Unit/s assessed BSBPRC504 Manage a supply chain
Unit/s assessed BSBPRC504 Manage a supply chain
Assessment name BSBPRC504 Assessment
Type of AssessmentThis summative assessment will enable your assessor to make a judgement of competency based on the submission of your completed assessments against the requirements of the unit/s of competency in this module.
Benchmark
The Assessment Benchmark developed for each unit of competency is the evidence criteria used to judge the quality of performance (i.e., the assessment decision-making rules).Assessors use these benchmarks to make judgements on whether competency has been achieved and to determine if you have performed to the standard expected to meet the unit requirements.
Reasonable Adjustment
Where appropriate Monarch Institute will allow flexibility in the way in which each unit is assessed based on the needs of an individual.
Assessment Coding
Assessment of this course is established on competency-based principles:
S = SatisfactoryNS = Not Satisfactory
If you fail to perform satisfactorily for the assessment in the prescribed way you may be assessed as Not Satisfactory. You are required to be assessed as Satisfactory in all assessments for each unit of competency.
Re-assessment
Your assessment can be submitted after you have reviewed the learning materials and practiced enough to feel confident in your resubmission. You have two weeks from your last submission feedback to resubmit. You are re-assessed in only the areas where your assessor has indicated you were initially assessed as NS. It is at the assessors discretion to re-assess the entire assessment should an overall understanding not be demonstrated. When you are re-assessed as satisfactory after re-submission you will achieve competency for this assessment.Declaration of Understanding and Authenticity
I acknowledge the assessment process has been explained and agree that I am ready to undertake assessment. I am aware of where to find the assessors feedback for the assessment. I am aware of the appeals process, should the need arise. I also understand I must be assessed as satisfactory in all parts of the assessment/s to gain an overall competent result for the unit/s of competency. If I am found to be NS after a second attempt, it is at the assessrs discretion whether I may be permitted one final attempt. I am aware that a not competent final outcome means I may incur fees for re-enrolment in the unit/s.
I certify that the attached material is my original work. No other persons work has been used without due acknowledgement. I understand that the work submitted may be reproduced and/or communicated for the purpose of detecting plagiarism. I understand a person found responsible for academic misconduct will be subject to disciplinary action (refer to Student Information Handbook).
*I understand that by typing my name or inserting a digital signature into this box that I agree and am bound by the above student declaration.
Student Name*: Submission Date^: Please make sure you use the same name that is in your enrolment documentation, including your surname.
^If this is a resubmission, you must use your resubmission date. For any re-submission, please ensure responses are in a different coloured font
Submission instructions:
Complete the Declaration of Understanding and Authenticity (above).
Once you have completed all parts of this Assessment, login to the Monarch Learning Management System (LMS) to submit your assessment.
In the LMS, click on the link to Submit [assessment name] in your course and upload your assessment files. Click save and then click submit assignment.
Please be sure to click continue after clicking submit assignment.
Written Assessment
Resources required
From the LMS: Other:
eBook
BSBPRC504 Table for Assessment Q9c Internet-based research
Scenario
TIGER DRINKS
This scenario involves a supply chain where the key parties are all businesses (B2B) and does not directly involve end consumers.
You have recently been employed as the Logistics Manager at a growing company called TIGER DRINKS (Tiger). Tiger is headquartered in Victoria and sells imported alcoholic and non-alcoholic drinks wholesale throughout Australia.
Tigers Supply Chain
Company warehouses in Melbourne (Laverton), Sydney (Chullora) and Brisbane (Rocklea)
Main Suppliers:
Alcoholic drinks - EU Products (France) pallets in containers
Alcoholic drinks Asia Specialties (Singapore) pallets in containers
Alcoholic drinks USA Hospitality Supplies (Los Angeles) pallets in containers
Warehouse leases Charterhall & Goodman Group (Australia)
Warehouse MHE Hyster via Adaptalift Group (Australia)
Warehouse racking Spaceracks (Australia)
Agency Labour Superior People
Transport lead contractor in each state
Electricity Origin Energy
Office & Warehouse Supplies, Kitchen & Stationery Officeworks
Imported stock transported via Port of Melbourne in containers.
Customers are all businesses and are a mix of retail stores and hospitality businesses using Tigers websites for all ordering, returns, complaints & feedback. Tiger has a related website for online sales: HYPERLINK "http://www.yourtigerdrinks.com.au"www.yourtigerdrinks.com.au
Tigers outbound products are all packaged, palletised, and shrink wrapped, with its customers taking full pallets, except occasionally in promotion periods.
At the end of Q1, Tiger has achieved some of its objectives and is focusing on those that are below targets, including:
Costs down by 4.1%, 8.5% reduction in corrective actions, 11 of 48 procedures have been updated (48 is the annual target), DIFOT 98.7% due to a vehicle breakdown, and the Pull system & JIT inventory have not been initiated, due to supplier delays.
Management Personnel (extract)
CEO Bob Cunningman (your manager)
Senior Managers:
Marketing Manager - Sharon Mayer
Procurement Manager Don Trumpet
CFO Ka Chung
HR Manager Dores Revolve
Legal Counsel Abel Corrs
Logistics Manager you
Victorian DC Manager Kerry Wilmar
NSW DC Manager Simon Livingston
Identify organisation objectives and the strategies to achieve them
Summarise objectives and strategies
Refer to the information in the Scenario and in the Strategic Plan in Appendix A and summarise Tigers strategies and objectives which apply to its supply chain management.
Comment on possible inconsistencies
Comment on whether you think there are any possible inconsistencies in the strategies and suggest how the goals could be better described to clarify them and minimise them working against each other in implementation.
