Question 1 (20 Marks) Supply Chain Management: Cyber Logic Systems Cyber Logic Systems is a successful regional company in the United States that specializes in cyber security. Because of the dramatic increase in the hacking of business and government databases, Cyber Logic Systems believes this is the moment to expand its operations. Elmer Armstrong, chief executive officer, met with the board of directors and explained his vision for the company. Elmer planned to aggressively expand into Europe and South America. The board of directors gave Elmer the go ahead. Elmer called a meeting of his senior staff and explained his vision to them. He asked what major issues they saw that required immediate resolution before Cyber Logic Systems could proceed with such an aggressive expansion. Rhonda Mendoza, director of operations, said that the company's current supply chain structure would not be able to support such an expansion. She further stated that the supply chain structure would collapse under the strain, thus endangering their regional business, as well as the expansion. Elmer tasked Rhonda with developing a plan on how to get the supply chain structure robust enough to move forward with the expansion. Rhonda began analysing the company's supply chain management needs by reviewing the four foundation elements. As she performed her analysis, Rhonda realized that not all their current suppliers had the capabilities to support Cyber Logic Systems' operations in Europe and South America. Rhonda decided to perform a detailed supplier evaluation on each supplier. Through this evaluation she determined that some suppliers could easily support European operations, while others were better suited for the South American operations. Furthermore, some suppliers, who were a tremendous asset to Cyber Logic Systems, would only be capable of supporting their current regional business. Each market area, United States, Europe, and South America, had regulations with differing standards for cyber security The technical specifications for the systems Cyber Logic Systems would install varied significantly between the three marketplaces. Rhonda decided this could be a considerable problem. Her solution was simple, yet elegant, supplier certification. Supplier certification would ensure that the suppliers supporting the specific operational markets would be qualified to meet the particular regulatory requirements. Although the systems Cyber Logic Systems installed were primarily software, often new hardware was required to support the software. Rhonda understood that its current distribution network was insufficient. It needed to redesign and build a more self-sustaining distribution network in order to ensure timely product delivery. It truly needed to move from the mind- set of a regional distribution system to a global supply chain. This requirement would mean sourcing from suppliers who were close to the customers. When a customer has a cyber security issue, time is the enemy. The new systems must be in place as quickly as possible to avoid further damage to the customer's databases and to enable them to continue operating Ronda cesar analysing the companys poly chain management mes oy reviewing the four foundation across she performed rearan Shonda sized rat not all their current scoliers at the tables to supporter 29 Systems operations Europe and South America Rhonda decided to perform a detailed super staan on each supper. Through this evaluation she determined that some suppliers could easily succon European cermions will others were better suited for the South American operations. Furtere some supies to me a tremendous astes Cyber Logic Systems would only be capabile of supooning their orrent regional business Bachmaratarea United States Erope and South Amerca nad regulations with ring star cars for over sem The technica specifications for the systems Cyber Logo Systems would call and scary bemeente markets aces. Pronda decided this could be a considerable problem Her solution was see yet elegant cencaon Supper cenfication would ensure that the suppliers supponing the specific operational marcas would be qualified to meet the particular regulatory requirements Athough the systems Coer Logo Systems insales were primarily soare cher en tarware 25 recues to scoot the software Pronda understood that its Ourrent ostroution network was inocent needed to redesign and buica more self-susaning distrouton netok in order to ensure timely product delivery. It hay needed to move from te set of a regional distribution system to a global supply chain. This requirement would mean sourcing from souters who were dose to the customers. When a customer has a cyber security issue fire is the enemy. The new systems place as quickly as possible to avoid further damage to the customer's databases and to enable them to contine porating Rhonda believed she had identified the key elements that must be improved before they could move forward with the expansion. The last hurdle was how to guarantee that the three foundation elements worked as one smooth global supply chain and not as disjointed parts. This was the biggest challenge of all. W Cyber Logic Systems didn't solve this sove the chance of failure was high Rhonda reflected on her studies in operations and supply chain management. The answer to the issue was process ntegration She knew that it had a challenge ahead. The company must convince each supply chain partner that this suggy chain management structure must be part of everyone s strategic planning process. Only then could it ensure that the individual pieces purchasing, inventory operations, logistics quality, etc would work together as a single web-aded machine Rhonda was ready to outline her plan to Elmer and the other members of his senior staff Source: Wisner, J.D., Tan, W.C., and Leong, K., (2019) Principles of Supply Chain Management. Fifth Edition. South Western: Cengage Learning. Question 1 (20 Marks) Outline the specific issues Cyber Logic Systems must address when analyzing the elements of supply chain management Question 2 (10 Marks) "Supplier certification would ensure that the suppliers supporting the specific operational markets would be qualified to meet the particular regulatory requirements". Cyber Logic Systems needs to form collaborative relationships with the certified suppliers. Explain this concept and discuss the phases that they need to follow to achieve this