Dear Students,

This is a sample assignment provided for the Strategic Supply Chain & Logistics
Management (SCLM) module. Strictly note that this document serves only as a mere point
of reference to help you structure your work. You are encouraged to make changes to the
order of the content as you see fit to best suit your assignment.

It is your individual responsibility to complete and submit your own work, adhering to the
assignment guidelines and grading descriptors outlined in the Assignment Brief Ensure that
all submitted work is your own and appropriately referenced where applicable.
 ELECTRONIC ASSIGNMENT COVERSHEET

Course/Unit Information
Course Extended Diploma in Supply Chain and Logistics Management
Course Code GP68 04
Unit Name Strategic Supply Chain & Logistics Management
Unit Code J1ER 04

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 STUDENT DECLARATION

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 LEARNING OUTCOMES AND ASSESSMENT FEEDBACK

Name of the Assessor

Strategic Supply Chain & Logistics

Module Code & Title J1ER 04
Management
Module Learning Outcomes
Critically analyze the relationship between supply chain and logistics management,
LO1
and its link to organizational business strategies.
Critically review the use of information technology to optimize supplier
LO2
relationships in an organization.

Critically analyze the role of logistics and procurement, including buyer/ supplier
LO3
relationship in Supply Chain industry.

Critically review and discuss the basics of shipping operations, including the
LO4
documentation involved.

Assessment Types Marks Marks Achieved

Project Format
Assignment Task: Case Specific 100
Overall Score 100 80

Overall Grade Click or tap to enter a date.

Summative Feedback:

Overall Feedback on
current work with
emphasis on how the
student can further
improve in future.
 The following grading criteria will be applicable for the course:

Marks Grade
70 to 100 A - Distinction
60 to 69 B - Merit
50 to 59 Pass
40 to 49 Fail with Resubmit
0 to 39 Fail with Retake

GENERAL GUIDELINES
(Please read the instructions carefully)

1. Complete the title page with all necessary student details and ensure that the signature of
the student is marked in the declaration form.

2. All assignments must be submitted as an electronic document in MS Word to the LMS

(Use 12 Times New Roman script).

3. All assignments must be submitted with an accompanying Turnitin report.

4. Assignment that is not submitted to the LMS by the prescribed deadline will be accepted
ONLY under the REDO and RESIT submission policy of Westford.

5. The results are declared only if the student has met the mandatory attendance requirement
of 75% and/or a minimum of 50% under extenuating circumstances approved and ratified
by the Academic Director. The student has to repeat the module (with additional fees
applicable) if the attendance is below 50%.

6. The assignment should not contain any contents including references cited from
websites like [Link], [Link], [Link],
[Link].

7. Students can refer Wikipedia as a source of information, but the references cited in
Wikipedia must be mentioned.

8. Submit the assignment in a MS Word document with the file name being:
First Name Last Name_ abbreviation of the subject.

Example: John Smith_SCLM

 Quick reference Checklist for the Faculty/Instructor to accept/reject the assignment
before evaluation:

□ Adherence to the deadline of submission date.

□ Original file, cover sheet and format retained.

□ Student information and signature intact.
□ Font style and size used as instructed.
□ Harvard Referencing Style is strictly followed.

Assignment Strategic Supply Chain & Logistics Management

Learning Outcome 1: Critically analyse the relationship between supply chain and logistics
management, and its link to organizational business strategies.

▪ PC 1.1: Critically analyze the principal theories, concepts and principles of Supply chain
management and their contribution to an organization's objectives.
▪ PC 1.2: Discuss the importance of an effective supply chain and logistic function towards
achieving organizational business strategies.
▪ PC 1.3: Discuss the fundamentals, features and boundaries of an integrated logistics and the
supply chain strategy.

Learning Outcome 2: Critically review the use of information technology to optimize supplier
relationships in an organization.

▪ PC 2.1: Critically review the role of ICT and online communication in the supplier
relationship.
▪ PC 2.2: Apply a critical analysis of a wide range of principal skills, techniques and practices
used by an organization to reduce transaction cost and improve the buyer / supplier
relationships.
▪ PC 2.3: Evaluate how supply chain management can successfully apply Just in Time (JIT)
methodology and forecasting systems to provide a seamless operation.
▪ PC 2.4: Critically discuss a range of complex skills, techniques, practices used to reduce lead-
time and cargo accountability.
▪ PC 2.5: Develop original and creative project-based strategies for successful supply chain
management.

Learning Outcome 3: Critically analyse the role of logistics and procurement, including buyer/
supplier relationship in Supply Chain industry.

▪ PC 3.1: Research and critically review the importance of buyer / supplier collaboration and
robust supplier selection process.
▪ PC 3.2: Present an effective negotiation strategy for the organization.
▪ PC 3.3: Critically discuss the challenge of port selection, choice of logistics/ transportation
mode and the movement of goods within various ports.
 ▪ PC 3.4: Critically discuss supplier relationship management.

Learning Outcome 4: Critically review and discuss the basics of shipping operations, including
the documentation involved.

▪ PC 4.1: Critically review the advanced and specialized skills required by a logistician to carry
out shipping procedures in an international context.
▪ PC 4.2: Discuss the strategic role of containerization and the relevance of Non-Vessel Owning
Common Carrier (NVOCC).
▪ PC 4.3: Conduct a critical review of host of complex and new issues that now surround LC
agreements, shipping operations and the interpretation of shipping terms.

Assignment Task Report [100 Marks] [6000 - 8000 Words]

Read the following Scenario and prepare a Report with the guidelines provided.

Scenario:

The Case of Foodie Global

Introduction

Foodie Global is a well-known retail hyper store which started as a small family grocer in Manchester
UK some 50 years ago. The organization’s business model has grown exponentially over the past ten
years, opening new outlets in Liverpool, London, Oxford, and Birmingham. Within recent times, they
have also diversified into nontraditional products, at least for them, selling a new brand of light weight
folding bikes called Foldie Smart, from a large bespoke bicycle manufacturer based out in Pontypridd,
Wales called Bikeinc. In 2018, profits rose to 1.3 billion pounds with many sales at the time coming
from walk in shoppers, especially on holidays. However, by the end of 2019, many shoppers chose to
buy online. Foodie Global has never offered online shopping in a major way and had lost significant
sales and market share due to this.

Over the years, the relationship with their first-tier vendors were not properly managed, with key
suppliers swearing never to do business with them again. This had led to shortages and high prices, since
they were forced to buy from third party sources. The CEO at the time, Lisa Foodie, in her last board
meeting, indicated that supply chain drawbacks of the hyper market was the main cause of their poor
performance in 2019, which was expected to continue throughout the following year. She said one of
the long-term goals of the retail chain was to understand the customers’ requirements and meet them in
the most cost-effective manner. She said vendors have been complaining about late payments and rush
orders every Monday, coupled with software breakdowns and login challenges of the FG’s enterprise
platform. Lisa later recognized that the supply chain lacked the much-needed integration which
everyone, including suppliers, believed was one of the main causes of the supply chain challenges the
outlets were facing. In continuing the issues surrounding suppliers, over the years, Foodie Global
adopted the strategy of widening their scope for competitive prices. This has led to the growth of a
supplier base of some 500 vendors, many of them supplying similar and identical goods, both locally
and internationally. In a recent meeting with the CEO, it was then reported that the transaction costs and
the diligent management of the supplier portfolio was urgently needed. Transaction costs had spiraled
significantly where in some cases, it costed more to acquire the good than the actual purchase price.
Lisa subsequently made it clear that they were not in a financial position to increase staff to manage
such a large vendor portfolio and included the task of having Alan, her newly appointed supply chain
manager to immediately present workable solutions to resolve both issues.

Lisa Foodie, being the great granddaughter of Anthony Foodie, the founder, was keen on bringing the
business back to its glory days. She believed that diversifying into other products and services could
potentially turn the organization around. She felt that the bicycle sales, which could only be ordered
through their stores, could be expanded into cycling accessories and even a range of electrical bikes that
could be sold by them exclusively. But there was a problem with Foldie Smart orders from Bikeinc,
their current bicycle dealer. Firstly, customers would order via a third-party online site called Spot Bike.
From there, the customer will be directed to Foodie Global. This was a make to order arrangement where
Bikeinc afforded a range of customization for these units. Customers were complaining about lead-times
exceeding the stipulated time of arrival and many products of late were being returned due to faulty
brakes. For some reason, Lisa preferred a methodological approach to resolving this issue but chose to
take on the task on her own.

