U2D1

Writing and Sharing an Executive Summary (Wal-Mart)For this discussion: Explain the collaboration issues your (Wal-Mart) selectedcompany is facing in GSCM. Evaluate the various collaborative choices for GSCMthat the companycould choose. Use the supply chain management collaboration evaluation tool to evaluate the collaborations of the company. Develop an executive summary for the managers of supply chain management at the company, explaining the issues you found with the supply chain management collaborations. Do these collaborations appear to be following best practices? Is there a balance between regions, collaboration types, and supplier types? What changes would you suggest that could improve the situation, if needed? How does your company oversee quality and share information with their suppliers? Your initial post must include all the assigned readings and must be 250–600 words in length. Remember to list your references in current APA format at the end of your post.Side Notes: ReadingsUse yourGlobal Logistics and Supply Chain Managementtextto read the following:Chapter 3, “Supply Chain Relationships,”pages 34–56.Unit 2Top of FormBottom of FormSupply Chain RelationshipsINTRODUCTIONIn this unit, you will learn about the risks and benefits of outsourcing and how to make good choices in outsourcing for your company. You will learn about the many factors that need to be considered in this decision that can make the yes-or-no decision of outsourcing extremely complicated. Simply focusing on the bottom line is insufficient to provide enough data for this decision. Often the obvious issue is the labor cost because that is a major factor in the costing of a product; up to 80 percentof product cost can be labor. However, do not forget that the supply chain itself is a cost, not counted as a product cost normally, and this is often not considered well in the analysis of outsourcing. For example, if you have a 2-week pipeline today for your domestic supply chain, extending your supply chain to China can mean an 8-week transportation delay. This means your pipeline inventory will increase four timesthe current size and the time to payment can be delayed by 2–3 months, consequently increasing inventory and reducing cash flow immediately. Despite looking at the bottom line, this is not a well-understood issue by finance managers with no experience in supply chain management. If you have a highly variable demand profile, your inventory may even increase moreto deal with the variance. When you add theft of product in transit at high levels and losses due to shipping containers that fall off ocean freighters, the costs and risks can begin to reduce the attractiveness of the outsourcing plan. Careful consideration of all the factors is extremely important. This is further complicated in the international arena because you now have country risk factors to consider along with company risk factors.While there is no one method nor easy choices, there are some best practices for determining the best choice for your company. Consider that necessity of good record keeping and sharing of information between suppliers and your companyfor the supply chain to operate effectively.