TLIR5014 - Managing Suppliers: Case Study of National Camper Trailers

This assignment consists of two case studies focusing on supplier management for National Camper Trailers Pty Ltd (NCT). The first case study (1A) assesses NCT's supplier relationships, specifically with AWWM, and recommends improvements to their annual contracts, supplier service criteria, and terms and conditions. It also addresses relevant legislation and workplace procedures. The second case study (1B) identifies AWWM’s non-compliances, proposes recommendations for improvement, and outlines a corrective action plan with contingency measures. It details the investigation procedure for a new contract, disagreement negotiation plans, and approval/acceptance processes. The final part (Assessment 2) involves conducting market research to identify a suitable alternative supplier for specific trailer kit components, supplementing or paralleling AWWM's deliveries.

Running head: MANAGE SUPPLIERS
Manage suppliers
Name of the Student
Name of the University
Author note

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Assessment 1A:
Introduction:
Effective Supply Chain Management (SCM) can improve the production capacity and
quality of any organisation while improving the overall profitability. With this regards
National Camper Trailers Pty Ltd (NCT) needs to focus on improvement of their supply
chain management and suppliers to sustain the performance level and event improve it. The
purpose of this report is to provide recommendations on annual contract’s of supplier
relationship to the CEO of the NCT. To develop the recommendations accordingly this report
will also present the supplier service criteria, reviewing of current ‘T&C’ (Terms and
Conditions) of NCT contractual policy and procedure.
Establishing Criteria:
According to the current production and service procedure of NCT the following supplier
service criteria has been developed.
1. The two components that are Single Axle UN-BRAKED Trailer Kit 1400kg Rating, with
EYE TO EYE SPRINGS 45X8MM and 1000KG Mechanical Drum Brake Single Axle
Trailer Kit with Slipper springs 1T have to have the quality of above average margin.
2. The communication between the supplier and the mother warehouse has to very effective
where any delay and defective report should be reported before the required time mentioned
in the policy and procedure of the supplier contract (Christopher 2016)
3. The annual price increment of supplied components should be settled by mutual agreement
and communication while valuing the profitability and business objectives of both the
companies.

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4. The return and replacement procedure for defective products should be executed as per the
terms and condition of the supply policy, without arising any negligence and delay issue.
5. Any change of supplier-client contract have to be done by mutual cooperation through
conducting multiple direct and indirect communication. The legislative procedure should be
complied in each amendment of the policies.
Evaluation of current Suppliers against the criteria:
AWWM has satisfied some of the discussed criteria properly, while some of the criteria have
not achieved at all. There are some major factors that have been identified from the
performance of the previous year of the supplier, which are discussed below.
1. AWWM has missed the available reminder time for informing delayed delivery many
times, that has delayed the overall service process of the NCT operation cycle.
2. About 5 times the delivered components did not meet the required quality. However, in
spite of having return order for those products the return procedure took very long time.
3. The quality and delivery time of 1000KG Mechanical Drum Brake Single Axle Trailer Kit
with Slipper springs 1T are better than the supply of Single Axle UN-BRAKED Trailer Kit
1400kg Rating, with EYE TO EYE SPRINGS 45X8MM product.
4. The delivery delay has occurred less frequently, however, the delayed time was significant
amount of long to paralyse the internal operation and production procedure of NCT Pty Ltd.
5. In every failure, AWW kept consistent communication with the logistics department of the
NCT Pty Ltd that helps to acquire backup products to continue the necessary operations.
Recommendations of Terms and Conditions:

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To make the terms and conditions regarding supply and delivery procedure more efficient
and tangible the contractual conditions from NCT should be changed as per the situation. The
possible beneficial changes are mentioned below.
2. For new contracts the pricing policy should be more rigid that could allow more cost
preservation while executing the price and product negotiation process. It will help to
conserve the profitability of the company (Seuring 2013).
3. More clear declaration of communication policies is also essential, which will help the new
supplier company to maintain proper communication during the delivery and order receiving
system.
4. The return of replacement policy should be more effective and feasible which could help
the new supplier company the process of refund and complaining system at the very
beginning of the partnership development.
Recommendations of developing cooperative relationship with Suppliers:
As per the current supply chain management results it is clear that the requirement of supply
quality and timings of NCT have not been fulfilled adequately. Therefore, the following
changes are essential to ensure further improvement.
1. For supply chain of Single Axle UN-BRAKED Trailer Kit 1400kg Rating, with EYE TO
EYE SPRINGS 45X8MM component, an alternative supplier will be required from more
précised and efficient supply service.

