Diploma of Logistics Module 1: Sabah Furniture Supply Chain Report

This report assesses the supply chain challenges faced by Sabah Furniture (SF), a furniture manufacturer in Kota Kinabalu, Malaysia, focusing on its export operations and the potential contract with a major international retailer. The report analyzes SF's current export process, including timber sourcing, manufacturing, and shipping, highlighting inefficiencies and risks such as reliance on foreign labor, poor road conditions, and delays in container delivery. It addresses four key questions: developing a process map, realigning the supply chain for value creation, identifying risks associated with the retailer's requirements (including supply, demand, and operational risks), and recommending logistics process changes to successfully fulfill the contract. The report recommends whether SF should accept the contract, providing justifications based on the identified risks and potential solutions, such as improving transportation, enhancing communication with stakeholders, and developing contingency plans to mitigate potential disruptions. The report also emphasizes the need for SF to make elaborate arrangements to minimize and eliminate the risks that will undermine the successful delivery of the contract.