Strategic Supply Chain Management and Logistics: AFZ Improvement Plan

This report provides a comprehensive analysis of strategic supply chain management and logistics within Ajman Free Zone (AFZ). It explores the importance of effective supply chain management in achieving organizational objectives, the link between supply chain management and business functions, and the key drivers for an integrated supply chain strategy. The report assesses the role of information technology in managing and integrating the supply chain, evaluates supplier relationship strategies, and examines procurement practices and logistics management. Furthermore, it proposes a strategy to improve AFZ's supply chain, assessing its potential benefits and addressing potential barriers to implementation. The report concludes with findings, conclusions, and recommendations for enhancing AFZ's supply chain and logistics operations. Desklib offers a platform for students to access similar solved assignments and past papers.

Assignment Cover Sheet
Course/Unit Information
Course Pearson (Edexcel) BTEC Level 7 – Diploma / Extended
Diploma in Strategic Management & Leadership
Unit No. Unit 14
Unit Name Strategic Supply Chain Management and Logistics
Unit code D/602/2357
Batch SSM3-SSCML-PaulGulston-1812
Instructor Information
Name Paul Gulston
Phone [phone]
Email [e-mail]
Assignment Information
Full/ Part Assignment Full Assignment
Date Assignment Issued 14th December 2018
Date Assignment Due 10th January 2019
Turnitin Class ID 19858196
Turnitin Enrollment key 1812
Student Information
(To be filled by the student prior submitting the assignment)
Name
Email
Date of Submission

Student Declaration
I, Eissa Al-Sheebani hereby confirm that this assignment is my own work and not copied or
plagiarized. It has not previously been submitted as part of any assessment for this
qualification. All the sources, from which information has been obtained for this assignment,
have been referenced as per Harvard Referencing format. I further confirm that I have read and
understood the Westford School of Management rules and regulations about plagiarism and
copying and agree to be bound by them.
Students Signature : Eissa Al-Sheebani
Student Name : Eissa Al-Sheebani
Date : 29/01/2019

Learning Outcomes and Assessment Feedback
Name of the Assessor Paul Gulston
Learning Outcomes Assessment Criteria (AC) Assessor
Feedback
LO 1 TASK-1
AC MET
Understand the relationship
Between supply chain
management (SCM) and
organizational business
Objectives
1.1 Explain the importance of effective supply chain
management in achieving organizational objectives
1.2 Explain the link between supply chain management and
business functions in an organization. AC MET
1.3 Discuss the key drivers for achieving an integrated
supply chain strategy in an organization. NOT MET
LO 2
AC MET
Be able to use information
Technology to optimize supplier
relationships in an organization
2.1 Evaluate the effectiveness of
Strategies used by an organization to maintain supplier
relationships.
2.2 Use information technology to create strategies to
develop an organization’s relationship with its suppliers. AC MET
2.3 Develop systems to maintain an
Organization’s relationship with it
Suppliers.
AC MET
LO 3 AC MET
AC MET
AC MET
Understand the role of
information
Technology in supply
chainManagement
3.1 Assess how information technology could assist
integration of different parts of the supply chain of an
organization
3.2 Evaluate how information technology has contributed
to the management of the supply chain of an organization
3.3 Assess the effectiveness of information technology in
managing the supply chain of an organization
LO 4
AC MET
Understand the role of logistics
and
Procurement in supply chain
Management
4.1 Explain the role of logistics in supply chain
management in an organization
4.2 Evaluate procurement practices inan organization AC MET
4.3 Discuss the factors that must be
Considered when improving logistics and procurement
practices in an organization NOT MET
LO 5 AC MET

