TLIL5055 Manage a supply chain

Trainer Guide: TLIL5055 Manage a supply chain

Introduction

This guide, together with the Assessment Activity forms the assessment tools for:

Application

TLIL5055

This unit involves the skills and knowledge required to manage a supply chain within various contexts in the transport and logistics industry. It covers the relationships between an organisation and its supply and demand partners along the chain.

It includes implementing a demand-driven supply chain management strategy, managing the supply chain, and evaluating and improving supply chain effectiveness.

The unit generally applies to those who lead individuals or teams.

Elements and Performance Criteria

1.0 Implement demand-driven supply chain management strategy

• Responsibility for supply chain management within the organisation is assigned in accordance with the strategy
• Technology and software for implementing the strategy is accessed and operationalised within the requirements of the strategy and budgetary allocation
• Policies and procedures are designed to guide business relations and operations in accordance with the strategy
• Supporting business processes are designed or re-designed to support implementation of the strategy
• Support is provided to staff, customers and supply chain to assist in implementation of the strategy

2.0 Manage supply chain

• Communication and information exchange with strategic partners and suppliers is managed in accordance with the supply chain management strategy
• Collaboration with supply chain organisations is facilitated to determine demand at each level of the supply chain in accordance with the strategy
• Sales and payments are managed in accordance with supply chain and risk management strategies, and legal and ethical requirements
• Actions to build trust and foster a supply chain culture are implemented in accordance with the strategy
• Opportunities are identified to adjust policies and procedures to respond to the changing needs of customers, supply chain and the organisation

3.0 Evaluate and improve supply chain effectiveness

• Demand chain management and supply chain management are monitored in accordance with the supply chain management strategy
• Effectiveness of the supply chain is reviewed with each level of the supply chain, including staff and customers, and areas are identified for improvement
• Business data and reports are used to compare outcomes, budgets, timelines and forecasts to actual performance
• Technology performance is reviewed and recommendations are made for improvements to hardware, software and/or their use, in accordance with strategy and budget
• Feedback and evaluation results are used to plan and improve future supply chain management strategies

Pre-requisites

Not applicable

Appeals and reassessment

If you disagree with the assessment decision and result, you have the right to appeal and be reassessed if necessary. Details of the appeals process is contained in the Complaints and Appeals Policy & Procedure, provided to you prior to enrolment. See Complaints and Appeals Policy & Procedure for more details.

Plagiarism

While co-operative effort and the sharing of information are encouraged, you must ensure your assignments and assessments are representative of your own effort, knowledge and skills. You must not take the work of others and present it as your own. Plagiarism may result in the assignment/assessment being deemed to be “not yet competent” by the assessor.

Students accused more than once of academic misconduct, including plagiarism, may be dismissed or cancelled from their course at the discretion of the National Training Manager.

Plagiarism can take several forms;

• Quoting from a book or an article without acknowledging the source
• Handing in someone else’s work as your own
• Stealing and passing off another person’s words or ideas and claiming them as your own
• Giving incorrect information about the source of a quotation or idea
• Downloading information from the internet without acknowledging the source
• Copying a section of a book or article and submitting it as one’s own work
• Presenting as a new and original idea or produce something which was derived from an existing source

Referencing Materials

National Training prefers that students utilises Harvard Style referencing. Generally, Harvard Reference List citations follow this format:

Books: Last name, First Initial. (Year published). Title. City: Publisher, Page(s).

Journals/publication: Last name, First initial. (Year published). Article title. Journal, Volume (Issue), Page(s).

Websites: Website name, (Year published). Page title. [Online] Available at: URL [Accessed Day Mo. Year].

Understanding your results

The great thing with competency based training is that you either deemed 'competent' (you can demonstrate the required skills and knowledge) or 'not yet competent' (at this time you haven't been able to demonstrate required skills or knowledge). The key word is {"YET"}.

Your trainer will provide you with feedback on your assessments so that you know what you have done well in your assessment and what you need to improve upon or fix. An {"NYC"} result does not mean that you have failed and that is it - you have the opportunity to try again. It could be that one question in your assessment was deemed not yet satisfactory and this is the only question that will require review.

Results Legend

Assessment activity

The assessment activities contained below have been designed for the following unit(s) of competency:

TLIL5055 Manage a supply chain

This is a summative assessment process. For the student to be assessed as competent in each Unit of Competency, all questions and activities need to be satisfactorily completed.

Each assessment activity contained within:

Assessment 1, 2 & 3 Instructions

Assessment 1: Case Study 1

The objective of this section is to demonstrate TLIL5055 Manage a supply chain

Case Study 1

The CEO of National Camper Trailers has been reviewing the performance of all departments over the last financial year. He feels that we can do business better if we restructure our procurement and sales departments by setting up a Supply Chain Management system.

The CEO realises that to do this we must endorse changes within the organisation, but first we need to know just what this would involve. How do we go about it, how do we restructure, what does the restructure look like, what are our legal responsibilities?

He is aware that there are several models that could be used and that the right people to prepare a report for the board would be the current Sales Manager, Procurement Manager, and Warehouse Control manager.

Your position, as the Supply manager, means that this falls within your umbrella of control.

Here is a breakdown of the Procurement Department.

Procurement Manager – YOU

Procurement Manager to be responsible for the supply of products and services essential for our company’s operations. Procurement manager responsibilities include strategising to find the most cost-effective products and suppliers. The Procurement Manager’s duty is to discover the best ways to minimise our procurement expenses so that the company can invest in its growth and people.