With many of their competitors now trading online, Lisa felt that Foodie Global must revamp their
current supply chain model and adopt the most suitable technology to transform their business swiftly.
Alan Harvey, the newly appointed supply chain manager who worked many years in the manufacturing
industry was held in high esteem. Alan, though new to the retail sector business, had a strong ICT
background and had successfully established long term relationships with global automobile vendors.
This was partly due to his strategy of allowing ICT to improve collaboration and communication. But
Alan’s problems extended to other major issues. Two of their major meat suppliers based in Australia,
reportedly hiked their prices by 15%, which was not the usual market price of the industry at the time.
Negotiations had failed recently with the last supply chain manager Tim O’Neal who eventually quitted
the job after this outcome. Lisa Foodie was not at all pleased, believing that with the right negotiation
skills, they could get the supplier to agree to more favorable terms. During the job interview, Alan had
then boasted of negotiating with several first-tier suppliers in the automobile industry, successfully
negotiating long term contracts with a list of favorable concessions for his company. Alan was now
expected to meet with the suppliers in Sydney in three weeks, but not before he developed a negotiation
strategy. Alan was also reminded by Lisa, that he must have a BATNA (Best Alternative To a Negotiated
Agreement) in the event that things don’t work out. One such BATNA would be to select new suppliers
from the Australian market.

Port issues at Felixtowe had affected the stores severely, another contributor to the decline in profits.
These disruptions have seemingly gone beyond the control of the group. However, Lisa was keen on
having Alan develop a long-term plan to mitigate against further vulnerability, especially around the
Christmas season where stock build up was common. Lisa also felt that another port could be considered
along with a revamping of their logistics and transport system. There have been other challenges as it
pertains to the movement of goods, not only from the port but from the manufacturers and suppliers.
Traditionally, FG has done business mainly with NVOCCs but Lisa thinks that freight forwarders can
do a better job ever since several of their shipments have been arriving damaged or never arriving at all
under the present arrangement. Alan needs to advise Lisa on which arrangement might be best for the
organization going into the future. With other projects on his agenda Alan had decided to bring Susan
Wilson, another recent hire who just completed her first degree in business. He felt that she must be
trained to gain an in-depth understanding of the importance of containerization and other key aspects of
logistics before she could be assigned to the port issues project. With plans to expand their imports from
China and the Far East, the use of LCs was quite common. Susan would also be exposed to this form of
payment. There were some concerns though since there have been instances where the details of the
LCs are ignored with the relevant information not being shared by the parties. Mistakes were also made
in choosing the most appropriate incoterms, which increased financial risk for FG

At the end of it all, Lisa requested that Alan present to the board, an in-depth report on the status of their
supply chains, providing recommendations and describing several theories that can be applied. You
must now answer the following questions which will assist Alan and Lisa.

Case Study

a) Learners must critically analyze some principal theories, concepts and principles of supply
chain management and the contribution they can make towards FG’s objectives. You must go
on to discuss why it remains important for large retail hypermarkets such as FG to have an
effective supply chain, considering the fact that supply chain objectives must be linked to the
organization’s business strategies. With FG’s current siloed approach to its supply chain,
discuss the features and boundaries of an integrated supply chain and the benefits it can bring
in resolving some of FG’s challenges.

b) With the urgent need for Alan to address the current situation at the organization, critically
assess how Alan’s ICT solutions, applied in his previous role, could improve the supplier
relationships and online communication. In applying a critical analysis of a wide range of
principals, skills, techniques, and practice, discuss how Alan can reduce the spiraling
transaction cost during the procurement cycle, while it continues to maintain a supplier
relationship, especially with their key vendors.

c) Evaluate how Lisa can correctly apply a JIT methodology along with forecasting systems, to
provide a seamless operation to the bicycle deliveries. You must as well, critically discuss a
range of complex skills, techniques, and practices, that could be applied to reduce lead times,
something that would be welcomed by the Bikeinc’s customers. Finally, you must help Lisa
develop an original and creative project-based strategy towards successful supply chain
management, focusing on addressing the current JIT concerns.

d) In the event that Alan is unsuccessful with the negotiations in Australia, he must proceed to
develop a supplier selection strategy. Critically review and research the importance of a robust
supplier selection process and the relevance of a collaborative buyer / supplier approach after
contract award. Alan is also expected to develop an effective negotiation strategy, developing
a list of steps that must be entailed.

e) With Lisa now hinting at the need to revamp the logistics and transport system, even
considering a new port for their business, you must critically discuss the expected challenges
of a port selection, along with the issues surrounding the movement of various goods along
with the choice of transport mode.
 f) Critically review the advanced and specialized skills required by Susan to carry out shipping
procedures in an international market. You must also discuss the strategic role of
containerization and NVOCC in helping FG regain their competitive edge. Considering
concerns raised with LCs and shipping terms by FG, conduct a critical review of a host of
complex and new issues that are now surrounding LCs and shipping overseas, especially from
China, along with the interpretation of shipping terms.

Performance Descriptors
Performance descriptors indicate how marks will be arrived at against each of the above criteria. The
descriptors indicate the likely characteristics of work that is marked within the percentage bands
indicated.
Performance (70-100%) (60-69%) (50-59%) D (40-49%) E (0-39%)
Criteria Work of an Work of a good Work of a pass Fail Fail
outstanding, standard. standard.
excellent & v.
good standard
(*)
Executive A critical A synthesized A reasonable overview Limited overview of Confused overview of
Summary overview with the overview of the of the Executive Executive Summary. Executive Summary.
(10%) help of Executive Executive Summary, Summary, where The work may be an Fundamental
Summary. Bring where good use of satisfactory summary overly descriptive misconceptions of
out relevant existing academic is given of the whole account demonstrating how to write an
authors, rival work and evaluation produced work. There only minimal Executive Summary.
theories, and of main work is given is evidence of interpretation, and The work is mainly
major debates to a out coherently. Some engagement with very limited descriptive and shows
very good, review of relevant pertinent issues. Key presentation of the little or no
possibly excellent authors, rival authors & major whole summary. No understanding of
(even outstanding) theories, and major debates are presented. counterarguments or summary
standard. debates. Evidence of suitable alternative frames of requirements.
References . basic reading. reference are
beyond those generated or
identified in considered.
session sources. .

Introduction Introduction Introduction should Introduction should Introduction is not Too few references to
(15%) should explicitly bring out good bring out satisfactorily satisfactorily bringing appropriate literature
bring out relevant relevant details the local, national, and out the internal and and no evidence of
details necessary necessary to regional context of external context of independent thought
to understand the understand the strategic management strategic management and/ or criticality.
context of context of strategic practices in the practices in the Introduction is very
strategic management organization. The organization. The sketchy and does not
management practices in the current company current company satisfactorily bring out
practices in the organization. The details discussed in the details are not the vision, mission,
organization. The current company context of the strategic discussed in the employee size,
business scenario details discussed in management. focus. context of the strategic revenues and other
paints a clear the context of the The business scenario management. focus. information required
picture of current strategic described but has The business scenario to understand the
situation using management. focus. gaps. External sources has not been organization in the
facts and figure or The business scenario (academic or non- adequately described. context of strategic
related clearly described academic) not External sources management practices
information from using adequate included or poorly (academic or non- in the organization at
academic and terminology. Some used. academic) not all.
non-academic external sources evidenced or minimal.
sources where (academic or non- Poor/insufficient use
necessary. academic) referenced of facts and figures
observed.
 and included to
support discussion.
Environmental Demonstrate Demonstrates a good Demonstrates a The work may be an Fundamental
Analysis and need ability to understanding of satisfactory overly descriptive misconceptions /lack
for change (15%) accurately apply frameworks and tools understanding of account demonstrating of knowledge of the
relevant tools and from academic environmental only minimal and tools and frameworks
frameworks to resources. Good analyses framework descriptive used in analyzing the
analyze and analysis done well in and tools for analysis. interpretation of the environment Limited
identify the respect to application Some analysis done in tools and frameworks analysis of a
various factors of relevant strategic respect to application and very limited superficial nature only
that have a management of relevant models, evidence of analysis, lacks any attempt at
significant frameworks. tools, and frameworks. synthesis, or analysis, relying on
influence on the Examples of effective The work is mainly evaluation. description instead.
organization. Has use of academic descriptive but has A superficial and Strategy,
critically analyzed frameworks in order achieved all the routine description of organizational design
the factors in the to analyse the case performance criteria. the factors some of and lifecycle and its
external scenario. Examples Some mention of which may not be effect on
environment and of sound argument Strategy, logical or accurate. Organizational
evaluate their and logical organizational design Strategy, performance not
impact in the interpretation. and lifecycle and its organizational design included in adequate
relevant business effect on and lifecycle and its detail.
context. Organizational effect on
Strategy,
Demonstrates a performance but not Organizational
organizational design
critical very accurate or performance
and lifecycle and its
understanding of insightful. mentioned but not
effect on
how the very accurate and
Organizational
environmental superficially
performance
factors can have a discussed.
discussed
significant effect
on the strategic
management
process. Strategy,
organizational
design and
lifecycle and its
effect on
Organizational
performance
accurately
identified and
discussed.
Demonstrates
excellent
analytical ability.
The key factors
identified
effectively.

