Related questions
MS Company is a Trading Company involved in Import and export trade. With various suppliers from Europe and Asia, MS has to keep track of the activities of its suppliers and the entire supply chain. Indeed, MS has to ensure that quality standards and other production standards like occupation safety, labour and human rights are upheld. The shipment process also has its own challenges ranging from damage due to poor handling in shipment containers, loss of goods on transit due to theft or as a result of sea jettisoning practice, and delays in delivery.
Considering MS’s internal operations, the company equally has challenges of managing the same. MS has both bonded warehouses and stores with a very large workforce. The employees are a responsibility of MS company. And given that they work in a risky environment and conditions, MS is vulnerable to heavy expenses in form of compensation and life cover for its employees in case these risks become issues or materialize. There’s also need to keep good up-to-date records and developing an up-to-date risk register for proper insurance interventions.
In April 2021 as a result of COVID-19 lockdown measures across the world and disruption of port operations particularly in China, MS failed on its deliveries to its clients and as such the clients suffered considerable losses resulting from those delays. The clients are currently claiming compensation from MS management.
On another occasion one of MS’s biggest in-land stores was gutted by a very big fire resulting from a careless employee who was smoking on site. MS’s fire extinguishers had expired and the Police fire Brigade did not arrive in time to put out the fire, something that resulted into a very big loss to the Company. MS had insured its store against fire with Trust Insurance Ltd. However, Trust Insurance Ltd has declined to pay for the loss partly claiming that the fire resulted from MS’s negligence and also because MS failed to follow the right procedure while making the claim.
Q.1
a) What are the difference insurance policies that MS could have pursued in order to mitigate against supply-chain disruptions risks in its nature of business
b) Explore the various options that MS has to mitigate against supply-chain risks
to generate a solution
a solution
- MS Company is a Trading Company involved in Import and export trade. With various suppliers from Europe and Asia, MS has to keep track of the activities of its suppliers and the entire supply chain. Indeed, MS has to ensure that quality standards and other production standards like occupation safety, labour and human rights are upheld. The shipment process also has its own challenges ranging from damage due to poor handling in shipment containers, loss of goods on transit due to theft or as a result of sea jettisoning practice, and delays in delivery. Considering MS’s internal operations, the company equally has challenges of managing the same. MS has both bonded warehouses and stores with a very large workforce. The employees are a responsibility of MS company. And given that they work in a risky environment and conditions, MS is vulnerable to heavy expenses in form of compensation and life cover for its employees in case these risks become issues or materialize. There’s also need…arrow_forwardIndividuals involved in the packaging, transportation and shipment of infectious substances must receive training in three key areas. Name thesearrow_forwardInternational trade in services is covered by a set of rules published and controlled by international chamber of commerce. True False If false, give the good answer course: export of servicesarrow_forward
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- Global supply chains are exposed to similar risks as those faced by domestic supply chains and additional risks that are more global. The table provides a non-exhaustive list of the various types of risks faced by multinational companies. Natural disasters, geopolitical events, epidemics, or terrorist attacks can shut down production lines because of a lack of parts inventory. This is exactly what happened to some semiconductors during the recent COVID-19 impact on the global economy. In the case of semiconductors, they are located in Asia, creating a risk of geographic concentration. Semiconductor components are lightweight, modular, and high-value-added products. This combination lends itself to a heavily traded global value chain. But high barriers to entry also make the industry entrenched. While the United States designs many advanced chips, production is highly concentrated in South Korea and Taiwan. However, the United States, mainland China, and other regions also manufacture…arrow_forwardHow does this risk assessment compare to other potential suppliers (if there areothers)?arrow_forwardOver time, demand for a new product starts to grow in other advanced countries. True Falsearrow_forward
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