TLIL5055 - Supply Chain Management Case Study: NCT Analysis

This assignment provides a comprehensive analysis of the supply chain management (SCM) practices of National Camper Trailers (NCT). It assesses the responsibilities of the supply chain manager, explores the use of technology and software for restructuring, and examines NCT's procurement policies, terms, and supplier selection processes. The analysis includes designing an implementation action plan for changes, reviewing and revising documents to align with SCM, and ensuring compliance with legislative requirements. Furthermore, it suggests communication and review methods for monitoring progress with stakeholders, discusses the incorporation of financial responsibilities within the SCM system, and addresses legal and ethical considerations. The study also proposes strategies for improving supplier relationships and outlines contingency plans for potential failures of the SCMS. The project further identifies opportunities for adjusting policies to meet customer and supplier needs, monitors SCM performance, and recommends software and acquisition strategies to strengthen the overall supply chain system. Finally, it includes answers to short answer questions related to supply chain concepts and practices.

Reading head: SUPPLY CHAIN MANAGEMENT
Supply Chain Management
Name of the Student
Name of the University
Author Note

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Table of Contents
Assessment 1. Case study 1:............................................................................................................4
Introduction......................................................................................................................................4
Section 1. Responsibility of the Supply Chain Manager within the organization in accordance
with the strategy...............................................................................................................................5
Section 2. Technology and Software that could be used within the restructure and the budgetary
assessment of the possible costs......................................................................................................5
Section 3. NCT Procurement Policy and Procedure, NCT Procurement Terms and Conditions
and the NCT Supplier Selection Process Guide..............................................................................6
Section 3.a. Assistance of documents in dealing with SCM issues:............................................6
Designing of an Implementation Action Plan to show the CEO of how the changes can be
incorporated in to the normal processes..........................................................................................7
Section 3.b. Reviewing and revising documents and updating documents with SCM:..............7
Section 3.c. SCM meeting legislative requirements:.......................................................................7
Section 4. Implementation of action plan:.......................................................................................8
Section 6. Suggested communication and review methods to monitor progress to exchange
information on with both internal and external stakeholders..........................................................8
Section 7. Supply Chain Management system incorporate financial responsibilities such as sales
and payments...................................................................................................................................9
Section 8. Legal and ethical requirements of SCM:....................................................................9

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Section 9. SCM will improve dealings with suppliers to build a culture of trust and mutual
benefit............................................................................................................................................10
Procurement Terms and Conditions that will be incorporated when conducting Purchasing and
Tendering bids...............................................................................................................................10
Two contingency plans that would be implemented if the proposed SCMS fails to achieve the
budgeted Outcomes.......................................................................................................................10
Conclusion.....................................................................................................................................11
Assessment 2. Project 1:................................................................................................................11
Introduction:..................................................................................................................................11
Identifying opportunities of adjusting policies and procedures to respond to changing needs of
customers and suppliers:................................................................................................................12
Monitoring SCM:...........................................................................................................................13
Performance of NCT in last 6 months:..........................................................................................14
Recommendations:........................................................................................................................14
Use of software:.........................................................................................................................14
Acquisition of firms to strengthen the supply chain management system:...............................14
Conclusion:....................................................................................................................................15
Assessment 3. Short Answer questions:........................................................................................16
Answer 1........................................................................................................................................16
Answer 2........................................................................................................................................16
Answer 3:.......................................................................................................................................16

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Answer 4:.......................................................................................................................................18
Answer 5:.......................................................................................................................................18
Answer 6:.......................................................................................................................................18
Answer 7:.......................................................................................................................................19
References:....................................................................................................................................20