Strategy Has conducted a The work The work There may be little No application of
Identification and detailed and demonstrates a good demonstrates a evidence of an ability principle and concepts
implementation accurate level of competence to apply to come up with sound in the strategic
(25%) interpretation of understanding of the the tools for analyses strategy and chart out management module.
the situation. situation/business and adequately the a proper Strategy devised
Demonstrates scenario. Relevant various factors and implementation plan. Primarily based on
excellent concepts and theories interpret them to Formulated strategies wrong or faulty
knowledge and have been utilized in formulate suitable not very related to the assumptions
understanding of the formulation. strategies in context of scenario or lacking in Conclusions and
the concepts and Some meaningful the business scenario understanding of core interpretations of the
techniques for evaluation of the described. Has some issues to be resolved. tools confused or
strategy strategies within the awareness and has Implementation plan illogical and
formulation. context described. reflected on the factors and discussion unsubstantiated.
The discussion, Fairly elaborate and identified as well as primarily superficial Implementation and
analysis and in-depth with the consequences Some and lacking in depth understanding of
interpretation different factors helpful insights and and adequate logic. change management
demonstrate considered for fairly good knowledge Does not show either superficial or
excellent implementation and on the application of awareness of the lacking. Possibly no
knowledge of the the consequences change management possible outcomes and real attempt to address
strategic identified and principles. lack a good the consequences and
management discussed. A fir uses understanding of the contemplation of the
process and of change
 ability to management change management strategy or its
formulate and principles and principles observed. outcomes.
evaluate strategies understanding of it
and consequences evidenced.
well thought out
and addressed in
detail. A detailed,
logical
implementation
plan with an
excellent
understanding of
the change
management
principles has
been evidenced.

Leadership Styles Demonstrates a Demonstrates a good Demonstrates a The work may be an

& Org clear understanding of satisfactory overly descriptive
Performance (20 understanding of literature reviewed understanding of account demonstrating
marks) literature from academic literature reviewed only minimal
reviewed from resources. Good from academic interpretation of the
good academic analysis done well in resources. Some literature, and very
resources, peer respect to application analysis done in limited evidence of
reviewed articles of relevant leadership respect to application analysis, synthesis, or
and journals. styles and the relation of leadership styles to evaluation.
Critical analysis to organizational Organizational
done well in performance. performance.
respect to Examples of effective The work explores and
application of use of academic analyses issues but is
relevant concepts frameworks in order not strong on the
and theories with to analyze the critical reflection and
adequate relationship is mainly descriptive,
examples observed. Examples Overall, it has the
Clear evidence of of sound argument component and
independent and solid evidence. elements required to
thought and very meet the performance
effective use of criteria.
academic
frameworks in
order to analyze,
evaluate the
relationships.
There is a
synthesis of the
various insights.
Recommendation Well-organized, Well-organized, Reasonably well- Poor organisation; Assertions little
s (5 marks) logical, fully logical, supported by organized, logical, gaps in reasoning; related to evidence,
supported by evidence, generally supported by some obvious frequently illogical or
evidence, recommendations evidence, recommendations arbitrary;
recommendations fairly clear and arise recommendations omitted for the list; recommendations if
clear and arise from results & fairly clear and arise other conclusions not presented are
from discussion; practical from results & especially driven by disorganized;
results/discussion; and feasible, with discussion; practical the findings but from alternatives not
practical and clear consideration of and feasible, with ‘common sense’. No considered; no real
feasible, with assumptions and unclear or weak real implications and understanding of the
clear limitations of the consideration of reflection on the need to draw
consideration of strategy. The assumptions and recommendations of conclusions,
issues. Very well- discussion is well limitations of the changes envisaged and implications, and
articulated articulated as strategy identified. the corporate values recommendations
recommendations recommendations of Recommendations of incorporated to from results. Very
of changes changes envisaged changes envisaged, implement the poorly brought out
envisaged, and the and the corporate and the corporate changes. recommendations of
corporate values values incorporated values incorporated to changes and the
incorporated to to implement the implement the changes corporate values
implement the changes. just brought out incorporated to
changes. satisfactorily. implement the
changes.
 Conclusion Well-organized, Well-organized, Reasonably well- Poor organization; Assertions little
(5%) logical, fully logical, supported by organized, logical, gaps in reasoning; related to evidence,
supported by evidence, conclusions generally supported by some obvious frequently illogical or
evidence, fairly clear and arise evidence, conclusions conclusions omitted arbitrary; conclusions
conclusions clear from results & fairly clear and arise for the list; other if presented are
and arise from discussion; practical from results & conclusions not disorganized;
results/discussion; and feasible, with discussion; practical especially driven by alternatives not
practical and clear consideration of and feasible, with the findings but from considered; no real
feasible, with marketing issues. unclear or weak ‘common sense’. No understanding of the
clear Recommendations consideration of real implications and need to draw
consideration of driven by decent marketing issues. recommendations conclusions,
marketing issues. deductions from Recommendations not weak and incoherent. implications, and
Recommendations findings. always driven by good recommendations
driven by good deductions. from results.
deductions from
findings.

Presentation (5%) A balanced, well- A balanced, well- Case is cohesive, but Whilst some of the Significant failings in
structured work, structured work. may be hindered by characteristics of a case balance, structure
generally coherent Overall clear well- inappropriate balance, pass have been or writing style.
in approach. Well- written, well structure or writing demonstrated, the Repeated possibly
written, well presented. Some style. Some small, work does not address significant errors in
presented and small, repeated errors repeated errors in the case requirements referencing and/or
largely free of in grammar. Good referencing or overall. Possibly grammar. Critical
spelling and/or application of grammar. Current and lacking in balance, failings in case
typographical Harvard referencing relevant references and structure or writing balance. Possibly
errors. Breadth of system. Breadth of correct application of style. Some repeated lacking in coherence is
appropriate, appropriate, current, the Harvard errors in referencing unstructured and/or is
current, and and Referencing Method. and/or grammar. badly presented.
relevant reference relevant references Limited use of
s and correct and almost correct references.
application of the application of the
Harvard Harvard Referencing.
Referencing
Method.

