Challenges of Supply Chain Management in Sapphire Energy and Aus Cotton

Running head: SUPPLY CHAIN
Supply Chain Management
Name of the Student:
Name of the University:
Author’s Note:

1SUPPLY CHAIN
Executive Summary
This present report deals with the various challenges of supply chain management in the context
of Sapphire Energy and Auscotton. High carrying cost and low ordering price hampers the
supply chain management in Sapphire Energy. EOQ vale is low, which focuses on reduced
demand. Hence, it can be said that reduction of the carrying cost will be a valuable approach to
increase the annual demand for this organization. The second part of the report deals with the
problems solving regarding the procurement and supply chain issues that the company Aus
Cotton is facing as the increasing cost in transportation of the products and poor quality products
due to lack of research on the market trends and on consumers.

2SUPPLY CHAIN
Case Analysis: Sapphire Energy
Evaluation of the effectiveness of cable service ordering system in the context of Sapphire
Energy
Laburnum Group is an eminent organization of Australia. Its headquarters is present at
Victoria in Australia. This organization supplies clothing product, energy product, chemicals and
safety products. The major objective of their business is to provide satisfactory service to their
stakeholders. It is important for an organization to offer quality service to enhance their brand
image in the global market (Monczka et al. 2015). This company has two major brands that are
Auscotton for clothing and Sapphire Energy to deliver the energy across Australia. According to
the given scenario, it has been received that Laburnum Group has been facing some challenges in
their supply chain management. Sapphire Energy is an energy service provider across various
places in Australia. They offer reliable service to their customers. However, at present this
organization has been facing inaccuracy in supply chain procurement.
Based on the current scenario, it has been received that Sapphire Energy has made a
contact with Eastern Power. Eastern Power is their major stakeholder and ordered a large amount
of cable service form this organization. Eastern Power needs 155,000 meters of cable service to
complete their routine service work. However, the new ordering system confirmed that the cable
service will be installed within five working days. The main goal of this current ordering system
is to reduce the lead time. If Eastern Power did not make this contract with Sapphire Energy then
it would be difficult for them to reduce the lead time and the lead time might be 12 weeks.
Hence, it can be said that current ordering system of Sapphire energy is effective to minimize the
lead time. Reduction of lead time is an effective approach of sustainable supply chain