L6M3合格内容 & L6M3必殺問題集

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CIPS L6M3 認定試験の出題範囲：

トピック	出題範囲
トピック 1	Understand and apply methods to measure, improve and optimise supply chain performance: This section of the exam measures the skills of Logistics Directors and focuses on tools and methods to evaluate and enhance supply chain performance. It emphasizes the link between supply chain operations and corporate success, with particular attention to value creation, reporting, and demand alignment. The section also assesses the use of KPIs, benchmarking, technology, and systems integration for measuring and optimizing supply chain performance. Candidates are required to understand models for network optimization, risk management, and collaboration methods such as CPFR and BPR. It concludes with assessing tools that achieve strategic fit between supply chain design and business strategy, as well as identifying challenges like globalization, technological changes, and sustainability pressures in maintaining long-term alignment.
トピック 2	Understand and apply techniques to achieve effective strategic supply chain management: This section of the exam measures the skills of Procurement Specialists and covers collaborative and data-driven methods for managing supply chains. It explores the evolution from transactional approaches to collaborative frameworks like PADI and the use of shared services. Candidates are tested on stakeholder communication, resource planning, and managing change effectively. The section also includes performance measurement through KPIs, balanced scorecards, and surveys, as well as methods for developing skills, knowledge management, and continuous improvement within supply chain teams and supplier networks.
トピック 3	Understand and apply supply chain design tools and techniques. This section of the exam measures the skills of Operations Analysts and focuses on using supply chain design principles to achieve efficiency and responsiveness. It includes segmentation of customers and suppliers, management of product and service mixes, and tiered supply chain strategies. The section assesses understanding of network design, value chains, logistics, and reverse logistics. Candidates are expected to evaluate distribution systems, physical network configuration, and transportation management while comparing lean and agile supply chain models to improve demand planning, forecasting, and responsiveness using technology.
トピック 4	Understand how strategic supply chain management can support corporate business strategy: This section of the exam measures the skills of Supply Chain Managers and covers how strategic supply chain management aligns with corporate and business strategies. It examines the relationship between supply chain operations and corporate objectives, focusing on how supply chain decisions affect profitability, performance, and risk. Candidates are also evaluated on their ability to create competitive advantages through cost efficiency, outsourcing, and global sourcing strategies while assessing how changes in markets, technologies, and global conditions impact supply chain performance and sustainability.

>> L6M3合格内容 <<

CIPS L6M3試験の準備方法｜一番優秀なL6M3合格内容試験｜効率的なGlobal Strategic Supply Chain Management必殺問題集L6M3準備資料は、資格認定の優れた支援者となります。 一度だけ試験をクリアできるように、世界中で高品質な認定L6M3学習ガイドを提供することに集中しています。 L6M3信頼性の高い試験ブートキャンプ資料には、PDFバージョン、ソフトテストエンジン、APPテストエンジンの3つの形式が含まれているため、当社の製品はさまざまな受験者の習慣を満たし、実際のL6M3テストのほぼ完全な質問と回答をカバーします。
CIPS Global Strategic Supply Chain Management 認定 L6M3 試験問題 (Q18-Q23):質問 # 18
Joe is the Supply Chain Manager at XYZ Ltd - a multi-national toy manufacturing company with a global supply chain. He has been asked to provide a report to senior management about the performance of the supply chain. Discuss THREE challenges Joe may face in collecting and reporting data to senior management and describe the characteristics of good reporting Joe should have.
正解：
解説：
See the Explanation for complete answer.
Explanation:
In a global supply chain environment, accurate and timely data reporting is essential forperformance management, decision-making, and strategic planning.
For Joe, the Supply Chain Manager at XYZ Ltd, the task of preparing a performance report for senior management will involve collecting, analysing, and presenting data from multiple sources - including suppliers, manufacturing sites, logistics partners, and distribution networks.
However, the process presents several challenges related todata quality, system integration, and communication, which must be managed effectively to produce accurate and meaningful reports.
1. Challenges in Collecting and Reporting Supply Chain Data
(i) Data Quality and Consistency Issues
Description:
In a global organisation like XYZ Ltd, data may come from multiple sites and systems, each using different formats, units of measurement, or performance definitions.
This inconsistency can lead toerrors, duplication, and misinterpretationwhen compiling reports.
Example:
One regional supplier might record delivery times in calendar days, while another uses working days, causing reporting inconsistencies.
