BBA323 SUPPLY CHAIN MANAGEMENT Task brief & rubrics
Final Assesment
The task is individual
The deliverable has to be a report (of about 2,500 and 3,000 words)
The weight is equivalent to 60 %of the whole course
The report has to be delivered in Turnitin on 17th of January. Harvard Referencing System has to be used.
Case: WE ARE THE BEST
We are the Best & Co. is a Company located near to Barcelona.
They manufacture and distribute computer screens.
They are producing 5 different models (screen sizes).
Sales volume of the different sizes during the last 3 years was as follows:
SIZE PERCENTAGE OF
ANNUAL SALES
10 5%
12 7%
15 45%
18 33%
24 10%
In order to assembly any model, 10 different components are required.
Six of these components are common two all models whereas the other four are specific for each size.
Profit and loss results of the last three years as well the forecasted one for 2018 are as follows:
MILLION EUROS 2016 2017 2018 2019
SALES 10 12 13,5 15
PURCHASING COMPONENTS 5 6,6 7,7 9
TRANSPORTATION COSTS 0,5 0,6 0,9 1,2
SALARIES 2 2,1 2,1 2,2
OTHER COSTS 0,4 0,4 0,5 0,6
GROSS PROFIT 2,1 2,3 2,3 2,0
The behavior of the available cash has been the following:
MIO. EUROS 2016 2017 2017 2018
CASH 1 0,8 0,7 0,5
“We are the Best” is selling the screens in Spain, France and Portugal .
Customers are big distribution Companies as well as wholesalers.
30% of the total sales are concentrated during the Christmas period.
Main customers in 2019 were (under brackets central warehouse)
• El Corte Inglés (Madrid): 5 Mio €
• Carrefour (Paris): 3,5 Mio €
• FNAC (Barcelona) : 3 Mio €
• The rest are 9 wholesalers/distributors located in Bilbao (2), Valencia (2), Zaragoza, Sevilla, Oporto (Portugal), Vigo and Bordeaux
(France).
All these customers bought less than 0,5 Mio € each.
There is also a huge potential customer (between 3 and 4 Mio € sales) located in Lisbon (Portugal). Big marketing and sales efforts have been
made trying to catch this customer.
“We are the best” has 4 warehouses: Barcelona (located in the factory), Madrid, Sevilla and Zaragoza.
Inventory of all manufactured products (sizes) is available in all warehouses.
Additionally, they always have safety stock of at least 20 days average sales of all products in the central warehouse.
The delivery time agreed with customers are 4 labor days.
Total time for assembly is 2 days.
Factory works from Monday to Friday.
Organization is as follows.
Owner/Managing Director: Joan Soler
Sales and Marketing Manager: Sonia González
Manufacturing and Purchasing : Raúl López
Logistics manager (Transportation and Warehousing): Rafael González
Financial Manager: Pilar Gómez
They have a Board of Directors meeting once a month. Everyone explains improvement and results in their area. Raul and Rafael are very good
friends. They work very closely. They think they shouldn´t need any sales department because “with only 3 main customers, Mr. Soler could
take care of them”. “Why do we need marketing if there are no new customers to discover.?”
“We give a good service. There are no stockouts and customers are satisfied with our quality.”
Although “We are the best” is the only computer screens manufacturer located in Spain, their market share in the Spanish market is 18%. Their
competitors are foreign Companies.
During last Board of Directors Sonia proposed she would like to work closely with Raúl and Rafael. She thought it would be a good idea to show
to customers the assembly process as well the warehousing facilities.
Rafael and Raúl considered customers didn´t need to visit them. “You are responsible for customers. You take care of them and you deal prices
with them. But this is not our business”.
By the other side, Pilar is really concerned because their cash needs are increasing and, as the working capital has been growing the last 3 years
(mainly final products inventories), she has problems to fulfill the financial and cash requirements for running the daily activity.
Mr. Soler decided he should need a Managing Director with new ideas. Her older daughter, Marta, recently graduated at the EU Business
School at Barcelona, took this position and joined the Company 2 weeks ago and during his first Board of Directors, he said: “We must build an
efficient supply chain organization, to improve our customer service and to increase profits”.
Sonia is really excited about this proposal but Raúl and Rafael consider things are running good enough. “The only thing we need to increase
profits is to increase sales prices!!!! said Rafael”.
Marta Sole has appointed you to provide a report assessing the company situation in the following areas/activities.
• Transportation strategy
• Warehousing location
• Supply range optimization
• Manufactured components (possible optimization)
• Overall marketing/sales strategy
• Internal Organization
• Any other strategical/functional issue you consider
She is requesting you to specifically evaluate the strengths and weaknesses of the supply chain and determine the improvements to be
applied. These are the main aspects she wants to have elucidated:
1. Critical evaluation of the current marketing/sales strategy.
2. Determine if manufactured components could be optimized, and, in such case, what actions would have to be taken, and what would
be the resulting optimization.
3. Analyze if the current supply range is optimal, and propose changes and/or improvements.
4. Assess warehousing location and its appropriateness.
5. Define pros and cons of the current transportation strategy and elaborate recommendations.
6. Is internal organization adapted to the main objective stated by M. Sole: “We must build an efficient supply chain organization, to
improve our customer service and to increase profits”. Critically discuss this point.
7. Provide a summary of the main actions to be undertaking to achieve M. Sole strategic objective.
Exceptional
90-100
Good
80-89
Fair
70-79
Fail
<70
Knowledge &
understanding
(20%)
Student demonstrates clear
understanding of the Supply Chain
Management concepts involved in
the discussion questions; Provide
relevant examples from Corporate
world to establish a connection
between practice and theory; Free
of grammatical or stylistic errors
Student demonstrates fair
understanding of the Supply Chain
Management concepts involved in
the discussion questions; Provide
few examples from Corporate world
to establish a connection between
practice and theory; Few
grammatical or stylistic errors.
Student demonstrates few, if any
new ideas or connections;
summarize other postings; Several
grammatical or stylistic errors.
Student demonstrates little or no
awareness of key concepts required
in the discussion questions; Obvious
grammatical or stylistic errors
Critical
evaluation
(30%)
Student comments significantly
add to the learning process;
demonstrates higher level of
critical thinking-analysis,
synthesis& evaluation.
Student comments add to the
learning process; demonstrates
moderate level of critical thinking
analysis, synthesis& evaluation.
Generally competent; information is
average doesn’t add to the
continuous learning process;
grammatical or stylistic errors
interfere with the content.
No new ideas are presented; Usually
have “I agree with…” statement;
makes understanding impossible.
Written
Communication
(20%)
Student communicates their ideas
extremely clearly and concisely.
Able to connect theory with the
case study, comments are
focused and concise.
Student communicates their ideas
clearly and concisely.
Able to connect with the case study
but lack depth and/or detail.
Student communicates their ideas
with some clarity and concision.
Limited, if any connections with the
case study; vague generalities
Student fails to communicate their
ideas clearly and concisely. No
connections are generated between
theory and the case study; comments
are off topic
Synthesis
(30%)
Student synthesizes the content of
their writing with exceptional
clarity and concision
Student synthesizes the content of
their writing with some clarity and
concision
Student synthesizes the content of
their writing, although work lacks
clarity and/or concision
Student makes an insufficient
attempt to synthesize, with a lack of
clarity and concision.
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