SCM110 Case Study 2, worth 5% (5 marks) Step 1: Take reference from Deloitte's Report on Supply Chain Disruption Step 2: Read Case Study on NadaMoo! NadaMoo! Dairy-Free Ice Cream | Available in Canada Dairy-free ice cream-maker NadaMoo! saw supply chain issues arise on both the supply and demand sides. Not only was the company experiencing delays in obtaining ingredients, but it also saw retail grocery demand for its products spike, and its distributors couldn't keep up. CFO Javier Alarcia (who also serves as COO) shared a number of steps the company took. Even before the pandemic took hold, the company was working to establish supplier redundancies with a goal of having at least two or three suppliers of every product. Then, as COVID began to ravage the economy, the company started reaching out to its suppliers every week or two to talk about any supply chain problems that were arising, which enabled it to manage delays more effectively. Having clear data from NetSuite also helped Revival better manage its inventory levels and to forecast as well as it could despite the difficult global circumstances. These steps helped to minimize disruption to the business.Additionally, the company benefited from another habit: it always tries to negotiate prices for products from its suppliers at least six to 12 months in advance, in the process committing to purchase a certain amount of product for the duration. "That blanket PO makes them comfortable, and it gives us peace of mind where we can guarantee supply for a certain amount of time," said Alarcia. Such commitments, he said, also give the company time to find other options should interruptions with that supplier become inevitable. But in a market as unpredictable as it is now, anything can happen, so NadaMoo! has taken the additional steps of securing as much cash as it can from investors and lenders. Alarcia believes this gives the company much more flexibility during tough times, even if it has to absorb interest payments. One other step the company has taken is to look for an alternative to the one Asian supplier it relies on for a particular ingredient. NadaMoo! has been in talks with one of its Mexican suppliers to explore not only whether it can provide the ingredient in question, but perhaps even blend it with ingredients it's already providing. It's the kind of arrangement that speaks to Krumins' point about maintaining strong relationships with suppliers. And that may be the most important theme to emerge from listening to these business decisions makers: No matter the disruptions, and no matter the tools and data at one's fingertips, keeping supply chains running is as much about relationships as anything. Whether a shipment is late, demand is falling off or revenue is running short of projections, the more companies communicate with their suppliers, the less likely problems will mushroom out of control. It's really no different than any other challenge human beings face. Said Alarcia: "People are usually pretty understanding."Answer the following questions 1. Do you think the steps taken by CFO, COO Javier Alarcia were appropriate for the disruptions faced by NadaMoo? What different would you have done in this situation as the person in charge? 2. Do you think NadaMoo took the right steps by reaching out to its suppliers every week or two to talk if there were any supply chain problems arising. How important it is to have a clear communication channel with your suppliers as per you? 3. NadaMoo relies on an Asian supplier for a particular ingredient, do you think it is a good strategy? Explain the importance of diversifying suppliers to mitigate the risks of supply chain disruptions.