Be able to plan a strategy to
improve an organisation’s supply
Chain
5.1 Plan a strategy to improve an organisation’s supply
chain
5.2 Assess how a supply chain improvement strategy will
benefit overall business performance in an organization AC MET
5.3 Explain how barriers will be overcome in an
organization when implementing a supply
chain improvement strategy
AC MET
Over All Result/Grade REDO Date: 30/01/2019
Summative Feedback:
Overall Feedback on
current work with
emphasis on how the
student can further
improve in future.
Both Executive Summary and Introduction of the Chosen Organization could
have been better covered. The answer also could have explained the
importance of effective supply chain management in achieving organizational
objectives in detail. The answer talks on various business functions but it
needed to elaborate and detail on the link between supply chain management
and business functions in the own/chosen organization. The answer needed to
clearly state and highlight the various key drivers that are moving the chosen
organization towards implementing an integrated supply chain.
General Guidelines
(Please read the instructions carefully)
1. Complete the title page with all necessary student details and ensure that the signature of the
student is marked in the declaration form.
2. All assignments must be submitted as an electronic document in MS Word to the LMS (Use
12 Times New Roman script).
3. Assignment that is not submitted to the LMS by the prescribed deadline will be accepted
ONLY under the REDO and RESIT submission policy of Westford.
4. You will PASS the full assignment task only if you achieve “AC Met” in each of the
Assessment Criteria.
5. The results are declared only if the student has met the mandatory attendance requirement of
75% and/or a minimum of 50% under extenuating circumstances approved and ratified by
the Academic Director. The student has to repeat the module (with additional fees applicable)
if the attendance is below 50%.
6. The assignment should not contain any contents including references cited from
websites like www.ukessays.com, www.studymode.com, www.slideshare.net ,
www.scribd.com.
7. Students can refer Wikipedia as a source of information, but the references cited in
Wikipedia has to be mentioned.

8. Submit the assignment in a MS Word document with the file name being:
First Name Last Name_ abbreviation of the subject.
Example: John Smith_SSCML.
Quick reference Checklist for the students before submitting the assignment:
1. Adherence to the deadline of submission date.
2. Original cover sheet and format retained.
3. Student information and signature intact.
4. Font style and size used as instructed.
5. Harvard Referencing System and Citations are strictly followed.
Task 1: Report covering LO1, LO2, LO3, LO4& LO5.
Assignment title Strategic Organizational Supply Chain Management and Logistics
Assignment Task : Read the following Scenario, and prepare a report with the guidelines
provided.
Scenario: The learner selects an organization, understands and undertakes a full review of how it
manages its supply chain and logistics. They will need to produce a report that includes how the
management of the supply chain impacts on business performance, the role of IT in managing
the supply chain, the role of procurement and logistics management. The final part of the report
will be a plan for a strategy to improve the organisation’s supply chain and logistics
management.
The report should include the following:
1. Executive Summary
2. Introduction of the Chosen Organization
3. Explain the importance of effectiveness of supply chain management in achieving
organizational objectives and the link between supply chain management and business
functions in the organization. What is the supply chain strategy of the organization and
discuss the key drivers for achieving an integrated supply chain strategy ? (AC 1.1, 1.2,
1.3)
4. Assess and evaluate how information technology has contributed in effective management
and integration of various parts of the supply chain management. Explain the strategies
employed by the organization to establish relationship with the suppliers and evaluate
them. Discuss how IT can be used to develop systems and strategies to enhance and
maintain the relationship with suppliers. (AC 2.1, 2.2, 2.3, 3.1, 3.2, 3.3)
5. Evaluate the procurement practices in the organization and the role of logistics in
effectively managing the supply chain management in the organization. Also, discuss the
factors to be considered to help improve the logistics and procurement practices in the

organization. (AC 4.1, 4.2, 4.3)
6. Propose a plan with a strategy to improve the organization’s supply chain and assess how
the proposed strategy will benefit the overall business performance of the organzation.
Identify the internal and external barriers and explain how the barriers would be overcome
when the proposed strategy is being implemented. (AC 5.1, 5.2, 5.3)
7. Findings, conclusions and recommendations.
8. References (Adhering to Harvard Referencing Format)
The report shall not exceed 10,000 words and should include relevant examples and
illustrations.
Recommended guidelines for learners and assessors:
The report should address the essence of the ACs within the guidelines provided below:
For AC1.1, learners need to explain the importance of effective supply chain management in
achieving organisational objectives. To illustrate this, they could relate this explanation to the
achievement of objectives in their own organisation.
For AC1.2, learners need to explain the link between supply chain management and business
functions in their own/chosen organisation. To illustrate these links, the explanation needs to
contain real examples from their chosen organisation.
For AC1.3, learners need to discuss the key drivers that are moving their chosen organisation
towards implementing an integrated supply chain.
For AC2.1, learners need to describe the strategies used in their chosen organisation to
maintain relationships with suppliers before evaluating the effectiveness of these
strategies.
For AC2.2, learners need to demonstrate how they have used IT to create strategies to develop
their chosen organisation’s relationship with its suppliers. From this, they need to develop
systems to maintain these relationships (AC2.3).
To demonstrate their understanding of the role of IT in supply chain management for their chosen
organisation, they need to assess the effectiveness of IT in managing the supply chain, (AC3.3),
evaluate how IT has contributed to the management of the supply chain (AC3.2) and assess how
IT could assist in the integration of different parts of the supply chain (AC3.1).
For AC4.1, learners need to explain the role of logistics in the management of the supply chain in
their chosen organisation and then evaluate procurement practices (AC4.2). Having examined both
procurement and logistics management, learners need to discuss the factors that must be
considered when looking at making improvements to both procurement practices and logistics in
the organisation (AC4.3).
For AC5.1, having reviewed their chosen organisations’ supply chain and logistics activity, learners
need to plan a strategy to improve the management of the supply chain.