Impact:
* Inaccurate KPIs and misleading performance insights.
* Loss of credibility with senior management.
* Poor decision-making based on flawed data.
Possible Solutions:
* Implement aMaster Data Management (MDM)system to standardise data definitions across the company.
* Establishdata validation processesand governance policies to ensure accuracy.
* Use a centralised reporting platform to consolidate data automatically.
(ii) System Integration and Technological Complexity
Description:
XYZ Ltd may operate multiple ERP, procurement, and logistics systems across different countries or business units.
A lack of integration between these systems can make it difficult for Joe tocollect and consolidate data efficiently.
Example:
Production data may be stored in SAP, supplier information in Oracle, and logistics data in a third-party system - requiring manual consolidation.
Impact:
* Increased time and cost in preparing reports.
* Higher risk of data errors or delays.
* Limited real-time visibility of performance metrics.
Possible Solutions:
* Invest inintegrated ERP or data analytics platformsthat connect all supply chain functions.
* Usecloud-based dashboardsor business intelligence (BI) tools (e.g., Power BI, Tableau).
* Automate data extraction and reporting to reduce manual effort.
(iii) Lack of Alignment and Understanding Between Departments
Description:
Different departments or regions may haveconflicting performance prioritiesor interpret KPIs differently.
For example, procurement may focus on cost savings, while logistics prioritises on-time delivery, leading to difficulties in aligning metrics.
Example:
Procurement negotiates cheaper suppliers with longer lead times, negatively impacting logistics KPIs like customer service levels.
Impact:
* Misalignment of objectives and inconsistent data reporting.
* Difficulty communicating performance trends to senior management.
* Potential internal conflict over data interpretation.
Possible Solutions:
* Align departmental KPIs with overallcorporate objectivesusing frameworks such as theBalanced ScorecardorSCOR Model.
* Establish across-functional reporting committeeto agree on KPI definitions and performance standards.
* Providetrainingto ensure staff understand how data contributes to strategic goals.
2. Characteristics of Good Supply Chain Reporting
For Joe's report to be effective and useful for senior management decision-making, it should demonstrate the following key characteristics:
(i) Accuracy and Reliability
Data must be correct, verified, and consistent across all sources. Inaccurate reporting can lead to poor decisions, damaged credibility, and loss of stakeholder trust.
Joe should validate data through automated checks and ensure all calculations and metrics align with corporate definitions.
(ii) Clarity and Simplicity
Reports should beclear, concise, and easy to interpret.
Senior managers may not have time for complex data analysis, so visual aids such asgraphs, dashboards, and scorecardsshould be used to present key information at a glance.
Example:
Using traffic light indicators (red/amber/green) to show supply chain performance against targets.
(iii) Relevance and Strategic Focus
Reports should focus onstrategic KPIsthat align with business objectives - not just operational detail.
Joe should select metrics such as:
* On-Time, In-Full (OTIF) delivery.
* Inventory turnover ratio.
* Supplier performance.
* Supply chain cost as a percentage of sales.
* Carbon footprint (for sustainability goals).
Irrelevant or excessive data can overwhelm management and obscure key insights.
(iv) Timeliness and Consistency
Data must be up to date and provided on a consistent schedule.
Delayed reports reduce the ability of senior management to make timely decisions, especially in fast-moving industries like toy manufacturing.
Example:
Monthly KPI dashboards delivered within five working days of month-end.
(v) Objectivity and Transparency
Reporting should be factual, unbiased, and supported by evidence.
Joe must ensure that performance data is transparent and open to verification, avoiding manipulation to present favourable results.
(vi) Actionability
Good reporting should not only describe performance but alsoprovide insight and recommendationsfor improvement.
Each KPI should include an analysis of causes, trends, and potential corrective actions.
Example:
If OTIF delivery drops below target, Joe should explain the root cause (e.g., supplier delays) and propose mitigation measures (e.g., dual sourcing, improved forecasting).
3. How Joe Can Ensure Effective Data Collection and Reporting
To produce high-quality reports, Joe should:
* Establishstandardised KPI definitionsacross all supply chain functions.
* Useautomated and integrated systemsfor data collection and analysis.
* Engagecross-functional teamsto ensure buy-in and accuracy.
* Review and validate data before submission.
* Present findings visually, focusing oninsight, not just information.
By doing so, Joe's reporting will help senior managementmonitor performance, identify risks, and make informed strategic decisions.
