Supply Chain Management Assignment: Planning To Combat Covid-19 In Canada

Question

Task: Supply Chain Management Assignment Instructions: Please read the below scenario carefully and answer the questions that follow.

Supply Chain Management and the COVID-19 Pandemic
Research indicates that the COVID-19 pandemic might remain part of human realities for another year or so, with a 4th wave currently threatening another full or partial lockdown in some parts of Canada and the world. The global supply chain has been severely disrupted, and human lives are negatively impacted. Undoubtedly, the availability of pharmaceutical products would help combat the pandemic.

Your organization requires some raw materials and intermediate products to manufacture a well-researched line of pharmaceutical products needed to combat the pandemic in Canada in general and Saskatchewan Province in particular. Some of these raw materials and intermediate products are to be supplied by contractors in the Middle-East, China, and the United States at different prices and lead time.

As a supply chain manager in your organization, top management has asked you to produce a workable plan to execute this project successfully. The plan should contain the following major elements:

Selection criteria for your contractors either from the Middle-East, China, and the United States A detailed cost-benefit analysis for the three different locations
Logistics plan for the transportation from either of these locations to your factory located at Moose Jaw, SK Distribution plan that would allow the finished products to be distributed smoothly within Canada in general and Saskatchewan Province in particular
Security considerations to be taken during sourcing and transportation of the materials
Risk management plan to mitigate disruption of your supply chain.

Answer

Introduction
With the rise of Covid-19 pandemics, damages have been created in the supply chain because most organizations are unable to meet the overall demands of consumers. One of the main reasons mentioned in this supply chain management assignment for the severe troubles in the automobile industry is that automakers appear to have misjudged demand for their goods when the epidemic began. The dispersion of the auto supply chain spanning several nations and enterprises in the latest generations has exacerbated the problem. This has made it harder for manufacturers to pinpoint the source of blockages. For this assignment, the researcher would study disruptions in the supply chain of the organization. In this assignment, the researcher will be part of supply chain management for producing the workable plan. The plan will be executing the project successfully to maintain the supplies of intermediate products and raw materials of the organization.

Selection criteria for your contractors either from the Middle East, China, and the United States
The manager of the organization must consider the following factors before selecting their suppliers for the manufacturing of covid 19 medicines:

Cost: The raw materials required for pharmaceutical products are flowers, seeds, fruits, and fungi. In addition to these, biologics and synthetic materials are also required. The pharmaceutical product price in the USA is highly expensive due to their uniqueness, effectiveness, and competition from other organizations. The cost is even high due to the high investment of the raw material supplying company in research and development. However, the product's high prices are even the result of monopolies in the country's health sector granted by its government (Bryan et al., 2018). In the Middle East, the product price is less expensive than those found in the USA, but the pricing is done based on cost-plus pricing, and as per the Egyptian pricing system, there is still the provision of enhancement in prices. The raw material prices in China are cheaper than that in the USA and the Middle and East, and the low prices result from unique policies followed by primary healthcare institutions. In China, the primary healthcare institutions are needed to use important medicines, the prices of which are being established by provincial centralized bidding that implies that the prices are established from the provincial degree and are comparatively cheaper.

The payment term of US suppliers may vary from being paid in advance to making the payment in the next seven, ten, thirty, sixty or ninety days from the date of invoice. Moreover, it even happens to occur at the end of the month. In the Middle East, the payment terms are decided to depend on the Pharmaceuticals Company Payment Disclosure Initiative adopted in 2016. In China, the payment term of standard nature is 30% upfront, before manufacturing and the payment of balance on the eve of confirmation (Fabbri&Klapper, 2016). The important point to note is that the balance has to be made before shipping or before the issue of the original bill of lading.