1. Executive Summary
This study examines the significant obstacles encountered by Foodie Global (FG), a
previously successful hypermarket chain in the UK, whose swift growth and diversification
have outpaced the development of its supply chain and logistics framework. Through an in-
depth assessment of FG's existing operations, this document highlights major deficiencies
such as ineffective supplier relationship management, disjointed supply chain systems,
increasing transaction expenses, and logistical challenges. The analysis starts by exploring
the foundational theories of supply chain management (SCM), connecting its strategic
importance to the performance of businesses in the retail industry. It stresses the pressing
need for FG to transition from its fragmented operations to a cohesive supply chain model
that fosters coordination, visibility, and efficiency across internal teams and external partners.
It discusses several supply chain models, together with Lean, Agile, and Just-in-Time (JIT),
in relation to FG's objectives of minimizing waste, enhancing responsiveness, and boosting
customer satisfaction. In light of the current supplier-related challenges, the document
emphasizes the potential of information and communication technology (ICT) to optimize
procurement processes, automate vendor management, and enhance supplier collaboration.
Recommendations such as implementing ERP, RFID, and DRP systems are offered as viable
solutions to decrease costs and minimize errors. Additionally, the document suggests
strategies for streamlining FG's extensive supplier network to improve sourcing decisions and
cultivate long-term, value-oriented partnerships. The report also assesses the use of JIT and
forecasting systems for managing FG’s bicycle supply chain in collaboration with Bikeinc. It
advocates for a project-based approach to shorten lead times, enhance product quality, and
establish an efficient order fulfillment system. Furthermore, it outlines a solid supplier
selection framework and negotiation strategy to assist FG in its interactions with Australian
meat suppliers and reduce risks related to future supplier arrangements. Addressing persistent
port delays and escalating transportation costs, the report critically examines FG's port and
logistics options, recommending a strategic shift to the Port of Liverpool due to its favorable
location, capacity, and reliability. The roles of freight forwarders and appropriate incoterms
are also reviewed to ensure the cost-efficient and timely arrival of imports. Ultimately, the
report acknowledges the necessity of enhancing internal capabilities within FG, particularly
through training new personnel like Susan in international logistics, customs regulations, and
shipping documentation. It suggests making strategic use of containerization, letters of credit,
and current incoterms as vital for regaining FG’s operational edge in the global market. By
merging academic theories with practical applications, the document presents a coherent
strategy for FG to rejuvenate its supply chain, align it with its business strategy, and reclaim
market leadership in a fiercely competitive retail landscape.

2. Introduction
Foodie Global (FG), a hypermarket chain based in the UK, started as a modest family-
operated grocery shop in Manchester and has expanded over the past fifty years into a well-
known national brand, with locations in Liverpool, London, Oxford, and Birmingham.
Recently, FG has branched out into new markets by introducing products like lightweight
folding bicycles, seeking to attract a wider range of consumers. However, despite its physical
growth and product diversification, FG has faced significant challenges stemming from
operational inefficiencies and supply chain mismanagement. A key factor in FG’s
performance decline is the lack of a cohesive and strategically integrated supply chain
management (SCM) system. Rather than functioning as a singular entity, the company's
operations have become divided into silos, resulting in poor communication between
departments, weak supplier relationships, and unreliable technology systems. As highlighted
by Nedre (2022), siloed operations impede adaptability and prolong decision-making, which
are essential drawbacks in the competitive retail environment. Additionally, FG has been
sluggish in adopting e-commerce platforms and digital tools, leading to a notable decrease in
market share as consumer preferences increasingly shift towards online shopping (Parmar,
2022). This report intends to analyze the issues present in FG’s supply chain through the lens
of contemporary theories and practical models in SCM. It will investigate how integrating
supply chain systems and utilizing information and communication technology (ICT) tools
can enhance efficiency, decrease transaction costs, and improve collaboration with suppliers
(Apiyo & Kiarie, 2018). Moreover, methods such as Lean Supply Chain Management and
Just-in-Time (JIT) approaches will be discussed to tackle waste reduction and lead-time
challenges (Banton, 2022). A thorough evaluation will also be conducted on FG’s logistics
strategy, port selection, and international shipping processes. By connecting these insights to
practical business strategy, the report will offer actionable recommendations to assist FG in
realigning its operations, optimizing resource allocation, and restoring its competitive edge.
The significance of developing internal capabilities, particularly regarding logistics and
compliance training for new personnel, will also be highlighted to ensure long-term
organizational sustainability (Michigan State University, 2022).

3. Task A: Strategic Supply Chain Management and the Need for Incorporation
Supply chain management (SCM) is increasingly recognized not merely as a support function
but as a fundamental strategic asset that enhances competitive edge and boosts business
performance. In the case of large retailers like Foodie Global (FG), SCM has a significant
impact on cost efficiency, availability of products, customer satisfaction, and responsiveness
to the market. As stated by the Council of Supply Chain Management Professionals
(CSCMP), SCM involves the planning and overseeing of all schemes related to sourcing,
procurement, conversion, and logistics, integrating both supply and demand management
within and across companies (CSCMP, 2022).
Currently, FG's supply chain model is considerably fragmented, characterized by inadequate
supplier coordination, software issues, and ambiguous logistics processes. These
inefficiencies have raised transaction costs and undermined trust with customers and vendors
alike. According to Porter’s Value Chain framework (1985), successful coordination among
primary and support activities is crucial for maximizing value creation. FG's isolated
departments — from procurement to logistics — are unable to achieve that value, as
evidenced by delayed deliveries, inconsistent product quality, and growing supplier
grievances.
A siloed supply chain, as described by Nedre (2022), refers to disconnected operational
functions where departments or stakeholders fail to share information, objectives, or
processes. This lack of integration often leads to duplicated efforts, ineffective
communication, and slow decision-making — issues that are prevalent within FG’s current
operations. In contrast, an integrated supply chain brings together all internal functions and
external partners through shared systems, processes, and real-time data. As highlighted by
SupplyChainBrain (2017), integration encourages better collaboration, greater visibility, and
quicker reaction to market shifts.
Adopting an integrated SCM strategy at FG would address many ongoing issues. For
instance, shared digital platforms can minimize software failures and enhance forecasting
accuracy. Real-time visibility of inventory would enable vendors to plan ahead, thereby
mitigating rush orders and payment conflicts. Additionally, integrated SCM fosters a pull-
based system where supply aligns with actual demand, rather than falling into overstocking or
last-minute purchases — both of which have incurred significant costs for FG.
From a strategic alignment viewpoint, SCM should reflect the company's overall goals — for
FG, this includes restoring profitability, branching into new product lines, and competing
effectively in the digital retail arena. Chopra and Meindl (2021) assert that SCM ought to be
considered a vital contributor to customer value rather than just a cost center. By aligning
SCM goals with business strategy, FG can transition from short-term solutions to a focus on
long-term sustainability.
There are various SCM frameworks available to facilitate this shift. The Lean Supply Chain
model focuses on minimizing waste and enhancing operational efficiency, which aligns well
with FG's need to optimize processes (Nutburn, 2019). On the other hand, the Agile Supply
Chain model emphasizes adaptability and promptness, which could benefit FG’s expansion
into bicycles and other customizable offerings (Hendricks, 2021).
Although integrated SCM systems necessitate initial investment and a cultural shift, the long-
term advantages are significant. These benefits include:
 • Improved collaboration with suppliers and partners
• Shortened lead times and transaction expenses
• Enhanced data accuracy and informed decision-making
• Better alignment of inventory with customer needs
• Greater adaptability to changes and disruptions in the market
In summary, SCM should not be regarded as merely a necessary operational function but as a
strategic asset. FG's inability to synchronize its supply chain with broader business objectives
has led to operational disruption and a loss of competitive edge. By executing an integrated
supply chain approach, FG can restore supplier trust, enhance service quality, and position
itself for sustainable development in a rapid-changing retail environment.