4. Strategic Value of Effective Reporting
Accurate and insightful reporting enables:
* Performance visibilityacross the global supply chain.
* Evidence-based decision-makingfor resource allocation and risk management.
* Alignment of operational activitieswith corporate strategy.
* Continuous improvementthrough trend analysis and benchmarking.
For XYZ Ltd, this ensures the supply chain supports its key strategic goals - such as cost efficiency, customer service excellence, and sustainability.
5. Summary
In summary, Joe may face significant challenges in collecting and reporting supply chain data, includingdata quality issues, system integration difficulties, and misaligned KPIsacross departments.
To overcome these challenges, he must adopt a structured approach supported bydata governance, technology, and cross-functional collaboration.
A good supply chain report should beaccurate, clear, relevant, timely, objective, and actionable, providing senior management with the insights needed to drive performance improvement and strategic success across XYZ Ltd's global operations.

質問 # 19
How can a company implement strategic relationship management of both customers and suppliers to ensure success?
正解：
解説：
See the Explanation for complete answer.
Explanation:
Strategic Relationship Management (SRM)is the systematic process of developing and managing long- term, value-driven relationships with bothcustomersandsuppliersto achieve mutual benefit and strategic alignment.
In today's global and highly competitive environment, effective SRM allows an organisation to strengthen collaboration, enhance performance, drive innovation, and create sustainable competitive advantage across the entire value chain.
1. Meaning and Importance of Strategic Relationship Management
Strategic relationship management involves managingkey stakeholders- suppliers, customers, distributors, and partners - in a way that supports the organisation's strategic objectives.
It focuses on building trust, transparency, and collaboration rather than transactional, short-term interactions.
The purpose of SRM is to:
* Enhance communication and information sharing.
* Align objectives across the supply chain.
* Drive joint innovation and efficiency.
* Manage risks collaboratively.
* Strengthen overall supply chain resilience and responsiveness.
2. Implementation of Strategic Relationship Management with Suppliers
A company can implementstrategic supplier relationship management (SSRM)through the following key steps:
(i) Supplier Segmentation and Prioritisation
Identify which suppliers are strategic to the organisation's success - those that provide critical products, services, or capabilities.
Use tools such as theKraljic Matrixto classify suppliers into strategic, leverage, bottleneck, or routine categories, allowing differentiated relationship strategies.
(ii) Collaborative Planning and Goal Alignment
Establish joint objectives, performance metrics, and improvement plans with strategic suppliers. Align them with organisational goals such as cost efficiency, quality, innovation, and sustainability.
This creates mutual accountability and shared value rather than adversarial cost-focused relationships.
(iii) Communication and Information Sharing
Open and frequent communication enables transparency and trust. Digital integration through ERP or supplier portals ensures real-time visibility of demand, forecasts, and inventory, reducing uncertainty and enabling agile responses.
(iv) Performance Measurement and Continuous Improvement
ImplementSupplier Performance Scorecardsand Key Performance Indicators (KPIs) covering quality, delivery, cost, and innovation. Use performance reviews and joint improvement programmes to strengthen long-term capabilities.
(v) Relationship Governance and Trust Building
Establish clear governance structures - joint steering committees, service-level agreements, and escalation mechanisms - to manage the relationship professionally. Trust, ethical conduct, and reliability underpin sustainable partnerships.
(vi) Innovation and Co-Development
Collaborate with key suppliers in product design, process improvement, and sustainability initiatives. This enables shared innovation and faster time-to-market.
3. Implementation of Strategic Relationship Management with Customers
Strategic management of customer relationships (Customer Relationship Management - CRM) complements supplier SRM and focuses on long-term loyalty and value creation.
(i) Understanding Customer Needs and Segmentation
Segment customers based on profitability, potential, and strategic importance. Tailor service levels, logistics solutions, and engagement strategies to each segment.
For example, high-value retail clients may require dedicated account managers and customised fulfilment solutions.
(ii) Customer Collaboration and Forecasting
Collaborative demand planning and information sharing improve forecast accuracy and reduce bullwhip effects. Strong communication helps align production and inventory planning with customer requirements.
(iii) Service Excellence and Responsiveness
Delivering consistently high service levels - on-time delivery, accurate order fulfilment, and quality assurance - enhances trust and strengthens relationships.
Responsive customer service and efficient problem resolution support long-term loyalty.
(iv) Value Co-Creation
Work with key customers to co-develop new products, packaging, or sustainability solutions. This builds competitive advantage and shared innovation capability.
