SCS May/August 2023: Practice Task 2

Practice Task 2

You receive the following email from Rasim Hamid CFO of Daistruk

From: Rasim Hamid: CFO

To: Senior Finance Manager
Topic: Roundland National Health Service contract

Please see the attached tender document from Roundland National Health Service.

As you will see, it is a tender to be the exclusive partner providing 3LP services to the Roundland National Health Service
for 5 years. This will involve warehousing medicines and other medical supplies, and managing their despatch to the
over 6,000 clinics and 1,500 hospitals operated by the Roundland National Health Service.

If we win the tender Roundland National Health Service will be the largest single client of Daistruk.

I need the following reports from you:

 An evaluation of the potential risks to Daistruk from becoming the sole logistics partner to Roundland National
Health Service, and how they may be managed (ignore cyber risks for this part of the task)

[sub task (a) = 60%]

 Your analysis of the implications of this partnership for the information systems of Daistruk

[sub task (b) = 40%]

The letter referred to is included as Reference Material for this task

© Adrian Sims 2023

SCS May/August 2023: Practice Task 2

Reference material X

Henrik Gerding: Chief Executive Officer

Daistruk
Northern City
Roundland

Dear Mr Gerding

Invitation to Tender
Daistruk has been identified as one of small number of best-in-class 3PL firms. The Roundland
National Health Service (RNHS) is inviting Daistruk Group to tender to be the sole provider of
logistics services to RNHS for up to 5 years.

If you submit and expression of interest we would provide you with comprehensive details of this
tender. At this time we wish to draw your attention to some key characteristics of this contract that
you need to consider before responding

 Healthcare logistics cannot fail. Stock-outs or wrong deliveries, especially of medicines, will
costs lives and leave patients vulnerable in a way that shortages in other industries do not.
 The inventory to be managed ranges from very expensive specialist drugs, through dressings
and surgical equipment, to more mundane items such as office stationery and cleaning
supplies
 The 1,576 hospitals operated by RNHS all use the same procurement information software
and each hospital hosts this in its own data centre. The 6,204 clinics are run as small
businesses and will have various ordering systems, some supplied to them free by large
pharmaceutical firms. These ordering systems may be hosted on small computer systems in
the clinic, by cloud service providers, or on systems belonging to the pharmaceutical firms that
provide access to the software.
 This contract is initially for 5 years. There will be a break clause at 2 years which RNHS can
exercise if the fulfilment of the contract is not satisfactory.

Daistruk is our main supply-chain partner. The Board expresses the hope that Daistruk may see
this as a strategic for our partnership and support us by developing non-exclusive logistics capacity
in Newland

Best wishes
Reference materials
Thamali Abeyrante

Director of Supply Chain Assurance

© Adrian Sims 2023