Advanced Supply Chain Management JUNE 2025

Description

Advanced Supply Chain Management

Jun 2025 Examination

Q1. On average, UPS delivers roughly 21 million packages on any given day. That number gets far bigger in December. In the past, UPS relied on historical data and know-how from expert planners to track package status, but that approach was imprecise and has scaled poorly.

“The processes and approaches of the past are not going to help UPS adjust to the very dynamic nature of supply chain management today,” says UPS’ Chief Information & Engineering Officer (CIEO) Juan Perez. “Our customers today have much more complex supply chains. The movement of shipments from shippers to receivers is getting much more complex because of the way that products are distributed across the network. The customers are demanding more precision in terms of when we deliver things. The tolerance for failure in these networks is lower and lower.

Explain how the use of Analytics could help UPS in Improving Supply Chain Performance. (10 Marks)

Ans 1.

Introduction

In today’s fast-evolving global marketplace, logistics providers like UPS face increasing challenges due to the rising complexity of supply chains, changing consumer expectations, and the demand for real-time precision. Traditional methods based on historical data and human intuition are no longer sufficient to meet the operational agility and visibility required in modern logistics. UPS, delivering over 21 million packages daily, must now integrate advanced analytics to remain competitive and resilient. Analytics offers the ability to process massive volumes of data in real-time, detect patterns, predict outcomes, and optimize decisions across the supply chain. By embedding analytics into their supply chain operations, UPS can enhance visibility, improve forecasting accuracy, streamline operations, and ultimately

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Q2. ABELS is a 30-year chain of supermarkets in Los Angeles, California. Over the past two years, the company has seen explosive growth – both due to its growing popularity and as well, due to several acquisitions of smaller chains. This growth has led to some unforeseen problems in their Supply Chain such as

– Inefficient manual data entry and reliance on paper-based processes for inventory

management.

– Difficulty in tracking orders in real-time, leading to delays in deliveries.

– Lack of immediate communication between warehouse staff, delivery drivers, and store managers.

Discuss how Mobile Applications can help address Supply Chain Challenges at ABELS. (10 Marks)

Ans 2.

Introduction

ABELS, a long-established supermarket chain in Los Angeles, has recently expanded rapidly through increased consumer demand and strategic acquisitions. While growth is a positive indicator, it has revealed significant inefficiencies within the supply chain infrastructure—such as reliance on outdated paper-based inventory processes, lack of real-time order tracking, and poor communication across stakeholders. These gaps can lead to missed deliveries, stockouts, and operational delays, negatively impacting customer experience and profitability. To maintain consistency and operational efficiency in this fast-paced environment, ABELS needs to embrace digital transformation. Mobile applications offer a cost-effective and scalable solution to streamline supply chain functions, enhance communication, and empower employees with real-time data, thereby enabling more agile, responsive, and transparent

Q3 (A) Olympus Solar is a 10-year-old manufacturer of Solar Arrays and PV Cells in Dallas, Texas. Over the past three years, due the growing worldwide push for Renewable Energy Sources, the company has seen explosive growth – it has doubled its turnover to $1B, and the outlook continues to be very positive. This growth has caused the company to run two 9-hr shifts in order to fulfil its orders. This has led to some interesting challenges – frequent stockouts of critical parts and materials have been disrupting production. The CEO is very concerned about this situation and has convened a meeting with the Leadership team to discuss options.

At the Leadership meeting, the COO recommended that the company adopt CPFR to address this challenge.

Describe the CPFR Strategy. What are its Pros & Cons? (5 Marks)

Ans 3a.

Introduction

Olympus Solar’s significant growth, driven by the global demand for renewable energy, has intensified its production needs. However, this surge has exposed supply chain weaknesses, particularly the frequent stockouts of critical components. To resolve this, the COO has proposed implementing CPFR—Collaborative Planning, Forecasting, and Replenishment. This strategy aims to enhance coordination between

Q3 (B)  At the Leadership meeting, the CIO & CFO pushed for the company to adopt VMI to address this challenge.

Describe the VMI Strategy. What are its Pros & Cons?  (5 Marks)

Ans 3b.

Introduction

To address Olympus Solar’s ongoing stockout problems, the CIO and CFO have proposed adopting the Vendor Managed Inventory (VMI) strategy. VMI transfers the responsibility of inventory management to the supplier, based on shared data about consumption patterns and inventory levels. This approach ensures that suppliers take a proactive role in replenishing stock, minimizing stockouts and reducing the administrative burden on Olympus. VMI can be particularly