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Assessment 1. Case study 1:
Executive Summary
The main purpose of a supply chain manager is to ensure that the products produced and
delivered by the organization is within the expected standards of the society, while at the same
time keeping in view that the profit generation of the organization is not adversely affected. This
report seeks to discuss the roles and responsibilities of the supply chain manager with respect to
the organization named National Camper Trailer. The report further looks in to the various
logistical data and the quality of the products produced by the organization. The report seeks to
discuss the procurement procedures and policies of the concerned organization. The main
purpose of the report is to make an analysis of the supply chain management of the National
Camper Trailer.
Introduction
A major impact in the contemporary globalized world is the rapid rise of the process of
industrialization. The functioning of the new industries demand more workers and, as a result,
more people are engaged in the labor workforce. The industries have the double burden of
increasing the profit margin of the employers while also ensuring that quality products are
delivered to the people for which the motivation of the employees is very important. It is in this
regard that the concept of supply chain management comes in to existence. Supply chain
management is an important segment of any organization. The main purpose of a supply chain
manager is to ensure that the products produced and delivered by the organization is within the
expected standards of the society, while at the same time keeping in view that the profit
generation of the organization is not adversely affected. This report seeks to discuss the roles and
responsibilities of the supply chain manager with respect to the organization named National

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Camper Trailer. The report further looks in to the various logistical data and the quality of the
products produced by the organization. The report seeks to discuss the procurement procedures
and policies of the concerned organization. The main purpose of the report is to make an analysis
of the supply chain management of the National Camper Trailer.
Section 1. Responsibility of the Supply Chain Manager within the organization in
accordance with the strategy
The supply chain management being of critical importance to the business generation of
NCT would necessitate the responsible participation of a three layered supervision panel
dedicated to SCM. The first person who can be recommended for being responsible for
verification of supplies would be procurement executive followed the assistant manager,
procurement. The final authority to approve the stocks would be Procurement manager. The
main focus of the supply chain manager is to ensure that the costs incurred by the organization is
kept at a minimum and hat the expenditures of the company is low. The job of a supply chain
manager is not simply that of managing finances and of logistics; he or she has other important
job profile too. For instance, a supply chain manager has the significant purpose of maintaining
the productivity of the concerned organization and of ensuring that the quality of the products
produced meet the expected standard. As a result, the responsibility of the supply chain manager
is to ensure that the profits of the organization does not take a hit while maintaining the quality
of the work produced.
Section 2. Technology and Software that could be used within the restructure and the
budgetary assessment of the possible costs
It can be recommended that NCT should have advanced SCM software like the leading
IT companies like Microsoft called Modern Distribution Platform for Dynamics 365. The

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modern SCM software packages are integrated with the other operational areas like marketing.
This would allow the company to align the supply chain with the business requirements of NCT.
With the help of recent advances in technology, the various organizational aspects now has the
possibility of being revolutionized so much so that they become comparatively more effective
than the previous generation. In the case of the National Camper Trailer, such technological
advances are also viable where the various products manufactured are more efficient than those
manufactured in the past. The technology that can be used in the case of National Camper Trailer
is the manufacturing of efficient equipment at half the time taken. Moreover, because of the fact
that the process of manufacture is becoming extremely robotized, the wages paid to the
employees are cut down in half. The investment for the manufacturing equipment is high, but it
is a onetime investment, meaning that the organization stands to produce a higher level of profit
margin in the long run. The budget, as a result, will show a positive profit margin for the
organization.
Section 3. NCT Procurement Policy and Procedure, NCT Procurement Terms and
Conditions and the NCT Supplier Selection Process Guide
Section 3.a. Assistance of documents in dealing with SCM issues:
The National Camper Trailer has several outlined procurement policies and procedures
which needs to be adhered to. One of the most important policy of the National Camper Trailer is
that no employee of the concerned organization will undertake any agreement which will be in
conflict with the interest of the National Camper Trailer. Moreover, the organization also has an
important guideline with respect to competition. The National Camper Trailer lays down that all
the competition occurring with respect to other firms will be held in a fair manner which will be
conducive for the concerned organizations. These documents will be helpful to let the