For AC5.2, learners need to assess how their improvement strategy from AC5.1 will benefit overall
business performance in their chosen organisation.
For AC5.3, learners need to identify any current or potential barriers that could prevent or hinder
their improvement strategy from being implemented successfully in their chosen organisation.
Learners need to explain clearly how these barriers
will be overcome.
Executive Summary
Logistics and supply chain management is an important department for all the
organizations because it helps to manage the transactions within or outside the country. Close
relationships maintained with suppliers by effective supply chain because it reduces the delivery
cost and time. Further, improves the quality of services and networks with investors. The recent
report shed light on logistics management of Ajman Free Zone (AFZ) to identify the wide
networks of suppliers. It has been found that AFZ uses effective technical system as ERP in
supply chain. However, it has been recommended that AFZ should improve the supply chain by
incorporating the latest technologies like robotics atomization and Artificial Intelligence.

INTRODUCTION
Supply chain and logistics management includes the collaboration between firms
to maintain contacts with clients, customers, partners and suppliers (Christopher, 2016;
Rushton, Croucher and Baker, 2014). Supply chain and logistics helps the organizations
to maintain flow of goods and services and involves the storage of raw materials. In this
context, the current report is based on the supply chain management of Ajman Free Zone
(AFZ) that offers better investment opportunities to both local and foreign investors. For
this purpose, close connectivity’s has been identified between supply chain and
information technologies to assess the effectiveness in logistics. Moreover, ERP system
of AFZ has been analyzed to improve the efficiency of Supply Chain Management
(SCM).
OVERVIEW OF AJMAN FREE ZONE (AFZ)
AFZ deals in infrastructure of administrative and office buildings. The
organization is operating business since 1988 in UAE and has skilled workforce to
contribute in foreign investment. Moreover, the company offers excellent investment
opportunities to local as well as foreign investors. AFZ enables attractive locations for
businessmen like offshore buildings, ease accessibility at seaports, airports and provide
international network opportunities to connect with foreign neighbor countries. Further,
major 4 types of businesses are allowed by AFZ like AFZ entity, AFZ company, branch
of local company and foreign company (Ajman Free Zone, 2018). AFZ has strong
relations with customers because it is contributing in the successive factors and focuses
on the achievement of objectives.
AC 1.1 Importance of effective SCM
Effective SCM helps the organization to achieve business objectives because it
minimizes total cost of handling and offer the valuable services in the competitive
market. In this context, AFZ has a vision to be a leading global center in UAE and attract
foreign investors to achieve success at the end of year 2030 (Ajman Free Zone, 2018).
Further, AFZ has objectives to provide innovative services and solutions for advance
infrastructure of buildings. For this purpose, AFZ focuses on the partnership with public
and private sectors and also develop the legislative activities to support the businessmen.
In this regard, AFZ has an effective logistic management software in Dubai, UAE to
manage logistics of all areas and appropriation of supply management activities to
achieve the objectives (Gulf Business, 2019). Moreover, software has a contribution in
achievement of objectives because it records all the transactions at borders entry and exit
of trucks. Additionally, effective supplies also help for business growth because it
emphasizes on stabilization and integration of all business activities. Moreover, AFZ
focuses on objectives by including the free zones and logistics to add the value to
stakeholders.

