Manage Suppliers for National Camper Trailers Pty Ltd

This report provides recommendations on annual contract’s of supplier relationship to the CEO of the NCT. It also presents the supplier service criteria, reviewing of current ‘T&C’ (Terms and Conditions) of NCT contractual policy and procedure.

Running head: MANAGE SUPPLIERS
Manage suppliers
Name of the Student
Name of the University
Author note

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Assessment 1A:
Introduction:
Effective Supply Chain Management (SCM) can improve the production capacity and
quality of any organisation while improving the overall profitability. With this regards
National Camper Trailers Pty Ltd (NCT) needs to focus on improvement of their supply
chain management and suppliers to sustain the performance level and event improve it. The
purpose of this report is to provide recommendations on annual contract’s of supplier
relationship to the CEO of the NCT. To develop the recommendations accordingly this report
will also present the supplier service criteria, reviewing of current ‘T&C’ (Terms and
Conditions) of NCT contractual policy and procedure.
Establishing Criteria:
According to the current production and service procedure of NCT the following supplier
service criteria has been developed.
1. The two components that are Single Axle UN-BRAKED Trailer Kit 1400kg Rating, with
EYE TO EYE SPRINGS 45X8MM and 1000KG Mechanical Drum Brake Single Axle
Trailer Kit with Slipper springs 1T have to have the quality of above average margin.
2. The communication between the supplier and the mother warehouse has to very effective
where any delay and defective report should be reported before the required time mentioned
in the policy and procedure of the supplier contract (Christopher 2016)
3. The annual price increment of supplied components should be settled by mutual agreement
and communication while valuing the profitability and business objectives of both the
companies.

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4. The return and replacement procedure for defective products should be executed as per the
terms and condition of the supply policy, without arising any negligence and delay issue.
5. Any change of supplier-client contract have to be done by mutual cooperation through
conducting multiple direct and indirect communication. The legislative procedure should be
complied in each amendment of the policies.
Evaluation of current Suppliers against the criteria:
AWWM has satisfied some of the discussed criteria properly, while some of the criteria have
not achieved at all. There are some major factors that have been identified from the
performance of the previous year of the supplier, which are discussed below.
1. AWWM has missed the available reminder time for informing delayed delivery many
times, that has delayed the overall service process of the NCT operation cycle.
2. About 5 times the delivered components did not meet the required quality. However, in
spite of having return order for those products the return procedure took very long time.
3. The quality and delivery time of 1000KG Mechanical Drum Brake Single Axle Trailer Kit
with Slipper springs 1T are better than the supply of Single Axle UN-BRAKED Trailer Kit
1400kg Rating, with EYE TO EYE SPRINGS 45X8MM product.
4. The delivery delay has occurred less frequently, however, the delayed time was significant
amount of long to paralyse the internal operation and production procedure of NCT Pty Ltd.
5. In every failure, AWW kept consistent communication with the logistics department of the
NCT Pty Ltd that helps to acquire backup products to continue the necessary operations.
Recommendations of Terms and Conditions:

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To make the terms and conditions regarding supply and delivery procedure more efficient
and tangible the contractual conditions from NCT should be changed as per the situation. The
possible beneficial changes are mentioned below.
2. For new contracts the pricing policy should be more rigid that could allow more cost
preservation while executing the price and product negotiation process. It will help to
conserve the profitability of the company (Seuring 2013).
3. More clear declaration of communication policies is also essential, which will help the new
supplier company to maintain proper communication during the delivery and order receiving
system.
4. The return of replacement policy should be more effective and feasible which could help
the new supplier company the process of refund and complaining system at the very
beginning of the partnership development.
Recommendations of developing cooperative relationship with Suppliers:
As per the current supply chain management results it is clear that the requirement of supply
quality and timings of NCT have not been fulfilled adequately. Therefore, the following
changes are essential to ensure further improvement.
1. For supply chain of Single Axle UN-BRAKED Trailer Kit 1400kg Rating, with EYE TO
EYE SPRINGS 45X8MM component, an alternative supplier will be required from more
précised and efficient supply service.

