MGT5PSC - Supply Chain Management: Laburnum Group Strategic Sourcing

This case study provides a comprehensive analysis of Laburnum Group's supply chain management, focusing on inefficiencies and challenges within their energy and clothing businesses. It evaluates the effectiveness of the current ordering system, explores possibilities for improvement, and addresses major global issues relevant to strategic sourcing. The study includes both quantitative (EOQ model) and qualitative analyses, examining the impact of imperfect demand forecasts and transport volatility. It proposes mitigation strategies and outlines a strategic sourcing process to enhance the company's supply chain performance. Desklib offers a wide array of similar solved assignments and past papers for students.

RUNNING HEAD: SUPPLY CHAIN MANAGEMENT 1
Supply chain management
Name of the student:

Supply chain management 2
Contents
Effectiveness of current ordering system..................................................................................3
Possibility of improving the current ordering system................................................................3
Some of the major global issues that will be relevant to the area of strategic sourcing............4
Quantitative and qualitative analysis.........................................................................................5
Impact of less-than-perfect demand forecasts for Guncotton products, and of volatility in the
length and cost of transport services to move its products..............................................................6
Things to be done in order to mitigate the issue........................................................................7
Strategic sourcing process.........................................................................................................7
References..................................................................................................................................8

Supply chain management 3
Effectiveness of current ordering system
The company is currently managing a wide range of products by handling the portfolio and
delivering the goods in a systematic order. It is therefore considering the lag in delivering the
goods on time and the ineffectiveness in managing the program in a better way. This is seriously
a problem in understanding the supply chain and allocating the resources in a better way. The
purpose is to understand the wide variety of objects and verifying the ordering
system(Song,2012). This system is evident from the point of view of verifying the strategies as
delivered by the company and looking onto the matter as provided by the sustainable supply
chain management. This is evident in verifying the current strategic planning and connecting it
with the organizational value. Purpose of the supply chain function is to maintain a long-term
planning in order to manage the changes in a long-term relevancy and adequacy. The plan is
important enough for systematic delivery of goods and adjusting with the effective time-period.
It is necessary from the point of view of gaining adequate results. The purpose is to manage a
cycle that is necessary to allocate the appropriate location in order to manage the changes in
ordering system (Van Weele, 2009).
Evaluate the effectiveness of the current ordering system
The effectiveness of the current ordering system is managed in order to manage the Ordering
system. This will evidently help in organizing the overall system and developing the supply
chain.
Computation of EOQ Model
Data
d = 155000 (demand/year)
K = $1.4 (setup cost)
h = $0.10
(unit holding
cost)
L = 10
(lead time in
days)
WD
= 200
(working
days/year)

Supply chain management 4
Results
Reorder Point 7750
Annual Setup Cost $365.05
Annual Holding
Cost $28.66
Total Variable
Cost $393.71
Results
Reorder Point 7750
Annual Setup Cost $365.05
Annual Holding
Cost $28.66
Total Variable
Cost $393.71
After evaluating this case, it is observed that EOQ point of the company is 573 units.
Q
= 573.2114956
If company wants to keep its business effective then it should lower down its EOQ point as there
is no fluctuation in the market condition.
This calculation could be estimated on the basis of below given details.
Range Name Cell
AnnualHoldingCost G7
AnnualSetupCost G6
d C4
h C6
K C5
L C7
Q C11
ReorderPoint G4
TotalVariableCost G8
WD C8