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employees know what is expected of them when they start working for the organization.
These policies and procedures also meets the legislative requirement in terms of allowing
for fair competition and to keep in mind that the interest of the organization should be
maintained.
Designing of an Implementation Action Plan to show the CEO of how the changes can be
incorporated in to the normal processes
Section 3.b. Reviewing and revising documents and updating documents with SCM:
It can be suggested from the process of reviewing the procurement methods of NCT that
the firm has a strict process of analysing each contract based on procurement standards. The
code of conduct pertaining to procurement strictly mentions that no employee either in person or
through friends or acquaintances should be involved directly in the procurement process for their
own vested interests. It can also be suggested that NCT procurement that as far as accepting bids
are concerned, the discretion of the management of NCT to accept or reject a bid stands supreme.
The conditions clearly mentions that grounds on the basis of which contracts are reviewed,
revised and updated. The apex management has a well-defined ‘Supplier Selection Process
Guide’. A review of this documents would again suggest that the NCT follows a stringent
method of selecting supplier. While the procurement standards were based on the ethical and
acceptable terms of contract, the Supplier Selection Process Guide’ delves into quantitative
eligibility criteria of suppliers like price list and ways of finding suppliers. These two documents
should be used to review contracts in accompaniment of ‘Terms and Conditions (T&C)
applying to Procurement Purchase Orders’ which suppliers need to consider by participating
in the tenders of NCT. It should be confirmed that the contractors comply with the policies along
with meeting terms and conditions specified therein. The apex management along with the

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procurement department should check whether the present procurement contracts are aligned
with the business requirements of NCT. If any discrepancy is detected, the same should be
immediately brought into the attention of the concerned supplier(s). The apex management
should collaborate with the concerned supplier(s) to bring about the desired changes. The
amended versions would be prepared and agreed to by both the company and the suppliers.
These revised documents should be then adopted with the SCM documents. The SCM strategies
and portals should be updated with the revised SCM documents and strategies.
Section 3.c. SCM meeting legislative requirements:
NCT must align the SCM with the legislative enforcements prevailing with Australia.
The company must comply with the policies laid down by Australian government regarding
supply chain. Similarly, the company must comply with laws like Safe Work and the banking
laws in power in Australia. The company while procuring supplies must ensure ethical conduct
with suppliers and must abstain from using its power to coerce suppliers enter into unlawful
agreements. The company while procuring parts for trailers must not use forced labour and child
labour.
Section 4. Implementation of action plan:
The apex management must form an action plan to incorporate the integrated and
improved processes of SCM along with the business requirements. The following action plan
would take into account the integration of SCM with marketing operations:

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Apex management of NCT along with the procurement department peruses the procurement
current contracts (Procurement Policies and Procedures, Supplier Selection Process
Guide, Terms and Conditions (T&C) applying to Procurement Purchase Orders)
Do contracts comply with the policies of NCTY
Contracts prevail
N
Management of NCT
informs the concerned
supplier(s)
Suppliers comply
N
Y
Contracts terminated
Revised contracts
signed
Revised contracts
integrated with SCM
documents
NCT acquires new
suppliers

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Section 6. Suggested communication and review methods to monitor progress to exchange
information on with both internal and external stakeholders
The stakeholders of an organization are vital for the functioning of the said organization.
It is with the help of their vested interest and finances that the organization manages to make
production. As a result, communicating with them about the changes in the organization or other
related important information is essential. One of the ways by which communication can be
effectively done with both the internal and external stakeholders is by the constantly monitoring
and reviewing the new policies. In this way they will be kept updated about the different changes
in the organization.
Section 7. Supply Chain Management system incorporate financial responsibilities such as
sales and payments
The main purpose of the supply chain management is to ensure that the costs incurred by
the company is minimal. This will reflect on the higher earning of profit by the said organization.
The supply chain management of the National Camper Trailer can incorporate financial
responsibilities such as sales and payments by the way of digitalizing the entire system. In this
way the entire financial accounting will be done automatically and there will be no scope of
making any mistake. NCT should use supply chain management software to digitalise the SCM
and integrate it with related functions like sales and financial operations.
Section 8. Legal and ethical requirements of SCM:
The setting up of any organization needs to look diligently in to the various legal and
ethical requirements with respect to the larger society in which it will be operating. The National
Camper Trailer has the important legal requirement of ensuring that the organization competes in
a fair manner with the other organizations in the same field. Moreover, the company has the