2. REVIEW PERFORMANCE AGAINST SUPPLY CHAIN STRATEGIES
Your eBook contains a 4 step review process in section 1.2, which is summarised below for you:
1) REVIEW THE PLAN - check that the supply chain strategy is still aligned with organisational direction and other strategies and valid
2) REVIEW PERFORMANCE - internal and external key performance indicators - KPIs are usually used in determining if targets have been met or not. Determine if KPI or other performance measures have been met.
3) INVESTIGATE the causes behind any KPIs or other performance measures not met.
4) COMMUNICATE & ACT- Decide if the strategy needs to change and have new sub-goals or if the current strategy is retained and have new actions developed to address the shortfall. Communicate these with your review to appropriate management.
You have already completed step 1 in the previous task.
a) Use the information in the Scenario and Appendix A to complete the table below. This table will demonstrate the quarterly performance (Jan, Feb and March). You will need to complete the tables marked as Actual Performance, Variation in % and the Comment column (Complete the green boxes in the table). When calculating the variance, please ensure that you calculate the quarterly results against the annual target, shown in the table in the Annual Target column.
Example: A target has been set to sell 20 units per year to a customer. The Quarterly target is 20/4 = 5.
Strategy Activity Performance Measure
(Target Performance) Actual Performance Variance Comment
3 Operations achieve performance targets for warehousing & distribution & improve operating efficiencies through systems, procedures and behaviours Project to implement Pull supply chain systems, including JIT inventory management Track project goals monthly, quarterly and annually Not started Review operational procedures annually 25% of procedures reviewed and updated quarterly Improve compliance to behaviours standards 10% reduction in corrective action reports by year-end DIFOT 99% 4 Financial decrease costs every year and grow shareholder value Decrease operating costs by 5% per year Decrease operating costs by 5% per year a
b) Using your response to previous task 1 b), complete step 4 of the review process for Tigers supply chain strategies by sending an email to appropriate staff communicating about your review and any changes.
TIP: Sending emails - A template has been provided below for you to complete.
The email will be sent when you upload your completed assessment to the LMS.
TIP: Sending emails - A template has been provided below for you to complete.
The email will be sent when you upload your completed assessment to the LMS.
Send
To: Subject:
3. Design and implement a supply chain strategy that adds value, increases effectiveness and achieves organisational objectives
a) In the table below, develop a draft activity that will meet the operational objective. Make sure you include details for implementing your activity by completing the columns titled Responsibility, Timing and Performance Measure (complete the green boxes in the table).
Refer to the Strategic Plan in Appendix A for examples
Operational Objective Activity Responsibility Timing Performance Measures
Strategic Goal 6: Innovation develop and implement innovation within Tiger Drinks and with its suppliers
Develop and implement innovation within Tiger Drinks b). Gain commitment of stakeholders role play
This is a video assessment activity.
This task is designed to assess your ability to do:
Greet the CEO and HR Manager appropriately and professionally;
Describe the initiative, your experience and the reasons why management endorsements are important;
Participate in verbal discussion using language, tone and pace appropriate to the audience;
Two way real time communication with stakeholders to gain their commitment.
Scenario Roles:
This role play has 3 roles:
You: Logistics Manager
Bob, Tigers CEO (your manager)
Dores, Tigers HR Manager (your colleague)
Scenario:
You have drafted an activity involving implementing Continuous Improvement (CI) at Tiger to be added to it Strategic Plan. You have arranged a meeting with your manager, Bob Cunningman and a colleague, Dores Revolve, the HR Manager, as you know they will be two key stakeholders to gain support from if this initiative is to be successful.
Role players may improvise as long as the key points are covered. Scripts are a guide for you, with key messages underlined. For the other role players, it is preferable they use the words shown or equivalent.
Bob and Dores arrive at your office a few minutes after the arranged meeting time (normal)
You:
[You greet them both and ask them to sit at your meeting table.]
Bob:
Hi (You), I have to make this quick, but I am keen to learn what you have planned.
Dores:
Hi (You)
You:
[You thank them for coming and say you can make it quick. You hand them each a copy of the draft and ask them to read it and that you will then talk about it.
After about 10 seconds you tell them about your initiative.]
Bob:
What is your experience in implementing CI?
You:
[You reply key points to make in your own words:
you have experience at your previous employer and that you played an active part in the implementation.
its really important to have visible and strong senior leadership endorsing the initiative for it to be successful, otherwise theres a strong risk of a few quick wins and then it may stall.]
Dores:
Were talking about culture change here, arent we? Something that will take time and need to be led from the top?
You:
[You reply key points to make in your own words:
agree and tell them that the real benefits flow when it is part of the culture rather than being a management flavour of the month.
talk about wanting to pilot it in one team to start and asking both of them to attend the launch meeting as a show of support.]
Bob:
OK, I am sold and happy to endorse and support this. Brief me again when you have a plan for the pilot. Time for me to go. Bye.
You: [You thank Bob]
Dores:
Thanks for involving me. Ill support this initiative. Let me know more when you are ready.
You: [You thank Dores and she leaves.]
Your role play activity is now complete.
General instructions:
Students must perform with at least 1 other person. Using just 1 other person to play multiple roles is completely OK. Alternatively, you can use as many other persons as there are roles.
The other person(s) can play multiple roles except for the role required to be played by the student.
There is no requirement for the other person(s) to be visible in the video, so if your partner(s) would prefer not to be visible, thats OK.
The student must be visible throughout the video.
All persons must be audible throughout the recording.
Using a camera phone is often a quick and easy way to record the video.
For the role play, we suggest the following:
Have a quiet, private space where you can effectively record the video. This could be your spare room at home, an office at your workplace, or even a study room at your local library.
Be appropriately dressed.