Supply chain management 5
Possibility of improving the current ordering system
The supply chain can be improved by providing with an effective planning and development
process. It is therefore important from the point of gaining applicable growth. The purpose here
is clear which is sustained in order to provide with the growth. The purpose is to attain thee
sustainable objectives and to provide with an organized growth. The applicable growth is
important enough to sustain changes in order to maintain the possibilities. These changes can be
managed by attaining the focused growth and placing the order on time in order to waive off the
idle hours. The purpose of the company is to attain the growth and promoting the supply chain in
order to manage the efficiency. These plans are important for maintaining the systematic
function(Russell & Taylor-Iii, 2008). The purpose is to manage the growth and allocating the
functions in a well-defined way. The purpose of this function is to manage the growth and
allowing the organization in providing with a proper feedback. The purpose is to attain the long
term goals and organizing the systematized growth. The challenges are possible to be managed
by the plan which is important to be addressed in order to organize the functions(Rushton,
Croucher. & Baker, 2014).
These changes can be managed by forming an effective cycle. This is possible from the
point of generating an effective role that allow in managing systematic function. The purpose is
clear that provide with a function in order to allocate the most benefitting functions. The role and
responsibility is necessary to be addressed in order to attain a better function. It is important
enough to manage the function and allocating the applicable resources. In order to procure
resources it is important to manage the various factors that are helpful in arranging the cycle. It is
systematic in terms of developing a platform which allow in gaining the capacity in order to
manage different role(Waters, 2011). The purpose here us clear that allow in manage the
function in a better way. The purpose is to manage the challenges and looking onto the most
effective and necessary goals. The long-term purpose of the company is to arrange the goals by
synchronizing the different factors and looking onto the medium as a most widely
acknowledged. The supply chain function is therefore evident to deal with the plan and getting
the most appropriate Statius in order to gain knowledge and procuring information. This is

Supply chain management 6
important to gain the sustainable goals and focusing over the ordering mechanism on a long run.
From the point of Laburum Group, it is important to organize the effectiveness and focusing over
various sectors and managing all in order to procure efficiency. This is majorly important to
occupy the services and favouring the best supply chain system. It is important from the point of
view of gaining effectiveness and providing a wide variety of option allowing the company in
exploring the changes. The wide supply chain options are therefore important to focus on
changing organizational changes.
Some of the major global issues that will be relevant to the area of strategic sourcing
The fast and mechanical ordering system will therefore allow in managing the overall
package. It helps in stimulating the system with an overall system that suits an individual in a
better way. The purpose is to integrate the sales mechanism and developing spaces in order to
gain adequate result. From the point of view of developing better role and responsibility, it is
necessary to attain effective growth. It is important to manage the supply chain in order to
implement the changes and improvising the applicable changes in the supply chain process. This
is certainly important from developing a wide variety of objectives. Hence, it is necessary to
develop a coherent project and taking necessary steps in order to generate results. It is therefore
important to take care of an effective platform which will allow in managing the adequacy. The
supply chain looks after the changes and providing with a platform that allow the company in
managing effectiveness. This is however important in managing the challenges and reciprocating
the result thereof. The purpose is important to look into a wide variety of changes and providing
with a specific role and responsibility in organizing supply chain. The overall purpose is to deal
with the changes in the company and looking out for an efficient ordering system which
mitigating the extra cost. This is important enough to deal with the changes and providing with
an appropriate platform(Pettit, Fiksel & Croxton, 2010).
Quantitative and qualitative analysis
For the purpose of gaining adequacy it is important for the business to manage the changes
and adhere accordingly. The current issues are affecting both the quality and quantity largely.

Supply chain management 7
The purpose here is to organize the gaps that are seen in the ordering system and locating the
most appropriate tool in order to manage quality.
There has been quantitative gaps in administering the changes efficiently. The purpose
however is to challenge the business in order to be proficient at work.
The process is concrete and hold adequacy in managing the supply chain. The purpose of
ordering system is to gain adequacy and allocating the purpose. It is necessary to initialize the
changes in order to understand the challenges and allocating the sustainability. It is important
enough for utilizing the effectiveness and manages the supply chain in a proficient way. The
ordering system is important enough to manage the challenges that are seen in order to deal with
the different spaces(Monczka, et al 2015). The procurement channel needs to be more flexible
which will certainly help in allocating the supply chain. The smooth transition of supply chain
management and development will help in managing the growth in a systematic way. The
purpose of managing the effectiveness is highly depending upon the different challenges that are
attributed with the existing ordering system. This is informative in order to deal with the
situation and maintaining the long-term effectiveness(Solomon,2013). The procedure is to
manage the changes and arrange the cycle in order to procure the maximum benefit. This is
applicable from the poet of view of guaranteeing long-term goals and managing sustainability.
The objectives of the organization are to deal with the situation and to provide with a systematic
cycle which ensures growth. It is important to maintain the systematic growth and organizing the
applicable growth. This is necessary for maintaining the systematic procedure and gaining the
effectiveness in the ordering system(Jonsson, 2008).
Impact of less-than-perfect demand forecasts for Guncotton products, and of volatility in
the length and cost of transport services to move its products
The impact of less-than perfect demand forecast is therefore affecting the overall supply
chain of AusCotton product. It is therefore important to manage the changes and providing with
an idea that allow in managing the changes in a better way. The purpose is to allocate the
changes and matching up with the individual expectations. The changes in supply chain are
important enough to develop an effective channel that allow in managing effectiveness. The

