FORMATIVE ASSESSMENT

Read the case study below and answer the questions that follow. SUPPLY CHAIN RESET: NEW APPROACHES As executives prepare for a post-globalization, post-pandemic world, many are coming to grips with one of the most painful lessons of the past several years: Having the best product, technology, sales, marketing, and customer service doesn't matter much if your company doesn't have a resilient supply chain. For decades, companies have embraced globalization and lean supply chain operations to meet more demanding customer expectations while bringing down costs and reducing inventory. But the inherent weakness and vulnerability of this model has been exposed by a decade of supply chain disruptions that grew in frequency and magnitude (see Figure 1). Natural disasters, weather events, labor shortages, trade disputes, and other geopolitical issues showed the cracks in global supply chains. Then, over the past two years, the devastating Covid-19 pandemic, the global semiconductor shortage, and the brutal war and humanitarian crisis in Ukraine made this vulnerability obvious to every business leaderand moved supply chain resilience to the top of the C-level agenda. Figure 1 The worst of these supply disruptions have taken significant bites out of companies' output, sales, profitability, and share prices, with recovery sometimes taking months or even years. The chip shortage, for example, is estimated to have curbed global automotive production by more than 7 million vehicles in 2021, and the industry, similar to others, has yet to fully recover. Most of these disruptions understandably caught leadership teams by surprise. But the result is that they're now constantly on edge, awaiting the next unforeseen disruption lurking around the corner. And more are certainly coming: geopolitical realignments, climate change challenges, labor issues, demand and supply shortfalls, increasing economic volatility, to name a few. A growing number of executives have decided they can no longer afford to get caught flat-footed. They recognize that while it's important to respond effectively to short-term supply chain shocks, they also have to reposition their supply chain for the long haul because disruption is the new global reality. Companies that manage these disruptions best will have a distinct competitive edge over the next decade. At the same time, pressure from consumers, regulators, and shareholders to increase sustainability is making supply chain repositioning an even more urgent priorityand creating another potential source of competitive advantage. But most companies are only beginning to grapple with the magnitude of the overhaul that's required. The emerging leaders in this area recognize that in order to pull away from their competitors in the coming years, they'll need to fundamentally reinvent their supply chains. They're working to transform them from global and lean to resilient, sustainable, and more responsive to customer needsall while still maintaining cost competitiveness. The challenge is finding the appropriate balance among resilience, sustainability, responsiveness, and cost. These goals often run counter to one another. For example, a supply chain that is 100% resilient will also likely be too costly. There will always be trade-offs, and the balance will look different for every company, depending on various factors such as their industry, geographic footprint, and size. Improving collaboration between the supply chain team and other key stakeholders. At many companies, there can be limited communication between supply chain leaders and the sales team, business unit heads, or C-suite about strategy or investment priorities. Often this is because the organization is siloed or the supply chain department historically hasn't had a seat at the leadership table. But the result is a lack of direction that can paralyze the supply chain team: They don't want to embark on a multiyear redesign project only to find out partway through that they poured significant time and resources into a plan that doesn't deliver what matters to customers or what the business needs. If, say, faster delivery is paramount in the revamped supply chain, they'll design it differently than if low cost trumps all there could be thousands of iterations in between. Leading companies look for ways to improve communications among the supply chain, C-suite, sales, and other commercial teams so that supply chain leaders clearly understand the trade-offs required to win in the market. The most successful companies are also involving other key stakeholders in the supply chain balance equation discussion, including finance, R&D, regulatory, sustainability, and procurement. This ensures everyone understands all the implications of the proposed overhauland what's feasible. As companies change what they expect from their supply chains, it's critical to revise how they measure and incentivize success. Efficiency gains and cost reduction have been paramount for so long that switching to a more balanced scorecard won't be simple or happen overnight. But leading companies recognize that it's foundational to making the new model work. The most successful companies also adjust their supply chain governance and planning and monitoring processes to rigorously track progress toward resilience, sustainability, and responsiveness goals and to improve collaboration and data sharing with partners up and down the supply chain. Putting this infrastructure in place will help make it easier for everyone, from the C-suite to the shop floor, to shed the legacy supply chain mindset and embrace the new approach. Source:( https://www.bain.com/insights/supply-chain-reset-a-different-reality-demands-a-different-approach

1. Question 1.1 As a supply chain management executive of a reputable South African organisation, reflect on the events that have influenced supply chains over the past 5 years. Your response should highlight the frequency of these disruptions over these years from a South African context. Students should not reproduce the events provided in Figure 1 of the case study. Students should prioritise the following when answering the question, Highlight the events that have affected the SA supply chains The frequency distribution needs to be acknowledged to project the extent of the events of the years in question. Refer to the case study provided and providing examples and or illustrations. 20
2. Question 1.2 Using any organisation of your choice demonstrate on what short-term supply chain shocks entail and provide recommendations on how these can be successfully handled by embracing information technology. Make use of relevant examples. Students should prioritise the following when answering the question, Providing the relevant content for the question including identifying the relevant shocks. The use of relevant examples should be prioritised. 20
3. Question 1.3 As emphasized in the case study, forward-thinking leaders in supply chain management understand that to gain a competitive edge in the coming years, they must fundamentally redesign their supply chains. Using relevant insights, explain what it entails shifting from a global and lean supply chain model to one that is resilient, sustainable, and responsive. Support your explanation with practical examples. Students should prioritise the following when answering the question, Providing the relevant content for the question. Making use of relevant examples and illustrations. Answering the question in the context of the provided context. 20
4. Question 1.4 As a competent supply chain practitioner, provide recommendations on how organisations can improve collaboration between the supply chain team and other key stakeholders. Make use of practical examples. Students should prioritise the following when answering the question, Providing the relevant content for the question. Making use of relevant examples and illustrations provide for the measures and strategies that should be adopted. Answering the question in the context of the poultry sector. 20
5. Question 1.5 As noted in the case study, achieving an optimal balance between resilience, sustainability, responsiveness, and cost in supply chain management can be challenging, as these objectives often conflict. For example, a supply chain that is 100% resilient will also likely be too costly. Do you agree with this statement? Substantiate your response with relevant content. Students should prioritise the following when answering the question, Providing the relevant content for the question. Making use of relevant examples and illustrations. Your opinion needs to be presented and the relevant examples.