MID TERM TEST

Faculty of Business

BBCM3033
Course : International Logistics & Transport

Date : 2nd March 2021

Time : 9 a.m - 6 p.m

Duration : 1 Day

Module Lecturer : Simi Anak Gendi

Total marks : 50 marks (worth 20%)

Instructions to candidates:

1. Write your name and student number on the Mid Term Paper AND Answer Booklet.

2. You must attempt all questions.

3. Once finished, kindly upload your answer in the LMS portal.

Materials allowed for this examination:

1. Hardcopy of dictionary.

DO NOT REMOVE ANY PART OF THIS TEST PAPER FROM THE

EXAMINATION ROOM

Name : SAMI SYED USAMA

Student ID :201809040144
Date : 2nd March 2021 Course : BBCM3033 International Logistics & Transport

SECTION A – SHORT STRUCTURE QUESTIONS. [Total = 24 marks]

Answer ALL questions.

1. Give correct definition for the terms below: [2 marks]

(a) Event Logistics

The Logistics of an event include the management of technical support services and
the competent management of the flow of visitors on the day of the event. here’s
what else can be added to the list.

(b) Business Logistics

Business logistics is a business planning framework that is concerned with

material procurement, materials management and overall inventory control.

2. Logistics management is a crucial factor in meeting demand in foreign markets. What

do you understand with international logistics? [2 marks]

A2: From my point of view logistics is the administration interaction of 'preparation,

actualizing, and controlling the physical and data streams worried about materials and last
products from the starting place to the mark of utilization. International Logistics includes the
administration of these assets in an organization's store network across in any event one
worldwide boundary.

3. Most of logistics companies have a set of objectives and priorities to achieve. Explain
the objectives for having logistics in an organization. [4 marks]

A3: Logistics is basically planning and tracking the flow of material. Your objectives are to
track the material as it moves to manufacturing, storage and distribution, and not to have too
much or a lack at any one point. Of course, this is also true for the people responsible for each
process.

4. There are several types of logistics. What are the differences between military logistics
and events logistics? [4 marks]
A4: Military logistics transfer of personnel and material from one location to another were
event logistics uses network of activities, facilities, and personnel to organize. As well as the
maintenance of that material essential for a military to be able to support an ongoing
deployment or respond where it involves the deployment or resources, as well as the necessary
post-event steps such as clean-up.

5. Certain major logistics activities can be identified with respect to the logistics
operations and management in a company and its supply chain. Explain any TWO (2) major
logistics activities that you know. [4 marks]

1: Transport: A significant component of coordination’s that most will perceive is transport.

This incorporates all methods of transport including street vehicles, cargo trains, payload
transportation and air transport. Without transport, products would be not able to move starting
with one phase then onto the next inside an inventory network

2: Inventory: Stock is a coordination’s component that is firmly identified with capacity and
warehousing. It is worried about what stock to hold, where the stock is found and how much
stock to hold.

6. One of the resources that plays an important role in changing and improving economic
indicators is logistics. How logistics contribute to economic growth? [4 marks]

A6: A notable association among coordination’s and public financial development is the help
of worldwide exchange. The worldwide financial climate has seen a critical expansion in the
volume of products exchanged in the course of the most recent thirty years. Furthermore, a
move in client assumptions and expansion in homegrown utilization has expanded the interest
for more up to date items in higher volumes, and for them to be provided quicker. Online
business has likewise modified the work on, timing, and innovation of B2B and B2C markets,
influencing everything from transportation examples to purchaser conduct, convincing a
requirement for improved productivity in conveyance frameworks, stock administration, and
cargo sending.

7. Porter's value chain involves five primary activities and several support activities.
Discuss any TWO (2) of the support activities. [4 marks]

A7: 1: Operations: Activities incorporate strategies for changing over crude materials into a
completed item or administration. This incorporates changing all contributions to prepared
them as yields. In the above web-based business model, this would incorporate adding marks
or marking or bundling a few items as a group to enhance the item.
2: Services: This incorporates exercises to keep up items and upgrade shopper experience-
client care, support, fix, discount, and trade. For an internet business organization, this could
incorporate fixes or substitutions, or guarantee.

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Date : 2nd March 2021 Course : BBCM3033 International Logistics & Transport

SECTION B – STRUCTURE QUESTIONS. [Total = 26 marks]

Answer ALL questions.

A

Picture 1: Simple Supply Chain

1. Picture 1 above shows about simple supply chain. The chain consist of suppliers, “A” ,
distributors, retailers and consumers.

(a) A above is one of the important element in supply chain.

(i) Label A correctly? [1 Marks]
(ii)Explain what kind of activity happens in A? [3 Marks]

(b) Supply chain management plays a vital role in addressing the growing complexity of
today's global supply chains. Elaborate on the major benefits of supply chain management?
[4 Marks]

A(b): Great Efficiency:

Inventory network joins item advancement techniques, coordinated coordination’s, creation

strategies and anticipating request. This will place you in an extraordinary situation to
anticipate request and furthermore take actions appropriately

Decreased Costs:

One of the principal advantages of inventory network the board is its capacity to diminish costs
by improving inventories, adjust as per client prerequisites, settling associations with
merchants and sellers.

