Improving Supply Chain Management and Procurement for Laburnum Group

SUPPLY CHAIN MANAGEMENT AND
PROCUREMENT
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Table of Contents
Contents
Introduction................................................................................................................................4
Background................................................................................................................................4
Objectives...................................................................................................................................4
Sapphire Energy report..............................................................................................................4
Effectiveness of the current ordering system.............................................................................4
Recommendations for improving the current system................................................................5
AusCotton clothing report..........................................................................................................6
Major global issues....................................................................................................................6
Impact of less-than-perfect demand forecast and volatility in cost of Transport services in the
business......................................................................................................................................7
Strategic sourcing process..........................................................................................................7
Response to the assertion...........................................................................................................8
Conclusion..................................................................................................................................8
References..................................................................................................................................9
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Executive summary
This report is based on two individual case studies of Sapphire Energy and AusCotton
clothing (part of Laburnum Group). The clothing and energy portfolios are of special interest
for the group as they are the biggest contributor of the overall business profitability. Lately,
these portfolios are facing inefficiencies and challenges which have encourages top
management to examine the existing process, systems and strategies across different product
categories. This report suggested some practical remedies to overcome business challenges
for better profitability and sustainability of Laburnum Group
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