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2. Both companies should inform the position and the remaining time required to reach the
destination, even within the transportation time. It will help to prepare the ware house for
new inbound logistics.
Relevant legislation and workplace procedures:
During the agreement process and formulating contract some crucial legislative
considerations will also required, that would hold the authenticity, feasibility, reliability and
attainability of the contractual business operation between the NCT and AWWM Pty Ltd.
These legislative considerations are discussed bellow.
During the contractual operation with supplier the compliance of Commonwealth
Independent Contractors Act 2006 is very essential to maintain the authenticity, which also
includes the drivers and drivers-owner compliance for logistics system (Brandenburg et al.
2014).
Compliance of Australian Consumer Law or ACL is very essential for the supplier company
that will preserve the rights of the NTC as a authentic consumers of supplier company. It also
holds the authority to return and refund procedure.
The Collective Bargaining is another essential regulation for contractual work administrated
by Australian Competition and Consumer Commission (ACCC). This regulation will help
both the parties to maintain the mutual rights to propose their financial negotiation during
quality price negotiation and bargaining (Ahi and Searcy 2013).
To authenticate the taxation compliance the evidence of Australian Business Number (ABN)
should also be required for the agreement. These ABN numbers of both the companies have
to be documented as a crucial part of the contract.
Conclusion:

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As per the above assessment and contractual operation process of NCT and the performance
of AWWM as a supplier it can be said that to make the terms and conditions regarding supply
and delivery procedure more efficient and tangible the contractual conditions from NCT
should be changed as per the situation. Apart from that It can be also concluded that NCT
needs another supplier to ensure the quality of the supply service.

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Assessment 1B:
Introduction:
After developing the supplier relationship planning, it is important to produce the
contracts format while including the decision taken from the management of NCT. Therefore,
the purpose of this paper is to report AWWM as a prelude to new contract decision. This
report is comprised with the identification of AWWM’s non-compliances and the
recommendations provided by the NCT management while planning the action pan with
investigation procedure stating the negotiation plan as well. The significance of approval and
the communication plan for finalise the new contracted is also incorporated in this report.
Identification of AWWM’s non-compliances:
There are many ethical and legislative dilemma can be found in the existing service
performance of the supplier AWWM. These issues can also be considered as non
compliances of inter-business contract, which are discussed below
AWWM has violated the consumer right regulation by making the NCT blind during the
transportation and logistics operation.
The fair trading law has been also violated by the supplier because of their price apprising
without making the parent company aware of that (Mangan, Lalwani and Lalwani 2016).
AWWM also violated the business contract by breaching the minimum KPI or Key
performance indicators policies mentioned in the initial contract.
Recommendation to AWWM to meet the requirement:
To meet the requirement AWWM has to change their existing delivery and order
receiving policy significantly. Currently their trading process depends only on the provided

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guidance by the NCT Company. However, they need more flexible logistics algorithm that
can be change at any emergency situation. At the same time, the AWWM should need to
upgrade their delivery plan by procuring technical component for the improvement of their
transportation system. The policy reviewing checklist of AWWM should be more effective to
ensure that they are providing adequate service to their customer.
Corrective action plan with contingency plan:
Situation Corrective plan Contingency plan
Delayed delivery of ordered
goods
Making precise orders while
also ensuring the transportation
rout and data.
Making backup stocks to
continue the internal operation
without compromising the
efficiency (Lignier and Evans
2012)
Delivery of defective products Making qualification criteria for
each product before ordering
the products
Using backup components from
the storage or ordering from
supplementary suppliers
Non compliance with delivery
and return policy
Making the ethical and legal
consideration straight and strict
before, during and after the
contractual operation.
Claiming the refund of the
delivered defective products
and ceasing the contractual
operation.
Investigation procedure to indentify the validity ad causes under the new contract:
To investigate the new contract and the validity of disagreement properly all the
previous contractual documents are essential with all the billing and invoice papers.
Comparing the contractual policies with the practical evidences of non-compliances would
help to point out directly the inefficiency of the supplier (Seuring and Gold 2012). Along

