Supply Chain Management Analysis: COSCO Shipping Report

This report provides a comprehensive analysis of supply chain management, focusing on the practices of COSCO Shipping. It delves into the crucial role of relationships within the supply chain, emphasizing the importance of effective communication, contract understanding, and ethical conduct with suppliers. The report examines how information systems are leveraged to reduce supply chain costs through space optimization, automation, efficient ordering processes, and customer demand forecasting. Furthermore, it explores the strategic use of outsourcing, including strategic diversification, risk mitigation strategies, and end-to-end supply chain visibility. The report also touches upon sustainability improvements within the supply chain, offering valuable insights into optimizing operational efficiency and maintaining strong supplier relationships for COSCO Shipping.

SUPPLY CHAIN
MANAGEMENT

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Relationships in Supply Chain.....................................................................................................3
Information system usage for reducing the cost of supply chain.................................................5
Outsourcing in Supply Chain.......................................................................................................6
Sustainability improvement in Supply chain...............................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Supply Chain Management consists of management processes which are used for
transforming raw materials into final products. These activities involve streamlining of supply
part of business for maximizing the customers value and for gaining competitive advantage
over the market. With critical analysis this project will elaborate the ways in which the
relationship of supply chain can be proved. This project will also mitigate the risks involved in
supply chain with the help of information system to reduce the costs in supply chain. This
project will discuss what the organization is doing to improve the sustainability of supply chain
in the organization. COSCO Shipping lines company has been operating in UK since 1988
(Brooks, Roberts and Brooke, 2020).This company is experienced enough for handling all kinds
of cargoes and containers.
MAIN BODY
Relationships in Supply Chain
Supply chain management is about making sure that all the networks of operations are
done the right way (Hardy, Bhakoo and Maguire, 2020). Relationship do play a very significant
role in the supply chains of this company. Most important role is of the employees of the
COSCO Shipping which deals with the suppliers because they need to have the ability of
managing the relationships between them and the company (Grosvenor Performance Group,
2021). This benefits the company for increasing the strength of supply chain and services
offered to both customers and suppliers. Buyers which have good relationships with the
suppliers get good compliance when new rules and regulations are placed within this company
(Alshurideh, Alsharari and Al Kurdi, 2019). The ways in which the relationships in supply chain
can be improved are as follows,

Regular and Efficient Communication :
The majority of business of COSCO Shipping logistics is from china. This means the
company need to understand the language of Chinese suppliers in order to build good
relationships. The Best way of doing so is regular communication and also hiring Chinese agent
which can bridge the communication gap between the suppliers and the company. Regular and
efficient communication builds trust between the two companies which is good for the supply
chain relationship (Grosvenor Performance Group, 2021). By the help of development of
communication by the means of early and frank discussion supply chain relationship can be
improved. With the help of maintaining regular communication with the supplier
communication can be improved.
Understanding Contract Obligations :
It is very important for the company to understand the contracts made by the company
with their suppliers. Service takers and shareholders require knowing about the contracts so
that they can have the confidence on suppliers that they are delivering the what is being paid to
them. Positivity in contract relationship benefits both sides for understanding and upholding
their obligations. For improving the relationship understanding of contract is important for the
company with their suppliers.
Establishment of roles and responsibility :
COSCO Shipping is responsible for the supply of many important goods for its
customers if the company fails to deliver it may stop business in the UK market. That is why it is
important for the company to describe the roles and responsibility to the suppliers for
improving the relationship between them. Roles are very essential for both the counter parts
and their beneficial outcomes. It is important for the company to make the suppliers
understand about their roles and responsibilities in the supply chain of the company.
Ethics and Honesty :
Building trust is very hard and it often very easy to lose. This company’s business is all
about its trust in its suppliers and suppliers trust in them. This make honesty a very important
and essential behaviour for developing relationship between the suppliers. Honesty and ethical
behaviours build a good reputation of the company. Building trust with the suppliers is