Responsibilities

• Devise and employ fruitful sourcing strategies
• Discover the most cost effective suppliers and initiate business partnerships
• Negotiate with external vendors to secure the most advantageous terms
• Approve the ordering of necessary goods and services
• Finalize details of orders and deliveries
• Examine and re-evaluate existing contracts
• Track and report key functional metrics to reduce expenses and improve effectiveness
• Collaborate with key persons to ensure the clarity of the specifications and expectations of the company
• Foresee alterations in the comparative negotiating ability of suppliers and clients
• Anticipate unfavourable events through analysis of data and prepare control strategies
• Perform risk management regarding supply contracts and agreements
• Control spend and build a culture of long-term saving on procurement costs

Procurement Officer – x 2

A procurement officer, is an important person in any organisation. They ensure that the company makes wise purchases of goods or services to resell or use. The demand for the services of procurement officers has increased.

Responsibilities

• The Procurement Officer will be responsible for coordinating and assisting with sustainable procurement initiatives,
• Coordinating procurement throughout the company
• Monitoring internal procurement systems,
• Supporting procurement projects across all company divisions,
• Providing procurement advice to company staff,
• Negotiating new supply agreements and
• Renegotiating existing supply agreements.

Procurement Clerk x 2

Procurement clerks, also known as purchasing assistants or departmental buyers, take purchase requests from various departments within a company and get quotes from suppliers. Additionally, their responsibilities include contacting suppliers to schedule deliveries or to discuss shortages or missed deliveries.

Responsibilities

• Procurement clerks prepare purchase orders on behalf of their companies.
• They also may be required to review prices and product specifications from various suppliers to determine which would provide the best deal.
• Other duties might include creating and maintaining purchasing files and price lists, as well as determining if we have enough inventory on hand.
• Additionally, procurement clerks might track deliveries and make sure we receive exactly what was ordered from suppliers.
• They sometimes physically check shipments to ensure the appropriate items were delivered.
• Procurement clerks also answer supplier and customer inquiries about order changes or cancellations and check requisition orders for accuracy.

Upon the first planning meet with your fellow mangers the consensus was that the best Supply Chain strategy for use within NCT would be the Continuous Flow Supply Chain Model.

Your section of the report revolves around the Procurement of resources for the manufacture of our range of Camper Trailers.

Your Report should be 2000 – 3000 words.

You must take into account the following guidelines.

1. Who would you recommend be responsible for the SCM within the organisation in accordance with the strategy?
2. Research, the use of technology and software that could be used within the restructure and prepare a budgetary assessment of possible costs.
3. Review the NCT Procurement Policy and Procedure, NCT Procurement Terms and Conditions and the NCT Supplier Selection Process Guide.
   1. Explain how these documents can assist with this program.
   2. Review and revise these documents and provide updates to bring these documents into the Supply Chain mechanism.
   3. Explain how these Policies and Procedures also meet our legislative requirements.
4. Design an Implementation Action Plan to show the CEO how we can incorporate the changes into the normal processes effectively and efficiently.
5. Discuss how each branch of the company can collaborate with each other to meet customer demand to provide improved service.
6. Propose suggested communication and review methods to monitor progress to exchange information on with both internal and external stakeholders.
7. How will the proposed SCM (Supply Chain Management) system incorporate financial responsibilities such as sales and payments?
8. Explain the legal and ethical requirements that will need to be addressed within the proposal.
9. Detail in how using an SCM will improve dealings with suppliers to build a culture of trust And mutual benefit.
10. Detail the Procurement Terms and Conditions that will be incorporated when conducting Purchasing and Tendering bids.
11. Outline 2 contingency plans that would be implemented if the proposed SCMS fails to achieve the budgeted Outcomes as listed below?

Assessment 2: Project 1

The objective of this section is to demonstrate TLIL5055 Manage a supply chain

Project 1 – Evaluation of the SCM.

After setting up the Supply Chain Management Strategy in January 2016, the CEO has requested another report from you to assess how the SCMS is progressing.

Following on from Case Study 1, and using the same role of Procurement Manager. The CEO has returned to you to monitor and report on the success or potential improvement of the Supply Chain Management System that we implemented.

The following data has been accessed from the sales department (Sales Figures) and the Management (Budgets).

How do we evaluate the success level or failure of this system?

What can we put in place to ensure that we maintain Continuous Improvement with this system?

Your report should incorporate the following: -

1. How would you identify opportunities to adjust policies and procedures to respond to the changing needs of your customers and suppliers within the Supply Chain and the Organisation?
2. How would you monitor the SCMS processes including the effects on Demand, Supply, Staff, Customers and the areas identified for improvement?
3. Using the Business data above compare the performance of the SCMS over the last 6 months of the year. State your findings.
4. Review the chart and make recommendations on the integrated technology that could be incorporated into the SCMS to improve data availability

You will need to provide a report on all of the above points, of approx. 1000 words to the CEO.

Assessment 3: Short Answer Questions

The objective of this section is to demonstrate TLIL5055 Manage a supply chain

Question 1

Explain the ethical requirements of a Supply Chain Management system.

Question 2

What legal regulations apply when dealing with overseas products?

Question 3

Provide an example and a brief description of 5 Legislative, Regulatory or Industry Standards either national and international, That apply to Supply Chain Management.

Question 4

When dealing within a Supply Chain process describe at least 6 documents that would be required to be completed to ensure appropriate documentation?

Question 5

What procedures might you implement to ensure appropriate operation of electronic communications equipment?

Question 6

Discuss the need for good knowledge of production, goods and services to effectively manage your SCMS.

Question 7

Why is technology performance reviewed and recommendations are made for improvements to hardware, software and/or their use, in accordance with strategy and budget?