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2. Both companies should inform the position and the remaining time required to reach the
destination, even within the transportation time. It will help to prepare the ware house for
new inbound logistics.
Relevant legislation and workplace procedures:
During the agreement process and formulating contract some crucial legislative
considerations will also required, that would hold the authenticity, feasibility, reliability and
attainability of the contractual business operation between the NCT and AWWM Pty Ltd.
These legislative considerations are discussed bellow.
During the contractual operation with supplier the compliance of Commonwealth
Independent Contractors Act 2006 is very essential to maintain the authenticity, which also
includes the drivers and drivers-owner compliance for logistics system (Brandenburg et al.
2014).
Compliance of Australian Consumer Law or ACL is very essential for the supplier company
that will preserve the rights of the NTC as a authentic consumers of supplier company. It also
holds the authority to return and refund procedure.
The Collective Bargaining is another essential regulation for contractual work administrated
by Australian Competition and Consumer Commission (ACCC). This regulation will help
both the parties to maintain the mutual rights to propose their financial negotiation during
quality price negotiation and bargaining (Ahi and Searcy 2013).
To authenticate the taxation compliance the evidence of Australian Business Number (ABN)
should also be required for the agreement. These ABN numbers of both the companies have
to be documented as a crucial part of the contract.
Conclusion:

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As per the above assessment and contractual operation process of NCT and the performance
of AWWM as a supplier it can be said that to make the terms and conditions regarding supply
and delivery procedure more efficient and tangible the contractual conditions from NCT
should be changed as per the situation. Apart from that It can be also concluded that NCT
needs another supplier to ensure the quality of the supply service.

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Assessment 1B:
Introduction:
After developing the supplier relationship planning, it is important to produce the
contracts format while including the decision taken from the management of NCT. Therefore,
the purpose of this paper is to report AWWM as a prelude to new contract decision. This
report is comprised with the identification of AWWM’s non-compliances and the
recommendations provided by the NCT management while planning the action pan with
investigation procedure stating the negotiation plan as well. The significance of approval and
the communication plan for finalise the new contracted is also incorporated in this report.
Identification of AWWM’s non-compliances:
There are many ethical and legislative dilemma can be found in the existing service
performance of the supplier AWWM. These issues can also be considered as non
compliances of inter-business contract, which are discussed below
AWWM has violated the consumer right regulation by making the NCT blind during the
transportation and logistics operation.
The fair trading law has been also violated by the supplier because of their price apprising
without making the parent company aware of that (Mangan, Lalwani and Lalwani 2016).
AWWM also violated the business contract by breaching the minimum KPI or Key
performance indicators policies mentioned in the initial contract.
Recommendation to AWWM to meet the requirement:
To meet the requirement AWWM has to change their existing delivery and order
receiving policy significantly. Currently their trading process depends only on the provided

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guidance by the NCT Company. However, they need more flexible logistics algorithm that
can be change at any emergency situation. At the same time, the AWWM should need to
upgrade their delivery plan by procuring technical component for the improvement of their
transportation system. The policy reviewing checklist of AWWM should be more effective to
ensure that they are providing adequate service to their customer.
Corrective action plan with contingency plan:
Situation Corrective plan Contingency plan
Delayed delivery of ordered
goods
Making precise orders while
also ensuring the transportation
rout and data.
Making backup stocks to
continue the internal operation
without compromising the
efficiency (Lignier and Evans
2012)
Delivery of defective products Making qualification criteria for
each product before ordering
the products
Using backup components from
the storage or ordering from
supplementary suppliers
Non compliance with delivery
and return policy
Making the ethical and legal
consideration straight and strict
before, during and after the
contractual operation.
Claiming the refund of the
delivered defective products
and ceasing the contractual
operation.
Investigation procedure to indentify the validity ad causes under the new contract:
To investigate the new contract and the validity of disagreement properly all the
previous contractual documents are essential with all the billing and invoice papers.
Comparing the contractual policies with the practical evidences of non-compliances would
help to point out directly the inefficiency of the supplier (Seuring and Gold 2012). Along

