OPS FPX 5620 Assessment 1 Analyzing Global Supply Chain Infrastructure and Operation

Student Name

Capella University

OPS-FPX5620 Supply Chain Foundations and Management

Prof. Name

Date

Executive Summary

The acquisition of Mainland Tools presents an opportunity for Thompson Tools to integrate it into its supply chain. This report focuses on analyzing the infrastructure and internal supply chain operations of Mainland Tools. The current state reveals outdated equipment, segmented building structure, and technological lag, despite generating approximately $6 million in annual revenue. Strategic analysis is conducted to assess strengths, weaknesses, and alternative strategies. Infrastructure analysis examines technology and facilities, while operations analysis emphasizes supplier relationships. Value Stream Mapping is used to identify inefficiencies and propose improvements.

Infrastructure Analysis Technology

To address inefficiencies and enhance revenue, Mainland Tools should implement an automated material handling system. This system controls, protects, and aids in the movement and storage of products and materials throughout the supply chain. It integrates various automated, manual, and semi-automated equipment and systems, improving customer service, delivery times, and inventory management while reducing handling costs.

Facilities

The current facilities layout of Mainland Tools hinders supply chain operations. Multiple locations for products and disconnected departments contribute to operational failures. It is necessary to assess whether restructuring the existing facilities or relocating to a new, more suitable location is the best option to accommodate the current volume and anticipated growth over the next decade. Political, social, and cultural factors must also be considered in determining the optimal facility location.

Operations Analysis Supplier Relationships

Effective supplier management is crucial for Mainland Tools to identify the best supplies, negotiate optimal contracts, and establish cooperative partnerships. Cost reduction is a priority, as more than 50% of expenses come from supplier purchases. Integrative supplier relationship management, focused on collaboration and performance-based contracts, enables organizations to maximize cost and operational efficiencies. Just-in-Time (JIT) deliveries and Vendor-Managed Inventory (VMI) are initiatives that enhance collaboration and streamline operations.

Value Stream Map

Value Stream Mapping (VSM) is a powerful tool to analyze and visualize the end-to-end business process. It identifies workflow, wastes, and inefficiencies, facilitating process improvements. Applying VSM to Mainland Tools’ supply chain will help eliminate bottlenecks and waste, leading to enhanced value chain flow and improved operational efficiency.

Recommendations

Based on the analysis, several recommendations are proposed for Mainland Tools. These include renovating the physical plant, implementing a cloud-based order management system (such as Oracle Fusion Cloud), upgrading the email system (e.g., Microsoft Outlook), and consolidating warehousing into one location. These initiatives aim to increase operational efficiency, revenue, and customer satisfaction. The estimated temporary revenue loss during the renovation period is justified by the expected 25%-30% revenue increase due to improved order fulfillment, inventory management, and fill rate.

Conclusion

Thompson Tools is confident that by implementing the recommended strategies, Mainland Tools can become an efficient and profitable venture. Through infrastructure and operational analysis, along with the utilization of Value Stream Mapping, the strategic plan outlined in this report will be implemented within the next 30 days. These initiatives will position Mainland Tools for success and contribute to Thompson Tools’ growth and profitability.

References: 

Fukuzawa, M. (2020). Function of value stream mapping in operations management journals.  Annals of Business Administrative Science, 19(5), 207-225.  

doi:http://dx.doi.org.library.capella.edu/10.7880/abas.0200909a 

Okogbaa, O. G., Shell, R. L., & Clark, G. M. (1994). Modelling, simulation, and analysis of an  automated materials handling system. International Journal of Physical Distribution & Logistics  Management, 24(8), 15. doi:http://dx.doi.org.library.capella.edu/10.1108/09600039410071253 

Park, J., Shin, K., Tai-Woo, C., & Park, J. (2010). An integrative framework for supplier  relationship management. Industrial Management & Data Systems, 110(4), 495-515.  doi:http://dx.doi.org.library.capella.edu/10.1108/02635571011038990 

P.G., A., & Pratap, M. (2020). Achieving Lean Warehousing Through Value Stream Mapping.  South Asian Journal of Business and Management Cases, 9(3), 387–401.  

https://doi.org/10.1177/2277977920958551 

OPS FPX 5620 Assessment 1 Analyzing Global Supply Chain Infrastructure and Operation

Venkataraman, R. R., & Pinto, J. K. (2018). Operations management: Managing global supply  chains. Thousand Oaks, CA: Sage Publications.