important for the company as it builds good relation between them. The work of both company
and suppliers depend over the trust on each other. (Sabahi and Parast, 2020).
Regular Reviewing performances :
Performance review is essential for all relationships. Especially in Supply chain this is
important because if there is lac of performance in any sector it may lead to a bad result which
might end up breaking the trust of suppliers. This is why COSCO Shipping should always
consider performance review of all the factors in its supply chain. Proper and regular reviewing
of the supplier’s performance can reduce the chances of error it their operation and also
develop the relation with the supplier. (Grosvenor Performance Group, 2021).
Monitoring Risk :
Risks which arises in a company like this can be very difficult to be identified. For
identification of risks the company can monitor all the levels of operations in which risks are
possible in a supply chain. Risks if are not recognized may turn into issues which can hamper
the relationship between the suppliers and company. The risks of the suppliers should be
properly maintained and kept an eye on this will develop the feeling of care for them resulting
in developed relationship.
Information system usage for reducing the cost of supply chain
From organizational strategy to tactical operations level in supply information system
also impacts its delivering, planning and sourcing. Information system is used by the company
for acquiring products, goods delivery and all the other services it can be said that the role of
Information system is to integrate supply chains for COSCO Shipping. With the help of
Information system, a company can reduce the cost of supply chain by using the following
methods.
Optimum utilization of space :
By using the information about the space acquired by the company it can make full
utilization of it. This will eventually result the company in saving money which would be
possible if the proper information is not available to the company. The cost of storage of
inventory and warehouse is a major cost for this company. This is the reason why it is important
to make the most of the cost that has been already put in for using the storage space. The

space of the company should be properly utilized and moniotered hence lowering the costs. (Li
and et.al., 2017).
Automation :
The processes of automation are about introducing machines which operate the
functionalities in the ware houses. Introducing machines reduce the cost of labour for the
company and increase the efficiency of the warehouses. For pulling off automation the
company should hire professionals which can provide necessary suggestions which the
company can use for automation. The company can introduce new technologies to automate
and increase the efficiency. (3PL Links Inc. , 2021).
Efficient Ordering Process :
For maintaining the efficient process of ordering two process can be used. COSCO
Shipping can utilize single software packages which can be used for completing the requisitions
or employees of different sectors of supplier may use different applications in which case the
company usually can end up ordering a lot of the specific product in their inventory. This is why
single software must be utilized and there should be a team designated for this job. This team
should make sure the supplies should not increase the required amount otherwise it will
increase the cost of the company. The company should adopt new technologies which would
enhance the ordering process. (Budiarto, Prabowo and Herawan, 2017).
Customer Demand :
The information about the customer demand should be considered by the company
before ordering the products. It becomes important for the company to gather the information
about the demand patterns of the customer so that changes can be made according to the
demand of the company. These patterns in change in demand might occur monthly, weekly or
even seasonal. Such information can be used for making more accurate supply for the suppliers
and also result in reducing the cost. The demands of the customers should be prioritized above
all. (3PL Links Inc. , 2021).
Proper Packaging :
By the help of gathering of informations the company can understand which products
are prone to damage and which do not require any special packaging. Utilization of this

information can be done by the company for saving the costs of packaging and also reduce the
possible damage to products during the transit. The safety of the item should be well protected
with proper packaging.
Measuring Performance :
The Best way of avoiding the downfall of any strategy is to measure its performance. For
doing so the company should gather information about the strategy and the amount of money
which is spent and where. After analysation of the performances critically company can
understand the possible changes which can be done in the strategy for reducing the cost. The
company should monitor the performance of each employee or team that will provide room for
improvement. (Wang and Hu, 2020).
Outsourcing in Supply Chain
Efficiency of business growth is established in COSCO Shipping by outsourcing their
supply chain. This process enables the company for focusing their time, resources and energy
for their optimal performance. Outsourcing process is used by the managers in this company
for mitigating the possible risks in supply chain. It is done in the following ways,
Strategic Diversification :
Outsourcing the supply chain the company can increase the facility of efficiency in
growth and services of the business. This diversification includes the consideration of multiple
suppliers for reducing the risk which can be caused due to a singular supplier ( Peng, Pang and
Cong, 2018). Diversification of supplier base spreads the impact of risk on the supply chain of
the company. By working with different suppliers the company can get best prices and ensure
the best quality as it has multiple options to choose from. Having multiple suppliers provide the
company to contain backup which can be crucial if one supplier refuses or is unable to deliver.
This keep the process of supply chain ongoing for the company. The company should plan its
outsourcing and logistics in such a way that it is strategically beneficial for the company.
(Koppelman,2020).
Mitigation of risk with plans:
Assessments of risks is very important in the supply chain. Identification of potential
risks is very important otherwise it can disrupt the supply chain process of the COSCO Shipping.

