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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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- The shutdowns and barriers to international shipping have stressed suppliers, supply lines, and procurement departments. Find at least 3 examples (citations required) of problems and how the companies involved approached it. Evaluate how, or if, future risk analyses should change or how, if, supply strategies should change in the examples you usearrow_forwardYou are a Supply Chain Procurement Manager working for a large manufacturing company located in North America. Recently, you have found out that one of your suppliers is in contravention of your company’s standards of engagement because they are employing persons aged 14 to 16 years of age. Whilst you would prefer to end the business relationship with this supplier immediately, you have to weigh up the ethical issues with the commercial considerations including; the low cost of the supplies and the history of reliability of delivery from this supplier. Required: Based on your knowledge of corporate social responsibility, as well as supply chain logistics, what is the best course of action in this situation? Discuss.arrow_forward“There are known unknowns, knowable unknowns and unknowable unknowns”(Donald Rumsfeld). How would supply chain managers deal with the prospect of risk and vulnerability within global supply chains?arrow_forward
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