When youre conducting the role play, dont forget about:
Using appropriate body language and gestures, including eye contact
Speaking professionally, and at the appropriate pace
Using plain English
Listening without interrupting
Respond appropriately to what is said.
Video recording to be maximum 5 minutes long.
IMPORTANT: All observation points must be marked satisfactory in order for the student to receive an overall result of satisfactory.
Please note that you will be assessed on the following criteria:
Skill, behaviour or task Satisfactory Not satisfactory Comments
Student greets the CEO and HR Manager appropriately and professionally.
This may vary depending on age, gender and culture of role play participants. Student must briefly describe the initiative and their experience and the reasons why management endorsements are important. Student must use active listening skills and if appropriate questioning techniques and seek clarification. Student video shows two-way real-time stakeholder communication gaining support and commitment. Student participates in verbal discussion using language, tone and pace appropriate to the audience. Student is visible and audible throughout the video; participant/s are audible throughout the video. c) Following the meeting with your key stakeholders, write an email to thank them for attending. In your email briefly summarise your changes to the Strategic Plan (activity 3a), the outcomes of the meeting and any agreement that was reached (activity 3b).
TIP: Sending emails - A template has been provided below for you to complete.
The email will be sent when you upload your completed assessment to the LMS.
TIP: Sending emails - A template has been provided below for you to complete.
The email will be sent when you upload your completed assessment to the LMS.
Send
To: Subject:
4. Assign responsibility to monitor supply chain strategy to relevant personnel & allocate supply chain tasks to self and others
Scenario Update
Tiger is strategically introducing a new range of beer to expand their range starting with Mexican beer including XX, Victoria and Tecate (not Corona) and with them, specially designed end-of-aisle display stands are being distributed for the promotional campaign.
Image 1 Dos Equiss XX beer end-of-aisle display stand
Source: HYPERLINK "https://www.trendhunter.com/trends/beer-retail-display"Compelling Beer Stands : Beer Retail Display (trendhunter.com)
Bob has asked you to project manage the supply chain with Sharon supporting.
To execute this project within your supply chain operation, you will require the cooperation of a number of people in related areas of the business. These people will have varying levels of responsibility to execute their part of the project. You need to identify these people by role and their task responsibility in monitoring and performing the supply chain strategy.
Develop a table using the format provided summarising who you would assign key responsibilities to for monitoring and performing the Strategy activities. Include allocations of tasks to yourself.
Table Key:
1st Column lists row number
2nd Column lists roles of the stakeholders
3rd Column is where you need to type the matching task row number for each role
4th Column lists the jumbled-up task responsibilities to be monitored by the roles listed in the 2nd column.
Match the task responsibility in the 4th column to the positions listed in 2nd column by taking the row number of the correct task and copying it into the 3rd column for each of the roles listed in the 2nd column. Change the format of each of these row numbers to the same format of their matching task by using Format Painter.
(How to use Format Painter: Select the text that you want to copy the format from by highlighting it, click on Format Painter from the top menu and then highlight the text you want to copy the format onto, and MS Word will complete the format change.)
Example of a task assigning, showing what a completed response looks like, but note this shows an incorrect response, so do not use this assigning in your submission:
Row #RoleTask Row#?Jumbled Tasks
1Logistics Manager61 Manages Victorian inventory
Complete your responses below in the table below in the 3rd column.
Mexican Project - Assignment of Roles and Activities:
Row #RoleTask Row#?Jumbled Tasks
1Logistics Manager1 Manages Victorian inventory
2Victorian DC Manager2 Manages the Purchasing function, due diligence, contract formation, Payment function
3Purchasing Officer3 Manages the project function in terms of supply chain and overall co-ordination & communication
4Supplier (Promo Kit) of Display Stands4 Manages the financial process and project Budget
5Marketing Manager5 Purchases the Display Stands from Promo Kit in accordance with the contract and company policy
6Procurement Manager6 Supplies Display Stands to Tiger
7Operational staff7 Arrange delivery of the Display Stands and promo beer
8Chief Financial Officer (CFO)8 Approve Display stand design and assist project manager
Allocate these responsibilities by emailing the personnel in one group email, using the template below
TIP: Sending emails - A template has been provided below for you to complete.
The email will be sent when you upload your completed assessment to the LMS.
TIP: Sending emails - A template has been provided below for you to complete.
The email will be sent when you upload your completed assessment to the LMS.
Send
To:
Subject:
List some of the advantages and disadvantages of emailing as a group email, rather than send them individual messages. Minimum 50 words.
5. Obtain information on the specifications of supplies
Scenario Update
Supplier Promo Kit emails you the following specifications summary for the new retail display stands:
XX Beer Display Stand
Weight: 42kg
Length: 1160mm
Width: 1200mm
Height-packed: 450mm
Height-setup: 1800mm
Materials: laminated MDF panels (16)
Supply pack: 2 display stands per pack shrink wrapped (950mm high)
You see the email specs and immediately notice that the width of 1200mm is wider than your pallets (1165mm), meaning the stock will take up 2 pallet spaces in a truck, instead of 1 space, and increase damage risks.
Send an email to Promo Kits manager, Karl Grolsch, asking him a question and request for him to change something, pointing out at least two risks if nothing changes. Copy your email to appropriate staff.
TIP: Sending emails - A template has been provided below for you to complete.
The email will be sent when you upload your completed assessment to the LMS.
TIP: Sending emails - A template has been provided below for you to complete.
The email will be sent when you upload your completed assessment to the LMS.
Send
To: Cc: Subject:
6. Clarify the aims, objectives and plans of suppliers against organisational policies and procedures
Aims and objectives of Suppliers
Scenario Update
You get a call from your racking supplier, Spaceracks, where the Sales Manager, Jude Law, says times are tough for them right now and that he would appreciate having a word with you in private. You have found him trustworthy before, so you agree and meet in your office later that day.