(v) Data-Driven CRM Systems
Use digital CRM tools to analyse customer data, preferences, and behaviours. This supports personalised marketing, targeted service, and predictive demand management.
4. Ensuring Success of Strategic Relationship Management
To ensure SRM delivers tangible success, the following enablers must be in place:
(i) Leadership Commitment and Strategic Alignment
Senior leadership must endorse SRM as a strategic priority. Supplier and customer relationship goals must align with overall business strategy - for example, supporting innovation or sustainability targets.
(ii) Skilled Relationship Managers
Appoint competent relationship managers with interpersonal, commercial, and negotiation skills to manage strategic accounts effectively. Relationship management is as much about people as it is about processes.
(iii) Integrated Technology Platforms
Implement integrated digital systems that connect supplier and customer data flows, improving visibility, forecasting, and decision-making.
(iv) Mutual Trust and Transparency
Trust is central to strategic relationships. Sharing sensitive data (e.g., forecasts, cost structures) can improve performance only where mutual confidence and integrity exist.
(v) Continuous Review and Adaptation
Relationship performance should be monitored regularly. Feedback, performance reviews, and joint improvement programmes ensure relationships evolve with changing business and market conditions.
5. Advantages of Strategic Relationship Management
* Improved Efficiency:Reduced transaction costs, smoother processes, and better coordination across the supply chain.
* Enhanced Innovation:Joint product or process development with key partners.
* Risk Reduction:Early warning of disruptions and collaborative risk mitigation strategies.
* Increased Customer Loyalty:Better service and responsiveness lead to higher retention.
* Sustainability and Ethical Value:Strong partnerships promote responsible sourcing and shared ESG objectives.
* Competitive Advantage:A cohesive supply chain is more agile, innovative, and cost-effective than fragmented competitors.
6. Challenges in Implementing SRM
While SRM brings significant benefits, it can be difficult to implement due to:
* Cultural differencesbetween organisations or countries.
* Power imbalances(e.g., dominant buyers or suppliers limiting cooperation).
* Lack of trust or transparency.
* Inconsistent goalsbetween partners (e.g., one focused on cost, the other on innovation).
Addressing these challenges requires strong governance, fairness, and open communication.
Summary
In conclusion,strategic relationship managementintegrates the management of bothsuppliersandcustomers into a unified, value-driven approach that supports organisational success.
By implementing structured segmentation, collaborative planning, joint performance reviews, and data-driven integration, companies can ensure alignment, efficiency, and innovation across the value chain.
When executed effectively, SRM transforms transactional interactions intostrategic partnerships, driving sustainable competitive advantage, customer satisfaction, and long-term profitability.

質問 # 20
XYZ is a toy retailer which has a single distribution centre in Southampton, on the south coast of the UK. Over the past 10 years XYZ has grown from a small business serving only Southampton, to selling toys all over the UK. The CEO of XYZ is considering redesigning the company's distribution network to more accurately reflect the growing sales in all parts of the UK, and is looking to open a new distribution centre this year.
Describe 3 factors that would impact how XYZ designs its distribution network. How should the company select a location for a new distribution centre?
正解：
解説：
See the Explanation for complete answer.
Explanation:
Adistribution network designdetermines how an organisation's goods move from suppliers and warehouses to customers in the most efficient, cost-effective, and responsive manner.
For a growing toy retailer likeXYZ, designing an optimal distribution network is astrategic decisionthat directly impacts cost, delivery speed, customer satisfaction, and long-term scalability.
As the company expands from a regional to a national presence, it must carefully evaluate multiplefactorsthat influence the structure, location, and capacity of its distribution facilities.
1. Factors Impacting the Design of XYZ's Distribution Network
(i) Customer Location and Service Level Requirements
The geographic spread of XYZ's customers and the expected delivery times will significantly influence the distribution network design.
* Rationale:The company's existing single distribution centre in Southampton is located far from customers in the Midlands, North of England, and Scotland. This increases delivery lead times and transport costs to those regions.
* Strategic Impact:To maintain competitive service levels (e.g., next-day delivery) and reduce transport distance, XYZ may need to establish additional regional centres closer to customer clusters.
* Implication:Customer density mapping and transport time modelling should guide the placement of the new DC to balance cost and service efficiency.
(ii) Transportation and Logistics Costs
Transport is often thelargest cost componentin distribution network design. The balance between warehousing costs and transportation efficiency is critical.