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significant ethical requirement of making sure that the customers are given the quality of product
they have been assured of in the first instance. This means that the organization must not be
associated with any under sales technique while trying to increase its margin of profit. The
legislations which apply to SCM in Australia consist of Acts enacted by the Australian
Government like Australian Securities and Investment Commission Act 2001 and the
policies formed by ATO like GST.
Section 9. SCM will improve dealings with suppliers to build a culture of trust and mutual
benefit
A supply chain manager of an organization has the potential of improving the relations
with the other suppliers and build a culture of mutual benefit and trust. The supply chain
manager has the important task of ensuring the provision of quality products to the customers
while also maintaining profits of the organization. In this respect, he or she can negotiate with
the other suppliers effectively and create a bond which can be honored for a long period of time,
thereby creating a codependence with the suppliers. The contracts between the suppliers and
NCT should clearly lay down the terms and conditions. Both the parties should ensure that the
terms are acceptable to of them and they intend to comply with it. They should establish a
transparent communication to communicate any obstruction that might come up in the course of
the contract compliance. NCT along with the concerned suppliers should arrive at amicable
methods to settle the differences and issues which may arise in future. This would build trust
among the parties and both would benefit.

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Procurement Terms and Conditions that will be incorporated when conducting Purchasing
and Tendering bids
The purchase of any goods by an organization is always guided by a formal document
where the procurement policies and procedures are clearly spelled out for the convenience of the
suppliers and the buyers. The legislations pertaining to supply chains would be incorporated
specifically. One of the procurement terms and conditions that need to incorporate is the strict
adherence to the anti-competitive laws of the country where the organization is functioning in.
The main purpose of the organization is to earn profits but it should not be done at the cost of
causing harm to the society.
Two contingency plans that would be implemented if the proposed SCMS fails to achieve
the budgeted Outcomes
The following are the two contingency plans which NCT can adopt if the proposed SCM
fails to achieve the targeted results:
Maintaining of extra suppliers:
The company should maintain extra supply of stock of raw materials and work-in-
progress if the current suppliers fail to supply sufficient raw materials for temporary basis. This
contingency plan would ensure smooth flow of manufacturing of trailers to meet the deadlines as
per the contracts entered into with the clients.
Maintaining of contingency funds:
The company should maintain contingency funds to tide over challenges like failure of
current SCMS. The company can use this fund to acquire inventory from other suppliers to
ensure uninterrupted production of finished goods.

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Conclusion
In conclusion it is observed that the supply chain management has an important task with
respect to an organization. The main purpose of a supply chain manager is to ensure that the
products produced and delivered by the organization is within the expected standards of the
society, while at the same time keeping in view that the profit generation of the organization is
not adversely affected. This makes the job of the supply chain manager that much more
challenging.
Assessment 2. Project 1:
Introduction:
The effectiveness and efficiency of supply chain management (SCM) have to be
monitored on regular basis in order to ensure that supply chains are aligned to the business
requirements as well lucrative to the company. Ho et al. (2015) shed light on the importance of
supply chain management and monitoring by mentioning at inability to monitor supply chains
result in improper procurement functions and hampers the manufacturing of finished goods. This
ultimately hampers the marketing activities and revenue generation. It is due to this risk which
supply chain pose to the core business operations that today supply chain management in
business organisations commence under the leadership of apex management headed by the CEO.
The study opens against the background of National Camper Trailer or NCT post restructuring
its procurement. The report would evaluate the newly adopted SCM strategies and recommend
technology which could be incorporated within the SCM for enhanced management.

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Identifying opportunities of adjusting policies and procedures to respond to changing needs
of customers and suppliers:
The procurement manager of NCT should point out opportunities to adjust policies and
procedures of the newly adopted SCM strategy to align the same with the interests of customers
and suppliers to a higher level. The first opportunity which can be pointed out is gaining
participation of the customers in the SCM strategy. Formentini and Taticchi (2016) mention that
in case busisness to business products, involvement of clients are required in order to ensure that
the products are in line with their expectations to ensure generation of revenue. It can be pointed
out that this factors comes into play in case of NCT since the firm manufactures trailers which
are purchased by companies from other industries like transportation and manufacturing
industries. The sales generation of NCT shows no significant increase post implementation of the
SCM strategy in Januray 2016 which is evident from the sales figures provided. This points out
to lack of client satisfaction with regards to the trailers, the finished products with NCT sells to
them. Thus, the marketing department should take into account the expectations of these
industrial clients while restructuring the SCM strategy.
The second opportunity which NCT can avail is using social media to communicate with
its business clients on daily basis. Siamagka et al.(2015) clearly mentions that social media
enforces direct communication between manufacturers and business clients, thus building up
mutual trust. The case study does not mention social media presence of NCT. Thus, in this light
it can be assumed that the company had no social media presence. It can be pointed out in this
respect that NCT should enter the social media platforms like Facebook and maintain
communication with clients to gain feedback from them regarding their expectations of their