Quality: The product quality of raw materials from the USA is unique and effective. The uniqueness of raw materials is attained through huge research and development techniques. The United States ranks fourth in manufacturing medicines. The pharmaceutical raw materials market in the Middle East is diverse and mixed, and Jordan is the highest exporter of pharmaceutical products. The companies or the suppliers of raw materials in the region are constantly growing. The growing, ageing population with a movement in disease demographics can invite foreign businesses in the country. China is known and responsible for around more than half of the worldwide supply of the most crucial raw material (Tomi&Jovanovi, 2016). The country supplies around 80% of the pharma raw material globally, and Wuhan has been the largest API importer.

Other criteria important for selecting suppliers that the managers of the organization have to consider is that of labelling and packaging. It is important to consider these criteria because it would safeguard the raw materials from any kind of damage during the period of conveyance, handling and storage (Rogers, Baricz, &Pawar, 2016). Further, it would be responsible for keeping the raw materials intact throughout the logistics chain from the producer to the final user. In the case of medicines, it is even important to protect the raw materials from heat, light, humidity and other external elements. The ISO 90001 certificate represents one of the most fundamental documents for suppliers and companies providing raw materials (NAHAS, 2020). It is a certificate for judging the quality management system of the raw materials. It is essential to verify this document to avoid getting fake raw materials for medicines. In China, these certificates are quite important to deal with while procuring raw materials. It is even applicable to the suppliers of the USA. The Middle East still has certain exceptions and struggles to make it important for every supplier.

Services: In this section, it is important to check the technology of customer relationship management for administrating entire company relationships, customer interaction and probable consumers. The aim is to improvise the business relationships. A system of CRM enables the organizations to remain connected to the consumers, streamline the procedures and betterment the profit capability (Kumar &Reinartz, 2018). This concept is quite mature in China and is extensively used by their suppliers. The USA companies have been using active tools CRM. An extensive and diverse foray into the CRM world has produced substantial interest in the countries of the Middle East, and the concept is present there to stay. After-sale service can be defined as any kind of aid offered to a consumer after a service or product has already been acquired (Othman et al., 2020). China is one such country out of the Middle East and the USA where product services and support are becoming largely essential.

Delivery: It is important to consider Geographical Location in this section as it can serve as a hurdle in procuring raw materials. China is a country in East Asia, and Canada is located in the top half of the continent of North America. The Middle East is situated in northeast Africa and southwest Asia, whereas the USA is located in North America. Hence, the USA geographically the suppliers of USA are most favourable for supplying to the organization. However, geographical location is not the sole factor to choose the suppliers. On-time delivery is another criterion in the delivery section. It depends on a favourable geographical location to deliver the raw materials swiftly and smoothly. Supplier profile: Before deciding on a supplier, it is essential to ascertain the suppliers' financial status shortlisted from China, the USA, and the Middle East. Further, the organization and management are important as they would enable the company to make sure that the suppliers adhere to every protocol required to be followed for producing and distributing the raw materials of pharmaceutical products. Further, it is important to ascertain the strictness of regulations and their applicability on the suppliers of China, the USA and the Middle East to make the final choice. Moreover, the Chinese suppliers are mostly known for their technical capabilities (Haakonsson&Slepniov, 2018). These capabilities are basic knowledge and abilities required to perform particular tasks. These are practical and are often connected to mathematical, mechanical and information technology. Hence, the Chinese suppliers are technically sound to produce competitive and qualitative raw materials for pharmaceutical products.

Complete personnel capabilities: The skilled workers share in China has risen to around 30% of the total workforce. However, it is low compared to other manufacturing capitals (Cui, Geertman&Hooimeijer, 2016). The country's economy is going through a phase of structural contradiction of lack of skilled workers and rising joblessness amidst the young population. However, the technical abilities of the country make it a highly desirable manufacturer of pharmaceutical products. Skilled labour is educated, highly trained labourers, and there is a shortage of skilled labourers in the USA. The even Middle East has been rustling with skill and knowledge gap.