* Rationaleocating a new DC centrally - for example, in the Midlands - could reduce outbound transport costs to northern regions, even if it increases inbound freight slightly.
* Strategic Impact:The optimal number and location of DCs must minimise thetotal landed cost (transport, handling, and inventory combined), not just one component.
* Implication:XYZ should conduct anetwork optimisation studyto identify a location that reduces mileage and improves vehicle utilisation while maintaining customer service targets.
(iii) Infrastructure and Accessibility
Efficient movement of goods depends on the availability of reliable transport infrastructure, including road, rail, ports, and courier service hubs.
* Rationale:The new DC should be located nearmajor motorway intersections(e.g., M1, M6, M40) or near national carrier hubs for ease of access to all parts of the UK.
* Strategic Impact:Accessibility ensures timely deliveries, cost-effective distribution, and flexibility during peak periods such as Christmas.
* Implicationocations in the Midlands (such as Northamptonshire or Leicestershire) are common for national distribution because of their proximity to transport links and population centres.
2. Additional Influencing Factors (Supporting Considerations)
While the question specifies three factors, XYZ should also consider the following during its distribution network design:
* Demand Patterns and Seasonality:Toys experience high seasonal demand peaks. Network capacity and location must accommodate increased Christmas and holiday volumes.
* Labour Availability and Costs:The DC should be located where skilled warehouse labour is accessible and affordable.
* Technology and Automation:Future plans for automation (e.g., robotic picking or warehouse management systems) may influence site size, layout, and investment levels.
* Sustainability Goalsocating DCs to reduce carbon emissions and optimise transport routes supports ESG objectives.
* Risk and Resilienceiversifying distribution centres reduces the risk of total supply chain disruption due to fire, weather, or transport breakdowns.
3. Selecting a Location for the New Distribution Centre
Selecting the right location for a new distribution centre is amulti-criteria decision-making process involving quantitative and qualitative evaluation. XYZ should follow these key steps:
(i) Define Strategic Objectives
Clarify the company's goals for the new DC - e.g., improving delivery speed, reducing cost, supporting national growth, or enhancing customer experience.
These objectives will drive trade-offs between cost efficiency and service responsiveness.
(ii) Conduct Network Modelling and Analysis
Usenetwork optimisation modellingtools to analyse various scenarios and identify the most cost-effective configuration.
This should include:
* Mapping current customer demand by region.
* Evaluating transportation costs under different network layouts.
* Assessing total logistics cost vs. service level trade-offs.
Scenario analysis (e.g., two DCs vs. three DCs) can help determine the optimal solution.
(iii) Apply Location Selection Criteria
Evaluate potential sites againstquantitative and qualitative criteria, such as:
Quantitative Factors
Qualitative Factors
Transportation and distribution cost
Labour availability and skills
Proximity to suppliers/customers
Infrastructure and accessibility
Facility and land cost
Community support and local incentives
Taxation and business rates
Environmental and sustainability impact
Inventory and service levels
Expansion potential and risk exposure
Weighted scoring modelscan be used to objectively rank location options based on these factors.
(iv) Risk and Sustainability Assessment
Assess each potential location for environmental, geopolitical, and operational risks.
Consider environmental regulations, carbon footprint implications, and compliance with sustainability objectives such as energy efficiency and waste management.
(v) Final Decision and Implementation Planning
After selecting the optimal location, develop aphased implementation plancovering facility construction or leasing, systems integration, workforce recruitment, and supplier coordination to ensure seamless transition.
4. Strategic Impact on Corporate and Supply Chain Strategy
Redesigning the distribution network will have direct implications for XYZ's overall corporate strategy by:
* Enablingnational market penetrationand growth.
* Improvingcustomer service and satisfactionthrough faster delivery.
* Reducingtotal logistics costsand carbon emissions.
* Increasingsupply chain resiliencethrough decentralisation.
This change supports the company's strategic transition from aregional retailerto anational omnichannel brandcapable of serving all UK customers efficiently.
5. Summary
In summary, the design of XYZ's new distribution network will be influenced by key factors such as customer location and service levels,transportation costs, andinfrastructure accessibility.
When selecting a new distribution centre location, the company should apply adata-driven, multi-criteria approachcombining network optimisation modelling with qualitative evaluation to ensure the decision aligns with cost, service, and sustainability objectives.