Increased Output:

At the point when your business can team up better, smooth out the entire creation and
dissemination measure, this straightforwardly means the organization's main concern and
improves the general yield. Accordingly, your business can appreciate more prominent benefits
and stay in front of the opposition.
(c) It is important and essential to understand the three levels of supply chain management.
Explain about strategic planning with correct answer. [4 Marks]

A(c): Strategic planning is an authoritative administration movement that is utilized to set

needs, centre energy and assets, reinforce tasks, guarantee that representatives and different
partners are running after shared objectives, build up understanding around proposed
results/results, and evaluate and change the association's heading because of an evolving
climate. It is a focused exertion that produces basic choices and activities that shape and guide
what an association is, who it serves, what it does, and why it does it, with an attention on
what's to come. Compelling vital arranging explains not just where an association is going and
the activities expected to gain ground, yet additionally how it will know whether it is effective.

(d) It plays a vital role in addressing the growing complexity of today’s global supply chains.
Describe the important of supply chain management in business. [6 Marks]

A(d): inventory network the executives causes a business to acquire an upper hand by
conveying items all the more rapidly to clients. Here are a couple of manners by which SCM
achieves this without requiring the organization to bring down costs:

 SCM lowers the cost of doing business by reducing purchasing and production
expenses. For example, if you own a grocery store and buy tomatoes directly from the
farmer, you eliminate the expense of having a third party buy for you. Purchasing
directly from the source gets you better pricing and gets the food to your shelves to sell
more quickly and efficiently.
 SCM supports the strategic plan for the business and assists with building the
foundation to help future development, even on a worldwide scale. In the event that
you, as the supermarket proprietor, create vital organizations with the ranchers from the
get-go in your business activity, at that point the ranchers can develop their activity as
you become yours. You are better ready to scale those associations as the business
develops.
 SCM helps the business balance the supply of products with market demand. Utilizing
the supermarket model, on the off chance that you are purchasing tomatoes
straightforwardly from the rancher, you can more readily haggle straightforwardly with
the rancher on the number of tomatoes you purchase each season.
 SCM allows for more efficient and effective customer service. Customers receive their
products quickly and as promised. For example, if the farmer brings the tomatoes
directly to your grocery store, then the product will likely be fresher and less damaged
than if it travelled through a third-party supplier before arriving on your shelves.

(e) The strains on supply chains are far more intense and requires a strong plan. Discuss any
FOUR (4) common challenges that were identified in supply chain management. [8 Marks]

A(e): 1: Increased costs throughout the supply chain:

profit edges are feeling the squeeze as costs creep up all through the store network
organization. These costs come from numerous territories, and an absence of perceivability and
responsibility for lessening them can bring about rising operational costs.

Major contributors to increased costs include:

 Rising price of fuel to transport goods by road, sea or air

 Increasing commodity prices raising the cost of raw materials
 Higher labour costs from suppliers and manufacturers
 Complex international logistics leading to higher charges for storage, transfer
and management of products

2: Supply Chain Complexity Due to Multiple Channels to Market:

Consumers buy products across multiple channels, and as routes to market increase,
the underlying supply chain must adapt. Supply chain managers need to develop
variations on supply chain processes to address each of the channels:

 eCommerce websites selling directly to consumers require fast last-mile

delivery and local logistics.
 Traditional retailers and wholesalers need large storage locations close to
major metropolitan areas, combined with accurate inventory control to
ensure product availability.
 Third-party marketplaces like Amazon require a deep understanding of
fulfilment options and close compliance with their terms and conditions.
 Drop shipping retail requires fast international services so that consumers
receive goods quickly.

3: Consumer Demands Drive Need for Improved Speed, Quality and

Service

Purchasers have never had more decision, and each industry is confronting
disturbance. Each touchpoint with an end client should be centred around giving
phenomenal items and administrations. Quality and speed are turning out to be
just about as significant as estimating with regards to buying products:

 Consumers want retail goods immediately and online goods within a few
days.
 Products must meet the quality requirements demanded by consumers.
 Raw materials, goods and finished products must meet safety and other
compliance regulations mandated by law, in all countries where they’re
available.
 The environmental sourcing of goods is becoming more important to
ethically-aware consumers.

4: Risk in the Supply Chain Creates Pressure

International complexity, environmental changes, economic pressures and

trade disputes all put pressure on the supply chain. This pressure can easily
turn into risks and issues that snowball throughout the network, causing
significant problems:

 Suppliers, manufacturers, logistics, clients and customers are spread

across multiple countries, time zones and continents, requiring
careful coordination and management.
 Adding more steps to the supply chain creates exponential
complexity for upstream and downstream partners.
 Siloed data and a lack of visibility increases the difficulty of
reporting, business intelligence and good decision-making.
 Regulations, compliance and quality management demands strong
agreements, contracts and controls with supply chain organizations.
-END OF QUESTIONS-

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