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with that, the new contract can be evident by various case studies collected from the
industrial analysis and from the business experience of the NCT. The new policies could be
validated by simulating the process through an formulated case that could be possible in
certain consequences.
Disagreement negotiation plan:
In this case the disagreement could come from the existing suppler company AWWM
or from the new supplier. This kind of disagreement could be emerged from the return and
refund and contract ceasing constrains. However, a win-win negotiation strategy can help to
negotiate with proper strategic contractual declaration. NCT can positively ensure that they
can provide all the necessary communication supports and guidelines for punctual delivery
system. Even to minimise the defective product NCT could also guide the suppliers as a
consultancy without claiming any benefit for this. The price range can be adjusted initially to
secure any further conflict between both parties.
Details of Approval and Acceptance:
The new contract should secure the procedural policies that include the delivery,
financial and legislative infrastructure. For this the contract should also convey a approved
Key Performance indicator checklist that has to be maintained by both supplier and the
receiver companies to secure the quality of the delivery system. Apart from that, proposing
free advance and consultant service only for the logistical operation within client and supplier
company could help to ensure the approval from the suppliers for the new delivery policies.
Building friendly and cooperative relationship with the suppliers can also help to receive
mutual approvals.
Communication plan to inform about amendments:

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NCT needs an effective communication plan before, during and after the contractual
process. The real time, consistent communication is essential within the NCT, AWWM and
future alternative supplier. Using Information Technology and advance equipment the
company can communicate efficiently (Barney 2012). The usable processes for this
communication are telephone, text messages, email, face to face communication, conference,
meeting and others
Conclusion:
It can be concluded that there are many ethical and legislative dilemma can be found in the
existing service performance of the supplier AWWM. From the above discussion it can be
said that to investigate the new contract and the validity of disagreement properly all the
previous contractual documents are essential with all the billing and invoice papers. It is also
clear that to meet the requirement AWWM has to change their existing delivery and order
receiving policy significantly. Moreover,

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Assessment 2:
Introduction:
As per the excising supply chain situation of NCT Pty Ltd, the company needs one or more
efficient suppliers as a supplementary or as a parallel delivery system. Along with the
supplier AWWM, NCT Company must needs a tangible list off supplier to select the
appropriate one. The purpose of the report is to conduct a market research to choose
appropriate supplier for Single Axle UN-BRAKED Trailer Kit 1400kg Rating, with
EYE TO EYE SPRINGS 45X8MM and 1000KG Mechanical Drum Brake Single Axle
Trailer Kit with Slipper springs 1T.
Purchase request
To,
Mr. Mark Cannon,
Purchasing officer,
Trailer Spare Parts Australia,
Subject: Purchasing Request For 2 Trailer Spare Parts
Dear Sir,
We are requiring trailer parts for our business (National Camper Trailers Pty Ltd,
BSN no.) It is to inform you that we are requesting you to deliver 2 chosen trailer spare parts
(mentioned below) to our company. It will be very helpful if you kindly go through all the
attached details about the company and the warehouse address. The prices negotiation will be

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done as per your response and hour potential contractual agreement. Kindly consider the
basic procedure and policies of our purchasing system.
Purchasing goods:
 Single Axle UN-BRAKED Trailer Kit 1400kg Rating, with EYE TO EYE SPRINGS
45X8MM
 1000KG Mechanical Drum Brake Single Axle Trailer Kit with Slipper springs 1T
Delivery address:
National Camper Trailers Pty Ltd, HQ, 6 Gumnut Drv. Dandenong South, Victoria 3175,
Australia.
List of companies and details
In the following table the list of chosen companies has been presented with their scores as per
the research result on their business history and potential performance compatibility with
NCT Pty Ltd.
Company Business
customers
Average delay
record
Qualit
y Ratio
Legal
Allegation
Ranking
Couplemate Caravan and
Trailer Parts
13 15 12.5 Few (0) 3rd
Sunrise Trailer Parts 7 5 9.8 Many (3) 4th
Martin's Trailer Parts 12 2 5.9 Moderate (2) 2nd
Trailer Spare Parts Australia 4 3 11 Some (1) 1st
Truckline Truck & Trailer
Parts
9 8 8.5 Many (3) 5th