5. CASE STUDY

Alpha Limited manufacture computer-controlled watering systems that are used by three primary markets - Growers of onions and carrots in New Zealand. - Flower growers in Japan's Iwate Prefecture who grow gentian (A very important ornamental flower in Japan). - Landscaping business in NZ for high-end residential houses and subdivisions The product is a box that contains the computer, the electrically controlled valves to control the flow of water, the modem to communicate with the growers phone, and all the plumbing equipment needed. This unit is approximately 100,150x15 centimeters in size. They manufacture several models with different features. They include sensors that measure plant water needs. The orders for the product are all year with an increase at the start of the growing season as growers replace older equipment and expand operations. The suppliers of the computers and sensors are Aquabot Limited in Auckland, they source their computer chips from the USA and other electronics from China. The lead time prior to COVID was 6 weeks. Aquabot is anticipating 12 weeks but will not guarantee this time. The modems and the equipment to connect to the computer are sourced from Motorola New Zealand. The modems are manufactured in Vietnam using components sourced from unknown suppliers. This product has been stocked in New Zealand in the past with immediate availability. The suppliers of the plumbing materials are in Auckland. This is mostly pipe which is supplied in New Zealand by Polypipe Ltd. The high-quality pipe is imported from WL Plastics in the USA. A range of other pipes sold with the units is sourced from China, which has reduced the manufacture of nonessential plastic products. This product's lead time is anticipated to vary significantly. There are predicted to be long-term problems with the plastics supply chain. The Units are sold to agricultural Machinery Wholesalers across New Zealand and Australia. The market for landscapers is only in New Zealand. The growers who buy are very organized and plan their capital expenditures well in advance. Demand for Onions Carrots, and flowers in Japan, have been consistent for many years. This has resulted in a very efficient supply chain allowing Alpha to hold minimum inventory. Until the COVID pandemic arrived the supply chain operated on a tight timeline. Orders were predictable, the components high volume and available. Food demand locally in New Zealand and Australia grew dramatically during COVID but future demand is highly variable as borders open up. The flower growers were badly affected in Japan with fewer weddings. Landscaping stalled for COVID lockdowns and house building is badly affected by other materials shortages. Due to the current situation, Alpha has employed a consultant who has analyzed the supply chain and recommends a digitally integrated supply chain. The consultant has also asked if Alpha believes the supply chain partners will collaborate to allow supply chain-wide activity scheduling.

Identify THREE key supply chain risks for Alpha and discuss how these may affect Alpha