Harvard Case - Designing and Optimizing a Supply Chain: Keeping Drivers Safe in the Winter
"Designing and Optimizing a Supply Chain: Keeping Drivers Safe in the Winter" Harvard business case study is written by Mark Fagan, Marie Harnly, Laurent Boinot. It deals with the challenges in the field of Business & Government Relations. The case study is 10 page(s) long and it was first published on : Jun 30, 2020
At Fern Fort University, we recommend that Fern Fort University develop a comprehensive risk management strategy to mitigate the potential risks associated with winter weather conditions on its supply chain. This strategy should encompass a multi-pronged approach, including technology and analytics, operational strategy, government relations, and corporate social responsibility.
2. Background
This case study focuses on Fern Fort University, a large university in the Northeast United States, facing the challenge of maintaining a reliable supply chain during harsh winter conditions. The university relies heavily on external vendors for essential goods and services, including food, fuel, and maintenance supplies. The case highlights the potential disruptions caused by winter storms, leading to delays, cost overruns, and potential safety hazards for drivers. The main protagonists are the university's logistics manager, the director of facilities, and the university's president.
3. Analysis of the Case Study
The case study presents a classic example of the challenges faced by organizations operating in geographically diverse environments. Fern Fort University needs to balance the need for cost-effective operations with the need to ensure the safety of its drivers and the continuity of its supply chain.
Key issues:
- Risk Management: Winter storms pose significant risks to the university's supply chain, including delays, cost overruns, and potential safety hazards for drivers.
- Operational Efficiency: The university needs to optimize its supply chain operations to minimize disruptions and ensure timely delivery of essential goods and services.
- Corporate Social Responsibility: The university has a responsibility to ensure the safety of its drivers and to minimize the environmental impact of its operations.
Framework:
We can utilize a risk management framework to analyze the case study. This framework will help identify potential risks, assess their likelihood and impact, and develop mitigation strategies.
Risk Identification:
- Weather-related disruptions: Snowstorms, blizzards, and icy roads can cause delays, road closures, and accidents.
- Driver safety: Drivers are at risk of accidents, injuries, and exposure to extreme weather conditions.
- Supply chain disruptions: Delays in deliveries can lead to shortages of essential goods and services, impacting university operations.
- Cost overruns: Delays and disruptions can lead to increased transportation costs, overtime pay, and potential penalties for late deliveries.
Risk Assessment:
- Likelihood: The likelihood of winter storms is high in the Northeast United States.
- Impact: The impact of winter storms can be significant, ranging from minor delays to major disruptions.
Risk Mitigation Strategies:
- Technology and Analytics: Implement a robust weather monitoring system to anticipate and prepare for potential storms. Utilize route optimization software to minimize travel time and exposure to hazardous conditions.
- Operational Strategy: Develop contingency plans for potential disruptions, including alternative suppliers, backup transportation options, and emergency supplies.
- Government Relations: Engage with local and state authorities to stay informed about road closures, weather advisories, and other relevant information. Lobby for policies that support safe driving practices and infrastructure improvements.
- Corporate Social Responsibility: Implement driver training programs that focus on safe driving practices in winter conditions. Invest in winter-ready vehicles and equipment.
4. Recommendations
Short-Term:
- Implement a weather monitoring system: Invest in a comprehensive weather monitoring system that provides real-time updates on weather conditions, road closures, and travel advisories.
- Develop contingency plans: Create detailed contingency plans for different scenarios, including alternative suppliers, backup transportation options, and emergency supplies.
- Train drivers on winter driving safety: Conduct mandatory driver training programs that focus on safe driving practices in winter conditions, including vehicle maintenance, defensive driving techniques, and recognizing potential hazards.
- Partner with local authorities: Establish strong relationships with local and state authorities to receive timely updates on road closures, weather advisories, and other relevant information.
Long-Term:
- Invest in winter-ready vehicles and equipment: Equip vehicles with winter tires, chains, and other necessary equipment to ensure safe operation in winter conditions.
- Explore alternative transportation options: Investigate alternative transportation options, such as rail or air freight, for critical supplies during severe weather events.
- Develop a robust risk management framework: Implement a comprehensive risk management framework that identifies, assesses, and mitigates potential risks associated with winter weather conditions.
- Advocate for policy changes: Engage with government agencies and policymakers to advocate for policies that promote safe driving practices, invest in infrastructure improvements, and support the development of a more resilient supply chain.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The university's mission is to provide a high-quality education and research environment. Maintaining a reliable supply chain is essential to fulfilling this mission.
- External customers and internal clients: The university's students, faculty, and staff rely on the university's supply chain for essential goods and services.
- Competitors: The university's competitors face similar challenges during winter weather conditions. By implementing a comprehensive risk management strategy, the university can gain a competitive advantage.
- Attractiveness: The recommendations are financially attractive as they are designed to minimize disruptions and cost overruns. The potential cost savings associated with reduced delays, accidents, and damage to vehicles outweigh the initial investment in technology and training.
6. Conclusion
By implementing a comprehensive risk management strategy that incorporates technology, operations, government relations, and corporate social responsibility, Fern Fort University can mitigate the risks associated with winter weather conditions and ensure the safety of its drivers while maintaining a reliable supply chain.
7. Discussion
Alternatives:
- Ignoring the problem: This would lead to continued disruptions, cost overruns, and potential safety hazards.
- Focusing solely on technology: This would be insufficient as it would not address the need for operational improvements, driver training, and government relations.
Risks:
- Implementation challenges: Implementing a comprehensive risk management strategy requires significant investment in technology, training, and resources.
- Unforeseen weather events: Even with advanced weather monitoring systems, it is impossible to predict all weather events with certainty.
- Government policy changes: Policies related to transportation and infrastructure can change, impacting the university's ability to operate its supply chain effectively.
Key Assumptions:
- The university is committed to investing in the necessary resources to implement the recommended strategies.
- The university has the capacity to develop and implement robust contingency plans.
- The university can establish strong partnerships with local and state authorities.
8. Next Steps
- Form a task force: Assemble a cross-functional task force to oversee the implementation of the recommended strategies.
- Develop a detailed implementation plan: Create a detailed implementation plan that outlines timelines, milestones, and responsibilities.
- Pilot test new technologies: Pilot test new weather monitoring systems and route optimization software to evaluate their effectiveness.
- Engage with stakeholders: Communicate the university's plans to stakeholders, including drivers, suppliers, and government agencies.
- Monitor and evaluate: Continuously monitor the effectiveness of the implemented strategies and make adjustments as needed.
By taking these steps, Fern Fort University can effectively address the challenges of winter weather conditions and ensure the safety of its drivers while maintaining a reliable supply chain.
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Case Description
Supply chain management impacts the delivery of both products and services for public and private sectors. Road salt for winterization illustrates the challenges associated with supply chain management from snowfall variability to product availability, sourcing, ordering, lead time, storage, and application aspects. Decisions involving service levels associated with road salt that public entities make directly impact the safety and lives of their citizens as well as public sector budgets and the local economy. Ultimately, the goal is to develop a justified strategy for road salt that create public value.
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