(Solution) CIPS Advanced Level Supply Chain Mapping

Executive Summary

This report entails the supply chain mapping of laptops for BP, an oil and gas company in Oman. The analysis draws from various models and frameworks across different dimensions, such as environmental scanning, competitiveness, and value chain. The developed map involves various stakeholders, including the assembly from potential companies, logistics, and the repair and maintenance strategy. From the analysis, there are several elements that influence the supply chain mapping, including relationships, effective relationships with the stakeholders, environmental scanning, and informed decision making process. Time is also crucial in the mapping process.

The recommendations to enhance the supply chain mapping include data management for improving the relationship with stakeholders, environmental scanning to aid in the decision-making process, and learning and development of the employees to enhance their skills and competence.

Table of Contents

Executive Summary. 2

1.0      Introduction. 4

1.1 About the Company. 4

1.2 Company Procurement Department 4

2.0 Analysis 5

2.1 Supply Chain Mapping of Laptops. 5

2.2 Driving Value of Procurement 6

2.3 Supply Chain Analysis and Contrast 8

2.4 Strengths and Weaknesses of Laptop Supply Chain of the Company. 8

2.4.1 SWOT Analysis 9

2.4.2 KRALJIC.. 9

2.4.3 Porter’s Five Forces 11

2.4.4 STEEPLE Analysis 12

2.5 Impact of Laptop Supply Chain. 13

3.0 Conclusions. 14

3.1 Recommendations. 14

References. 15

Bibliography. 15

The unprecedented occurrences at the workplace, competition, changing consumer preferences, and risks imply the need for developing effective supply chain processes to ensure that the raw materials, products, and services are available in as required. This introduces the importance of profound supply chain mapping. According to Mubarik et al. (2021), the supply chain mapping concept involves the documentation of information across the stakeholders, including individuals, suppliers, and the involved companies in the supply chain process. The objective is to establish a global map for the supply network. Supply chain mapping plays a significant role in averting potential risks in the supply chain process and identify suitable opportunities for the organisation. As described by Schopper and Kersten (2021), the effectiveness of a supply chain mapping is anchored on ensuring that the strategies are aligned with the current needs and trends. This introduces the importance of environmental scanning and the relevance of various tools, including PESTEL, SWOT, and Porter’s five forces. Therefore, it is essential for an organisation to identify the most suitable model to base the supply chain mapping. Some of the key benefits of the supply chain mapping are adding value, mitigating risks, strengthening the entire supply chain, streamlining and speeding the process, and discovering the key aspects of the cash flow.

1.1 About the Company

British Petroleum (BP) in Oman has been in operation since 2007 and is a significant investor in the country. It is committed to fostering the country’s sustainable development. This is achieved through supporting the local firms, developing capabilities, and corporate social responsibility. The country, Oman, continues to strategically ensure that economic diversification is achieved. According to Kirichenko et al. (2020), the diversification ensures empowerment of the local talent. BP has a history of exploring and producing oil and gas in the Middle East. The firm is a major investor in the Oman and is among the pioneers in gap production and introducing experience and technology the Middle East unconventional resources. Combined, the top wells of Ghazeer and Khazzan deliver 1.5 billion cubic feet of gas daily and approximately 65,000 barrels per day. The high production is aimed at meeting the increasing demand for oil and gas products.

1.2 Company Procurement Department

The effectiveness of the procurement and supply chain process at BP is based on several aspects, including the application of technology and risk management. According to Handfield et al. (2019), the role of technology is to enhance tracking of the procurement process, while the risk management strategies are aimed at mitigating potential drawbacks in the supply chain process. Innovation in the procurement process at BP is reflected in the two sourcing systems, including Ariba, which is the primary tool running BP sourcing events, such as RFQs, RFPs, and RFIs. The Fair-market system is applied only for RFQs although it is limited in the scope of the items. An automated contract negotiation tool is also applied, which is dependent on the artificial intelligence system. The application of these technologies and systems is a critical aspect in ensuring a flawless process. BP’s supply chain process is also characterised by collaboration between the organisation and the suppliers. This promotes the efficiency of the process (Hartley and Sawaya, 2019). Some of the key indicators of the company’s procurement and supply chain process include a $3 billion budget and engagement with 3000 suppliers.

2.0 Analysis

An effective supply chain process is influenced by several aspects. Primarily, it is essential to identify the risks. As described by Fahimnia et al. (2019), understanding the suppliers across all tiers is essential in understanding their impacts in the firm’s supply chain. At BP, all information of the suppliers is collected and recorded in the company’s data base, including their strengths and weaknesses. Another core element is creation of visibility. Visibility across all tiers is essential in risk management. The pre-requisite is to develop a co-ordinated supplier database prior to transitioning to an accurate supplier chain map. Motivating the suppliers is another core aspect that the supply chain mapping. Central to note is that information may be sensitive and suppliers may fear offering the data (Yuan et al, 2018). At BP, this challenge is addressed by ensuring confidentiality in the information sharing process and reassuring the suppliers about control and access to the information. Collaboration at BP is reflected in effective relationship between the suppliers and the company to achieve the set objectives.

2.1 Supply Chain Mapping of Laptops

Mapping the supply chain process commences by organising the customer and supplier team. This involves the meeting between the supply chain management team to discuss the present situation and establish the key competencies of the supply chain process. For the supply chain mapping of the laptops, some of the important competencies include communication, teamwork, informed decision-making, and critical thinking (Gavkalova et al., 2020). The supply chain map for the laptops entail a number of aspects. These include the time, facilities, and location of sourcing the laptops. The proposed supply chain map as provided in figure 1 involves enhancing the current one applied by BP. Implementing the plan involves identifying the gaps and area of improvement. This is informed by several factors, including the environmental scan and the required competencies in the department.

Figure 1: Supply Chain Mapping (Source: Author)

The implementation process involves identifying the areas of adding value and making the changes. A track of the changes and improvements is also provided, particularly the costs. Drawing from Porter’s five generic forces, specifically the cost element, the prices are competitive and selected based on the production process (Islami et al., 2020). In the supply chain map for the laptops, besides sourcing new ones, there is also a provision and plan for repair and maintenance. The time aspect of the supply chain map focuses on ensuring that the laptops are delivered in time. Another element in the Porter’s generic forces is differentiation, which is centred on innovation, research, and exploring ways to deliver high-quality goods and services.  

2.2 Driving Value of Procurement…………….

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