Figure 1

4. Task B: Utilizing ICT to Improve Procurement alliances and Minimize

Transaction Costs
In today's business landscape, the significance of information and communication technology
(ICT) in improving supply chain operations has grown considerably. For companies like
Foodie Global (FG), which face supply chain difficulties primarily due to inadequate
coordination with suppliers and obsolete digital systems, ICT serves as a critical element for
achieving sustainable performance enhancements. Alan Harvey’s previous accomplishments
in the manufacturing industry, demonstrated through the strategic application of ICT, offer
FG a distinctive opportunity to integrate technology that can transform its vendor interactions
and procurement processes.
As noted by Apiyo and Kiarie (2018), ICT facilitates prompt data sharing, improves
communication, and provides real-time visibility throughout the supply chain. For FG, the
adoption of various digital tools can optimize procurement activities, minimize manual
errors, and foster a more collaborative atmosphere with essential suppliers. Currently, FG
oversees more than 500 vendors, many of whom provide similar or identical products,
resulting in elevated transaction costs and ineffective sourcing. This fragmentation arises
from inadequate data integration and insufficient vendor performance tracking.
A principal solution is the introduction of an Enterprise Resource Planning (ERP) system,
which would unify procurement, payment processing, supplier assessment, and inventory
management. ERP software allows companies to automate repetitive procurement processes,
guarantee contract compliance, and sustain a current database of vendor performance
indicators (Chopra & Meindl, 2021). By consolidating supplier information into a shared
platform, FG can standardize order processes, lessen emergency orders, and eradicate double-
handling—issues that have continually strained vendor relationships.
Furthermore, Radio Frequency Identification (RFID) and barcoding technologies can enhance
visibility in FG’s warehouse and distribution operations. RFID allows for large-scale data
capture and real-time monitoring of goods, thus reducing loss and shrinkage, which are
prevalent in fragmented systems (Apiyo & Kiarie, 2018). These tools also enable suppliers to
have immediate insight into inventory levels, which aids in more precise demand forecasting
and diminishes the frequency of urgent, last-minute orders from FG.
To tackle the increasing complexity of its supply chain, FG must also implement a Supplier
Relationship Management (SRM) system. This platform promotes collaborative planning,
establishes clear performance benchmarks, and enables FG to focus on strategic suppliers
while gradually eliminating low-performing or duplicate vendors. The current situation,
where transaction expenses occasionally surpass the actual cost of purchased goods,
highlights an immediate necessity for supplier rationalization. This involves decreasing the
number of vendors while reinforcing relationships with a select few—a strategy proven to
lower costs and enhance service levels (GEP, 2022).
Alan’s past experience in negotiating favorable long-term contracts within the automobile
sector can be leveraged at FG by utilizing data from SRM and ERP systems to back up
evidence-based decision-making. For example, historical data regarding delivery
performance, pricing trends, and quality ratings can be used to assess suppliers and negotiate
contracts with built-in incentives or penalties. This approach, grounded in data, encourages
accountability and nurtures mutual value creation instead of just transactional relationships.
Another significant factor exacerbating procurement costs at FG is the absence of digital
procurement automation. At present, the organization depends on manual ordering processes,
email-based approvals, and inconsistent payment systems. By implementing e-procurement
programs such as SAP Ariba or Oracle Procurement Cloud, FG could automate purchase
requisitions, evaluate supplier bids in real-time, and ensure adherence to contractual terms.
These systems not only expedite procurement cycles but also provide a digital audit trail,
promoting lucidity and reducing the risks of fraud.
One additional approach to manage expenses is to adopt a Multiple Sourcing Model,
supported by Information and Communication Technology (ICT). Although FG has already
broadened its vendor network extensively, this growth lacked effective control measures. By
integrating multi-sourcing with accurate performance analytics, FG can mitigate supplier risk
and foster competition among suppliers—thereby lowering costs while ensuring reliability
(UK Essays, 2020).
ICT also significantly influences communication, which is essential for the quality of supplier
relationships. Alan’s previous implementation of real-time dashboards, shared planning
calendars, and supplier portals can be applied at FG to maintain consistent agreements on
lead times, delivery intervals, and stock levels. Utilizing these tools can help avoid
miscommunications and delays, which are among the primary concerns expressed by vendors
regarding FG’s current operations.
Furthermore, FG should explore cloud-based collaboration tools to facilitate effortless
integration between its internal teams and external suppliers. These platforms offer
comprehensive visibility and allow for simultaneous updates across procurement, logistics,
and inventory management. When set up correctly, such systems can minimize transaction
time, enhance predictive analytics, and trigger alerts when performance benchmarks are not
met.
In summary, digital transformation is essential for FG—it can no longer be considered
optional. ICT has the potential to significantly improve FG’s supplier relationships by
promoting transparency, enabling automation, and reducing operational challenges. With
Alan's expertise in ICT and strategic approach, FG is ideally positioned to adopt integrated
solutions like ERP, SRM, RFID, and e-procurement tools. These systems will aid the
company in optimizing vendor management, decreasing procurement expenses, and regaining
oversight over a previously unmanageable supply chain. Most importantly, ICT will assist FG
in positioning its supply chain processes with its long-term business target in a sustainable
and scalable way.

5. Task C – JIT Application, Forecasting, and a Strategic Project-Based Supply

Chain Model for Foodie Global

a) Implementing JIT and Forecasting for Bicycle Deliveries

In the fiercely competitive landscape of retail today, timing is more than just an indicator—
it’s a necessity. For Foodie Global (FG), which has struggled with delays, returns, and a lack
of customer satisfaction in its launch of the customized bicycle market, the integration of a
Just-In-Time (JIT) approach with demand forecasting tools is critical.
The JIT framework, initially developed by Toyota in the 1970s, focuses on aligning
production with demand, ensuring products are manufactured and delivered exactly when
needed, which helps eliminate inventory costs, minimizes waste, and optimizes operations
(Ohno, 1988). This approach fits well with FG’s made-to-order bicycle business model with
Bikeinc, where customization and quick turnaround times are pivotal to its value proposition.
However, FG’s existing operations suffer from inconsistent lead times, poor logistics
organization, and a disjointed order management system reliant on a third-party platform. By
embracing JIT principles, FG can create a seamlessly coordinated flow between procurement,
production, and distribution. Each order should immediately trigger notifications through the
enterprise system to Bikeinc, prompting instant production commencement, followed by
meticulously scheduled logistics. Achieving such a level of responsiveness necessitates not
only a shift in culture but also a digital transformation driven by real-time data analytics and
cohesive supplier systems.
b) Forecasting as a Driver for Accuracy
Forecasting systems serve as a key complement to JIT by offering predictive insights into
demand trends. FG should invest in cutting-edge forecasting tools—including demand
sensing, AI-powered predictive analytics, and analysis of historical trends—to better
anticipate consumer behavior and plan procurement effectively.
For instance, adopting machine learning algorithms that evaluate seasonal trends,
promotional activities, weather changes, and customer browsing habits could enable FG to
foresee increases in bicycle demand. These insights would allow the supply chain to allocate
production slots and raw materials at Bikeinc proactively without violating JIT’s lean
principles.
A mixed demand-driven MRP (Material Requirements Planning) system could also be
implemented, merging push and pull strategies—ensuring that essential components (like
bicycle frames or braking systems) are stocked in advance while custom components adhere
to JIT processes. This approach strikes a balance between responsiveness and operational
efficiency.
c) Minimizing Lead Times Through Advanced Techniques
Reducing lead times is a comprehensive process, not a one-time effort. Here are the strategies
FG can deploy:
- Digital Twin Technology: Developing a digital representation of the entire bicycle
supply chain, from Spot Bike’s orders to Bikeinc’s production floor and final
delivery. This allows FG to conduct simulations, pinpoint bottlenecks, and adjust the
system for ideal flow (Tao et al., 2019).
- Supplier Co-location: Encouraging Bikeinc to collaborate with a network of nearby
component suppliers or even establishing an FG satellite warehouse close to the
Bikeinc facility would greatly cut down transportation delays among suppliers.
- Order Consolidation Algorithms: Employing AI to group similar customization
requests and schedule collective productions can reduce setup times on Bikeinc’s
production lines, thus shortening average order fulfillment durations.
- Dynamic Routing Software: Improving last-mile delivery with real-time routing
changes minimizes dispatch delays, especially during busy periods. GPS-enabled
logistics platforms (like Shippo or Route4Me) can facilitate this transformation.
- Cloud-Based Collaborative Platforms: Implementing collaborative tools such as SAP
Ariba or Oracle SCM Cloud can create a unified platform where Bikeinc, Spot Bike,
and FG’s logistics teams can communicate and resolve order-related issues
dynamically.

d) A Project-Based Approach to JIT Transformation

To realize this vision, Lisa Foodie must lead a structured, phased initiative that views JIT
implementation not as a one-time policy but as a continual transformation process.
Phase 1: Diagnostic Assessment (Month 1)
- Outline the existing order-to-delivery process.
- Identify inefficiencies, misalignments, and technological shortcomings.
- Form a multidisciplinary JIT taskforce led by Susan Wilson, incorporating
procurement, logistics, and Bikeinc stakeholders.