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with that, the new contract can be evident by various case studies collected from the
industrial analysis and from the business experience of the NCT. The new policies could be
validated by simulating the process through an formulated case that could be possible in
certain consequences.
Disagreement negotiation plan:
In this case the disagreement could come from the existing suppler company AWWM
or from the new supplier. This kind of disagreement could be emerged from the return and
refund and contract ceasing constrains. However, a win-win negotiation strategy can help to
negotiate with proper strategic contractual declaration. NCT can positively ensure that they
can provide all the necessary communication supports and guidelines for punctual delivery
system. Even to minimise the defective product NCT could also guide the suppliers as a
consultancy without claiming any benefit for this. The price range can be adjusted initially to
secure any further conflict between both parties.
Details of Approval and Acceptance:
The new contract should secure the procedural policies that include the delivery,
financial and legislative infrastructure. For this the contract should also convey a approved
Key Performance indicator checklist that has to be maintained by both supplier and the
receiver companies to secure the quality of the delivery system. Apart from that, proposing
free advance and consultant service only for the logistical operation within client and supplier
company could help to ensure the approval from the suppliers for the new delivery policies.
Building friendly and cooperative relationship with the suppliers can also help to receive
mutual approvals.
Communication plan to inform about amendments:

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NCT needs an effective communication plan before, during and after the contractual
process. The real time, consistent communication is essential within the NCT, AWWM and
future alternative supplier. Using Information Technology and advance equipment the
company can communicate efficiently (Barney 2012). The usable processes for this
communication are telephone, text messages, email, face to face communication, conference,
meeting and others
Conclusion:
It can be concluded that there are many ethical and legislative dilemma can be found in the
existing service performance of the supplier AWWM. From the above discussion it can be
said that to investigate the new contract and the validity of disagreement properly all the
previous contractual documents are essential with all the billing and invoice papers. It is also
clear that to meet the requirement AWWM has to change their existing delivery and order
receiving policy significantly. Moreover,

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Assessment 2:
Introduction:
As per the excising supply chain situation of NCT Pty Ltd, the company needs one or more
efficient suppliers as a supplementary or as a parallel delivery system. Along with the
supplier AWWM, NCT Company must needs a tangible list off supplier to select the
appropriate one. The purpose of the report is to conduct a market research to choose
appropriate supplier for Single Axle UN-BRAKED Trailer Kit 1400kg Rating, with
EYE TO EYE SPRINGS 45X8MM and 1000KG Mechanical Drum Brake Single Axle
Trailer Kit with Slipper springs 1T.
Purchase request
To,
Mr. Mark Cannon,
Purchasing officer,
Trailer Spare Parts Australia,
Subject: Purchasing Request For 2 Trailer Spare Parts
Dear Sir,
We are requiring trailer parts for our business (National Camper Trailers Pty Ltd,
BSN no.) It is to inform you that we are requesting you to deliver 2 chosen trailer spare parts
(mentioned below) to our company. It will be very helpful if you kindly go through all the
attached details about the company and the warehouse address. The prices negotiation will be

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done as per your response and hour potential contractual agreement. Kindly consider the
basic procedure and policies of our purchasing system.
Purchasing goods:
 Single Axle UN-BRAKED Trailer Kit 1400kg Rating, with EYE TO EYE SPRINGS
45X8MM
 1000KG Mechanical Drum Brake Single Axle Trailer Kit with Slipper springs 1T
Delivery address:
National Camper Trailers Pty Ltd, HQ, 6 Gumnut Drv. Dandenong South, Victoria 3175,
Australia.
List of companies and details
In the following table the list of chosen companies has been presented with their scores as per
the research result on their business history and potential performance compatibility with
NCT Pty Ltd.
Company Business
customers
Average delay
record
Qualit
y Ratio
Legal
Allegation
Ranking
Couplemate Caravan and
Trailer Parts
13 15 12.5 Few (0) 3rd
Sunrise Trailer Parts 7 5 9.8 Many (3) 4th
Martin's Trailer Parts 12 2 5.9 Moderate (2) 2nd
Trailer Spare Parts Australia 4 3 11 Some (1) 1st
Truckline Truck & Trailer
Parts
9 8 8.5 Many (3) 5th

