Final Project Situation:
You are a Supply Chain Analyst for a
well-respected, designer leather goods company. The Chief Supply Chain Officer
has tasked you to develop an end-to-end supply chain concept for the sourcing,
manufacturing, and omni-channel distribution of a new high-end lady’s handbag
to millions of customers in the United States and Europe.
Your company has a strong stance on
sustainability and fair-labor standards and is willing to pay premiums to
ensure its actions are in alignment with this position. Additionally, the
company is seeking to develop strategic relationships with 3PL providers to
assist in the management of inventories and distribution while reducing
internal overhead expenses and personnel.
The specific inputs of production for each
handbag are: three yards of cowhide leather, 2 yards’ cotton for the lining,
one gold plated large zipper for the exterior, one small zipper on the
interior, and one gold plated strap buckle. The handbag is available in black
and brown leather. Marketing predicts the following sales rates for the next
three years, assume a 50/50 split between black and brown colored bags:
NE United States: 300,000 units, 450,000
units, 150,000 units
SE United States: 200,000 units, 350,000
units, 175,000 units
NW United States: 300,000 units, 450,000
units, 150,000 units
SW United States: 350,000 units, 500,000
units, 150,000 units
France: 350,000 units, 500,000 units,
150,000 units
Germany: 300,000 units, 450,000 units,
150,000 units
United Kingdom: 200,000 units, 350,000
units, 175,000 units
Task:
Develop a 15-20 page, APA formatted business proposal and supporting 5-slide
presentation detailing the global supply chain to support the roll-out of the
new lady’s handbag.
The
proposal should provide business case analyses for sourcing, manufacturing, and
the global omni-channel distribution network. Sourcing decisions should be
supported by analysis and comparison of a Pacific Rim nation(s) and the United
States, manufacturing recommendations should be supported by analysis and
comparison of United States and a European nation(s), and the distribution
network recommendation should establish a strategic partnership with a global
Third Party Logistics (3PL) service provider and describe the supporting
international logistics network. It is certainly permissible, even encouraged,
to select multiple nations for sourcing, manufacturing, and locations of
distribution nodes.
The keys to success in this final project
are creativity supported by solid business analysis, clearly articulating the methodology
used to derive recommendations, use of credible sources for facts, frameworks,
and evaluation criteria, and finally, do the recommendations meet the
operational requirements necessary for a successful roll-out of the new handbag
at an acceptable profit. It is also important for recommendations to consider
the financial impacts of international trade, regulatory restrictions,
free-trade agreements, political considerations, and most importantly, the
description of the framework used for recommendations on which nations to
locate supply chain activities.
Students must make relevant assumptions
throughout the course of this assignment. It is important that students explain
the necessity and validity of all assumptions.
Deliverable Milestones
Week 4: research and define appropriate
frameworks with accompanying screening and evaluation criteria for selecting
sourcing solutions, manufacturing locations, and 3PL providers. Each framework
with accompanying evaluation criteria should be one to two pages in length and
include cost, profitability, operational constraints, and other factors like
political, economic, labor, environmental, and sustainability considerations.
Ensure appropriate use of citations according to APA format. (10 percent)
Week 5: determine total supply
requirements by year and estimated costs for the three years. Apply frameworks
to determine the locations from which to source supply requirements,
manufacture the handbags, and 3PL partner. There should be two to five pages
per selection. (15 percent)
Week 6: slide presentation preparation and
submission. (5 percent)
Week 7: compilation and packaging for
final submission. Final product should include an executive summary, annotated
bibliography, and appropriate tables, graphs, and other graphics to
appropriately illustrate the proposed global supply chain. (10 percent)
