Strategic Supply Chain Management – IKEA

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Strategic Supply Chain Management (BUS 4553)

Plan or proposal- General guidelines

 

  1. Project Description

In the course (BUS 4553) you have to:

  • Form groups of 4 students each.
  • Select a company in the UAE
  • Complete a plan or proposal (project output concerning strategic supply chain management) in a group that will be assessed and marked (approximately) in weeks 14-16.

 

Therefore, the project output for BUS 4553 is in the form of a written plan (or report), followed by (possibly) an oral group presentation in the form of a proposal. Based on the CLOs for the course, you must select a large firm in the UAE and do a detailed study of strategic supply chain management techniques and practices. (Hint: Select a firm that has very significant supply chain activities.) Here are some examples of firms (companies) in the UAE that you can consider:

  • Toyota, BMW, Kia
  • Etihad airways, Emirates airways, flydubai
  • Marmum, Al-Ain dairy, Almarai
  • Khalifa Port, Jebel Ali Port
  • Etihad rail
  • IKEA, Home Centre, Pan Emirates
  • ADNOC, ENOC
  • ADCB, DIB, First Gulf Bank

 

Before you do any research on a company, you have to decide the following:

  • Who will be in your group? (Maximum of 4 students per group)
  • Look at the list of companies above. Which company do you want to focus on? (No group is allowed to focus on a company that has already been selected by another group in the same section. We are working on a first come first serve basis). You are also welcome to select any other UAE company.

 

At the end of the project, students will:

  • Submit the plan (or project) that will be marked according to the rubric and rubric grading scale (at the end of this document).
  • Propose (or present) the plan (project) and be awarded marks according to the rubric and rubric grading scale (at the end of this document).
    • Students should include “The Supply Chain Road Map” as it is illustrated in Chapter 1 of their e-book.
    • It is suggested that students do the proposal (and/or presentation) as follows:
      • Student 1: PART 1: Business Purpose – Who are we in the stage of designing SCM?
      • Student 2: PART 2: As-is Supply Chain – How do we fit as partners in Supply Chain?
      • Student 3: PART 3: To-Be supply chain – How can we improve our performance as part of the Supply Chain?
      • Student 4:PART 4: The Supply Chain Road Map- Mapping the supply chain design

These parts are discussed on the following pages and follow the supply chain road map as illustrated in chapter 1.

 

Sections 2 and 3 cover the following aspects of the plan (or project output), namely the:

 

  • Section 2. Basics of the Plan (Project output):
  • Section 3. Topics for the Plan (Project output). This section has 4 parts.

 

Once students have submitted the plan (project output), they will do a proposal (presentation) of the plan (project) in week 14-15. Both the plan (project output) as well as the proposal (presentation) will be marked.

 

Section 2. Basics of the Plan (Project output):

 

  1. Title page
  • The Title can be something like: “Strategic Supply Chain Management practices of _______ .”
  • This should be a separate page. You can include a photograph or logo or something here.
  • In the beginning of the project you should detail each team member’s contribution to the project. Each student will be assessed according to their individual contribution as well as the group’s contribution.
  • The assessment counts 25%. The group mark will contribute 15% and each individual’s contribution will count 10% to his mark.
  • The plan or proposal will also be assessed during a Question & Answer session about project output.

 

  1. Table of contents

The Table of Contents must indicate the headings in the project as well as the page numbers. The Table of Contents must also be on a separate page.

 

  1. Basic guidelines for the project:

–    Use numbered headings and paragraphs. This will make referrals easier and will make references to the Table of Contents easier.

–    The project should be typed at 1½ spacing. The Font size should be 12, using Times New Roman font style. You can use any Font as long as it is easily to read and not too big. Margins must be 1” all around the page.

–    The number of pages guideline for the project is approximately 15-20 pages.

–    You must quote and include your references. Also include a list of references at the back of your project. (This is very important.)

–    You MUST submit a declaration to state that it is your own work.

