Activity 1:
Identifying Key Issues in Global Logistics
Scenario:
A multinational electronics company, TechWave, faces delays in shipping its
products from its factories in Asia to its major markets in Europe and North
America. The company attributes these delays to port congestion, lack of skilled
labor, and geopolitical tensions.
Task:
1. Identify at least three key issues affecting TechWave's logistics.
2. Suggest possible strategies the company could adopt to overcome these
issues.
Solution:
1. Key Issues Identified:
o Port congestion causing shipment delays.
o Shortage of skilled labor in warehouses and distribution centers.
o Geopolitical tensions leading to increased tariffs and disrupted trade
routes.
2. Strategies to Overcome Issues:
o Port Congestion: Use alternative ports or air freight for urgent
shipments. Implement predictive analytics to choose less congested
routes.
o Labor Shortage: Invest in training programs to upskill existing
workers. Adopt automation in warehouses to reduce reliance on
manual labor.
o Geopolitical Tensions: Diversify manufacturing to multiple regions
to mitigate risks. Establish free trade agreements with alternative
countries.
Activity 2:
Resolving Challenges in Reverse Logistics
Scenario:
A clothing retailer, FashionFlex, implements a new e-commerce return policy.
However, the influx of returns has led to inefficiencies in inventory management,
increased costs, and environmental concerns due to waste.
Task:
Design a cost-effective and sustainable reverse logistics process for FashionFlex.
Solution:
1. Cost-Effective Solutions:
o Establish centralized return processing centers to streamline
operations.
o Offer incentives for customers to return products to physical stores,
reducing shipping costs.
2. Sustainable Practices:
o Partner with recycling companies to upcycle returned goods.
o Use AI to assess the condition of returned items and optimize
refurbishing processes.
3. Example Process:
o Customer initiates return online → Item collected via carbon-neutral
courier → Product inspected for resale or recycling → Refurbished
items re-listed for sale, reducing waste.
Activity 3:
Mitigating Risks in Supply Chain Visibility
Scenario:
A pharmaceutical company, MediTrack, struggles to track shipments of
temperature-sensitive vaccines due to a lack of real-time visibility. This has led to
spoilage and loss of inventory.
Task:
Propose technological solutions that MediTrack can use to enhance supply chain
visibility and minimize risks.
Solution:
1. Technological Solutions:
o IoT Sensors: Install temperature and location sensors in vaccine
containers to monitor conditions in real time.
o Blockchain Technology: Use blockchain to create a tamper-proof
record of shipment data, ensuring transparency.
o Supply Chain Control Tower: Implement an AI-based platform to
provide a centralized view of all shipments and alert managers of
potential disruptions.
2. Expected Outcomes:
o Reduction in spoilage rates due to timely intervention.
o Improved customer confidence due to reliable vaccine delivery.
Activity 4:
Addressing Sustainability Challenges
Scenario:
A fast-moving consumer goods (FMCG) company, GreenGoods, faces criticism
for its high carbon footprint in logistics operations. The company uses diesel-
powered trucks and excess packaging for its products.
Task:
Develop a sustainability roadmap for GreenGoods' logistics operations.
Solution:
1. Short-Term Initiatives:
o Transition to electric or hybrid vehicles for last-mile delivery.
o Use biodegradable and minimal packaging materials.
2. Long-Term Initiatives:
o Invest in renewable energy for warehouses and distribution centers.
o Partner with third-party logistics providers specializing in sustainable
practices.
3. Benefits:
o Reduced carbon emissions align with environmental regulations.
o Enhanced brand reputation among eco-conscious customers.
Activity 5:
Overcoming the Bullwhip Effect
Scenario:
A beverage company, DrinkFlow, experiences fluctuating demand across its
supply chain. Small changes in customer orders result in significant variances in
production and inventory levels, leading to high costs and inefficiencies.
Task:
Analyze the causes of the bullwhip effect in DrinkFlow's supply chain and suggest
measures to mitigate it.
Solution:
1. Causes of the Bullwhip Effect:
o Lack of accurate demand forecasting.
o Over-reliance on promotions causing artificial demand spikes.
o Poor communication across the supply chain.
2. Mitigation Strategies:
o Demand Forecasting: Use advanced analytics and machine learning
for accurate demand predictions.
o Order Smoothing: Encourage consistent ordering patterns by
reducing reliance on promotions.
o Information Sharing: Implement an integrated system (e.g., ERP)
for real-time communication among suppliers, manufacturers, and
distributors.
3. Result:
o Reduced inventory costs and improved production efficiency.
