SCMG201 Week 6 Assignment

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Sourcing and Logistics Case Studies

SCMG201 Principles of Supply Chain Management

Student’s Name

Date

Sourcing Case Study

Snedeker Global Cruises

Case Questions

Use your textbook and a minimum of three expert resources (total) from the internet to answer the following questions regarding this case study.

Question 1. Suggest and explain the specific steps Brandt should follow to prepare for the EDP process

Question 2. Identify differences between traditional purchasing and use of e-auctions. How can Brandt use these differences to make his selection? What types of items would be best suited for purchase through e-auctions?

Question 3. Assume Brandt has identified products to purchase through e-auctions, what steps does he need to take to conduct a successful e-auction?

Question 4. What negative impact can e-auctions have on supplier relationships, and how can Brandt ensure that they do not occur?

Logistics Case Study

Strategic Solutions Inc.

Case Questions

Use your textbook and a minimum of three expert resources from the internet to answer the following questions regarding this case study.

Question 1. Identify and describe the characteristics of an ideal information system for this logistics environment. Gather information on both EDI and TMS, and compare their suitability for this environment

Question 2. Help Scott decide if he should invest in either EDI or TMS, or both. Is there another type of system that you believe would be better? What kind of benefits, including performance and customer satisfaction, can Scott expect by making these proposed changes to the business process?

Question 3. What are the key considerations when deciding on the best possible systems to implement?

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Sourcing and Logistics Case Studies

SCMG201 Principles of Supply Chain Management

Project 3 Weeks 5 & 6

Sourcing Case Study

Snedeker Global Cruises

It was August 7th, and Brandt Womack had just been given his first assignment by his purchasing manager at Miami-based Snedeker Global Cruises Inc. It was the “E-Auction Development Program” (EDP). The purpose of EDP was to identify potential products that could be purchased through e-auctions, determine the necessary steps to conduct a successful e-auction, and assess the impact of e-auctions on supplier relationships. As a newly hired supply chain manager, Brandt wondered how to proceed.

Snedeker Global Cruises incorporated in 1986 and is a cruise company with 35 cruise ships and over 70,000 berths. Snedeker Global serves the contemporary and premium segments of the cruise vacation industry and offers a variety of itineraries to destinations worldwide, including Alaska, Asia, Australia, the Caribbean, Europe, Hawaii, Latin America, and New Zealand.

In 2005, Snedeker incurred its highest-ever procurement costs in sourcing the products and services needed for cruise ship operations and wanted to combat this trend. To that end Snedeker had been working on changing its buying practices. In the past, each individual cruise ship made all its own purchases for the upcoming season. Purchasing was decentralized, with each ship making purchasing decisions based on its needs alone. The company began moving away from this practice and put into place a centralized purchasing department in charge of making purchases for the entire cruise line. The centralized purchasing strategy provided many cost-saving opportunities for the company and greatly reduced the overall order costs of the company. The company wanted to continue to pursue ways in which the centralized purchasing practice could reduce costs, and e-auctions became a viable option. However, senior management at Snedeker was concerned about the impact on quality and the effect e-auctions might have on suppliers.

At Snedeker, the purchasing cycle began with a master forecast for the upcoming year with orders being placed 8 to 10 months prior to need. This master forecast included everything from replacement engine parts to chocolate mints placed on pillows in cabins. When the forecast was generated it was given to the Senior Purchasing Manager, Kasey Davis. Kasey scheduled a meeting with Brandt to discuss the E-Auction Development Program, giving Brandt the master list of all the products needing to be purchased for the next year. Kasey instructed Brandt to determine which products would be best to purchase through e-auctions and wanted to know how the e-auction process would work. In addition, Kasey wanted Brandt to determ