 

  1. Structure of the project

Here is a basic structure for the project. Notice how I have given structure to the headings. I have numbered them and I have used:

–    CAPS and BOLD for the main headings

–    Bold, for the subheadings and

–    Bold and Italics for the sub-subheadings

 

Section 3. Topics for the Plan (Project output)

 

PART 1: Business Purpose – Who are we in the stage of designing SCM? (Business description and major Supply Chain Management determinants)

The objective of part 1 of the plan or proposal is to:

  • Explain who the company is. In doing this, the student must explain the company’s:
    • Core competencies.
    • Competitive strategy
    • Customers
    • Supply chain processes
  • Use environmental scanning to construct a SWOT analysis for the company

 

1.1 Supply chain management and competitive strategy

  1. Provide a brief background of the company.
    1. Describe the industry in which the company competes.
    2. Describe the company’s position in the market. Also provide details about location(s) (including international locations if necessary).
  2. Describe the environment, the resources, the objectives and the feedback decisions used by the company in the strategic view. (This strategy needs to be followed consistently throughout the project work.)
  3. Compile (draw) a supply chain for the chosen company. Include the supply chain flows of information, goods and services, and finances in the supply chain.

 

1.2. Customer fulfillment and environmental scanning

  1. Explain how the company creates value for their customers through Supply Chain Management (SCM) (i.e. by considering quality, cost, flexibility, delivery and innovation issues.)
  2. Explain how the company is monitoring the satisfaction of the end customers and how it deals with its partners in the Supply Chain (SC) in order to increase this satisfaction.
  3. Describe how the company uses customer segmentation.
  4. Use environmental scanning in order to define a brief SWOT analysis table for the company. Be mindful to focus on SCM issues.
  5. Define the most important forces of changes influencing the company supply chain strategies.

 

1.3. Supply chain processes thinking and order fulfillment

  1. What are the strategies used by the firm as part of their SCM (i.e. cost leadership, differentiation, focus)? Justify your answer by providing examples from the company’s practices.
  2. Explain the different primary SC processes according to the SCOR model. How does the SCOR model help create a common vision for the company. Provide examples.
  3. Describe the order fulfillment processes within the company, using SCOR model elements.
  4. Describe the sourcing processes in the company practices (supplier selection, transaction management, relationship management, communication management).
  5. Explain how the operations management and logistics decisions are affecting the company’s SC.
  6. How is the firm organizing its functional (departmental) goals? Are these goals aligned with the company’s strategy? Why or why not? (Show how the company is implementing its supply chain strategy in specific processes of purchasing, production, logistics and information.)

PART 2: As-is Supply Chain – How do we fit as partners in Supply Chain?

 

Part 2 is very closely linked to Part 1. In fact, it elaborates and builds on the “Who are we” statements of part 1 and emphasizes the current As-Is supply chain. Therefore, the objective of this part of the plan or proposal is to:

  • Explain the company’s supply chain as it currently is (i.e. how the company fits in the current supply chain). In doing this, the student must explain:
    • How the company practices supply chain costing
    • How the company measures supply chain performance
    • The company’s core competencies and outsourcing policies/ practices
    • The company’s supply base

 

 

2.1. Strategic supply chain costing and performance measurement

  1. Describe the strategic cost management principles in the firm. Provide examples how the company is dealing with cost reduction strategies based on these principles.
  2. Explain the tools that the company can use to support strategic cost management. How does the company distinguish between its suppliers (i.e. decide the importance of their suppliers)? How does the company classify its purchases in the practice?
  3. Explain how the company measures its sourcing, operations and logistics processes as well as its customer satisfaction.
  4. Provide examples of how the company is measuring its SCM performance (e.g. SC Inventory Days of Supply, Response Time, Cash-to-Cash Cycle Time, Perfect Order Fulfillment etc.). What do these figures tell you about the company’s performance and its alignment with its strategy?

 

2.2. Competencies and outsourcing

  1. Identify the core competencies of the company. Justify why you think they are core competencies.
  2. Define outsourcing and discuss reasons why companies outsource. Provide examples of outsourced services. Identify and describe some of the potential risks associated with outsourcing.
  3. Explain a make-or-buy analysis and illustrate how this analysis influences a company’s decision to outsource.