Supply chain management 8
purpose is clear to organize the product efficiency and managing a platform for attaining
sustainable results. The changes in the business development and organization of changes are
evident enough for locating the most focused changes. The excess supply of goods is here not in
favor of the company. It causes a change in the supply chain process and providing with accurate
changes in deploying the most effective change. The purpose here is to manage the changes and
allocating the best possible supply chain that will help in allocating the resources and putting
forward the necessary changes. It is effective from the point of gaining adequate result and
achieving sustainable objectives. The purpose is to manage the effectiveness and providing with
a mechanism that allow simulation of changes and allocating effective role. The challenges that
are seen in managing a supply chain are important enough to develop the adequate result and
managing procurement of goods at lead time. The supply chain process will therefore allow in
putting a systematic approach hitch will therefore allow in managing the changes and putting an
effective system. This will certainly allow in gaining effectiveness in order to maintain the
cycle(Font, Tapper, Schwartz & Kornilaki, 2008).
Things to be done in order to mitigate the issue
There is a necessity to manage the supply by keeping a proper record. This will certainly help
in managing the changes and allocating the most possible result. The order cycle time period
need to be renewed that will allow in mitigating the issue caused in cross-functional team. The
purpose here is to manage the challenges and looking onto a process that will keenly help in
managing the effectiveness. The process here is to choose the most effective function and
formulate the policies that will help in managing the scenario. It is necessary from for managing
the cross-functional team and deploying a project that will ensure growth. It is however
important to achieve effective roles and managing the procedure. It is therefore important from
the point of view of generating adequate results. The purpose is to attain uniform quality and
adherence to the time limit. The overall development is necessary to initiate the long-term
effectiveness. The overall supply chain management is important to be dealt with the company
effective cycle. The total ordering cycle need to be managed in order to attain regular
availability. It is necessary from the point of view of gaining effective development. It is

Supply chain management 9
therefore important to initiate the changes and making effective changes with long-term
sustainable roles.
Strategic sourcing process
The strategic sourcing process is important enough to deal with the long term effectiveness
and managing the challenges faced by the Laburnum Group. It is important enough to deal with
the effective role and responsibility and managing the most effective purposes. This allow in
matching the effective challenges. The process of strategic sourcing is evident to achieve
positioning in the market.

Supply chain management 10
References
Font, X., Tapper, R., Schwartz, K., & Kornilaki, M. (2008). Sustainable supply chain
management in tourism. Business strategy and the environment, 17(4), 260-271.
Jonsson, P., (2008). Logistics and supply chain management. London: McGraw-Hill Higher
Education.
Monczka, R.M., Handfield, R.B., Giunipero, L.C. & Patterson, J.L.,( 2015). Purchasing and
supply chain management. Cengage Learning.
Pettit, T.J., Fiksel, J. & Croxton, K.L., (2010). Ensuring supply chain resilience: development
of a conceptual framework. Journal of business logistics, 31(1), pp.1-21.
Rushton, A., Croucher, P. & Baker, P., (2014). The handbook of logistics and distribution
management: Understanding the supply chain. Kogan Page Publishers.
Russell, R.S. & Taylor-Iii, B.W., (2008). Operations management along the supply chain.
John Wiley & Sons
Schönsleben, P., (2007). Integral logistics management: Operations and supply chain
management in comprehensive value-added networks. CRC Press.
Solomon,M. et al (2013). Marketing: Real People, Real Choices. Pearson Higher Education
AU, 2013
Song, H. (2012). Tourism supply chain management (Vol. 23). Routledge.
Van Weele, A.J.,( 2009). Purchasing & supply chain management: analysis, strategy,
planning and practice. Cengage Learning EMEA.
Waters, D., & Rinsler, S. (2014). Global logistics: New directions in supply chain
management. Kogan Page Publishers
Waters, D., (2011). Supply chain risk management: vulnerability and resilience in logistics.
Kogan Page Publishers.