Detailed cost-benefit analysis for three locations
As mentioned by Rowthorn&Maciejowski, (2020), the cost-benefit analysis or CBA is a costing technique undertaken to determine whether the investment option available to the business provide the best approach for the implementation and practice of benefits in terms of labour, time and cost savings. A detailed CBA is undertaken for the organization to compare the costs and benefits derived from the raw materials and intermediate products for manufacturing pharmaceutical products for combatting the pandemic in Canada. However, they are expressed in monetary terms as the financial health of the SCM formed a crucial part of the government policy for multiple years; therefore, CBA takes into account the time value of money as well.

The above calculation shows the valuation and benefits likely to be derived by the organization from procuring raw materials and intermediate products by different contractors in the Middle East, China and the US. The total time required to discover pharmaceutical products to eliminate Covid-19 in Canada shall take place at least 5 years of duration. The initial cost of the materials and intermediate products required by the organization from three supply chain distributors are CAD 4000 in the Middle East, CAD 3000 in China and CAD 5500 in the USA. The cash flow for each of the separate locations is underlined in the table as the benefits to be derived by the company from the discovery of medicines. It can be seen that the benefits decrease over the period as the use and prevalence shall decline over time. At a 10% discounting rate, the present value of all three suppliers is CAD 4205, CAD 3483 and CAD 11381 for the Middle East, China and the USA. All the three contractors from three different locations shall pour in monetary benefits to the organization. However, the highest monetary benefit shall be supplied from the raw materials and intermediate goods supplied from the USA. It is followed by China and, in the end, Middle-East suppliers. The NPV are CAD 205 for the Middle East, CAD 483 for China and CAD 5818 for the USA. From the cost-benefit ratio, it is clear that the ratio is least for the USA, suggesting the highest benefit to be secured by the Canadian pharmaceutical company, as the cost-benefit ratio is inversely related to each other.

The organization uses the CBA is to make a comparative analysis of cost incurred and the benefits derived from the supply chain management of three different locations. The NPV is used as the comparison matrix for defining the best alternative available to the healthcare businesses. The application of the discounting rate of 10% is an assumption that is examined on the suppliers or contractors offering the raw materials and intermediate goods occurring at the same market interest rate that is prevailing in the business environment (Honget al., 2018). Moreover, it is due to the dependence of the CBA method from the NPV, so from the perspective of the time value of money, the project's duration is kept identical.

Logistics plan for the transportation to factory located at Moose Jaw
It is important to consider the whole picture when analysing the organization’s pathways, including supply management, handling and transformation technologies, and energy services. Establishing sustainable bioenergy necessitates optimizing the structure and operation of supply networks, which must be tailored to the unique requirements of the manufacturing systems(Musolino, Rindone&Vitetta, 2019). The organization’s product collection, warehousing, refinement, and transportation are important steps that efficient procurement logistics and activities management techniques should be assisted.The industries all contribute to further growth.

However, the city is not fully immune to low commodity prices, the city does not dependent on oil and natural gas immediately. Therefore, it has escaped some of the severe consequences of low prices seen by other cities(Ershadi& Ershadi, 2021). Large multinational corporations operating in the area offer economic stabilityis projected to continue.

Bioenergy models may be used to forecast energy requirements and supply, evaluate the effects of various energy technologies and energy-saving initiatives, and optimize the operations of energy producers. The overall number of accessible energy models has declined in recent years(Sivakumar, Kanaparthi, &Kalyani, 2019). One of the issues with categorizing energy models is that there are several different categories to choose from, yet only just few models fit into each one. The model design necessitates a compromise among representational quality, performance was evaluated, and multi-context adaptability. The land uses are frequently taken into account when evaluating biomass possibilities in bioenergy models.

