Global Supply Chain
Question
Page 1-Where does the data for metrics come from, and who within the organization should receive KPI reports?
Page 2-Why are service level agreements needed in the logistics sector?
Page 3- What is meant by supply chain vulnerability?
page 4-Discuss the relevance of the Sarbanes-Oxley Act 2002 (SOX) to logistics.
Make sure to separate topics do not blend paper.


Solution
Global Supply Chain
Section 1: Where does the
data for metrics come from, and who within the organization should receive KPI reports?
Certainly, the data for metrics arise
from three distinct functions within the supply-chain network: receiving,
put-away, and inventory accuracy. For the case of the receiving metrics, a
consideration is made for receiving products into the storage facility or warehouse
(Khan & Yu, 2019). Therefore, the receiving metric accounts for one of the
most significant transactions. The relevant data for this function emerges
from; delivery paperwork records, purchase-order numbers, lot numbers,
matching-part records, and physical inspection reports (Kwak et al., 2018). The
source of the data metrics is fundamental.
In reference to the put-away metrics,
attention is set to the physical movement of the product immediately after it
has been input to the relevant IT or information technology systems. The
destination is the carton or pallet point or location where the product is
stored (Sweeney et al., 2018). The number of units of the pallets for the
put-away process is an essential metric and the percentage of the total product
that has been put away within a stipulated time frame (Kwak et al., 2018). The
metrics established for inventory accuracy include the following
counts-oriented elements; empty-cycle, part, random, and cycle.
The cycle counts emerge from the
inspection report of the warehouse. Further, the random counts arise from assessing
the cycle counts of the inventory stored in particular pallet points within the
warehouse (Mangan & Lalwani, 2016). For the part and empty-cycle counts,
the metrics are established from all the stipulated locations within the
warehouse and the locations that lack stock within the warehouse respectively (Sweeney
et al., 2018). Therefore, the managers serving within the operational units
should be responsible for receiving the particular KPI reports.
Section 2: Why are
Service-Level Agreements needed in the Logistics Sector?
In logistics, a service-level
agreement (SLA) refers to a contractual understanding or agreement signed by
two parties; usually, a corporate entity or company and a registered vendor
stipulate the following details (Kwak et al., 2018). They include; purpose, the
scope of responsibilities for the two parties, services to be offered, relevant
KPIs (key performance indicators), a model for tracking (assessing) KPIs, and
the consequences for non-compliance or non-fulfillment (Kwak et al., 2018). The
SLAs help manage supply-chain operations for the logistics managers due to the
multiple advantages involved.
The service-level agreement (SLA)
presents high efficiency in transactions since it offers a high level of
transparency. In addition, the SLA establishes a reliable feedback schedule
that promotes regular and reliable communication between the two parties (Sweeney
et al., 2018). Further, the service-level agreement helps develop strategic or
key priorities, goal-heads, and needs that emerge in the probable points
challenges from the beginning of the supply-chain operation (Mangan &
Lalwani, 2016). Therefore, the advantage of the equalization of the relevant
expectations within a baseline provides the two entities with a reference
platform during the evaluation process of the KPIs (Sweeney et al., 2018).
Further, the service-level agreements promote mutual understanding between the
parties by developing a model for the measurement of the KPIs.
Thus, the SLA lays out the
expectations of each party; hence, in the event that there emerges
incompleteness in the fulfillment of the duty of any of the parties, then the
SLA serves as a reference point for the performance measurement (Khan & Yu,
2019). Furthermore, the inclusion of renegotiation and breach-of-contract
clauses in the service-level agreement helps the two parties in the resolution
of disputes and conflicts when any misunderstandings arise (Mangan &
Lalwani, 2016). In essence, the service-level agreements help to promote
cordial business relations between the transacting parties within the
supply-chain operations (Khan & Yu, 2019). Further, the SLAs are effective
and present ease in use; thus, the element of contractual power from the
integration of a clause of indemnity.
Section 3: What is meant
by Supply-Chain Vulnerability?