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Supply arrangement negotiation questions
The question should include the following measures and concerns of the contractual policies.
 Quality of goods assessed against our criteria.
 The non-compliance against the Purchasing Contract.
 Contingency plans should they have similar issues in a new contract 12-month period.
 Moving forward with our relationship upon support for effective delivery.
Effective Market Factors
The major market factor that affects the position or priority of the potential suppliers
is the number of existing Business customers of the target supplier company. Apart from that,
the average delay records has been collected from the customers of the chosen suppliers.
Measurement of Quality Ratio has been also considered. Apart from that, the reported Legal
Allegations against the available company has been documented for elimination and selection
process (Pagell and Shevchenko 2014).
Potential problems and corrective action
Problems Corrective plan
Delayed delivery of ordered goods Making precise orders while also ensuring the
transportation rout and data.
Delivery of defective products Making qualification criteria for each product before
ordering the products
Non compliance with delivery and return
policy
Making the ethical and legal consideration straight and
strict before, during and after the contractual operation.

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Supply requirements
Required products are Single Axle UN-BRAKED Trailer Kit 1400kg Rating, with EYE TO
EYE SPRINGS 45X8MM, 1000KG Mechanical Drum Brake Single Axle Trailer Kit with
Slipper springs 1T.
The major policies that should be incorporated in the requirement criteria are
 Quality of goods assessed against our criteria.
 The non-compliance against the Purchasing Contract (Shenkar, Luo and Chi 2014)
 Contingency plans should they have similar issues in a new contract 12-month period.
 Moving forward with our relationship upon support for effective delivery.
 Compliance of Australian Consumer Law or ACL is very essential for the supplier
company that will preserve the rights of the NTC as a authentic consumers of supplier
company.
Supplier’s self-reviewing process
To meet the requirement the new supplier has to arrange their existing delivery and
order receiving policy significantly. Currently their trading process depends only on the
provided guidance by the NCT Company. However, they need more flexible logistics
algorithm that can be change at any emergency situation. At the same time, the new suppliers
should need to upgrade their delivery plan by procuring technical component for the
improvement of their transportation system. The policy reviewing checklist of the seller
should be more effective to ensure that they are providing adequate service to their customer.
Explanation of evaluation process to inform suppliers
The evaluation criterion of reviewing process includes the quality of the product which
should maintain the marks mentioned in the KPI checklist. The time of the delivery shave to

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be confirmed by both the seller and the purchaser, where the responsibility of the seller is to
continuously communicate with the purchaser. Along with the return and refund policy
should be abided by the suppliers. Before reaching the warehouse of cline’s destination they
need to ensure the time and quality of the product form the client.
Recommendations about future use of suppliers
In future the alternate list of the suppliers can be considered for any suspected
partnership breach. Therefore similar to the initial selection criteria all the other suppliers
should also satisfy the initial requirement of the supply chain management policy and
procedures (MacVaugh and Norton 2012). Apart from that, the active cooperation and
coordination within the organisation is a very essential part. In the further stage of purchasing
process the contract with purchasing and delivery policies and procedures will be presented
to the selected supplier.
Process of eliminating suppliers from supplier shortlist
Trailer Spare Parts Australia has been chosen for high Quality Ratio, minor legal
ligations. However, there are some legal issues has been identified against the company has
very high quality ratio and competitively less number of delay records. At the same time lack
of customer number will reduce the bargaining power of the supplier as well (Bergmann
2012).
Conclusion:
From the above discussion it can be said that the major contractual policies that
should be incorporated in the requirement criteria or performance measurement parameters. It
can be concluded that the major market factors that affect the position or priority of the