Phase 2: System Integration and Forecast Model Deployment (Months 2–3)

- Upgrade ERP systems and implement real-time order tracking.
- Integrate AI-driven forecasting software and conduct a two-week pilot.
- Set up API connections with Spot Bike to minimize customer redirection delays.

Phase 3: Pilot Execution (Months 4–5)

- Evaluate JIT workflows with a select group of popular bicycle models.
- Operate parallel systems to assess lead times, customer satisfaction, and costs.
Phase 4: Full Rollout and Continuous Improvement (Month 6 onwards)
- Extend JIT practices to encompass all bicycle SKUs.
- Initiate Kaizen events every two weeks to involve staff in ongoing process
enhancement.
- Monitor performance metrics like order cycle time, return rates, and customer
satisfaction indices.

e) Risks and Mitigation

A transition of this scale will inevitably involve risks. Possible challenges include supplier
pushback, inaccuracies in data forecasts, and delays in IT systems. To address these issues:
- Develop incentive programs for suppliers to ensure timely delivery and quality
customization.
- Introduce redundancy in the system for essential components via local stocking.
- Conduct regular audits of ERP and forecasting algorithms to ensure they perform
effectively.
The JIT transformation goes beyond a mere process enhancement for FG—it signifies a
strategic renewal of its customer commitments. By marrying lean manufacturing practices
with intelligent forecasting and a project-oriented approach, FG can significantly shorten lead
times, build up customer satisfaction, and reclaim its competitive advantage in the
personalized mobility sector. Lisa’s leadership, bolstered by a digitally adept team and
collaborative suppliers, will be crucial in bringing this vision to life operationally.

Figure 2

6. Task D: Supplier Selection Strategy and Bargaining Strategy, for Foodie Global
In the intricate realm of global sourcing, having a solid supplier selection approach is vital for
maintaining business operations and a competitive edge. For Foodie Global (FG), the
challenges posed by unsuccessful negotiations with its Australian meat suppliers prompt a
reevaluation of its procurement strategy. Alan Harvey, the newly appointed supply chain
manager, is now responsible for creating a thorough vendor management foundation and an
efficient negotiation strategy. This part critically examines the importance of a systematic
supplier evaluation process, investigates collaborative relationships with suppliers after
contracts are signed, and presents a practical negotiation plan, which includes a clearly
defined BATNA.

Figure 3

i. Importance of a Robust Supplier Selection Process

The process of selecting suppliers is not just a decision related to purchasing; it serves as a
strategic facilitator. Inadequate supplier selection can lead to disruptions in operations,
increased costs, and harm to reputation (Taherdoost & Brard, 2019). On the other hand, a
strategic approach to sourcing can enhance performance, fuel innovation, and contribute to
long-term sustainability.
The primary goals of a systematic supplier selection process encompass:
• Mitigating procurement risks (financial, quality, delivery).
• Improving value creation and cost efficiency.
• Ensuring alignment with the organization's objectives and ESG commitments.
• Fostering enduring collaborative partnerships.
An effectively implemented supplier selection framework prevents FG from falling into
reactive purchasing, particularly in unstable markets such as meat supply, where price surges
and geopolitical factors are prevalent. Additionally, as FG seeks new suppliers in Australia, it
is crucial to conduct thorough evaluations based on essential factors such as quality
certifications, price stability, logistical capabilities, financial viability, and ethical practices.
ii. The Seven-Step Strategic Supplier Evaluation Framework
Alan ought to implement a clear, repeatable, and measurable method by utilizing the seven-
step supplier selection process (Taherdoost & Brard, 2019):
a. Recognize the requirement
 Prompted by unsuccessful negotiations and supplier instability.
b. Specify sourcing criteria
Emphasize quality, delivery times, compliance, and adaptability.
c. Create sourcing strategy
Favor a combination of local and regional suppliers to lessen dependence on a limited
number of sources.
d. Pinpoint potential suppliers
Utilize trade directories, industry connections, and supplier databases.
e. Perform initial supplier screenings
Carry out preliminary assessments using RFIs and evaluation scorecards.
f. Assess and narrow down options
Implement a weighted scoring system (for example, 30% quality, 25% pricing, 20%
delivery effectiveness, 15% risk assessment, 10% sustainability).
g. Choose and onboard suppliers
Engage the top-performing suppliers, ensuring they align with FG’s principles and risk
tolerance.

Figure 4
iii. Post-Award: A Cooperative Buyer-Supplier Approach
Securing a supplier is merely the initial step. The true value is realized after the contract
through collaborative strategies. FG should cultivate relationships by:
• Developing Joint KPIs: agreeing on service levels, OTIF (on-time-in-full) metrics,
and goals for ongoing improvement.
• Utilizing Shared Forecasting Tools: particularly beneficial in handling JIT and
demand variations.
• Implementing Supplier Development Programs: assisting new vendors with
compliance, traceability, and integration into FG's ERP.
• Employing Digital Collaboration platforms: enabling real-time data sharing
through cloud-based SRM systems to minimize friction and build trust.
Such collaboration transforms transactional arrangements into strategic partnerships,
mitigating the chances of adversarial negotiations and promoting innovation (Dawkins,
2021).
iv. Developing an Effective Negotiation Strategy
Negotiation should be viewed as a process of creating value rather than a conflict. Alan needs
to balance being assertive with showing understanding, striving for a mutually beneficial
outcome.
The five key strategies are:
a. Preparation:
• Assess internal needs thoroughly.
• Research the capabilities of suppliers and industry standards.
• Establish a minimum acceptable outcome and ideal scenarios.

b. Establish Connection:
• Make the interaction more personal.
• Gain insights into the motivations and limitations of the suppliers.

c. Introduce Proposal:
• Emphasize value over cost (e.g., consistent volumes for fixed rates).

d. Collaboratively Address Issues:

• Utilize trade-offs: for instance, offer flexible payment options in exchange for lower
prices.
• Focus on collaborative problem-solving instead of positional bargaining (pon, 2022).

e. Finalize and Record:

• Make sure the contract terms are clearly outlined (payment, penalties, delivery
timelines).
• Include mechanisms for review and paths for escalation.

Figure 5
 v. BATNA: Enhancing FG’s Negotiation Position
The Best Alternative to a Negotiated Agreement (BATNA) serves as a backup plan. Alan’s
BATNA consists of a “pre-approved list of alternative meat suppliers from Australia or New
Zealand” who provide similar quality and pricing. This lessens reliance and equips Alan with
the mental and strategic assurance to decline unsatisfactory proposals (Galinsky & Magee,
2022).

In an unpredictable supply chain environment, FG ought to transform supplier selection into a

strategic initiative rather than a simple transaction. By implementing a strong assessment
framework, fostering collaboration after contracts are signed, and approaching negotiations
with a well-defined Best Alternative to a Negotiated Agreement (BATNA), Alan can
establish dependable partnerships and mitigate procurement risks. This dynamic approach not
only improves operational effectiveness but also supports FG’s commitment to sustainable
growth within a competitive market.

7. Task E: Critical Discussion on Port Selection and Transport Mode Challenges

As Foodie Global (FG) evaluates its logistics and transportation strategy, especially
concerning the selection of a new port of entry and the optimization of its transport
modalities, the company must consider this decision from multiple perspectives. Choosing
the best port and mode of transportation is not just an operational decision but a strategic
action that can influence inventory cycles, lead times, cost structures, environmental impacts,
and overall customer satisfaction. Nonetheless, this choice comes with both promising
opportunities and significant challenges.