There is a lot to think about when it comes to logistics. Making ensuring that delivery runs successfully might take a long time, from route planning to material storage. They a We'/re fortunate in that we're experts in transportation and logistics, and we know what it takes to keep their supply chain running smoothly(Kalyaniet al.,2021). The logistic plan will help to focus on other elements of the business, safe in the knowledge that your shipment is in excellent hands. In addition, they are delighted to give no-obligation quotations for their logistical services. They never charge hidden costs and provide customers with all of the information necessary to decide about selecting a logistics firm. As a result of several initiatives and possibilities either underway or planned for the future, city is seeing an increase in business for industrial land. The OCP Plan encourages the effective use of land to increase economic diversity by allowing companies to develop and citizens to live and work(Mondelliet al.,2018). The city recognizes its advantages in attracting business. The city is well-developed road and rail infrastructure, which also includes its proximity to nearby markets. As per logistic plan it is seen that market quality and capacity of wastewater systems.

A concept plan projects the future information about land uses within the plan area, taking into consideration development impacts such as infrastructural capacity and current land usage on the property and nearby. The concept plan aims to encourage a logical extension of land use pattern, with a focus on the best use their region that would provide the most benefit to the community(Rosaiahet al.,2020). To fulfil the city's rising demands for economic development to maintain industrial land policies place a premium on promoting a diverse and appropriate supply of industrial land. The policies also aim to support industrial growth that preserves a high-quality urban landscape and reduces land-use conflicts caused by growth and site activities.

In determining the timing and number of municipal services supplied in the study area, consider the needs and potential kinds of growth that might be drawn to the region. They must assess the need for serviced land in order to meet the needs of the contemporary industrial market. Encourage the use of high-quality, visually pleasing development standards within the plan area(Viloria, Wang & Gaitan, 2019). Create a land-use plan and development guidelines that respect and aim to integrate neighbouring land uses constructively. The OCP emphasizes the importance of safeguarding and improving traffic safety and efficiency in the neighbourhood. The OCP also reflects the city's desire to concentrate freight-dependent sectors in regions with convenient access to rail and highway facilities.

The organization needs to guarantee that the roadways are operating as categorized, reclassify the access and egress routes from local to industrial. The re-classification will better coincide with the expected rise in everyday vehicular traffic loads and will allow all vehicle types to enter the industrial estate. The CPR mainline must be studied from the perspective of traffic access, with the goal of supporting routes that reduce the need for crossings while also taking into account the capabilities of current crossovers.

If needed in the future, the applied to model should contemplate the possibility of establishing a rail side-line to support local rail unloading and loading facilities. The usage of Lorne Avenue to the north may be adequate as a temporary solution, and if it is to be used as a key access point to the study area, it will almost certainly require road enhancements in the future(Kolbachevet al.,2019). This route has the obvious advantage of diverting truck traffic away from residential development to the west and connecting to the city's hazardous goods route. Lorne Avenue does not appear to have any weight limitations at this time.

Construct the study area in such a manner that it fulfils the minimum intersection and driveway accessibility spacing requirements. The Great Trail is scheduled to expand across Coteau Street E up to the current urban new residential east of the plan area because there are no existing bicycle facilities in the planning scheme(Chenet al.,2019). Users of the organization will be directed southwest towards the Wakamow Valley region once the route reaches the residential complex. The Great Trail is a network of multi-use paths that stretches throughout Canada is totalling more than 23,999 kilometres.

The word "public transit" refers to public transportation choices in shared vehicles that are open to the general public. Buses are referred to as "public transit" in several prairies areas which include Moose Jaw(Buxtonet al.,2019). The city actually does not provide transit system to the proposed area. Bio-originalneeds to create a Transportation Master Plan it is seen there are no plans to expand transit services to this part of the city. However, industry moves in to the city may wish to look into the possibility of establishing a transport hub in this region to give employees with additional ways of transportation. During prolonged rainy times, the location features intermittent water bodies that are temporarily overwhelmed with water runoff(Balamurali&Subramani, 2017). The presence of water in these regions’ changes based on the season because they are intermittent water sources.