Jude looks agitated and talks quickly, saying this is off the record, please, and he would really appreciate your support with the order for racking being brought forward to now to help with cashflow and that if you were able to do this to at least $40,000 extra value, then he has a mate who could help you with a home cinema installation. He reckons it could be worth at least $25k for you. Would that be of interest you? If not, then he entirely understands and nothing more need to be said or done about it.
You did not expect this.
Read the Tiger ABC Policy and Procedures extract in Appendix B and then develop your response to this task.
Describe the actions you would take.
List the sections of the ABC Policy & Procedure which you think have been breached and what actions TD could take.
Plans of Suppliers
Scenario Update
EU Products, your European drinks supplier: Sales Manager, Claude Tyran, sends an email to Procurement Manager, Don ccing you, stating that they are changing terms with all their customers down to 30 days payment in 2 months time. Don is away this week playing golf.
You know that Tiger is a small customer for them. You also know that Tigers policy on payments includes standard terms of 45 days payment of invoices and that this is in the contract with EU Products, due to expire in 95 days. Tigers procedures include exceptions to this that can only be agreed to after getting approval in writing from the CFO. Tiger has been a good customer, paying on time and growing order volumes.
Send an email to the supplier to clarify these planned terms change and propose an alternative process, copying in appropriate staff.
TIP: Sending emails - A template has been provided below for you to complete.
The email will be sent when you upload your completed assessment to the LMS.
TIP: Sending emails - A template has been provided below for you to complete.
The email will be sent when you upload your completed assessment to the LMS.
Send
To: Subject:
7. Monitor, support and control the achievement of supply chain objectives against cost and timescales
Scenario Update
One of the Supply Chain goals is to reduce warehouse costs by 5% within the financial year. You asked your new Victorian Assistant DC manager, Will, to investigate possible savings. He contacts you and says that Tigers supplier for Pallet Shrink Wrap machines and consumables, Pack Equip Direct, has told him that there is a new unit available that meets your needs better. Will sends you an email with his calculations of the savings in time and money.
To: (you)
From: Will Simmonds
Subject: Pallet Machine estimated savings
(You),
Heres my summary of the costs and times savings from using the new pallet wrap machine:
Unit Current New Benefits
Pallets per hour 6090higher capacity at 2t than current 1.5t so can take our heaviest
Stretch Film - 400m 25U $94$63.80$16.20/roll or estimated $1,812 savings at our DC per year
Cost $10,000$9000Purchase cost savings of $1,000
Please review and comment.
regards
Assistant DC Manager
Will Simmonds
Monitor, support and control the achievement of objectives costs and timescales
What comments and questions would you ask Will? What has he overlooked and/or missed doing?
Send a positive and supportive email back to Will with your comments, questions and instructions.
TIP: Sending emails - A template has been provided below for you to complete.
The email will be sent when you upload your completed assessment to the LMS.
TIP: Sending emails - A template has been provided below for you to complete.
The email will be sent when you upload your completed assessment to the LMS.
Send
To: Will Simmonds
Subject: RE: Pallet Machine estimated savings
8. Apply portfolio analysis techniques to assess relationships in supply chains in accordance with the supply chain management strategies
Scenario Update
CEO Bob sends you a table and asks you to assess the relationships with the 4 listed suppliers using Portfolio Analysis techniques and to then list some actions that you think should be taken to manage and maintain good relationships with suppliers.
Supplier $ Spend Service/Goods
Asia Specialties <$5million Asian drinks supplier, multi-year contract
Officeworks $40k Stationary & Kitchen supplies
Spaceracks <$30k / <$100k Racking repair / supply
Toll <$1million Transport services nationally, multi-year contract
Relationship information:
Asia Specialties very good relationship with Marketing Manager but their Sales Manager is moving on and replacement unknown
Officeworks no relationship, transactional online account only, have been some stockouts recently, causing the office to buy locally at Coles
Toll overall good relationship, but always some issues
Spaceracks good relationship, but expensive services for repair to damaged racking
a) Review the eBook section 3.1 on Portfolio Analysis for Supplier Management.
Complete the table below to help you analyse the situation. Based on your analysis list your recommended actions for each supplier. SupplierQuadrantRecommended Actions
b) Tigers policy regarding contracting out of work via tendering states it can only be used where these 3 conditions are met:
the value of work is above $50,000 per year, and
there is a competitive market of more than 3 providers of the goods or services, and
there is no existing contract in place
Comment on whether you think tendering would be an appropriate action for any of the supplies if Tiger decided to change supplier and state your reasons.
9. Evaluate financial, technical and performance data of suppliers in accordance with supply chain strategies
Scenario Update
CFO Ka has asked for your support to evaluate the financial data for 2 key suppliers in order to set reference average costs for the reporting benchmark costs. These average costs may be displayed next to actual weekly data, to highlight any results markedly above or below and encourage investigation of anomalies by his team.
Financial - evaluate the financial data of 2 suppliers
Using the extract of Finance weekly reports is shown in the table below, calculate the average cost and then the 90% average and 110% average and enter the values into the table in the highlighted cells.
Comment on whether you think that the average will be a representative and useful measure for Finance to use in reporting, i.e. is the range in weekly results over the 8 weeks shown narrow enough for averaging?
ii)
If the range is too wide for averaging to be used, can you suggest another way to better highlight the outlier results (complete the green cells)?
iii)
Supplier Weekly Average Delivered Cost per bottle 90% of 110% of
1 2 3 4 5 6 7 8 Average Ave Ave
EU Products $5.21 $7.01 $4.66 $6.83 $5.99 $6.35 $5.32 $5.77 Asia Specialties $4.44 $4.81 $4.39 $4.68 $4.49 $5.00 $4.54 $4.27 TIP Use Excel to do this task by copying the table above into MS Excel and then using formulas to do the table data for you.