By carefully planning its network design, XYZ Ltd can achievegreater operational efficiency, improved customer responsiveness, and long-term competitivenessin the UK toy retail market.

質問 # 21
What are the advantages and disadvantages to the fragmentation of the supply chain?
正解：
解説：
See the Explanation for complete answer.
Explanation:
Fragmentation of the supply chainrefers to the process where supply chain activities - such as sourcing, manufacturing, logistics, and distribution - aredispersed across multiple locations, suppliers, and partners
, often on a global scale.
Rather than being concentrated within one integrated organisation or region, fragmented supply chains rely on specialised external entitiesandgeographically dispersed networksto perform different functions.
While this fragmentation can offer strategic and operational benefits, it also introduces complexity, risk, and coordination challenges that must be carefully managed.
1. Meaning and Context of Supply Chain Fragmentation
Globalisation, technological development, and cost pressures have encouraged companies tooutsourceand offshoremany supply chain functions.
For example:
* Components may be produced in China, assembled in Vietnam, and distributed from the Netherlands.
* Logistics may be managed by third-party providers (3PLs).
* Customer service may be handled through separate regional call centres.
Thisfragmented modelallows firms to take advantage of global specialisation, lower costs, and proximity to markets - but at the expense of increased coordination and risk.
2. Advantages of Supply Chain Fragmentation
Fragmentation offers several strategic benefits that can improve competitiveness, flexibility, and access to new capabilities.
(i) Cost Efficiency and Access to Global Resources
Description:
Fragmentation allows organisations to source materials, labour, and services from regions where they are most cost-effective.
Example:
A clothing retailer may source fabric from India, manufacture garments in Bangladesh, and ship products to the UK - taking advantage of lower labour and production costs.
Advantages:
* Reduces overall production and logistics costs.
* Increases profit margins and price competitiveness.
* Enables firms to focus on core competencies (e.g., design, marketing).
(ii) Specialisation and Expertise
Description:
By outsourcing certain activities to specialised suppliers or service providers, companies gain access to expertise and advanced capabilitiesthat might be too costly to develop internally.
Example:
Outsourcing logistics to global 3PLs such as DHL or Maersk allows firms to benefit from advanced distribution networks, technology, and efficiency.
Advantages:
* Improves quality and service reliability.
* Enables innovation through access to specialised knowledge.
* Supports continuous improvement through competitive outsourcing markets.
(iii) Flexibility and Responsiveness to Market Changes
Description:
A fragmented supply chain enables companies to adapt quickly to changes in global demand, technology, or political conditions byshifting suppliers or production locations.
Example:
Electronics firms often shift production between Southeast Asian countries in response to tariff changes or labour shortages.
Advantages:
* Enhances agility and responsiveness to external shocks.
* Supports rapid scaling up or down based on market conditions.
* Diversifies supply base, reducing dependency on single sources.
(iv) Access to Global Markets and Customer Proximity
Description:
Operating through multiple global supply chain nodes allows firms to be closer to customers, reducing delivery times and improving service.
Example:
A multinational like Unilever locates distribution centres near regional markets to meet demand more effectively.
Advantages:
* Improves delivery speed and customer satisfaction.
* Reduces transportation time for regional markets.
* Supports localisation and customisation of products.
3. Disadvantages of Supply Chain Fragmentation
Despite its advantages, fragmentation can lead toincreased complexity, coordination challenges, and higher exposure to risk.
These disadvantages can undermine efficiency, visibility, and resilience if not managed effectively.
(i) Increased Complexity and Coordination Challenges
Description:
The more dispersed the supply chain, the more difficult it becomes to manage information, processes, and relationships.
Multiple suppliers, logistics providers, and regulations create coordination difficulties.
Example:
A global manufacturer sourcing components from five countries must coordinate lead times, customs clearance, and compliance with diverse standards.
Disadvantages:
* Increased administrative burden and management costs.
* Communication delays and data inconsistency.
* Risk of misalignment between supply chain partners.
(ii) Higher Supply Chain Risk and Vulnerability
Description:
Fragmented supply chains aremore exposed to disruptionscaused by geopolitical instability, transportation delays, or supplier failures.
With multiple cross-border links, a disruption in one part of the network can quickly cascade throughout the system.
Example:
The COVID-19 pandemic exposed vulnerabilities in global supply chains reliant on single regions for key materials (e.g., China for electronics).
Disadvantages:
* Supply interruptions and production delays.
* Increased cost of risk management and contingency planning.