These regions briefly fill until they reach critical mass are causing them to naturally tip into nearby low-lying areas before emptying into the Moose Jaw River. Bio-original serves as a receiving body and suitable point of disposal for this area. These places have a more defined terrain, abundant natural flora, and do not seem to have previously been cultivated. These places appear to be critical to the natural drainage system. Based on public geotechnical data for the area, a desktop geotechnical evaluation was undertaken. The land is usually appropriate for industrial development. The subsoil is usually made up of high plastic clay that is covered by glacial clay till. The area's groundwater levels are considered to be rather deep depending on available information.
The ecological functioning of the low-lying regions within the plan limits is expected to be altered by site levelling and the construction of structures and roads, weakening the area's natural potential to store and informally transport runoff to the neighbouring river system. The retention of this natural storage capacity will have to be factored into the scale and design of both informal and official stormwater treatment structures (Kuoet al., 2017). Because of the area's relatively flat geography, relying only on an upstream drainage system without extensive earthworks to produce the requisite slope may provide some issues. Stormwater will most likely be transported to the river system by a mixture of piped and systems overland.

Distribution plan
The organization is a world leader in the production of natural nutritious foods, components, and supplementation for the food and beverage industry. The organization has carved out a place for itself by carefully blending substances from across the world which is straight from the source. The source will help to develop unique and effective solutions (Hristov&Glushkov, 2018). The organization’s strategic acquisition is an important step in Omega Protein's objective to help individual’s lead better lives via improved nutrition. Through more diverse human nutrition product portfolio and extending Canada customer reach purchase brings together two very complementary businesses, bringing instant growth and scope to the total firm.

Canada and Saskatchewan Province will manage the organization’s as a wholly-owned subsidiary, and the acquisition is projected and adjusted as per earnings in fiscal year 2015. The company ensures a smooth and efficient flow of materials in order to achieve profit and customer service objectives in Canada. Maintain inventory levels for allocated finished goods and raw materials at predetermined levels (Menon & Pramod, 2018). The company need to achieve the specified production date, establish production orders and assure the procurement of in-spec ingredients and supplies for manufacture, providing for suitable lead times at each stage. Maintain good working relationships and communication with subcontractors, distributors, and internal production to validate production schedules and clients have access to guarantee on-time delivery.

The organization creates patented techniques and new science-based omega solutions. Their unique business style combines technological, scientific, and industrial experience to provide client and business omega solutions has been built on a secure vertically integrated supply chain. Organization is in a unique position to anticipate upcoming trends and produce novel omega-based solutions that match their customers' specific business needs. The needs will be allowing them to stand out and flourish in this market (Chenet al.,2018). To assist their customers, succeed, their aim is to foresee trends and build organizational strategic relationships. We're seeing an incredible amount of divergent omega trends emerge right now, including krill oil, coconut oil, flaxseed oil, vegetarian choices, concentrates, and other delivery systems.

They are here to assist you in identifying the finest solutions to fulfil the demands of organization’s customers. By cultivating relationships with customers to gain a holistic understanding of vision, and goals that one can identify and fill market gaps with handmade product lines that add value to their overall brand experience. Wherever feasible, the chosen location provides quick access to the provincial highway network, reducing the strain of industrial traffic on local roadsao, A., (Feng et al.,2021). To develop a suitable basis for transferring hazardous items to the provincial national highway, create new hazardous goods pathways in the study region. Consider how higher traffic loads would affect current highway junctions and railroad crossings.

The team is dedicated to being open and honest about what is feasible and what will succeed in the marketplace. They will set clear goals and deliver things on schedule and under budget. Everyone wants to have a pleasant experience with organization. The company is well-known for assisting top businesses with the launch of industry-changing innovations. They have a worldwide recognition for creating strong partner connections and providing excellent client experiences (Gerzanych&Kyrlyk, 2019). The organization is devoted to generating unique nutritional solutions from across the world. They were just the first North American firm to adopt blended technology in their production plant, developing new formulations and subcategories in the marketplace for the omega sector.