Technical - evaluate the technical data of suppliersScenario Update
Don, the Procurement Manager, forwards an email from EU Products which states that they are considering changing to use Europallets for all their products and that they will arrange for their empty pallets to be collected. Don asks for your comment.
Prepare information to give to Don by evaluating the technical data involved here.
Use the internet to find out the following:
What size are Europallets (LxW)?
What size are Australian pallets (LxW)?
Then, using your own companys knowledge or the internet, respond to the following questions:
What operational issues and activities would this change involve for Tiger?
Why are Australian pallets the size they are?
i)
ii)
iii)
iv)
Evaluate the performance of the 3 drinks suppliers
Using the file from the LMS called BSBPRC504 Table for Assessment Q9C evaluate the suppliers by responding to the following 3 questions:
i) Create a table showing the suppliers ratings for delivery performance, price competitiveness, Product and Industry Knowledge. Give each supplier an overall quality rating from 1 to 3.
Supplier Delivery Performance Price Competitiveness Product/Industry Knowledge Overall Assessment
Which supplier is best overall and why?
c) i)
Which supplier is worst overall and why?
c) ii)
10. Identify opportunities to adjust supply chain strategies to respond to the changing needs of customers, supply chain and organisational objectives
Scenario Update
One of Tigers biggest hospitality customers, AusHosp Group, has contacted Sharon, the Marketing Manager, and stated that their reporting will include Sustainability in the next years annual reporting, including what parts their suppliers are playing. Sharon says this initiative is part of an increasing trend in the industry. She says that the use of glass bottles and cardboard packaging for most of Tigers drinks presents an opportunity to Tiger.
Identify opportunities to adjust strategies in response to:
changing customer needs
i) What opportunity do you think it offers Tiger? Minimum 50 words.
i)
ii) Draft an update to the table below to include Sustainability in the Strategic Plan (Complete the green cells).
Operational Objective Activity Responsibility Timing Performance Measures
Strategic Goal 3: Operations achieve performance targets for warehousing & distribution & improve operating efficiencies through systems, procedures and behaviours
Review and improve systems Project to implement Pull supply chain systems, including JIT inventory management Operations & Marketing By the end of the financial year +1 Track project goals monthly, quarterly and annually
Review and improve procedures and behaviours Review operational procedures annually Operations By the end of the financial year 25% of procedures reviewed and updated quarterly
Improve compliance to behaviours standards Operations By the end of the financial year 10% reduction in corrective action reports by year-end
Achieve performance targets for distribution DIFOT Operations Weekly Reports 99%
changing supply chain industry
Digital transformation is affecting every business in supply chains, including Tiger.
Review Tigers Strategic Plan to see if there is an Objective and Activity listed for IT or Digital systems.
Draft an update to the table you completed in a) above to better include IT or Digital systems in the Strategic Plan.
Operational Objective Activity Responsibility Timing Performance Measures
Strategic Goal 3: Operations achieve performance targets for warehousing & distribution & improve operating efficiencies through systems, procedures and behaviours
changing organisational goals
Scenario Update
CEO Bob comes into your office and says, How many ideas for improving the business have come across your desk in the last week? You think about it and say, Only one getting a new coffee pod machine in the kitchen that actually works! Only joking I was talking with
Review Tigers Strategic Plan to see if the Innovation strategy as it is written now covers Bobs intent.
Draft an update to the Innovation strategy table to better include idea generation and implementation in the Strategic Plan (complete the green cells).Operational Objective Activity Responsibility Timing Performance Measures
Strategic Goal 6: Innovation develop and implement innovation within Tiger Drinks and with its suppliers
Develop and implement innovation within Tiger Drinks Develop and implement continuous improvement (CI) processes in every team Operations, with support from IT Pilot active within 1 month
Organisation active by the end of the financial year Monthly CI reporting
11. Design and implement a framework to promote collaboration with suppliers to achieve a competitive advantage
a) Design a framework consisting of a strategy objective with at least 3 sub-goals and target measures - draft an update to the Innovation strategy table to include collaboration with suppliers in the Strategic Plan, with timings to be within this financial year (complete the green cells).Operational ObjectiveActivityResponsibilityTimingPerformance Measures
Strategic Goal 6: Innovation develop and implement innovation within Tiger Drinks and with its suppliers
Develop and implement innovation within Tiger DrinksDevelop and implement continuous improvement (CI) processes in every teamOperations, with support from ITBy the end of the financial yearMonthly CI reporting
Project to develop and implement a system to generate and implement idea to improve the businessAll departmentsBy the end of next QuarterSystem developed, approved and implemented
Develop and implement collaboration with Tiger suppliers to achieve competitive advantages
b) Implement your part a) strategy and goals by sending an email to CEO Bob with your proposed update to the Strategy Plan. What role would you want Bob to take? Include this in your email.
TIP: Sending emails - A template has been provided below for you to complete.
The email will be sent when you upload your completed assessment to the LMS.
TIP: Sending emails - A template has been provided below for you to complete.
The email will be sent when you upload your completed assessment to the LMS.
Send
To: Subject: 12. Consult with organisation management to confirm progress of supply chain activities in accordance to organisational objectives
Send an email to your direct report managers, the 2 DC Managers, asking them to update you with the month-end projects progress status, particularly the Supplier collaboration initiative. Refer to the updated Strategy Plan content, based on your Q10 & Q11 responses. You want to get feedback from other department managers also, so include messages for them in your email.
