul Istanbul to Ankara sub Sheffield to Ankara Airpot Ankara airport to Ankara sub Sheffield direct to Ankara sub Transport costs / shipment COST OF STOCK Transit time (in days) Sheffield to UK port UK to Turkey port Turkey port to Ankara Sub Sheffield direct to Ankara sub Customs clearance Total transit time (days) Estimating insurance & doc cost Insurance value Insurance cost/shipment Customs clearance/shipment EUR1/shipment Total delivery cost/shipment No. of shipment/year Total delivery cost/year Leeds University Business School Interest on pipeline stock/shipment No. of shipment/year Delivery cost + pipeline interest Cost of holding stock in Ankara Total logistics costs Sum up total landed cost 6 Option 1 sea freight: work example (Transportation cost) • For option 1, total cargo worth £250,000, each carton costs £500 = 500 cartons in one shipment • Sea freight cost (from quotation page 351) = £1,935 – Option 1 dedicated container = £1935 (ship 500 cartons but capacity 600 cartons) – Option 2 grouppage service = £2044.69 x 2 = £4089.38 • • • • • Insurable value = (£250,000 + £1935) x 1.1 = £277,129 Insurance premium = £277,129 x 0.425 / 100 = £1,178 Customs clearance charges = £40 EUR1 form = £15 Total freight cost = £3,168 Leeds University Business School 7 Option 1 sea freight: work example (Inventory holding cost) • Don’t forge to consider inventory holding costs – During in-tranship (shipment) and storage at Ankara • Need to estimate time spent in-transit – Time spent: 3 days Sheffield to UK port, 21 days UK port to Turkey port, 2 days customs clearance, 2 days Turkey port to Ankara = 28 days – Assuming 10% p.a. interests, what is the cost of holding £250,000 inventory for 28 days? • Cost price cargo* x 28 days / 365 days x 10% = £1,438 • How about inventory holding Ankara? – Start from £250,000 gradually decrease to zero after one year • Cost price of cargo * / 2 x 10% = £9,375 Note: *cost price of cargo = 25% raw material + 50% manufacturing = 75% of £250,000 Leeds University Business School 8 Option 1 sea freight: work example (Total cost) • • • • Freight cost = £3,168 In-transit inventory holding cost = £1,438 Ankara inventory holding cost = £9,375 Total cost = £13,981 • Note: need to list costs which are not yet included due to inadequate information / quotation • Repeat the same procedure for overland road and air freight for option 1, and then for option 2 & 3 Leeds University Business School 9 Formulas Insurance value= (Value of shipment +Transportation cost) *1.1 Insurance Cost per shipment= (Insurance value)* 0.425% (for full container /truck load via sea or road) and air freight groupage Insurance Cost per shipment= (Insurance value)* 0.5% (for sea and road groupage) Leeds University Business School 10 Formulas Total delivery cost per shipment = (Transportation costs+ insurance costs + customs clearance costs+EUR1 origin costs) Total delivery cost per year= (Total delivery cost per shipment * Total Number of shipment per year) Total transit time (days)= (Sheffield to UK port + UK port to turkey port + Turkey port to Ankara subsidiary+ time for customs clearance) Leeds University Business School 11 Formulas Interest on pipeline stock/shipment= (total transit times * 10%WACC* 75% of value of shipment) / 365 Pipeline stock/ inventory refers to those products that are in the company's shipping chain that have yet to reach their ultimate destination. Delivery cost + pipeline interest = Total Delivery cost/year + (Interest on pipeline stock/shipment * No of shipment per year) Cost of holding stock in Ankara= (75% of value of shipment /2) * 10 % WACC Or = ((0.75 * value of shipment) / 2) *0.1 Total logistics costs = ((Delivery cost + pipeline interest) +Cost of holding stock in Ankara) Leeds University Business School 12 • Cost of 42 cartons (road groupage)= – Cost of 40 cartons + ((Cost of 40 Cartons –Cost of 100 cartons) / 60*2) • Cost of 42 cartons (Air groupage)= – Cost of 40 cartons + ((Cost of 40 Cartons –Cost of 10 cartons)/30*2) Leeds University Business School 13 ter Leeds University Business School L9 ?????????????????????????? ????????????????, Task 3 ???????????????????????? UNIVERSITY OF LEEDS 4 ??? 5 12 3. Suggest suitable port(s) of export in the country of origin and the port(s) of import in the UK and design effective supply and distribution networks for the product. Critically support your suggestions with convincing arguments and additional information about each port and network design. Seminer? Ports of exports? Total (landed) cost? ??? ??? Port of imports? Lead time? ??????? ??? ??Bi> ??,? ????? Supply network? Inventory? ??? Task .… lectures Ball x8??? 6 Leeds University Business School Task 5 5 ?? (E) ????????,??,? ? lecture & ter Leeds University Business School L9 ?????????????????????????? ????????????????, Task 3 ???????????????????????? UNIVERSITY OF LEEDS 4 ??? 5 12 3. Suggest suitable port(s) of export in the country of origin and the port(s) of import in the UK and design effective supply and distribution networks for the product. Critically support your suggestions with convincing arguments and additional information about each port and network design. Seminer? Ports of exports? Total (landed) cost? ??? ??? Port of imports?