AC 1.2 Link between SCM and business functions
There is a strong relationship between SCM and business functions because SCM
is a subsequent part of the organization. Effective SCM helps the firms to achieve
business objectives by timely delivery of services. Further, it focuses on integration of
different levels such as operational, organizational and strategic to enhance the netwroks.
In this context, effective SCM helps to maintain the close relations with suppliers to
procure the raw material for manufacturing of finished goods. Procurement of raw
material is based on the analysis of operations department because it identifies the
requirement of material as well as workforce for the production and maintains inventory
(Mazlan and Ali, 2005). Apart from this, logistics management and SCM is largely
interlinked because the produced goods require the storage facility before final shipping.
Hence, warehouse arrangements set and managed by logistics departments for the
effective SCM. In this context, AFZ had done a deal with Tejari software company to
avail the benefits of procurement platform for the constructive management of
purchasing processes (Sutton, 2017). Procurement process of AFZ has improved through
involvement of agile and fast delivery of free zone services that helps to improve the
quality of operations.
AC 1.3 Key drivers for achieving an integrated supply chain strategy
Inventory, sourcing, transportation, pricing, facilities and information are the six
key drivers for the integration of SC strategy. All these key elements are closely related
and has sound effects on the performance of the organizations (Shahzadi, Amin and
Chaudhary, 2013). In this regard, AFZ uses the Entrepreneur Resource Planning (ERP)
Software for the better integration of supply chain at all freight locations (Blu Sky
Technology Consultants, 2017). It helps AFZ to manage the logistics and transportation
at different locations instead of multiple systems in the organization. For integration of
SC, AFZ can manage inventory in the warehouse with the help of ERP software. In this
manner, AFZ gets all needed information regarding services and infrastructure facilities
before finishing of stock. So that an equilibrium remains in inventory which drives to
integration of SC. On the other hand, effective transportation leads to sustainability and
integration in SCM.
AC 2.1 Effectiveness of strategies used to maintain supplier relationships
Supplier Relationship Management (SRM) is beneficial for the organizations to
maintain effective relations with suppliers. It focuses on the engagement with suppliers
that demonstrates priorities of the customers. In this regard, technologies make the strong
relations with suppliers because order processing and procurement management takes
place by software. Procurement through software supports to reduce cost and time for the
suppliers as well as customers (Zhao, Huo, Selen and Yeung, 2011). Similarly, AFZ is
based on e-procurement system by preferring the continuous improvement strategy to
increase the performance and minimize the risks such as less supply chain disruption,
minimum delay in response, minimum product scarcity etc. Therefore, strategic processes

in SCM helps to maintain the better relations with suppliers because it enhances the
quality of products, timely delivery, innovations in processes, minimum operational cost
and maximization of customer satisfaction etc.
AC 2.2 Use information technology to develop relationship with suppliers
Information technology (IT) deployments in supply chain leads close relations
with suppliers because suppliers receives the information regarding specific investments
by IT. In this regard, AFZ also uses the ERP in the logistics to maintain the strong
relations with suppliers because it focuses on the centralized controlling instead of
multiple systems within organization. Apart from this, in 2001, the organizations used the
Inter Organizational Systems (IOS) in the supply chain like automation of orders (Zhang,
Pieter van Donk and van der Vaart, 2011). For example, organizations use the IT services
for the exploration instead of exploitation of businesses and maintain the organizational
relationships with suppliers (refer figure 1). On the other hand, IT systems helps the
companies to maintain orders regularity because the systems remain interconnected and
produce the required material. In this manner, producers put the entries for the fulfilment
of the demand and focuses on the delivery of products and keep the positive relations
between manufacturers and suppliers. On the other hand, IT infrastructure of the
organizations provides a competitive position in the international market because it helps
to reduce the cycle time, implementation of cross-functional processes etc. (Prajogo and
Olhager, 2012).
Figure 1: IT Use, Relationship-Specific Investments, and Supplier Benefits
(Source: Subramani, 2003)