Send
To: Subject: 13. Review the effectiveness of current relationships within the supply chain in accordance with the supply chain management strategy
Scenario Update
Since you have already reviewed supplier relationships, you decide to conduct a review of current key customer relationships to assess opportunities to collaborate with one or more major business customers. Your idea is that this should strengthen the supply chain and better achieve strategic goals in Customer, Operations and Financials.
You meet with Sharon, Marketing Manager and together develop a short set of survey questions to be given to Tigers major customers. Two weeks later survey results come back in and are combined with Finance information and Sharons rating of the strength of the relationship Tiger has with them, summarised in the table below:
Customer $m Annual % Growth YoY* Customer Overall Satisfaction Delivery Satisfaction Product Quality Interest in Collab talks (score) Tiger rating of Rship
AusHosp $7.8 6.3% 9 9 10 Yes (10) Strong
BestHotels $6.2 3.3% 8 9 9 Maybe (5) Moderate
Convenience Kings $4.0 8.2% 8 8 9 Maybe (5) Moderate
* YoY = Year on Year
Review this information and respond to the following questions:
Which customer would you recommend be contacted first regarding collaboration, and why?
Which customer should be the focus of efforts to improve customer service levels before any talks about collaborating and why?
14. Compare supply chain management models to determine most appropriate infrastructure to support organisational objectives
Scenario Update
You know that Tigers current supply chain can be described with the following key points:
Push style supply chain
EU Products order lead time is 5 weeks
Asia Specialties lead time is 3 weeks
USA Hospitality Supplies lead time is 4 weeks
Customers orders are weekly emails with option of rush orders for next day Metro deliveries
Tigers stock levels are high for fast moving lines (popular products) due to the 3+ week lead times
Tiger operates all its DCs directly
Infrastructure:
Tiger has leases for its warehouses and either owns or leases its equipment
Tiger operates all its DCs directly
Tiger has outsourced all its transport services as non-core activities
Tiger uses a Warehouse Management System and Voice Pick technology for hands free picking, but has no other automation active in its DCs
Comparing Models with their infrastructure (from your eBook)
Infrastructure Type Push System or Stage Pull Portion or Stage
Warehouses & DCs HIGHER
Stock levels higher at each SC stage, so needs for storage higher LOWER
Stock levels lower at each SC stage, so needs for storage minimised and can be held by suppliers
Warehouse automation systems LOWER
Can be used depending on product range but generally lower usage HIGHER
Can be used depending on product range but generally higher usage
Warehouse vehicles and equipment HIGHER
Generally used but higher usage with greater storage at each SC stage LOWER
Generally used but lower usage with less storage at each SC stage
Trucks N/A
Usage does not depend on Model, but on other factors listed above N/A
Usage does not depend on Model, but on other factors listed above
IT systems, including information flows LOWER
Depends on other factors but generally lower usage HIGHER
Depends on other factors but generally higher usage
Copy your updated Strategic Plan tables showing the additional objectives and activities you have built up in the previous tasks 10 & 11 here.
Operational Objective Activity Responsibility Timing Performance Measures
Based on Tigers supply chain, including the hybrid model it uses, and its updated objectives, what infrastructure recommendations would you make? Hint equipment, facilities, IT, etc
15. Assess techniques to support the development of innovation in the supply chain
Scenario Update
Due to the number of projects going on and the lack of time and money to trial an external system approach, you decide on piloting the following 2 techniques for 4 weeks to see if one or both are worth continuing as processes to support innovation:
Every team has 10 minutes to discuss improvement ideas each week as an agenda item added to team weekly meetings,
A new email address is created, HYPERLINK "mailto:goodideas@tigerdrinks.com.au"goodideas@tigerdrinks.com.au, acting as an electronic suggestion box, with a format to use to help capture the idea and the name and site of the sender.
The ideas from both sources are reviewed weekly as follows:
Review 1 you review assessing the idea on general merit, linkages to other projects, and other aspects and decide if it worth further consideration or not.
Review 2 local manager of source site of idea reviews it for benefits and costs, using a Tiger template, and decides if it is worthwhile to create a plan to develop it OR if it scale/capital requirements mean that a Business Case should be prepared OR it is not worthwhile developing.
The results of the 4 week pilot programs are summarised below:
Technique People Contributing Number of Ideas Estimated Total Net Benefits Estimated Total Time Saved
Raw Count Review 1 Review 2 Meetings 109 51 12 6 $15-30k per year 8 hrs/week
Emails 16 16 10 7 $40-70k per year* TBC
* Capital required
List at least 2 reasons for keeping each of the techniques continuing and list any reasons you can think of against a technique continuing.
If you had to choose one technique only as the more powerful technique longer term, then which one would you choose and why?
16. Consolidate analysis and evaluation results to improve future supply chain management strategies and seek feedback from organisation management + Present reports on the supply chain outcomes to stakeholders
Report - Write a report describing your review findings in tasks 2 & 8-15 and title it as
IMPROVING TIGER DRINKS SUPPLY CHAIN
This report needs to focus on the results of the changes made to the supply chain operation (outcomes) and the planned future changes, not only from a financial savings perspective, but what you think are benefits for customers, staff, productivity, efficiency and competitiveness.
This report is required to be a formal report, as this will develop your formal writing skills. Business reports often use the 3rd person writing style (It/They, The review found ) and you should use that style, rather than the first person style (I).
