M3 Written Assignment 2: Crayola, Safaricom, Toyota, and Clif Bar

This assignment analyzes various aspects of supply chain management based on the provided textbook chapters and case studies. The first question examines Crayola's supply chain, determining whether it is efficient or responsive, and justifying the position with supporting arguments. The second question involves selecting a service and a manufacturing organization (Safaricom and Toyota, respectively), identifying key factors for facility location, ranking these factors, and detailing the data needed for evaluation, along with data collection methods. The third question explores the significant risks and challenges in managing global supply chains, including logistical delays, quality variations, language barriers, customs issues, currency fluctuations, loss and theft, compliance requirements, and potential disruptions. The final question focuses on Clif Bar & Company, assessing its sustainable supply chain practices and identifying potential sustainability risks associated with international market expansion. The assignment provides a comprehensive overview of supply chain principles and their practical application in different business contexts.

Running head: WRITTEN ASSIGNMENT 2 1
Written Assignment 2
Name
Institution

WRITTEN ASSIGNMENT 2 2
Question 1
Chapter 12: Read the case "Supply Chain Design in Crayola" on page 520 of the
textbook. Review the strategic implications of supply chains, as described in the text. Does
Crayola have efficient or responsive supply chains or both? Explain your position (about
200-400 words).
Effective supply chain management directly implies an improvement in customer service.
Supply chain strategies are made to increase customer satisfaction. The purpose of supply chains
is to deliver value to the customers. The extent of customer value delivered is directly
proportional to customer satisfaction, which is, in turn, proportional to supply chain management
(Parmigiani, Klassen, & Russo, 2011). Supply chain strategy has the impact of enabling the
business to reduce costs of production and procurement. Supply chains help regulate the
expenditure; a well-managed supply chain directly reduces operating costs. It improves profits
while a poorly managed supply chain can reduce profits though an increment ins service delivery
expenditure. The success of a supply chain is directly proportional to the performance of the
business; successful supply chains imply that the business is responding appropriately to demand
and the need for continuous improvement. Strategically, it means continuous growth for the
business. The performance of a supply chain strategy is directly proportional to the performance
of an entire business.
Crayola has a responsive supply chain, but the supply chain is mostly efficient save for
some very few drawbacks (Parmigiani, Klassen, & Russo, 2011). Considering some of the
scenarios that the supply chains have dealt with, the company is very efficient in responding to
supply current chain situations. On one occasion, the company created a new product with pens
that’s could only write on a special paper that was supplied with the pens. Initially, the product

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gained popularity and moved very fast; then the company got information that the pens were
lasting longer than the papers, the company responded swiftly and provided the market with
additional paper although this move slowed down the sales. This shows that the supply chain is
very responsive to market demands. Customers can count on it to deliver precisely what is
needed.
However, the supply chain is deficient in production and distribution centers. The chain
has only one distribution center that handles orders for both local and international sales. The
company has more than one production plant, but finished products have to be transported to the
central distribution center for routing; in some cases, the is double costing through double
transportations. The company should have as many distribution centers as the production plants
in proximity to the production centers to increase the efficiency of the distribution chain
network. Additionally, the company has suppliers from all over the world all of whom are forced
to ship the resources to the production plants, instead of transporting the raw materials to one
country in which the cost of labor is very high, the company should establish production
facilities in the home countries of suppliers, this would reduce costs of labor and the cost of
transporting raw materials as well.
Question2
Chapter 13: Select two organizations, one in services and one in manufacturing.
The chosen service organization is Safaricom, and the manufacturing organization is
Toyota.
Provide a discussion that addresses the following questions:

WRITTEN ASSIGNMENT 2 4
 What are the key factors that each organization would consider in locating a new
facility? Rank the factors you identified according to their importance.
Safaricom- network service
provider in Kenya
Toyota- automotive manufacturer.
1. Area coverage- the facility should
be strategically located to
broadcast to the widest possible
area.
2. Proximity to transport facilities-
the facility should be accessible
via common means of transport
such as roads since customers
need to access the facility for
customer care.
3. Inter-visibility- the location should
be open enough to transmit signals
without interference by terrain.
1. Demand density- the facility
should be located in areas with
high demand density.
2. Proximity to consumer population-
the facility should be close to areas
that previous facilities have not
reached.
3. Logistics- the chosen location
should be accessible via heavy-
duty means of transport such as
sea and rail since the products to
be transported are significantly
bulky (Teye, Bell, & Bliemer,
2016).
 What data would you want to collect before evaluating the location options, and
how would you collect the data?
For Safaricom, I would collect data on network coverage in all the areas that the company
is supposed to serve and choose the areas that are least served. Data on network coverage can be

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obtained through consumer surveys and GIS mapping systems. I would also obtain population
distribution data from the national bureau of statistics (Teye, Bell, & Bliemer, 2016).
The Toyota company would have to get data on demand density. This will be obtained by
evaluating sales volumes from previous periods through the existing retailers. The regions with
the most sales per square area would be the most ideal for anew facility. The use of demand
mapping software can evaluate this.
Question3
Chapter 14: Discuss some of the important risks and challenges faced in managing
global supply chains (about 400-500 words).
Long-range logistics are vulnerable to delays either by mode of transport or at customs
clearance points. These increase waiting times for clients, and for products whose value and
quality depreciates with time, the items can lose value in transit and end up fetching lower prices
than anticipated.
Global supply chains are subject to quality and defect variations. Different regions accept
different levels of quality. For example, African countries can accept up to variations of 10%,
while Asian counties can tolerate less or more. This means that a producer supplying a region
beyond their homeland must make extra effort to find out the levels of acceptable variations and
conform to such (Marucheck, Greis, Mena, & Cai, 2011).
Suppliers operating beyond their locale are faced with language challenges. some
countries and regions do not use internationally accepted languages; as such, there is no standard
mode of communication in these regions. Coordination for deliveries and logistics in regions
experiencing language barriers becomes difficult, and consequently, it's tricky to do business in
such areas.

