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(Solution) CIPS New global strategic practice used in management of a supply chain in an organisation
Solution
Table of Contents
1.1 XXZ Organisation Background. 3
1.2 Identification of a Supply Chain. 4
2.0 Market Changes Impact on Supply Chain. 6
3.0 Sustainable Global Sourcing Decisions. 7
3.1 Factors for Sustainable Global Sourcing Decisions. 8
3.2 Sustainable Global Sourcing Decision Making Process. 9
3.3 Global Supply Chain Risks Analysis. 10
4.0 Strategic Logistic Impact of Globalisation. 12
4.1 Globalisation, relevance; Supply Chain and Logistics. 12
4.2 Strategic Areas in Global Nature of Supply Chain. 13
4.3 Strategic Logistics Risks and Opportunities in Globalisation. 14
5.0 Supply Chain Management and Corporate Performance. 15
5.1 Supply Chain Performance; Organisation Objectives. 15
6.0 Conclusion and Recommendations. 17
Figure 1:XYZ Organisation Summary of Operations. 4
Figure 2:XYZ Organisation structure summary. 5
Figure 3:XYZ Procurement and Supply Chain Map.. 6
Figure 4:Supply Chain Global Sourcing. 8
Figure 5:3P’s Model of sustainable global sourcing. 9
Figure 6:Mendelow Matrix Analysis of XYZ Stakeholders. 10
Figure 7:CIPS Risks Resilience Model approach.. 12
Figure 8:Globalisation focus areas in supply chain and logistics. 14
Figure 9:Red and Blue Ocean and factors put into account. 15
Figure 10:Categories of risks in supply chain.. 16
Table 1:STEEPLED Analysis summary. 7
Table 2:Summary of supply chain network sustainability risk register. 12
1.0 Introduction
1.1 XXZ Organisation Background
XYZ is a Qatar based subsidiary of a multinational organisation which is involved in providing procurement outsourcing services. Their operations are informed by the need for revolutionising the procurement outsourcing. The organisation services include end to end tactical procurement, expediting, delivering the finals goods to client warehouse by involving different buyers, expeditors and subcontracts personnel. The outcome of their services is as summarised in the following;
Figure 1:XYZ Organisation Summary of Operations
Source: XYZ internal data
XYZ is currently a market leader in the oilfield procurement providing effective and efficient alternative to in-house management of procurement for local (Qatar Government firms) and international energy sector. Through a successful integration of global sourcing and management services with appropriate buying power and prompt responses, high-level quality services are provided by the organisation. For XYZ organisation, success in their operations are informed by existence of a strong leadership and management. As evidenced in figure 2, the organisation operate through an elaborate hierarchical structure which define their leadership and management process. A summary of their organisation structure is as illustrated in figure 2;
Figure 2:XYZ Organisation structure summary
Source: Summarised from the organisation internal data
1.2 Identification of a Supply Chain
In this assignment, a supply chain which is used to source for Information Technology (IT) hardware (Computers, laptops, printers and other physical IT infrastructure) in XYZ organisation has been selected for application. In various spend categories (Health and Safety (HSE), fuel, vehicles, facilities and logistics), XYZ operates different types of supply chain networks. As an international subsidiary, a tiered supply chain network is embraced (CIPS, 2024). Considering the criticality of having customised computers and laptops with the systems used in outsourcing of procurement services in XYZ, they work directly with Original Equipment Manufacturer (OEM). The tiered supply chain is essential to enhance management of commercial relationships amongst the management in headquarter and subsidiary in Qatar hence effective and sustainability of sourcing process (Zhou et al., 2021).
Post COVID-19 pandemic and eventual economic slowdown, a cut down of budget on IT hardware in XYZ was reduced with 10% to teach £40 Million annually. As such, tiered supply chain has been critical in achieving sustainable suppliers development. According to Luo et al. (2022), this has an implication of enhancing performance and effectiveness of the procurement process used. A summary of the supply chain is illustrated in the following;
Figure 3:XYZ Procurement and Supply Chain Map
Source: Summarised from XYZ internal documents
For the supply chain network illustrated, the importance can be expounded to include;
- Clients (End-Users)– The supply chain map is customised such as the expectations of XYZ customers (procurement services outsourcing) are prioritised in setting the requirements of IT hardware to be sourced. This is while ensuring regulation of the expectations of different stakeholders.
- Procurement department– There is a gap in XYZ PS&M understanding their input in their supply chain map which need to be changed by recommending their involvement in various L&D opportunities.
- Transactions authorisation– This process is used to authorise pay informed by call-off orders shared by XYZ call-off orders detailing information, inventory and financial flows (Muneer, 2020).
- Health, Safety and Environment (HSE)– In 2024, e-Wastes in Qatar were recorded to be all time high of 0.5%; 0.07kg/inh with only 20% recycled (E-Waste Monitor, 2021). This need to be captured in the supply chain to represent these requirements.
- Legal set standardisation– In Qatar, preferential treatment is accorded to the suppliers using local content. This is with a discount of 10% offered to suppliers adhering to local content.
2.0 Market Changes Impact on Supply Chain
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