The report needs to contain the following:
Writing requirements include:
7-10 pages document including a title page, due to the tables you are likely to include (tip), with no minimum words required
Spell check
Headings: Blue Calibri Bold size 14 font
Text: Black Calibri size 11 font
Pages to be numbered
Sections
Table of Contents
An Executive Summary page
Introduction that contains a summary of the review activities
Sections for each of the review categories you select
Conclusions & Recommendations
TIP Report format for business depends on the organisation you work for Tigers format is based on the following web resource, noting there is no requirement for Bibliography, References or an Appendix here:
HYPERLINK "https://www.wgtn.ac.nz/learning-teaching/support/approach/steps-to-teaching-success/resources/WSBG-report-writing-guide-2017.pdf"Writing a Business Report (wgtn.ac.nz)
Present your report by emailing it to selected senior management (stakeholders), seeking their feedback.
TIP: Sending emails - A template has been provided below for you to complete.
The email will be sent when you upload your completed assessment to the LMS.
TIP: Sending emails - A template has been provided below for you to complete.
The email will be sent when you upload your completed assessment to the LMS.
Send
To: Subject: APPENDIX A Extracts of TIGER DRINKS STRATEGIC PLAN_DRAFT v1.2
MISSION
Our mission is to be the Australia's premier imported drinks company for our customers and consumers.
VISION
Our vision is to provide high quality products and services to our customers and to be their preferred supplier.
STRATEGIC GOALS
1. Sales increase sales to existing customers and to new customers every year
2. Customers be the preferred supplier for our products to our customers, improving customer satisfaction
3. Operations achieve performance targets for warehousing & distribution & improve operating efficiencies through systems, procedures and behaviours
4. Financial decrease costs every year and grow shareholder value
5. People maintain and attract highly trained and motivated staff
6. Innovation develop and implement innovation within Tiger Drinks and with its suppliers
Extracts of selected Strategies and their sub-goals below:
GOALS, OBJECTIVES AND MEASURES
Operational Objective Activity Responsibility Timing Performance Measures
Strategic Goal 2: Customers be the preferred supplier for our products to our customers, improving customer satisfaction
Supply quality products to our customers Condition and appearance of all product packaging is checked before loading Operations Every load, Weekly Reports Zero complaints from customer on product quality
All customer complaints are followed up and resolved promptly* Operations Weekly Reports % of customer complaints resolved within promised time*
Supply quality services to our customers All customer facing staff to present positively and support customers Operations Every contact, Monthly Reports Customer satisfaction measured as high using regular service levels surveys
Operational Objective Activity Responsibility Timing Performance Measures
Strategic Goal 3: Operations achieve performance targets for warehousing & distribution & improve operating efficiencies through systems, procedures and behaviours
Review and improve systems Project to implement Pull supply chain systems, including JIT inventory management Operations & Marketing By the end of the financial year +1 Track project goals monthly, quarterly and annually
Review and improve procedures and behaviours Review operational procedures annually Operations By the end of the financial year 25% of procedures reviewed and updated quarterly
Improve compliance to behaviours standards Operations By the end of the financial year 10% reduction in monthly corrective action reports by year-end
Achieve performance targets for distribution DIFOT Operations Weekly Reports 99%
Operational Objective Activity Responsibility Timing Performance Measures
Strategic Goal 4: Financial decrease costs every year and grow shareholder value
Decrease operating costs by 5% per year Review agreements and seek better terms Operations & Legal By the end of the financial year Decrease operating costs by 5% per year
Review costs weekly and implement cost savings Operations Weekly Reports Decrease operating costs by pro rata 5%pa each month (5/12s)
Actively minimise waste ($, time & resources) Operations Weekly Reports Waste identified, minimised and reported weekly
Operational Objective Activity Responsibility Timing Performance Measures
NEW!
Strategic Goal 6: Innovation develop and implement innovation within Tiger Drinks and with its suppliers
Develop and implement innovation within Tiger Drinks (to be developed) Develop and implement collaboration with Tiger suppliers to achieve competitive advantages (to be developed) (NOTE: You (the student) will be developing these for question 3)
APPENDIX B Extracts of TIGER DRINKS POLICIES & PROCEDURES
ANTI BRIBERY AND CORRUPTION POLICY ("ABC POLICY") AND PROCEDURES
Message from the CEO
Tiger Drinks Limited ("TD") is committed to conducting its business in a fair and ethical way, without using unlawful practices to obtain unfair advantages in our business dealings. TD operates in a global economy in which business ethics now play an increasingly important role. Bribery and corruption are unacceptable ways of conducting business. Bribes and corrupt practices are morally unacceptable, as they harm societies in which these acts are committed and prevent economic growth and development. They are also illegal in most countries around the world. As an international organisation, we must ensure that we operate within the laws of Australia as well as the laws of all the countries in which we are active. Any TD director, officer or employee, or any person performing services on behalf of TD, who engages in bribery or corrupt practices risks severe consequences for both the company and themselves, such as prosecution, fines, imprisonment and reputational damage.
The TD Board of Directors ("the Board") considers compliance with Anti-Bribery & Corruption laws to be not only a legal requirement, but a reflection of the company's strong business ethics. The Board is committed to this ABC Policy which will be communicated to all TD employees and business associates working on our behalf.
Any breach of the ABC Policy will be regarded as a serious matter and may result in disciplinary action, dismissal or termination of contract.
The ABC Policy is designed to help you to recognise potential bribery and corruption issues, to give you guidance on acceptable and unacceptable behaviour and to tell you where to go for further information. Thank you for your support and commitment.