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potential suppliers are the number of existing Business customers, delay records, the reported
Legal Allegations against the available company.
Assignment 3
Question 1
Codes of Practice set out industry standards of conduct. Explain how codes of practice
can assist you to deal collaboratively with Suppliers in your dealings with them.
The code of practice outlines the minimum requirements for all the suppliers on the
basis of the governance as well as general compliance, workplace relations, human rights,
ethical business practices, occupational health and service as well as environmental
management. Thus it becomes easier for the suppliers to understand the expectation of the
management of the organization in terms of contact so that any kinds of conflict can be
avoided (Van Wassenhove 2016). Not only this, the code of practice is developed
collaboratively with internal as well as external stakeholders in order to incorporate the point
of views of the suppliers and provide them with empowerment.
Question 2
What is meant by “Common use Arrangements”?
A common use arrangement (CUA) refers to a whole of government standing that offer
arrangement for the provision of specific goods or services commonly used within
government. Common Use Arguments are accumulated supply arrangements that provide the
organization a public authority to source goods as well as services. A public authority needs
to purchase keeping accordance with the relevant buyer’s guide where the Common Use
Arrangement has been established. The only exception includes when the authorized officer
of the department of finance approves alternative arrangements (Wang et al., 2016).

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Question 3
In the situation of Supply Contract Performance disputes, how would your company’s
workplace procedures assist you to deal with this situation?
The supply contract performance disputes are resolved by both human resource
manager as well as operational manager. In case of such disputes, the first step that needs to
be taken includes finding out what the issue is. The managers need to be aware of the relevant
regulation and policies associated with the issue and with the usage of tools for calculating
what the entitlement should be, they should try to fix the issue before mediation (Prajogo, D.,
Tang and Lai, 2012). If the issue does not get solved in the first step, the issue should be
solved with the help of mediation. During this time, the mediator will listen to the point of
view of both the parties and decision will be made after both the parties agree to the solution.
Question 4
When working with Suppliers, to maintain control and performance of these
partnerships we must be able to do statistical analysis report and record findings. In
Case Study 2 you were asked to research some possible replacement suppliers for
AWWM Pty Ltd. and report your recommendations to the board. Based on this report
and Using the Numeric Ranking System pick 2 of the prospective suppliers and give
their Ranking points and your findings here as a short report to the board.
Company Business
customers
Average delay
record
Qualit
y Ratio
Legal
Allegation
Ranking
Couplemate Caravan and
Trailer Parts
13 15 12.5 Few (0) 3rd
Sunrise Trailer Parts 7 5 9.8 Many (3) 4th
Martin's Trailer Parts 12 2 5.9 Moderate (2) 2nd
Trailer Spare Parts Australia 4 3 11 Some (1) 1st
Truckline Truck & Trailer 9 8 8.5 Many (3) 5th

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Parts
Trailer Spare Parts Australia has been chosen for its high Quality Ratio, minor legal ligations.
Martin's Trailer Parts has been chosen for Business customers, low value of Average delay
record.
Question 5:
Why must financial viability be taken into consideration when evaluating a Supplier
and going back to Case Study 1A what effect did this have on NCT?
Financial viability is defined as the ability to generate sufficient income for meeting
operating payments, debt commitments as well as allowing growth while maintaining service
level. Since the performance of the suppliers impose direct impact on the financial viability
of an organization, financial viability must be taken into consideration while evaluating the
performance of the suppliers (Rubin, Aas and Stead 2015). The overall performance of the
AWWW organization as a supplier is moderate. Since the company had failed to meet the
standard require for attracting the attention of the consumers 5 times, this have imposed
negative impact on the financial viability of the company.
Question 6
When conducting an evaluation of a Procurement and Supply Contract, why should we
take our organisation’s policies, procedures, plans, guidelines and code of conduct into
consideration before proceeding with this contract?
In order to understand the performance of the suppliers it is highly crucial for the
purchasing manager to understand whether the performance of thee same is keeping

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accordance with the organisation’s policies, procedures, plans, guidelines and code of
conduct. During the evaluation of the contract with the suppliers, a checklist is made through
which the speeds of the suppliers, their alliance with the code of conduct as well as other
policies of the organizations are assessed (McMenamin 2012). In order to properly evaluate
the performance of the AWW organization, it is highly crucial for the purchasing manager to
consider the policies, procedures, plans, guidelines and code of conduct of the organization.
Question 7
What procedures should be in place for monitoring the performance of our suppliers
and what information should we be monitoring?
The first procedure that needs to be followed by the purchasing manager includes
establishing performance indicators. Creating particular performance criteria for tracking as
well as evaluating the performance of the supplier on a regular basis be it monthly, quarterly
or annually. The consideration should include number of certificates, quality management
systems, complaint history as well as financial stability (Porter and Tanner 2012). The second
procedure that needs to be taken under consideration is to devise an evaluation method. The
common techniques that can be adopted by the purchasing manager for rating the
performance of the supplier include evaluation forms, surveys, system metrics, and software
applications.
Question 8
At NCT we have a Diversity Policy (This can be found on the Nat Train Dashboard >
National Camper Trailers > HR Policies), taking this into consideration, why would this
be important to take into account when forming partnerships and contracts with new or
ongoing suppliers?