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products. The apex management would be able to incorporate these feedback in the future supply
chain management strategies (Keinänen and Kuivalainen 2015).
The third strategy which NCT can adopt to strengthen its supply chains should train its
employees to adapt to the new SCM strategies and consequent organisational changes mentioned
in the case study. The sales figures post implementation of the new SCM strategies shows no
significant increase and in fact decreased in June 2016. The case study remains silent about
training of employees (Gummesson 2017). Thus, it can be assumed that NCT did not train its
employees to work on the new SCM which prevented them from serving business clients
efficiently which is evident from the poor sales figures. Thus, the firm should train its employees
to the new supply chain. It can also be pointed out based on the sales figures the new SCM
strategy was a failure as it did not boost the revenue generation of NCT, the main objective
behind implementation of the strategy.
Monitoring SCM:
NCT should monitor its supply chain in terms demand for trailers from business
customers, supply of trailer parts from suppliers, the present skills and expertise of the present
staff members and make strategies to improve the weak area it may detect in the course of this
monitoring. Branke, Farid and Shah (2016) mention that monitoring supply chains ensures that
the supply of products is aligned with demand in the market. The graph provided shows that the
actual sales of the company did increase much compared to target sales and in fact, fell below the
latter in February 2016. The supply chain should be monitored in terms of trailers’ parts procured
from suppliers against the customer demands generated. The company should improve the
procurement area by acquiring authentic high quality parts in appropriate quantities to ensure
continuous manufacturing of trailers and consequent revenue generation (Lee and Lee 2015).

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Performance of NCT in last 6 months:
The comparison between the actual sales and target sales performance of NCT post
implementation of supply chain strategy on January 2016 shows that the company did not
achieve any significant sales growth and in fact, the actual sales fell below the target sales in
February 2016. The actual sales was same as target sales in the months of August 2016 and June
2016. It can be inferred from this finding that the sales performance of NCT in the last 6 months
was below expectations (Christopher 2016).
Recommendations:
An analysis of the above discussion makes it prudent to make the following
recommendations to the management of NCT on the supply chain issue:
Use of software:
NCT should use software to integrate the SCM software to the sales software. This would
enable rhe marketing department make market data available to the procurement department with
the requirements of the business clients. This alignment of procurement with the customer
requirement would enable NCT generate more sales ahead of the target sales.
Acquisition of firms to strengthen the supply chain management system:
NCT should acquire firms manufacturing supply chain management system using modern
technology. The graph showing target sales vs actual sales shows that the firm has not profited
from the new supply chain implementation. This means that the firm should acquire a firm
dedicated to SCM which would in turn provide support to the sales department, thus boosting
sales achieved. .

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Conclusion:
It can be concluded that NCT should restructure its supply chain to generate higher
revenue. Finally, it can also be concluded that present SCM of the firm was not successful.

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Assessment 3. Short Answer questions:
Answer 1.
The supply chain management requires ethical measures. The companies in order to
procure supply of raw materials and spare parts should enter into procurement contracts with
suppliers on the basis of transparency. The companies should ensure that their supplier firms
abstain from indulging into illegal and unethical activities like using child labour. The companies
while acquiring supply of raw materials to ensure payment of taxes in power. The companies
should not exploit their suppliers using their market positions.
Answer 2.
Several legal regulations apply while accepting supply of raw materials and work-in-
process inventory from overseas suppliers. First, the company importing the materials have to
comply with customs laws of both home and host countries. The companies have to pay import
duties and taxes at the port of loading to the destination port. The second regulation which
companies have to follow while importing inventory from foreign suppliers is that they have to
confirm whether import of the specific class of raw materials are permissible by the law of the
importing country. The companies also have to comply with laws pertaining to taxes in the
country from where the inventory is being imported from as well the country where the raw
materials would be unloaded.
Answer 3:
The following are the five legislations which determines the supply chain management:
Laws and policies formed by the Australian Tax Office (ATO):