 

2.3. Supply chain rationalization

  1. Discuss supply-base optimization as an example of the rationalization process providing examples in this respect. (In your opinion, has the company optimized its supply base? Why or why not?)
  2. Explain how role shifting improves the competitiveness of the company in the supply chain.

 

PART 3: To-Be supply chain – How can we improve our performance as part of the Supply Chain?

 

Part 3 looks at how the company can improve its performance. It builds on parts 1 and 2 and asks: “How should we fit and how do we get there?” Companies look at what they are in Parts 1 and 2 and see where they can improve. Therefore, the objective of this part of the plan or proposal is to:

 

  • Explain how the company wants their supply chain to be and how they can get there. In doing this, the student must explain:
    • The company’s supply chain relationships
    • How the company can share information across the supply chain

 

 

3.1. Supply chain relationships

  1. Identify the right type of relationships with SC members that are recommended for the company.
  2. What are the practices that promote successful alliance creation and management in the company and give a proper example of such an alliance?
  3. How should the company utilize the elements of an effective negotiation strategy in order to build strong SC relationships? How should the company plan effective negotiations? Which tactics support win-win negotiations?

 

3.2. Sharing information across the supply chain

  1. What are the SC-related information technologies and information systems that are used in the company? Explain the benefits and real (or potential) value of this system for the company.
  2. How does the company use the Internet and e-commerce in its supply chain management practices? Provide examples to reflect these techniques.

 

 

PART 4: The Supply Chain Road Map- Mapping the supply chain design

Part 4 is a summary and brings all the previous parts together. The objective of this part of the plan or proposal is to:

  • Map (or compile) a supply chain road map for the company
  • Make conclusions and/or recommendations to the company about their strategic supply chain practices.

 

4.1. Supply chain mapping

  1. Based on the information in the plan (project output) for parts 1, 2 and 3, map out (or compile) a supply chain using the supply chain road map. Use the Supply Chain Road Map in your prescribed book as structure and include main points about the company from parts 1, 2 and 3 in the map. Therefore, the structure of your mind map must include:
    1. Designing the supply chain
      1. Who are we? (Business Purpose)
      2. How do we fit? (As-Is supply chain)
  • How should we fit? (To-Be supply chain)
  1. Integrating the supply chain
    1. How do we get there?
  2. Make some conclusions and recommendations to the company about their strategic supply chain management practices. Based on the findings in the project, explain how the company can improve its supply chain performance in terms of:
    1. Fulfilling customers’ needs
    2. Supply chain processes
    3. Strategic supply chain costing and performance measurement practices
    4. Core competencies and outsourcing practices
    5. Supply chain relationship management
    6. Sharing information across the supply chain
    7. Aligning all of the above with its supply chain strategy

 

Remember to include your LIST OF REFERENCES and a DECLARATION THAT IT IS YOUR OWN WORK. For this purpose, each student must complete and sign the section below.

A group and individual assessment will take as part of the proposal of the plan (project output). Please consider that your mark cannot be finalized before the group and individual assessment.

DECLARATION: We, the undersigned, declare that this is our own work and that each one of us contributed to the project. We have quoted all the relevant sources and we have not merely copied and pasted all the work into the project.

 

Student ID: _____________   Student Name:   ____________________________________

 

Signature:           ____________________________________

 

Student ID: _____________   Student Name:   ____________________________________

 

Signature:           ____________________________________

 

Student ID: _____________   Student Name:   ____________________________________

 

Signature:           ____________________________________

 

Student ID: _____________   Student Name:   ____________________________________

 

Signature:           ____________________________________

 

 


 

Company name: ______________________________________________________________________________ Student section: ___________

TOPIC Weight Score
  1. Supply chain management and competitive strategy

– Provide a brief background of the company. (Describe the industry in which the company competes; the company’s position in the market; details about location(s) (including international locations if necessary.)

– Describe the environment, the resources, the objectives and the feedback decisions used by the company in the strategic view. (This strategy needs to be followed consistently throughout the project work.)

