IBM2012 Capstone _________________________

Project 4 ON LINE VERSION Final Supply Chain Overview

Introduction:

Your management team has completed the sourcing and procurement of your product, secured the transportation and shipping requirements, cleared customs and landed the product at your facility in Windsor, Ontario. Now that all these steps have been completed it is time to review and assess your supply chain as a whole and, considering your current situation, assess total costs and any possible improvements for the future.

This final part of your Capstone project will be completed in two parts:

In Part I the management team must provide a thorough and comprehensive cost assessment of your entire supply chain from start to finish. That is. what costs were incurred at each step in your supply chain both upstream and downstream. Was each cost realistic (justifiable) why or why not.

In this part, the team must ensure that their future management of this supply chain is undertaken in a manner that minimizes cost, maximizes effectiveness and efficiency and, contributes a positive result to profitability.

In Part II the management team will prepare a report outlining their unique supply chain features and characteristics, as well as explain their decisions regarding the execution of key components of the supply chain. This report will be based on information detailed in Projects 1 - 2 - 3

The management team should draw on their knowledge and skills that have been learned and practiced in their previous Supply Chain Management courses. Students are therefore responsible for reviewing the previously studied course work, text books, and material as required to address all the Capstone specifications.

Part I Cost Analysis:

1. In Project 1 the management team was provided with a costing template. Upon reviewing the entire supply chain process the management team must first complete the template to establish their final and total costs for the full shipment. Once all costs have been identified and completed, a final market price for the imported product must be established. The management team must also identify and explain the gross margin that will be achieved on the complete order. NOTE: This gross margin will be based upon the total expected revenue generated by the order minus the costs of goods sold (derived from the costing template). (40 marks)

2. In the interests of continuous improvement and based upon what the management team has now learned about their total costs, expected revenue and gross margin, this information will be used to consider and explain in detail the following specific improvements:

i) How the costs of goods sold could be reduced by 10%;

ii) How gross margins could be increased (by any reasonable amount);

iii) How delivery times could be reduced;

iv) How product quality improvements could be achieved. (40 marks)

NOTE: the above answers must relate to your product/industry and NOT be generic in nature

You will lose marks if you do not follow the above.

Part I will be submitted to the instructor according to the date established on the Course Syllabus.

Total Part 1 = _____ /80

IBM2012 Capstone

Project 4 Final Supply Chain Overview

Part II Project Overview Report

NOTE: This report will be based on the research you developed as part of Projects 1, 2, and 3. The feedback and recommendations you received on all 3 reports should be considered and those reports modified to reflect the necessary changes and upgrades. This will enable you to have the best information for inclusion in Project #4.

By referring back to Projects 1, 2, and 3, the management team will prepare a full report which will include an explanation of the following aspects of their specific supply chain:

1. A brief description of the imported product; (3 marks)

2. A supply chain map depicting the entire supply chain using either a detailed geographic map or flow diagram covering all elements of the supply chain. The map should include the physical location of suppliers, the location of your operation for receiving the product, the various modes of transport used to ship product from your suppliers to the final point of delivery, the ports and/or points of product transfer throughout the supply chain as well as the placement of inventory/storage if at a location other than your place of receipt. (20 marks)

3. The key sourcing and procurement considerations made by the management team as well as the factors that contributed to the preferred modes/methods of transport for your shipment(s). (20 marks)

4. An explanation, based on one shipment, of your product configuration (size, weight specifications as well as the packaging requirements and dimensions) that were required to contain the product in shipment. This will include how shipments were packaged, packed, volume per container etc. Any issues that arose regarding the shipment should be noted and their resolution explained. (20 marks)

5. The management team must also describe and explain the storage/warehouse and inventory systems used for the efficient management and retrieval of the inventory required for sale. How the company will address any issues that may arise with the inventory storage and handling should also be identified and explained. Assure this is product/industry related and NOT generic in nature (20 marks)

6. A full explanation of how the Mission Statement is being fulfilled by all of the decisions and activities previously discussed. NOTE: this MUST relate to the Mission Statement that was developed as part of Project #1 (be sure to provide that exact same Mission Statement as part of this answer). (12 marks)