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The ATO is the principle revenue determination and collection department which forms
the rates of tax, excise and superannuation regimes in Australia. The body has set rules and
procurements for the range of goods sourced both from within Australia as well as foreign
countries. The body clearly specifies that all goods as well as services suppliers and providers are
obliged to comply with the norms it lays down. The body on its official website clearly mentions
that the business organisations including suppliers need to ‘report and pay’ the GST they have
collected and claim GST credit. The rate of GST which the Government of Australia charges is
10 percent for products sold and consumed in Australia. The ATO refers to both goods and
services as the term product.
Modern Slavery Act, Australia:
The government of Australia passed the act to mandate the companies disclosing their
use of slavery. The Government has also made the act applicable for supply chains functioning
within the country of Australia. The government has also proposed that the large business
organisations should respond to the act and operate as responsible corporate citizens.
Australian Securities and Investment Commission Act 2001:
The Australian Securities and Investment Commission Act 2001 was designed to direct
companies to act in ways to protect the interests of consumers, investors and suppliers, The act
supervises the corporate governance aspect of the companies.
Contract Law:
The Contract Law encompasses the legal agreements which take place between parties in
Australia including parties participating in supply chains. For example, when companies while
procuring supplies of raw materials have to enter into contract with suppliers.

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Environment Protection and Biodiversity Conservation Act 1999:
The act seeks to protect the environmental conditions of Australia. For example, the act
mandates companies operating in Australia, including suppliers firms to operate in sustainable
ways so as to minimise environmental damage.
Answer 4:
The six documents required in supply chain related documentation are documents
containing cost and price analysis, tenders, purchase orders, bank assurance, procurement
records, Free Trade Agreements documents and document of insurance.
Answer 5:
NCT should first hold meetings with all the departmental heads to recognise the
appropriate procedures which would be implemented to ensure appropriate operations of
electronic communication systems. The management should then in consultation with the
departmental heads lay down the standard procedures which would apply specifically to the
electronic equipment. The first procedure that can be applied is that all the employees can be
given new official ids and asked to set new passwords. Secondly, all the official communication
should be done only on the prescribed formal communication channel. The staff should not
allowed to tail access into systems and passwords are not to be shared. Thirdly, the junior level
employees should be able to get access to data bases only with prior approval of immediate
reporting officer or skip level officer. The staff at the junior levels while communication to any
external party would be required to keep the reporting officer in CC. The systems of the assistant
managers and above are to be protected by a triple security system containing of three
passwords.

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Answer 6:
Good knowledge about production of goods and services are required in order to ensure
procurement of appropriate raw materials so as to minimise wastage. Deeper knowledge results
in more prudent decision making more accurate decision making regarding suppliers. It enables
companies to measure performances of the suppliers so as to reward highly performing suppliers
and remove underperforming suppliers. Thus, deeper product knowledge enables more
appropriate SCM, thus leading company towards higher profits.
Answer 7:
Technology performance is reviewed and recommendations are made for improvement of
hardware and software with reference to strategy and budget in order to align technology with
business requirements.

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References:
Branke, J., Farid, S.S. and Shah, N., 2016. Industry 4.0: a vision for personalized medicine
supply chains?. Cell Gene Ther Insights, 2, pp.263-270.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Formentini, M. and Taticchi, P., 2016. Corporate sustainability approaches and governance
mechanisms in sustainable supply chain management. Journal of Cleaner Production, 112,
pp.1920-1933.
Gummesson, E., 2017. From relationship marketing to total relationship marketing and
beyond. Journal of Services Marketing, 31(1), pp.16-19.
Ho, W., Zheng, T., Yildiz, H. and Talluri, S., 2015. Supply chain risk management: a literature
review. International Journal of Production Research, 53(16), pp.5031-5069.
Keinänen, H. and Kuivalainen, O., 2015. Antecedents of social media B2B use in industrial
marketing context: customers’ view. Journal of Business & Industrial Marketing, 30(6), pp.711-
722.
Lee, I. and Lee, K., 2015. The Internet of Things (IoT): Applications, investments, and
challenges for enterprises. Business Horizons, 58(4), pp.431-440.
Siamagka, N.T., Christodoulides, G., Michaelidou, N. and Valvi, A., 2015. Determinants of
social media adoption by B2B organizations. Industrial Marketing Management, 51, pp.89-99.