– Compile and draw a supply chain for the chosen company. Include the supply chain flows of information, goods and services, and finances in the supply chain.

 10
  1. Customer fulfillment and environmental scanning

– Explain how the company creates value for their customers through Supply Chain Management (SCM) (i.e. by considering quality, cost, flexibility, delivery and innovation issues.)

– Explain how the company is monitoring the satisfaction of the end customers and how it deals with its partners in the Supply Chain (SC) in order to increase this satisfaction.

– Describe how the company uses customer segmentation.

– Use environmental scanning in order to define a brief SWOT analysis table for the company. Be mindful to focus on SCM issues.

– Define the most important forces of changes influencing the company supply chain strategies.

 10
  1. Supply chain processes thinking and order fulfillment

– What are the strategies used by the firm as part of their SCM (cost leadership, differentiation, focus)? Justify your answer by providing examples from the company’s practices.

– Explain the different primary SC processes according to the SCOR model. How does the SCOR model help create a common vision for the company. Provide examples.

– Describe the order fulfillment processes within the company, using SCOR model elements.

– Describe the sourcing processes in the company practices (supplier selection, transaction management, relationship management, communication management).

– Explain how the operations management and logistics decisions are affecting the company’s SC.

How is the firm organizing its functional (departmental) goals? Are these goals aligned with the company’s strategy? Why or why not? (Show how the company is implementing its supply chain strategy in specific processes of purchasing, production, logistics and information.)

 10
  1. Strategic supply chain costing and performance measurement

– Describe the strategic cost management principles in the firm. Provide examples how the company is dealing with cost reduction strategies based on these principles.

– Explain the tools that the company can use to support strategic cost management. How does the company distinguish between its suppliers (i.e. decide the importance of their suppliers)? How does the company classify its purchases?

– Explain how the company measures its sourcing, operations and logistics processes as well as its customer satisfaction.

– Provide examples of how the company is measuring its SCM performance (e.g. SC Inventory Days of Supply, Response Time, Cash-to-Cash Cycle Time, Perfect Order Fulfillment etc.). What do these figures tell you about the company’s performance and its alignment with its strategy?

 10
  1. Competencies and outsourcing and Supply chain rationalization

– Identify the core competencies of the company. Justify why you think they are core competencies.

– Define outsourcing and discuss reasons why companies outsource. Provide examples of outsourced services. Identify and describe some of the potential risks associated with outsourcing.

– Explain a make-or-buy analysis and illustrate how this analysis influences a company’s decision to outsource.

– Discuss supply-base optimization as an example of the rationalization process providing examples in this respect. (In your opinion, has the company optimized its supply base? Why or why not?)

– Explain how role shifting improves the competitiveness of the company in the supply chain.

 10
  1. Supply chain relationships

– Identify the right type of relationships with SC members that are recommended for the company.

– What are the practices that promote successful alliance creation and management in the company and give a proper example of such an alliance?

– How should the company utilize the elements of an effective negotiation strategy in order to build strong SC relationships? How should the company plan effective negotiations? Which tactics support win-win negotiations?

 10
  1. Sharing information across the supply chain

– What are the SC-related information technologies and information systems that are used in the company? Explain the benefits and real (or potential) value of this system for the company.

– How does the company use the Internet and e-commerce in its supply chain management practices? Provide examples to reflect these techniques.

 10
  1. Supply chain mapping

– Map out (or compile) a supply chain using the supply chain road map. Use the Supply Chain Road Map in your prescribed book as structure and include main points about the company from parts 1, 2 and 3 in the map. The structure of your mind map must include: (1) Designing the supply chain [Who are we? (Business Purpose); How do we fit? (As-Is supply chain), How should we fit? (To-Be supply chain)] and (2) Integrating the supply chain [How do we get there?]