* Reduced resilience and operational stability.
(iii) Loss of Control and Visibility
Description:
Fragmentation leads toreduced oversightover suppliers and processes, especially beyond Tier 1 suppliers.
This can make it difficult to monitor performance, quality, or ethical standards.
Example:
Fashion retailers such as Boohoo and Nike have faced reputational damage due to unethical labour practices in outsourced factories.
Disadvantages:
* Reduced transparency and traceability.
* Quality and compliance issues.
* Reputational risk due to supplier misconduct.
(iv) Environmental and Sustainability Impacts
Description:
Global fragmentation increases transport distances, emissions, and resource consumption.
It also complicates sustainability tracking across multiple suppliers.
Example:
Shipping goods between continents increases the carbon footprint and undermines sustainability targets.
Disadvantages:
* Increased carbon emissions and environmental impact.
* Difficulty ensuring sustainable and ethical practices throughout the chain.
* Pressure from regulators, consumers, and investors to demonstrate ESG compliance.
4. Evaluation - Balancing Global Fragmentation and Integration
The impact of fragmentation depends on how effectively it ismanaged and integrated.
Modern supply chains increasingly adoptdigital integration technologies(e.g., ERP, blockchain, IoT) to mitigate fragmentation risks by improving visibility and coordination.
Key Strategies to Manage Fragmentation:
* Supply chain visibility toolsfor tracking goods and performance in real time.
* Collaborative planning and data sharingwith key suppliers.
* Regionalisation or "nearshoring"to balance global reach with risk reduction.
* Sustainability monitoring systemsto ensure compliance and transparency.
Many organisations are now moving toward a"glocal" (global + local)strategy - maintaining global reach while building local responsiveness and control.
5. Summary of Advantages and Disadvantages
Advantages
Disadvantages
Lower production and sourcing costs
Increased coordination and communication complexity
Access to global expertise and technology
Higher exposure to disruption and geopolitical risks
Greater flexibility and scalability
Reduced control and visibility across the chain
Proximity to markets and customers
Environmental and ethical compliance challenges
6. Summary
In summary,fragmentation of the supply chainenables organisations to leverageglobal efficiency, specialisation, and market access, but it also introducescomplexity, risk, and reduced control.
To gain the advantages of fragmentation while minimising its disadvantages, organisations must invest in:
* Digital integrationfor visibility and coordination,
* Robust risk managementand supplier governance, and
* Sustainable sourcingpractices to maintain ethical and environmental responsibility.
When managed strategically, fragmentation can be transformed from a source of vulnerability into a source of competitive advantage, combining global efficiency with operational resilience.

質問 # 22
XYZ Ltd is a large sporting retailer selling items such as clothing, bikes and sports equipment. They have stores in the UK and France. Helen is the CEO and is looking at the product and service mix on offer at the company in order to plan for the future. What is this and how should Helen approach an analysis of the product and service mix offered by the company? How will this affect the way she decides the company's corporate strategy?
正解：
解説：
See the Explanation for complete answer.
Explanation:
Theproduct and service mixrefers to therange, diversity, and balance of products and servicesthat an organisation offers to its customers. For a large retailer like XYZ Ltd, it includes not only the physical goods
- such as sports clothing, bicycles, and equipment - but also associated services such as repairs, maintenance, warranties, online ordering, and customer support.
Analysing the product and service mix helps management understand which offerings contribute most to profitability, growth, and customer satisfaction, and which may need improvement, repositioning, or withdrawal.
This analysis forms the foundation for shaping the organisation'scorporate strategy, as it reveals where the company's strengths, risks, and opportunities lie across different product and service categories.
1. Understanding the Product and Service Mix
Theproduct mixrepresents the full assortment of products the company offers, defined by four key dimensions:
* Width:The number of product lines (e.g., clothing, bikes, footwear, accessories).
* Length:The total number of products within each line (e.g., mountain bikes, road bikes, e-bikes).
* Depth:The variety within a product line (e.g., different brands, sizes, colours, price ranges).
* Consistency:How closely related the product lines are in terms of use, production, and target market.
Theservice mixincludes any intangible offerings that support or enhance the product experience - such as after-sales service, product customization, online chat support, or home delivery. For XYZ Ltd, this may include bicycle repair workshops, fitness advice, and loyalty programmes.
A balanced mix allows the company to meet diverse customer needs while maintaining profitability and brand consistency.