The supply-chain vulnerability may be
defined as significant exposure to severe disturbances that emerge from risks
operating within the supply chain together with the risks that arise externally
from the supply chain (Mangan & Lalwani, 2016). It is imperative to
understand that modern supply chains have become complex and characterized by
multiple information and physical flows geared towards effective and efficient
delivery of goods with accuracy in quantities, timeliness, and
cost-effectiveness (Khan & Yu, 2019). There may be internal as well
external risks associated with a supply chain network; thus, the supply-chain
managers must be keen to understand the degree of vulnerability facing a given
supply chain (Mangan & Lalwani, 2016). In this regard, the management
function of supply chains must be quick to assess the aspects of potential
risks and design strategic plans to address the particular risks.
In analyzing and assessing the
supply-chain vulnerability, a few factors and elements must be considered. They
were first investigating the elements that have disrupted supply chain
operations in the past (Kwak et al., 2018). For instance, a supply-chain
manager would identify a security factor such as robbery or vandalism of a
company truck that interrupted a supply chain operation. Certainly, managers
should be keen to identify the weaknesses within the company’s internal
operations, such as manual records of production units; thus, the internal
risks contribute to the supply-chain vulnerability (Kwak et al., 2018). Further,
the analysis of near-misses scenarios such as lateness in delivery of goods to
customers is an essential factor in understanding the supply-chain
vulnerability. Indeed, manufacturing companies often experience the risk of a shortage
of key sources or raw materials involved in producing goods (Sweeney et al.,
2018). When such a situation occurs, the supply-chain operations are halted;
hence the business is significantly affected; therefore, the impact of the
supply-chain vulnerability on the production entity is exposed.
Section 4: Discuss the
Relevance of the Sarbanes-Oxley Act 2002 (SOX) to Logistics
A professional report from PWC,
Price-Waterhouse-Coopers, states that the Sarbanes-Oxley Act of 2002 is one of
the essential pieces of legislation in the United States that focuses on public
accounting matters and financial disclosure and corporate disclosure governance
(Khan & Yu, 2019). Indeed, on the surface view, the law focuses on the
essence of financial statements and the persons or professionals involved in
preparing them and communicating their contents to the investors within the
public sphere. It is paramount for finance managers and the company executives
to scrutinize the assumptions behind the financial statements to minimize risks
associated with the lack of full disclosure by the management (Sweeney et al.,
2018). Thus, the view above helps to highlight the congruence between the
Sarbanes-Oxley Act of 2002 and the world of logistics.
Admittedly, the law fails to refer
directly to the function of supply-chain management or operations, but in
modern practice, line managers are required to develop a higher degree of
confidence that goes beyond the financial reports. Thus, the finance officers
usually express interest in gaining knowledge linked to the transparency of the
supply chain, especially on the elements of the source and the distribution
channel (Kwak et al., 2018). On the other hand, the logistics managers have pointed
out that the significance of the legislation is the aspect of control whereby
managers are mandated to know the undercover happenings in their departmental
operations. For instance, for logistics companies, compliance with C-TPAT
(Customs-Trade-Partnership-Against-Terrorism) is an approach in support of the
legislation Sarbanes-Oxley Act of the year 2002 since it aims at drawing
transparency on the entire supply-chain framework (Mangan & Lalwani, 2016).
Therefore, supply chain managers must seek to know the security challenges or
issues involved in producing their goods based on the view that it will help to
limit the risks associated with the lack of compliance with the Sarbanes-Oxley
Act of the year 2002.
References
Khan,
S. A. R., & Yu, Z. (2019). Strategic supply chain management.
AG: Springer International Publishing.
Kwak,
D. W., Rodrigues, V. S., Mason, R., Pettit, S., & Beresford, A. (2018).
Risk interaction identification in international supply chain logistics:
Developing a holistic model. International Journal of Operations &
Production Management.
Mangan,
J., & Lalwani, C. (2016). Global logistics and supply chain
management. John Wiley & Sons.
Sweeney,
E., Grant, D. B., & Mangan, D. J. (2018). Strategic adoption of logistics
and supply chain management. International Journal of Operations &
Production Management.



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