Design for Supply .Duro

Exercise 7: Design for Supply

Product: Duro

Swift Warehouse

Swift finishing plan

Swift factory

End consumer

Supplier

Truck /Roads Truck /Roads Truck /Roads Vans /Roads

Product flow

Payment Flow

1. Describe, in detail, the nature of the risks you identified

-Demand Risk: variations in the customer demand.

-Human or Personal Risk: health problem or death of the employees

-Shipment and delivery risk: If a supplier can’t deliver supplies consistently and on time.

-Price Risk: price reductions and fluctuations that might pull the prices below the profitable level.

-Financial Risk: possible increase in interest of a mortgage, insufficient liquidity, loss of equity and fluctuations in exchange rates.

-Transport Risk: routes and delivery risk due to congestion and unviable driving hours.

-Production risks: disruptions of internal operations or processes because of the weather or delays/disruption of the supply.

-Business risks: changes in key personnel, management, reporting structures or business processes.

-Planning and control risks: caused by inadequate assessment and planning.

-Asset Risk: theft, fire and other damages or losses to property or essential equipment.

2. Identify possible risk mitigation strategies for the risk areas you have identified. State your reasons for choosing these risk mitigation strategies.

- Drive the supply chain from real demand.

- Insurance programs are commonly used to manage health and medical risk, casualty risk, accident risk, liability risk, weather risk, etc.

-Automatic detection systems installed in the factories and the warehouse to allow fire fighting to begin as soon as a fire starts. These systems must be connected to a 24-hour alarm reception system

- Install sprinklers and have manual extinguishing equipment in the factories and the warehouse

-Protection systems need to be looked at on an individual...