The distribution industry has seen a lot of changes. Businesses are no longer simply concerned with developing a specialty by selling promotional items. Instead, the emphasis has turned to broadening corporate horizons by bringing critical supplementary services to the forefront. The concept is to provide customers with something extra (Lopes-Martínezet al.,2018). As a result, given the conditions, the development was pretty natural. In today's competitive world, if one company fails to serve the best interests of its customerswill seize the chance.

A successful distributor is one who can adjust to market changes on a regular basis. Catering to emergency demands, gaining market share in evolving marketplaces, and finding new clients are the challenges (Gokilakrishnan& Varthanan2019). It is also critical to describe the business's value offer to suppliers and customers in the form of a unique blend of service, goods, and information. The secret to success is to consistently demonstrate corporate value by providing solutions to issues, lowering expenses, and boosting productivity.Many distributors are unsure why they should work on correcting something that has already resulted in double-digit sales and business growth for several years. That has to be understood is that the distribution industry is high risk. It is particularly focused on the company is not constructing able to construct a strong and durable foundation for the future and exposing their marketing strategy to the rising worldwide market. The number of alternate supply sources has expanded as communication and trade barriers crumble throughout the world(Varthanan&Gokilakrishnan, 2018). Increased cost competition from low-cost countries creates a tight margins in numerous distribution sectors. As a result, an increasing number of successful distributors are already providing a diverse variety of services to their consumers.

Many distributors of the organization are unsure why they should work on correcting something that has already resulted in double-digit sales and business growth for several years. That has to be understood is that the distribution industry is high risk (Liu, Wang & Yu, 2017). It is particularly focused on company is not constructing able to construct a strong and durable foundation for the future and exposing their marketing strategy to the rising worldwide market. The number of alternate supply sources has expanded as communication and trade barriers crumble throughout the world. Increased cost competition from low-cost countries creates a tight margin in numerous distribution sectors. As a result, an increasing number of successful distributors are already providing a diverse variety of services to their consumers.

Security considerations to be taken during sourcing and transportation of the materials
The equipment and vehicles used for transportation should be appropriate for the specific purpose and suitably equipped to avoid product exposure to situations that could influence their packaging and stability integrity and further to avoid contamination of any type.
The design and application of equipment and vehicles must focus to reduce the error risk and allow efficient cleaning or sustenance to prevent contamination, accumulation of dirt or dust and any type of adverse influence on the quality of the pharmaceutical items that have been transported (Mancini et al.,2015).
In case the raw materials are highly feasible, consideration should be provided to make technology addition like tracking devices of electronic nature, global positioning systems. These would be responsible for enhancing the security of pharmaceutical raw materials while in transit or vehicle.

Dedicated equipment and vehicle should be applied where likely while handling or maintaining the pharmaceutical items or raw materials.
In situations, where vehicles and equipment of non-dedicating nature are applied, the processes should be an inappropriate position to make sure that the eminence of pharmaceutical raw materials would not be negotiated (Mathieux et al., 2017). In situations where there is the involvement of third-party carriers, it is the responsibility of the distributors to function as per written agreement to make sure that suitable measures were adopted to secure the pharmaceutical raw materials and has inculcated maintenance of proper records and documents (Mathieux et al., 2017). Such type of agreement must be in alignment with regional and national regulatory essentials.

Risk management plan to mitigate disruption of your supply chain.

Conclusion
From overall analysis of the report, it could be found out that the cost is significantly higher due to the raw material supplier's significant expenditure in research and development. However, the product's high pricing is the result of monopolies given by the government in the country's health industry. The number of raw material providers in the region is continually increasing. The country's expanding, ageing population, along with a shift in disease demography, has the potential to attract international investment. China is well-known for providing more than half of the world's supply of the most important raw material. The country's economy is experiencing a structural paradox as a result of a scarcity of trained people and growing youth unemployment.

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