A. Strategic Considerations in Port Selection

The “Port of Felixstowe,” currently chosen by FG, holds the title of the busiest container port
in the UK. While this offers extensive access to international shipping routes, the high
volume often results in congestion, customs-related delays, and increased inland transport
times—especially concerning when reaching FG’s main stores in Manchester, which is
located over 247 miles away. Research indicates that port congestion can lead to cargo delays
ranging from 2 to 7 days on average (Notteboom & Rodrigue, 2020), a situation that becomes
crucial during high-demand periods such as Christmas.
An alternative option is the “Port of Liverpool,” situated just 37 miles from Manchester.
Besides being closer, Liverpool has made significant investments in modern facilities,
including enhanced rail freight accessibility and advanced cargo tracking technologies.
However, FG may face “port selection challenges,” which could include:
• Capacity Constraints: Although Liverpool has undergone modernization, it still
manages significantly less volume than Felixstowe. A sudden shift in port utilization
by major companies like FG could put pressure on its capacity and lead to long-term
bottlenecks.
• Carrier Alliances: Not all shipping companies utilize Liverpool. If FG's primary
international partners (such as Bikeinc suppliers or Australian meat exporters) are
reliant on Felixstowe or Southampton, changing ports may require renegotiating
contracts or incurring additional transshipment charges.
 • Customs and Bureaucracy: Customs processing times vary between ports. In 2021,
a report by the UK Chamber of Shipping indicated that Liverpool's average customs
clearance was 18% quicker than Felixstowe, although this can fluctuate based on the
type of shipment and seasonal demands.
• Labour Disruptions: Strikes or workforce shortages can completely disrupt port
operations. For example, Felixstowe experienced numerous union strikes in 2022 due
to wage disagreements, which halted operations for nearly a week (BBC, 2022).

B. Issues Surrounding Movement of Goods

After goods reach the port, the next logistical challenge is their transportation inland. Several
factors can affect the movement of these goods.
1. Inland Transportation Distance and Cost
Transporting goods long-distance from Felixstowe to Manchester not only raises costs but
also contributes to a larger carbon footprint and longer delivery times. With rising fuel prices
and government regulations tightening emissions standards, this could impact FG’s
sustainability objectives and financial performance. As noted by McKinnon (2023), road
freight is responsible for 75% of greenhouse gas emissions in the logistics sector within the
UK.
2. Transport Reliability and Flexibility
Dependence solely on road transport heightens the risk of traffic jams, weather-related
interruptions, and a lack of available drivers. The government should explore the possibility
of incorporating **rail freight** from ports such as Liverpool. Rail transportation is up to
four times more fuel-efficient compared to trucks and is less affected by road delays
(Department for Transport UK, 2023). Nonetheless, it necessitates coordination, specific
handling facilities, and at times, additional handling, which can complicate matters and raise
expenses.
3. Type of Goods
The strategy for movement is influenced by the type of goods:
• Perishable items (such as meat) necessitate cold-chain logistics that adhere to strict
timelines and ensure high reliability.
• Bicycles from Bikeinc may need more secure and damage-resistant handling because
of rising return rates related to brake issues.
Each category necessitates distinct protocols for storage, packaging, and transportation. A
universal transport plan may result in problems.
C. Critical Evaluation of Transport Mode Options
For FG, selecting the appropriate transport method should be customized according to its
product types, shipping destinations, and required delivery timelines.
1. Road Freight:
• Strengths: Adaptability, direct delivery to customers, valuable for last-mile
logistics.
• Challenges: Shortages of drivers (a significant problem in the UK after Brexit),
traffic congestion, increased carbon emissions, vulnerability to rising diesel costs.
 • Real Example: In the 2021 HGV driver shortage in the UK, Tesco and Morrisons
encountered significant delays and bare shelves. FG could face similar
disruptions.

2. Rail Freight:
• Strengths: Affordable for lengthy distances, environmentally friendly, perfect
for large shipments.
• Challenges: Limited adaptability, dependence on coordinating multiple
transport modes (requires trucks at both ends), less appropriate for urgent or
delicate deliveries.
3. Multimodal Transport:
Utilizing a mix of rail + road or port + inland depot + last-mile delivery could prove to be
the most effective approach. Although this adds complexity, contemporary Transportation
Management Systems (TMS) can alleviate these challenges by optimizing routes and
balancing the trade-offs between cost and time.
D. Sustainability and ESG Pressures
Environmental factors are increasingly influencing logistics strategies. FG, similar to many
large-scale retailers, needs to meet stakeholder and regulatory expectations for decreased
emissions. Transitioning from long-haul trucking to shorter, multimodal routes through
Liverpool can help reduce FG's emissions and bolster its Corporate Social Responsibility
(CSR) efforts.
E. Human Resource and Knowledge Gaps
Ultimately, another important but often overlooked issue is internal expertise. The intricacies
of logistics and port decision-making are quite complex. As pointed out in Task F, it is
essential for Susan and her colleagues to receive training in customs regulations, the effects
of incoterms, and the optimization of shipping routes. If we fail to invest in our workforce,
even the most well-conceived strategic plans may lead to ineffective implementation.
Moving from Felixstowe to Liverpool may appear sensible due to its proximity and reduced
inland transport costs; however, this decision is complicated by various challenges, including
carrier restrictions, infrastructure issues, and gaps in internal capabilities. Additionally,
choosing the appropriate mode of transport is not a fixed decision but rather a dynamic
strategic choice influenced by the type of goods, sustainability objectives, and the agility of
the supply chain. FG should progress beyond a transactional approach to logistics and
commit to developing a flexible, data-driven, and sustainable transport network, supported by
well-trained staff and comprehensive contingency strategies.

8. Task F: Discuss the procedures and documentation involved in international

trade, Recommendations and Conclusion
As Foodie Global (FG) broadens its procurement network internationally, the intricacies of
global trade practices become an urgent strategic issue. Misinterpretation or poor
management of trade protocols can result in delays at customs, legal conflicts, increased
costs, and harm to reputation. To facilitate efficient international operations, FG needs to
become proficient in incoterms, containerization, and required documentation. These are
more than operational instruments—they are vital components for managing risks,
controlling costs, and ensuring compliance in cross-border logistics.
A. Incoterms: Defining Responsibility and Risk
Incoterms (International Commercial Terms) are internationally accepted guidelines issued
by the International Chamber of Commerce (ICC) that specify the responsibilities for
transportation, insurance, duties, and risk at each phase of the shipping process. Selecting an
inappropriate incoterm can subject FG to unwarranted expenses or liabilities.
• Application to FG
At present, FG sources its suppliers from both the Netherlands and Australia. Should FG
accept DDP (Delivered Duty Paid) terms, the suppliers will take on the majority of expenses
but will charge a higher price. By negotiating FOB (Free on Board) or CIF (Cost, Insurance,
Freight) terms, FG would exercise greater control over the shipping process, although it
would also be responsible for any loss or damage to the commodities once they are packed
onto the vessel.
• Risks and Challenges
✓ In transit, FG Confusion over responsibilities: For instance, if a shipment is
designated as FOB and damage happens, one might incorrectly assume the
supplier is responsible for the associated costs.
✓ Varied terms among suppliers: Employing different incoterms can create
uncertainty in monitoring inventory and managing insurance.
• Strategic Advices
✓ Ensure consistency by standardizing incoterms throughout contracts.
✓ Provide training for procurement personnel on the updates to Incoterm 2020.
✓ Opt for CFR or CIF for bulk shipments from major suppliers, enabling improved
freight management with limited liability.
"Incoterms not only assign expenses but also define legal obligations and enhance logistics
transparency" (Bowersox et al., 2021).
B. Containerization: Efficiency and Complexity
Containerization transformed international trade by facilitating large-scale, secure, and
standardized shipping. For FG, it serves as an economical choice for transporting bicycles
from Bikeinc or frozen products from Australia.
• Advantages
✓ Minimized handling: Decreases the risk of damage and theft.
✓ Reduced costs per item: Particularly when using full container loads (FCL).
✓ Adaptability to multimodal transportation: Can transition smoothly between ship
and rail/truck.

• Challenges for FG
✓ Making choices between LCL and FCL: Smaller shipments often necessitate
the use of Less-than-Container-Load (LCL), which can result in extended lead
times and shared responsibility.
✓ Container imbalance: The process of returning empty containers poses
significant costs and is not eco-friendly.
 ✓ Cold chain limitations: Meat and other perishable goods require refrigerated
containers—these are scarce and costly.
• Strategic Considerations
✓ Arrange block reservations for busy seasons to ensure container availability.
✓ Consider container sharing or utilizing third-party logistics (3PL) to lower
LCL expenses.
✓ Invest in IoT-driven container tracking for enhanced visibility.
As stated by the World Bank (2022), effective utilization of containers has the potential to
lower shipping expenses by as much as 30% in retail logistics.
C. Documentation in International Trade
Trade documentation guarantees the legality, adherence to regulations, and efficient transport
of goods. Mistakes in documentation can result in shipment delays, financial penalties, or
even result in requisition.