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Some products risk being withheld by customs officials. Whenever a consignment of
goods and products crosses the boundaries of a nation, It has to be inspected by border officials
for compliance with that countries shipping regulations and safety standards. In some cases,
consignments are held up, and they may get extremely delayed before they are cleared,
increasing the risk of damage. Additionally, each of these border checks demands customs fees,
which contribute to increased logistics charges.
Currencies in different nations fluctuate irregularly with time. A shipment can be
budgeted for a certain exchange rate, but by the time it reaches the destination, the exchange rate
has varied so much that the products are sold at a loss. The risk of loss is real, especially for
supply chains operating in countries with very unstable economies.
Long-range logistics that are characteristic of global supply chains face the risk of loss
and theft. Given the long distances through which consignments must go through, the supply
chain manages at the time will have very limited monitoring capabilities, and there is a risk of
theft from third parties or loss and interference by unauthorized personnel.
Compliance with international supply chain standards and regulations (Locke, Rissing, &
Pal, 2013). Cross border logistics demand specific safety measures regarding packings and
labeling. For new companies in the field, learning how to conform to each requirement is very
challenging. Additionally, countries impose different loading and axle limits, which every transit
vehicle on their roads must conform to.
Last but not least, global supply chains are at risk of total disruption if, at any point in
time, the host country decided to restrict or bar imports. Some countries like China have done
that in the past to promote local industries. When such happens, persons operating beyond their
borders are kicked out of business. Every global supply chain constantly faces this risk.

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Question4
Chapter 15: Read the case “Supply Chain Sustainability at Clif Bar & Company”
on page 616 of the textbook. Provide a discussion that addresses the following
questions(about 200-400 words):
 In what ways does Clif Bar & Company have a sustainable supply chain?
Cliff Bar and the company recognized the fact that customer tastes are subject to regular
changes, and the company introduces new flavors to its product mix now and then. These are
achieved by using different ingredient mixtures and preparation methods. this regular
replenishing of product lines ensures that the company remains relevant to consumers and
sportsmen through their periodical preferences (Seuring, 2013).
The company uses naturally available ingredients. It uses naturally grows cereals and
legumes to prepare its products. Farmers will always grow legumes, cereals, and grains. As a
result, the company is assured of a regular supply of raw materials. Additionally, these raw
materials are all friendly to human health and the environment; hence there is no risk that the
company could be forced to close down due to environmental concerns or human health
challenges.
The company regularly shares planning information across all nodes of its supply chains.
This creates room for coordination of operations from the input side of the supply chain to the
output side. Sharing of information makes a supply chain sustainable by ensuring that all the
players and partners are operating towards the same objective.
The company is not dependent on one supplier; neither is it dependent on one product or
one outlet (Taticchi, Tonelli, & Pasqualino, 2013). The company gets raw materials from
multiple farmers all over the country and has outlets spread all over the regions. The company

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also has multiple products in its product line. As a result, the company cannot be impacted
significantly by the loss of supplier or retailer or substitution of one of its products.
 What issues or risks to sustainability could Clif Bar & Company encounter if it
chose to expand to international markets?
The company does not own any of its distribution centers and manufacturing plants.
Expanding the supply chain to a global scale would demand the expansion of both manufacturing
plants and distribution centers (Leat & Revoredo-Giha, 2013). The company cannot expand
manufacturing plants and distribution centers that it does not own. Since demand would increase
rapidly, the current supply chain would not be able to supply the demand.
The large-scale production and logistics that would be required would force the company
to widen its supply chain. The widening would mean less control on quality, and this possesses a
risk of contamination of the products and loss of control on quality.

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References
Leat, P., & Revoredo-Giha, C. (2013). Risk and resilience in agri-food supply chains: The case
of the ASDA PorkLink supply chain in Scotland. Supply chain management: An
international journal.
Locke, R. M., Rissing, B. A., & Pal, T. (2013). Complements or substitutes? Private codes, state
regulation, and the enforcement of labor standards in global supply chains. British
Journal of Industrial Relations, 519-552.
Marucheck, A., Greis, N., Mena, C., & Cai, L. (2011). Product safety and security in the global
supply chain: Issues, challenges, and research opportunities. Journal of Operations
Management, 707-720.
Parmigiani, A., Klassen, R. D., & Russo, M. V. (2011). Efficiency meets accountability:
Performance implications of supply chain configuration, control, and capabilities.
Journal of operations management, 212-223.
Seuring, S. (2013). A review of modeling approaches for the sustainable supply chain
management. Decision support systems, 1513-1520.
Taticchi, P., Tonelli, F., & Pasqualino, R. (2013). Performance measurement of sustainable
supply chains: A literature review and a research agenda. International Journal of
Productivity and Performance Management, 782-804.
Teye, C., Bell, M., & Bliemer, M. (2016). Optimal location of open access urban container
terminals under elastic cargo demand. Australasian Transport Research Forum (ATRF),
38th, 2016, Melbourne, Victoria, Australia.