2. How Helen Should Approach an Analysis of the Product and Service Mix Helen, as CEO, should take a structured and data-driven approach to analysing XYZ Ltd's current product and service portfolio. The following analytical tools and methods are useful:
(i) Portfolio Analysis - The BCG Matrix
TheBoston Consulting Group (BCG) Matrixis a widely used tool that classifies products or services according tomarket growth rateandmarket share, helping to guide resource allocation.
Category
Description
Example for XYZ Ltd
Strategic Action
Stars
High growth, high market share
E-bikes, performance apparel
Invest to sustain leadership
Cash Cows
Low growth, high market share
Traditional bicycles, core fitness gear
Maintain efficiency, generate profit
Question Marks
High growth, low market share
Smart fitness wearables
Evaluate potential; invest selectively
Dogs
Low growth, low market share
Outdated product lines
Rationalise or discontinue
This analysis helps Helen determine which product lines to grow, maintain, or phase out.
(ii) Product Life Cycle (PLC) Analysis
Each product or service progresses throughintroduction, growth, maturity, and declinestages.
Understanding where each offering sits on the life cycle helps in forecasting demand, managing inventory, and planning innovation or replacement.
* For instance,e-bikesmay be in thegrowthphase, requiring investment in supply and marketing.
* Traditional sports equipmentmight be inmaturity, needing efficiency and differentiation.
* Older models of clothing linesmay be indecline, requiring markdowns or withdrawal.
(iii) Profitability and Margin Analysis
Helen should examine each product and service category'ssales revenue, cost structure, and contribution margin.
High-turnover but low-margin items (e.g., sports accessories) may support traffic but reduce profitability, whereas premium services (e.g., bike repairs or loyalty memberships) could generate higher margins and customer retention.
(iv) Customer and Market Segmentation Analysis
Understanding which customer groups purchase which products or services - for example,casual consumers
,serious athletes, orparents buying children's equipment- enables more targeted offerings and efficient marketing spend.
This analysis may differ between the UK and French markets due to cultural and demographic variations.
(v) Competitive Benchmarking
Helen should also compare XYZ Ltd's product and service range against leading competitors to identify differentiation opportunities, pricing gaps, or innovation potential.
3. How the Product and Service Mix Analysis Affects Corporate Strategy
The findings from this analysis will directly influence XYZ Ltd'scorporate and business strategyin several key ways:
(i) Strategic Focus and Resource Allocation
The company can decide which product lines or services are strategic priorities - for example, focusing investment on high-growth categories such as e-bikes and reducing emphasis on low-margin items. This ensures resources are deployed where they generate the greatest return.
(ii) Market Positioning and Differentiation
The analysis helps define how XYZ Ltd positions itself in the market - e.g., as a premium sports retailer, an affordable brand, or an eco-conscious supplier. The service mix (like repair workshops or sustainable sourcing) can reinforce that brand image.
(iii) Innovation and Product Development Strategy
Insights from the mix analysis can guide R&D or supplier collaboration efforts - for instance, introducing new eco-friendly clothing or smart fitness technology.
(iv) Supply Chain Strategy Alignment
Changes to the product mix influence sourcing, logistics, and inventory strategies. For instance, increasing e- bike offerings may require partnerships with new component suppliers, while expanding services might need new in-store capabilities or digital platforms.
(v) Geographic Strategy and Market Expansion
Comparing performance between the UK and France may reveal opportunities for regional adaptation or global standardisation, influencing whether the corporate strategy adopts alocalisationorglobal integration approach.
4. Strategic Implications
Helen's analysis of the product and service mix will form a key input intocorporate strategy formulation, as it identifies where the company's future growth, profitability, and differentiation lie.
It will determine:
* Which markets to expand or exit.
* How to balance products versus services.
* Where to invest in innovation or partnerships.
* How to align the company's supply chain and marketing functions with strategic priorities.
5. Summary
In summary, theproduct and service mixrepresents the total range of offerings that define XYZ Ltd's value proposition to its customers.
By systematically analysing this mix - using tools such as theBCG Matrix,Product Life Cycle analysis, andprofitability evaluation- Helen can identify which areas to grow, sustain, or divest.
This analysis directly shapes the company'scorporate strategy, guiding decisions on investment, market positioning, innovation, and supply chain alignment.
A well-balanced and strategically managed product and service mix ensures that XYZ Ltd remains competitive, customer-focused, and financially robustin both its domestic and international markets.

質問 # 23
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