Document Purpose Risk Error

Commercial Invoice Proof of sale, customs Misstated values = Fines
valuation
Packing List Details of cargo content Missing items = customs
delay
Certificate of Origin Shows country of Incorrect origins= tariff
manufacture (affects duties
Insurance Certificate Confirms cargo coverage Missing = uncovered
financial loss
Import Export License Government authorization Missing = goods held at port
for controlled goods
Bill of Lading B/L Proof of cargo ownership Missing = can't claim goods
and transport
Figure 6

• Automation Opportunity
FG has the ability to minimize the risk of errors by incorporating EDI (Electronic Data
Interchange) or trade documents based on block chain technology to enhance processes and
improve security.
D. Real-World Challenges FG Might Face

• Document discrepancies: Minor variations between the invoice and packing list can
impede customs clearance.
• Fraudulence: Altered certificates of origin may lead to penalties and trade
restrictions.
• Regulatory differences: Regulations can vary from one country to another (for
instance, Australia mandates comprehensive biosecurity declarations for meat
products).
 • Customs holdups: If documents are not submitted electronically in advance, goods
may be held at the port for several days, leading to demurrage fees.

In 2022, Maersk indicated that 15% of shipment delays were caused by documentation
mistakes.
9. Recommendations
Based on the thorough review conducted throughout the various tasks, a series of
interconnected suggestions are presented to tackle Foodie Global’s (FG) operational
shortcomings, restore supplier confidence, and reestablish the company as a strong
competitor in the UK retail and e-commerce sectors. These suggestions are based on
applicable academic principles, industry-leading practices, and the unique operational
environment of FG.
a. Adopt an Integrated Supply Chain Management Framework
FG needs to move away from its current isolated operational model to a comprehensive
integrated supply chain management (SCM) framework. This necessitates the unification of
procurement, logistics, inventory management, and supplier relationship management into a
seamless, technology-driven structure. As noted by Chopra & Meindl (2021), integration
minimizes process redundancies, enhances the accuracy of forecasts, and boosts agility. In
practical terms, FG ought to:
• Harmonize processes across different departments to guarantee information
transparency and facilitate real-time data exchange.
• Implement cross-functional key performance indicators (KPIs) like On-Time-In-Full
(OTIF) shipment, lead-time variation, and supplier error rates.
• Revise reporting structures to ensure that supply chain activities are strategically
aligned with the organization's overarching goals.

b. Deploy Advanced ICT Solutions for Supplier Collaboration and Cost

Reduction
Leveraging Alan Harvey’s expertise in ICT, FG ought to adopt a comprehensive suite of
digital solutions—such as Enterprise Resource Planning (ERP), Supplier Relationship
Management (SRM), Radio Frequency Identification (RFID), and e-procurement platforms.
The goal is to:
• Automate procurement processes to lower transaction costs and shorten processing
times.
• Develop a supplier performance dashboard to monitor delivery timeliness, product
quality, and pricing competitiveness.
• Implement supplier portals for joint forecasting and collaborative production
planning.
These initiatives have the potential to significantly decrease transaction costs, as noted by
Apiyo & Kiarie (2018), while promoting strategic partnerships over transactional interactions
with suppliers.
c. Rationalize and Optimize the Supplier Base
FG should simplify its supplier network by reducing its current excessive number to a select
group of high-performing partners that are strategically aligned. This initiative—referred to
as Supplier Base Reduction (GEP, 2022)—ought to utilize a weighted scoring model that
assesses cost, quality, reliability, sustainability credentials, and innovation potential. Long-
term partnership contracts with these chosen suppliers should incorporate performance-based
incentives aimed at fostering continuous improvement.
d. Implement a Just-In-Time (JIT) and Forecast-Driven Model for the Bicycle
Division
FG's bicycle supply chain in collaboration with Bikeinc ought to implement a hybrid model
that merges just-in-time production with demand forecasting, utilizing AI-based demand
sensing technologies alongside lean manufacturing principles. Essential steps include:
• Establishing real-time order triggers that are directly connected to production
timelines.
• Keeping a minimal inventory buffer for essential components to lessen supply chain
risks.
• Employing predictive analytics to foresee demand surges related to seasonal changes
or promotional activities.
The overall impact will lead to shorter execution time, enhanced product quality, and higher
levels of customer satisfaction—crucial for maintaining a competitive edge in the custom
mobility market.
e. Develop a Structured Supplier Negotiation Strategy with a Robust BATNA
In the case of sensitive procurement categories like Australian meat imports, FG ought to
adopt a five-stage negotiation framework that includes preparation, relationship-building,
proposal presentation, collaborative problem-solving, and formalization. Keeping a list of
alternative suppliers who have been pre-qualified (BATNA) will enhance FG’s negotiating
power and minimize dependency risks. Introducing value-based trade-offs, such as longer
contract durations in return for fixed pricing, will help secure agreements that benefit both
parties.
f. Optimize Port Selection and Transport Modalities
Considering the close distance to FG’s Manchester facility, the Port of Liverpool provides
considerable benefits in lowering inland transport expenses, delivery times, and carbon
footprint. FG should:
• Shift a considerable amount of shipments from Felixstowe to Liverpool, depending on
carrier availability and capacity.
• Invest in integrating rail freight to lessen ecological impact and address road
congestion issues.
• Create service-level agreements (SLAs) with chosen freight forwarders to improve
reliability and minimize damage risks.

g. Strengthen Internal Capabilities and Training in International Logistics

FG ought to prioritize extensive training for employees like Susan Wilson, including:
• Documentation and compliance for international shipping.
• Strategies for containerization and optimizing Incoterms.
 • Verification of Letters of Credit (LC) to prevent expensive conflicts.
This is in accordance with Michigan State University’s (2022) focus on skill enhancement as
a key factor for sustaining long-term resilience in supply chains.
h. Embed Sustainability and ESG Principles into Supply Chain Decisions
In order to meet changing consumer demands and regulatory standards, FG should:
• Focus on suppliers that have credible environmental and social governance (ESG)
certifications.
• Assess and disclose carbon emissions related to logistics activities.
• Investigate circular economy initiatives, including product return programs for
bicycles.

10. Conclusion
The situation faced by Foodie Global highlights the crucial link between effective supply
chain management and overall business success in today's retail landscape. While FG’s past
growth has been remarkable, it has been negatively impacted by disjointed operations,
complicated supplier networks, outdated technology, and a tendency towards reactive
decisions. These inherent challenges have led to a decline in customer satisfaction, higher
expenses, and reduced competitiveness in a market that is increasingly characterized by
speed, transparency, and dependability.
The findings indicate that revitalizing FG’s market position will necessitate more than
gradual enhancements—it requires a complete overhaul of its supply chain framework.
Moving to a comprehensive supply chain management model will break down barriers,
promote real-time data sharing, and establish a demand-driven operational approach.
Utilizing advanced ICT technologies will not only streamline and optimize procurement
processes but also improve supplier relationships, minimize errors, and lower transaction
costs.
Strategically reducing the number of suppliers, along with a data-informed negotiation
strategy and a strong Best Alternative to a Negotiated Agreement (BATNA), will help FG
stabilize input expenses and secure supply. Implementing a combined Just-In-Time (JIT) and
forecasting strategy for the bicycle segment will specifically target lead-time inconsistencies,
while optimizing port choices and transport modes will bring both cost savings and
environmental advantages. Supporting these initiatives, focused training for staff in areas like
international logistics, containerization, and trade finance will enhance internal capabilities
essential for ongoing operational excellence.
In the end, these suggestions will work synergistically: advances in technology will facilitate
process integration; collaboration with suppliers will improve forecasting precision; and
logistics refinement will lessen environmental impact while boosting delivery reliability.
When executed collectively, these strategies will enable FG to regain customer confidence,
fortify supplier alliances, and compete successfully in both physical and online retail
environments. By doing so, FG will not only restore its previous market position but also
establish a resilient, flexible, and sustainable supply chain that supports long-term growth in a
rapidly changing global market.
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