AC 2.3 Develop systems to maintain an Organization’s relationship with it Suppliers
There is a relation between SCM and information systems because it improves the
industrial performance like cost, traceability, adaptability etc. In this context, the
organizations focus on the development of supply systems to gain competitive benefits
and maintain strong relationship with suppliers. By considering the importance of IT
systems, the companies are emphasizing on new SCM framework based on the Model
Predictive Control (MPC) and helps to maintain better relations with suppliers and keeps
effective SCM (Sadraoui and Mchirgui, 2014). Here, a revolution has come in the SCM
because the organizations needs to fulfil the demands in minimum time period and
maintains the strategic buyer-supplier relationships. For example, e-businesses helps to
increase the company’s performance by integrating the business activities. Currently,
several techniques such as ERP applications like oracle, SAP are used by the
organizations to maintain the better relations with suppliers. In this context, AFZ is
already engaged with ERP system in logistics to reduce the complexity of supply chain.
Here, AFZ can also focuses on the new technologies like Information and
Communication Technologies (ICT), Electronic Data Interchange (EDI) etc. to develop
the relations with suppliers (Mellat-Parast, 2013). These technologies support to improve
the performance of SCM and reduce the uncertainty of shipment.
AC 3.1 Information technology and integration of different parts of the supply chain
Integration of IT in the supply chain facilitates to achieve lower inventory and
minimum supply chain cost of the organization. In this manner, integrated SCM is
concerned for the free flow of products and information among suppliers and helps to
reduce the overall cost supplied information. Further, SCM has different component
including source of information, production, location, inventory, transportation etc. and
these are interconnected with each other (Gunasekaran and Ngai, 2004). In this context,
AFZ uses the international road networks that enables the AFZ to connect with
neighboring countries for the further expansion of businesses. Moreover, aviation
industry of AFZ receives the integrated infrastructure from industrial and academic zone
for warehousing of aircraft parts supply (Ajman Free Zone, 2018). On the other hand,
inventory can be managed by the organizations through IT because limited material can
be stored by the suppliers for the demanded organizations. On the other hand, quality of
supply chain can be maintained by quality management tools to maintain effective
relations with suppliers.
AC 3.2 Role of Information technology in supply chain
Information technology has a critical role in the effectiveness of supply chain
management of the organizations. The organizations use different IT systems including
Radio Frequency Identification (RFID), electronic commerce, bar code, decision-support
systems etc. to maintain the relations with suppliers and timely delivery of material to
producer and customers (Prajogo and Olhager, 2012). In this regard, Hanna instrument

was launched in the operations of Ajman Free Zone as a joint venture to maintain a
scientific supply in UAE (Galadari Printing and Publishing LLC, 2014). Hanna
instruments is a leading producer of scientific and analytical instruments and offers more
than 3000 products for the customers. Moreover, it has a network of 43 countries that is
supportive for the AFZ to establish better relations with supportive countries of Hanna
instruments. On a contrary, IT systems facilitates in the management of SC because
technologies reduce the time and cost for the organization but it requires a huge amount
of technological skilled staff to operate the systems. Moreover, the organizations need to
provide the technological training for handling of services and to maintain the effective
SCM within firms.
AC 3.3 Assessing effectiveness of information technology in management of supply
chain
IT system is crucial in the SC because all the transactions of information between
supply SC members like producers, suppliers, customers, service providers etc. takes
place by technological systems and networks. Technologies helps the resources for the
easy linkage with specific elements and removes the time delays in whole SC
connections (Tummala and Schoenherr, 2011). In this regard, AFZ had done a deal with
Ajman digital government and Russian center for information systems and digital
innovations in the organization (Ajman Free Zone, 2019). The digitalization of services
maximizes opportunities for AFZ to maintain effective relations with suppliers. Further,
the cooperation agreement has support for the handling of exports-imports with Russian
countries and establishing strong relations with supportive parties. Hence, all these
connections based on the effectiveness of IT systems in the SCM so that wide networks
can be maintained in minimum time period.
AC 4.1 Role of logistics in SCM in an organization
Logistics is related to the production, procurement and distribution of material,
products at the right place in complete quantity to maintain the better relations with
suppliers and consumers. SCM is well-connected with the logistics management because
logistics includes the management of transportation, packaging, order processing,
warehousing etc. (Christopher, 2016). In this context, AFZ has several warehouses which
are developed as per the current requirements of the clients. Effective management of
warehouses increase the operational flexibilities AFZ. Moreover, it supports the
organizations to provide storage facilities till shipment. Therefore, the effective logistics
maintains a balance between production and delivery of services because it opens the
door for further procurement and developments in the organization. On the other hand,
ineffective logistics increases the chances of mis-management of order processing,
material handling. Hence, mis-management of logistics enhances the reliance with
suppliers and customers.