The best way to mitigate risks is to be prepared for the worst possible scenarios which can
occur in the supply chain. Flexibility should be adapted by the company in their business
process to minimize disruptions in the supply chain. The risk management strategy of the
company should be prioritizing the impact of the risks which have been measured with
contingencies in planning. For the company it is important to plan the logistics in such a way
that it has the minimum chance of causing any loss.
End to End Supply Chain Visibility :
Supply chain consists of different operational stages which consists of their own
challenges and risks. It becomes very crucial for the company to deal with the issues if they
reach to it later down the production line. If the issue is discovered just before the final delivery
the situation gets even worse for the company. For resolving this issue the company can
introduce a overview system which shows the entire procedure to the manager and other
employees. If an issue is visible its becomes easy for the company to make sure about a quick
response for any issue. It becomes important for the company to have its outsourcing with end
to end facilities so that less resources are wasted and cost is minimized. (Koppelman,2020).
Sharing Responsibility :
For reducing the risks the company can include the suppliers in the contract for
indulging them in the activities of mitigation of supply chain risk. For this the company needs to
properly make the supplier understand about their roles and responsibilities related to the risk.
Partners can also be included in this risk management process for making sure all the people
who are responsible for this are on the same page. The company should delegate
responsibilities to different logistics and should not be dependent on one outsourcing company
for the process. (Honarvar and Rezaee, 2019).
Periodical Review of Supply Chain Risk :
For reduction of risk in supply chain it is very essential for COSCO Shipping to make a
regular review of the possibility of risks in the supply chain process. This will ensure measures
for planned responses which will be relevant for different scenarios. This review is generally
done once a year in most of the organization. (Grant , 2019).
Enhance Visibility :

If the company is successful in identification of area related to risk it can take proactive
steps for mitigating risk. For this visibility the company can partner for audits, optimize the
stock safety. Increasing the visibility in the logistics for maintaining proper focus on the risks
which could arouse and act accordingly.
Sustainability improvement in Supply chain
Supply Chain of COSCO Shipping can use certain methods for improving its sustainability
which refers to the maintenance of the ongoing process of supply chain (Ojha, and et.al., 2018).
The ways in which this company can improve supply chain sustainability are,
Mapping :
This way refers to the identification of most significant social and environmental
challenges faced for prioritizing the effort made to the suppliers. It is very crucial for a company
map the situation of the supply chain if it wants to maintain sustainability in the performance.
This process of mapping give the process of supply chain an outline which help the company to
define the necessary changes or updates needed to that process. The company can map the
risks and monitor certain challenges. (Tönnissen and Teuteberg, 2020).
Communication of Expectations :
Focusing on communication of corporate values and culture to you suppliers is a great
way of improving the sustainability in supply chain. Establishment of expectations through the
code of conduct of the supplier proves to be a critical step which involving sustainability. There
have been many resources and tools which are created for assisting the companies for
development of supply chain. This tool helps the companies the value of the company in the
supply chain which provides the opportunities to improve the sustainability of supply chain of
the company. The communication is very important for any business and should be properly
maintained.
Baseline Supplier Performance :
COSCO Shipping after knowing the targeted suppliers should start simple benchmarking
through collection of data from the suppliers which provides the company to understand the
starting point. Evaluation of performance of the supplier is essential because it provides the
company with essential data about the activities of the supplier and if it can fail in the future.