 10
  1. Conclusions and final inputs concerning the project

Make some conclusions and recommendations to the company about their strategic supply chain management practices. Based on the findings in the project, explain how the company can improve its supply chain performance in terms of: (1) Fulfilling customers’ needs, (2) Supply chain processes, (3) Strategic supply chain costing and performance measurement practices, (4) Core competencies and outsourcing practices, (5) Supply chain relationship management, (6) Sharing information across the supply chain, (7) Aligning all of the above with its supply chain strategy

 10
  1. General layout

Editing rules, layout, Table of contents, spelling, grammar, references, declarations; safe assign score (with reasons)

 10
Total mark for project plan

 

 100

Comments/remarks: Students prepare a proposal (presentation) based on the plan (project. The proposal is also marked and the mark awarded in the right hand column is an integrated mark between proposal (presentation) and plan (project)


 

  1. Rubric – GRADING SCALE

The mark in the above Table will be awarded according to the following weightds and guidelines

Topics Weight

 

 (10-40% marks) (40-59% marks) (60-69% marks) (70-79% marks) (80-89% marks) (90-100% marks)
Supply chain management and competitive strategy 10 The plan (project output) as well as the proposal was:

A poor effort. (Reasons will be provided.)

 

 The plan (project output) was:

  • OK but not an integrated whole.
  • The section comes across as loose standing facts.
  • No/ very few relevant examples are provided.
  • Most of the questions were not covered.
  • The topics are not linked.

 

The proposal (presentation) was:

  • The student did not know the work.
  • There was no link to the plan (project).
  • No teamwork.
  • Student was very uncertain of him/herself.

 

 

 The plan (project output) was:

  • The content is covered satisfactory,
  • There is some application of theory to the company.
  • Very few examples were provided.
  • Not all the questions were covered.
  • The topics are not linked very well.

 

The proposal (presentation) was:

  • The student knew the work, but did not show insight.
  • There was a weak link to the plan (project).
  • Very little teamwork and team members do not show an integrated presentation of the proposal.
  • Student was uncertain of him/herself.

 

 

 The plan (project output) was:

  • The content is covered well
  • The application is good but there could have been much more application to the company
  • Some good examples are provided.
  • Most of the questions were answered correctly.
  • The topics are almost linked; the student almost manages to show the big picture of the company.

 

The proposal (presentation) was:

  • The student knew the work and showed some insight into the company’s practices.
  • There was a satisfactory link to the plan (project).
  • Some teamwork but integrated presentation can be better.
  • Student was uncertain of him/herself.
 The plan (project output) was:

  • Very good. The content is covered very well and presented well.
  • The application to the company is very good, but there is slight room for improvement.
  • Several good examples were provided.
  • All the questions were answered but the answers were not 100% correct.
  • The topics are linked well, but there is room for slight improvement.

 

The proposal (presentation) was:

  • Very good. The student knew the work. And showed almost excellent insight into the company.
  • The link to the plan (project) was very good but could have been better.
  • Teamwork was almost perfect (presented as an integrated whole).
  • Student almost came across as very confident
 The plan (project output) was:

  • The content is very good and presented excellently.
  • The application to the company is superb.
  • All the questions were answered well.
  • Most questions had relevant and good examples.
  • All topics are linked excellently

 

The proposal (presentation) was:

  • Student mastered the work and showed excellent insight into the company.
  • There was an excellent link to the plan (proposal).
  • Teamwork was excellent and presented as an integrated whole.
  • Student spoke with self-assured confidence
Customer fulfillment and environmental scanning 10
Supply chain processes thinking and order fulfillment 10
Strategic supply chain costing and performance measurement 10
Competencies and outsourcing and Supply chain rationalization 10
Supply chain relationships

 

 10
Sharing information across the supply chain 10
Supply chain mapping

 

 10
Conclusions and final inputs concerning the project 10
Editing rules, layout, Table of contents, spelling, grammar, references, declarations, etc. 10
Total group and individual work 100

Comments:

  • Individual component contributes 10% and group mark contributes 15% of the total of 25%
  • Each student should present at least two topics of the plan during the proposal (or presentation)
  • Ask each student a few questions about the project. Individual as well as the group project will be based on the abovementioned marks guidelines. Reasons must be provided as to why a higher grade was not obtained.