The forgoing information will be submitted to the instructor by the deadline noted on the Course Syllabus and be structured according to the previously established standards for clear, effective and efficient report writing and presentation. An additional 5 marks are allocated for this element of the project Total _______/100

IBM2005 Project 4 Part I Rubric

Section Number ________

STUDENT NAME ______________________________________________STUDENT # _______________

STUDENT NAME ______________________________________________STUDENT # ______________

STUDENT NAME _________________________________________ ____ STUDENT # ______________

STUDENT NAME _________________________________________ ____ STUDENT # ______________ GROUP # ____________

Evaluated by Prof:

Date:

Students must use their Supply Chain & Logistics Management knowledge to analyze and provide a detailed report covering the following elements: Mark

(100) G Comments

1. The management team has reviewed the entire supply chain process and completed the template to establish their final and total costs. Once all costs have been identified and completed, a final market price for the imported product must be established. The management team must also identify and explain the gross margin that will be achieved on the complete order.

40

2. In the interests of continuous improvement and based upon what the management team has learned about their total costs, expected revenue and gross margin, this information will be used to consider and explain in detail the following specific improvements:

i) How costs of goods sold could be reduced by 10%;

ii) How gross margins could be increased (by any reasonable amount);

iii) How delivery times could be reduced;

iv) How product quality improvements could be achieved.

40

Additional Comments:

Part I Total = /80

IBM2005 Project 4 Part II Rubric

STUDENT NAME __________________________________________________STUDENT # __________

STUDENT NAME __________________________________________________STUDENT # __________

STUDENT NAME __________________________________________________ STUDENT # __________

STUDENT NAME ________________________________________ _________ STUDENT # __________ GROUP # ______________

Evaluated by: Prof. Date:

Presentation Specifications: The management team will prepare a 15-20-minute presentation with the following information & analysis: Mark

(100) G Comments

1. A brief description of the imported product.

3

2. A supply chain map depicting the entire supply chain using either a detailed geographic map or flow diagram covering all elements of the supply chain. The map should include the physical location of suppliers, the location of the company operation for receiving the product, the various modes of transport used to ship product to the final point of delivery, the ports and/or points of product transfer throughout the supply chain as well as the placement of inventory/storage if at a location other than your place of receipt.

20

3. An explanation of the key sourcing and procurement considerations made by the management team as well as the factors that contributed to the preferred modes/methods of transport for your shipment(s).

20

4. An explanation, based on one shipment, of the product configuration (size, weight specifications as well as the packaging requirements and dimensions) that were required to contain the product in shipment. This will include how shipments were packaged, packed, volume per container etc. Any issues that arose regarding the shipment should be noted and their resolution explained.

20

5. A description and explanation of the storage/warehouse and inventory systems used for the efficient management and retrieval of the inventory required for sale. How the company will address any issues that may arise with the inventory storage and handling should also be identified and explained.

20

IBM2005 Project 4 Part II Rubric (contd)

Presentation Specifications: Mark Grade Comments

6. A full explanation of how the organizations Mission Statement is being fulfilled by all of the decisions and activities previously discussed. Included the Mission Statement that was 1st included as part of Project #1.

12

7. Students are required to provide: A clear and logical presentation of their ideas in the report by providing a type written report (12 font ,double spaced); Maintain a logical connection between the information presented within different sections of the report and the assignment criteria. Use a structured approach by providing a title page and headings for sections or separate components of the report. Demonstrate effort put forth and use of students own analysis. Express ideas clearly to be understood by the reader. Use examples or elaboration to explain a thought or idea. Demonstrate the report has been proof-read eliminating spelling and grammatical errors. Acknowledge any outside sources and references to others ideas/work. All sources used in the report must be properly acknowledged, cited AND referenced using APA style format with Bibliography. The report is submitted on time (by the established deadline) 5

Part II Total =______ /100

Assuming quantity is 1200 dozen crystal wine glasses

importing from hungary