Communication with the supplier if a issue is found in their performance is necessary in a
constructive way for the future engagement of supply chain. The supplier and the company
officials should communicate properly.
Training and Capacity Building Program :
Training of individual becomes is an important at step for improving the sustainability of
the companies supply chain. There are many ways for supporting the efforts of training in
specific sectors. One of the best ways are Online training modules and capacity building
campaigns. This training is more efficient when the practical benefits for sustainability in supply
chain is demonstrated to the company and its individual (Qorri, Mujkić and Kraslawski, 2018).
Drive Performance Improvement :
This process includes the audit program of measurement of performance improvement
over a given time. COSCO Shipping completes this assessments by the help of corporate groups.
The result of these audit programs behavioural challenges, local practices and practical
opportunities are revealed. Assessments of the activities of supply chain when are paired with
audit programs they reward the company with sustainability in efforts and drives the company
to performance improvement (Ivanov, 2018).
Join Industry Collaboration :
It has been established the company that individuals are unable to recognize the
complexity in challenges of supply chain. That is the reason why the company utilizes the ability
of collaboration with other companies some times its suppliers for best sustainability
performance in the similar supply chain. This collaboration reduces the fatigue which is suffered
by the company in its process of audit, training, paperwork and redundancy.
CONCLUSION
With the help of this project it can be concluded that COSCO Shipping needs to maintain
relationship, sustainability, outsourcing and Information systems in its supply chain process.
This company can be recommended to develop its supply chain with the help of development
in training and capacity program, by knowing the targeted suppliers and also to communicate
the expectations of with the suppliers. In this project the different ways in which the
relationship of supply chain can be improved are discussed focusing on the business of the

company. With the help of this project it can be concluded that for mitigation of risks involved
information system is used for reducing the costs in supply chain. This project reduces the
supply chain risk with the help of outsourcing ways of supply chain. For improving the
sustainability of supply chain the company this project suggests the company with some idea
and steps.

REFERENCES
Books and Journals
Alshurideh, M., Alsharari, N.M. and Al Kurdi, B., 2019. Supply chain integration and customer
relationship management in the airline logistics. Theoretical Economics
Letters. 9(02). p.392.
Brooks, A., Roberts, H. and Brooke, J., 2020. Impacts of climate change on transport and
infrastructure relevant to the coastal and marine environment around the
UK. MCCIP Science Review 2020, pp.566-592.
Budiarto, D.S., Prabowo, M.A. and Herawan, T., 2017. An integrated information system to
support supply chain management & performance in SMEs. Journal of Industrial
Engineering and Management (JIEM). 10(2). pp.373-387.
Grant, D.B., 2019. Outsourcing integration and third party logistics services: An appreciation of
two ‘classic’articles in industrial marketing management. Industrial Marketing
Management.79. pp.21-26.
Hardy, C., Bhakoo, V. and Maguire, S., 2020. A new methodology for supply chain management:
Discourse analysis and its potential for theoretical advancement. Journal of Supply
Chain Management.56(2). pp.19-35.
Honarvar, M. and Rezaee, H., 2019. Optimal Outsourcing Strategy Determination and Pricing
Model in Dual-Channel Supply Chain under Uncertainty. Journal of Production and
Operations Management. 10(1). pp.155-174.
Ivanov, D., 2018. Revealing interfaces of supply chain resilience and sustainability: a simulation
study. International Journal of Production Research. 56(10). pp.3507-3523.
Li, and et.al., 2017. IoT-based tracking and tracing platform for prepackaged food supply
chain. Industrial Management & Data Systems.
Ojha, and et.al., 2018. Bayesian network modelling for supply chain risk
propagation. International Journal of Production Research. 56(17). pp.5795-5819.
Peng, H., Pang, T. and Cong, J., 2018. Coordination contracts for a supply chain with yield
uncertainty and low-carbon preference. Journal of Cleaner Production. 205. pp.291-
302.
Qorri, A., Mujkić, Z. and Kraslawski, A., 2018. A conceptual framework for measuring
sustainability performance of supply chains. Journal of Cleaner Production. 189.
pp.570-584.
Sabahi, S. and Parast, M.M., 2020. Firm innovation and supply chain resilience: a dynamic
capability perspective. International Journal of Logistics Research and
Applications. 23(3). pp.254-269.
Tönnissen, S. and Teuteberg, F., 2020. Analysing the impact of blockchain-technology for
operations and supply chain management: An explanatory model drawn from
multiple case studies. International Journal of Information Management. 52.
p.101953.
Wang, C. and Hu, Q., 2020. Knowledge sharing in supply chain networks: Effects of collaborative
innovation activities and capability on innovation performance. Technovation. 94.
p.102010.