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It is highly crucial for the management to make its partners as well as suppliers aware
of the diversity policies in order to prevent any kind of issues associated with workplace
diversity. The role of the diversity policy during establishing contract will be to maintain the
benefits of both the partners from recruitment, promotion and retention of diverse talent
(Dyckhoff, Lackes and Reese 2013). Sharing the diversity policy with the suppliers during
establishing the contract will not only enhance the reputation of the consumers but will also
prevent misunderstanding and disputes.
Question 9
What are the benefits of formulating organisational procedures and protocols for
electronic communication equipment?
The following are the benefit of formulating organizational procedure for electronic
communication equipments:
1. Unofficial usage of electronic communication devices often imposes negative impact
on the performance of the employees. Establishing procedures like usage of electronic
communication devices only for professional and emergency purpose will not only
prevent unwanted wastage of production but will also enhance the performance of the
employees (Waters and Rinsler 2014).
2. Unethical usage of electronic communication devices can result in leakage of
confidential information. Restricting the usage of those devices during confidential
tasks like meetings and conferences will prevent leakage of confidential data to a
good extent.
Question 10

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It is essential for accounting systems that we maintain control of all receipt and
payments of goods and services, why should we have procedures to cover these systems?
Below are the chief reasons behind the importance of maintaining control of all
receipts and payments by the organization.
1. Receipts are considered as evidences that the product or service have been delivered
or relieved by the organization.
2. Keeping receipts an effective records also help the organization to minimise all the
expanses and thus reduce tax obligations (Business 2014)
3. It also helps the managers to prepare account within a much shorter time at the end of
the year.
4. It provides the manages with the necessary information associated with the finance
and thus helps the organization to grow
5. It helps the organization to understand the strengths as well as weaknesses of the same
6. Makes it easier to obtain a loan and avoid under/over tax payments (Winter and
Knemeyer 2013)
7. The receipt and record system enables the company to distribute profits to the
shareholders as dividends for partnership where both losses as well as profits have to
be shared.
Question 11
In case Study 2 you were asked to research a new supplier of goods and to prepare a
Procurement Contract. Explain here why a company would have a procedure to cover
this situation and list some of the items that would be contained within this document?

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The chief reason behind researching for a new supplier as well as preparing a
procurement contract is to enhance its supply chain with the help of a more efficient supplier
than the AWWM company. The major objectives behind the new Procurement are as follows:
1. Mitigating the risk in terms of operations, unforseen cost implications or regular
compliance
2. Optimizing the performance of the suppliers(Gattorna 2015)
3. Reduce the cost of suppliers through new procurement
4. Creating loyal relationships
The list of some of the items that would be contained within this document is as follows:
1. ABN
2. Company’s payment and refund policy and procedures
3. Duration of the contract
4. Product and price range of the company
5. Delivery and return policy
Question 12
When looking at procurement contracts what relevant Federal and State or territory
legislative and regulatory requirements and codes of practice should be taken into
account?
While conducting the procurement contracts, it is highly crucial for the management of
NCT to keep Both Federal as well as Stat Territory legislative and regulatory requirements
under consideration.

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1. Consumer law and fair trading act 2012: The NSW Fair trading act refers to the
regulator under a large number of laws that governs a range of businesses as well as
other activities that affects tenants and consumers.
2. Competition and consumer act 2010: The Competition and consumer act 2010 aims to
provide businesses a fair as well as competitive operating environment. It covers price
fixing, unconscionable cconduct as well as other issues like advertising (Van
Wassenhove and Martinez 2012).
3. Australian consumer law: It covers standard form consumer as well as small business
contracts and guarantees consumer rights while buying product and services.
4. Commonwealth independent contractors act 2006: This law enables independent
contractors to seek relief when they perform work on the term that they are unfair or
harsh.
5. Heavy vehicle national law: The National Heavy Vehicle Law was law that is
implemented on vehicles that carry more than 4.2 tonnes. A regulated vehicle refers to
a heavy truck with a gross vehicle mass of over 12 tonnes or a truck and trailer
combination, if the combined GVM is over 12 tones, or a bus that seats more than 12
adults (Christopher 2016).
6. Business activity and taxation: The rules and regulations related to this aspect will
help the company to understand the specific amount of taxation that needs to be
deposited t avoid legal obligations.
Question 13

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What relevant documentation would you be required to prepare for a Supply /
Procurement contracts would you need to prepare for both your own company and the
supplier?
The documents that will be required for preparing the Supply / Procurement contracts
Business details of the company are as follows:
 Key Performance indicator
 Terms and conditions of the company
 Supply and delivery policy
Question 14
What steps must you take when planning your work activities? Outline these steps with
regards to Case Study 2?
The working activities that needs to be taken are as follows:
1. 1st the market analysis to find out available competitors for NRTC as a substitute of
AWWM has been done.
2. One company from the list of selected supplier companies were again shortlisted on
the basis of their performance and availability (Wang and Cullinane 2015).
3. A rough draft of the points to be included in the new contract in order to enhance the
profitability as well as production of the company was designed.
4. A final report based on the supply requirement from the new supplier was created.
Question 15

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What benchmarks are used to evaluate suppliers in your workplace to ensure they are
meeting their contractual obligations?
In order to evaluate if the contractual obligations are met by the consumers or not, the
following benchmarks are used by NTC.
1. ASN Accuracy: The ASN accuracy is measured on the basis of the quantity of
Advanced Shipment Notifications and the accuracy of the same (Monczka et al. 2015).
2. Quantity Ordered versus Quantity Received: It requires the data from the purchase
order placed by the buyers and from the received operation.
3. Delivery on time: The number of deliveries that was given to the company by the
suppliers on or before the stipulated deliver time is monitored.
Question 16
When building a productive relationship with suppliers, list three (3) behaviours that
are important in the relationship.
The three behaviours that are important when it comes to maintaining effective relationship
with the suppliers are as follows:
1. Keeping effective and regular communication with the suppliers (Cooper et al. 2017).
2. Communicating with a supplier before the due date for the payment should be done in
order to foresee a delay in paying an account.
3. Establishing fair as well as firm policies with industry sales representatives in order to
void unethical conflict.
Question 17

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Provide the name of the Federal legislation covering consumers and fair trading.
The name of the Federal Legislation that covers consumers and fair trading is competition
and Consumer Act (Bichou 2015).
Question 18
Which Government Agency is responsible for enforcing the legislation at either Federal
or State levels?
The department of Industry, innovation and Science is responsible for enforcing those
Federal levels in Australia (Griffis, Bell and Closs 2012).
Question 19
Define the role of a Supply Manager or Contract Manager responsible for managing
suppliers.
The chief roles of the suppler managers are as follows:
1. Communication: The supply managers possess the ability to professionally
communicate with all types of individuals via email, phone, video conference or face
to face in order to establish effective supply chain management (Monczka et al.
2015).
2. Transportation: The supply chain managers establish appropriate export as well as
port compliances in order to prevent delay in delivery.
3. Planning and Analysis: The role of a supply manager is to involve coordinating and
overseeing manufacturing operations in order to forecast orders and meet customer
demands.

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Question 20
Should a supplier go into receivership or close down that supplies product that is
essential for your workplace, what contingency plans could you apply and what would
be the process that you will follow?
1. First of all, refund for breaking the initial contract will be asked from the suppliers.
2. Secondly, immediate appointment of a substitute supplier in order to keep the flow of
raw materials in the company should be performed (Christopher 2016).
3. Lastly, in order to tackle such emergency situation, a backup storage should always be
there from where raw materials will b be used until the issue get solved.

27MANAGE SUPPLIERS
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