Robert Cunningman
CEO
Contents
1. WHO DOES THIS POLICY APPLY TO? 2
2. THE TD ANTI-BRIBERY & CORRUPTION POLICY 2
3. WHAT ARE 'BRIBERY' AND 'CORRUPTION'? 2
4. FACILITATION PAYMENTS 4
5. GIFTS AND HOSPITALITY 5
6. DONATIONS AND SPONSORSHIPS 6
7. WORKING WITH GOVERNMENTS AND GOVERNMENT OFFICIALS 8
8. WORKING WITH BUSINESS ASSOCIATES 8
9. DOCUMENTATION AND RECORDKEEPING 9
10. BRIBERY AND CORRUPTION RED FLAGS 9
11. CONSEQUENCES OF BREACHING THIS POLICY 9
12. ASKING QUESTIONS AND REPORTING CONCERNS 9
1. WHO DOES THIS POLICY APPLY TO?
This policy applies to TD and its subsidiaries, its directors, officers and employees worldwide ("Employees") and any contractors, agents, distributors or other third parties ("Business Associates") engaged to provide services on behalf of TD.
The ABC Policy is based on internationally accepted best practice guidelines and applies in all jurisdictions where TD does business. The ABC Policy must be adhered to in all TD business dealings and transactions in all countries in which TD, our Employees and Business Associates operate. It applies to all transactions with domestic or foreign government / public officials and transactions with private companies or persons.
All of TD's Employees and Business Partners are individually responsible for complying with the ABC Policy and any breach may lead to disciplinary action, dismissal or termination of contract.
The ABC Policy will be communicated to all Employees within TD and its subsidiaries, as well as relevant Business Associates.
2. THE TD ANTI-BRIBERY & CORRUPTION POLICY
TD will not engage in bribery or corruption in any form, whether it involves individuals or companies in the public or private sector;
TD will not directly or indirectly accept, request, agree to receive, promise, offer or give a bribe;
TD will comply with all applicable anti-bribery and corruption laws in Australia and all other
jurisdictions in which it operates; and
TD will not permit Business Associates or any other third parties to pay bribes on its behalf.
TD prohibits any act of bribery or corruption and applies a "zero tolerance" approach to violations of the ABC Policy by Employees and Business Associates. Any breach will be treated seriously and may result in disciplinary action, dismissal or termination of contract.
All TD business activities must be conducted in full compliance with the ABC Policy and all applicable anti-bribery and corruption laws including, but not limited to, the Commonwealth of Australia Criminal Code Act 1995, the UK Bribery Act 2010 and the US Foreign Corrupt Practices Act 1977 (FCPA).
To the extent that laws and regulations in any countries in which TD operates are more rigorous or restrictive than this ABC Policy, those laws and regulations should be followed.
3. WHAT ARE 'BRIBERY' AND 'CORRUPTION'?
Bribery is:
the offering, promising, giving, requesting or accepting
of a payment, inducement, reward or anything of value
for an act or omission which is illegal, unethical or a violation of our internal policies,
which is given with the intention of obtaining or retaining business, or an advantage in the course of business, or with the intention that the recipient act improperly in some way.
Corruption is the misuse of public office or power for private gain.
Bribes can be given in many forms and do not necessarily involve payments of cash. A bribe could be anything
of value, for example:
Kickbacks - where a percentage from a contract is improperly returned to the person awarding that contract.
Facilitation payments or "grease" payments - usually small, non-discretionary payments to government / public officials to speed up routine administrative processes (see more on this in section 4 below).
Inflated charges - where an invoice for supplier services is agreed in excess of contractual charges and a good or service is provided to an Employee as a gift
Inflated commissions - where higher than normal commissions are paid as a reward for improper behaviour
Political or charitable donations - can be used as bribes, e.g. making a donation to a political party in exchange for their support for legislation that is favourable to TD's business or the Australian red meat industry or to a charity which is used to funnel money to local government officials.
Excessive or inappropriate entertainment - can be used to influence business contacts.
Expensive gifts - can be given to influence the recipient.
It is an offence for companies or individuals to directly or indirectly bribe another person, receive a bribe or bribe a foreign government official.
To "indirectly bribe another person" involves offering or giving something of value to a third party acting on your behalf, knowing or intending that the third party will go on to bribe another.
It is unlawful to offer a bribe, regardless of whether the offer is accepted or the benefit gained.
Under the UK Bribery Act, a company can be prosecuted for failing to prevent its employees, or any third party acting on the company's behalf, from paying bribes to obtain or retain business for the company, or a business advantage for the company.
Some countries have laws (e.g. the US FCPA and UK Bribery Act) which grant prosecutors authority to prosecute bribery and corruption offences whether the offence occurs within or outside their borders provided there is some link to the prosecuting jurisdiction.
4. FACILITATION PAYMENTS
A facilitation payment is an unofficial cash payment to a government official, which is demanded or paid to enable or speed up a routine government process which the government official is already duty bound to perform, e.g. processing papers or customs clearance.
Although certain jurisdictions, including Australia and the US, permit facilitation payments in very limited circumstances, the majority of anti-bribery and corruption laws do not distinguish between bribes and facilitation payments. TD has adopted the highest international anti-bribery and corruption standards and therefore facilitation payments are not permitted.
Employees and Business Partners must not, directly or indirectly, offer, promise or give a facilitation payment to a government official without prior approval of the CEO
Facilitation payments will only be permitted where a person's physical safety or liberty are threatened
Where a person's physical safety or liberty would be at risk if a facilitation payment was not paid, you must:
as soon as practicable report the request to your immediate manager or General Manager or
TD contact for Business Associates;
obtain approval from the CEO or TD's Legal Counsel prior to making any payment if possible;
if approval is granted, submit a payment report to TD's Legal Counsel at the conclusion of the process stating:
o the amount paid;
o date and purpose of payment;
o why the payment was unavoidable;
o recipient of the payment;
o outcome/consequences of the payment.
If it is not possible, due to the threat of physical violence or detention, to seek prior approval in advance of making payment, you must report the payment and provide the above details to TD's Legal Counsel immediately thereafter.
5. GIFTS AND HOSPITALITY
TDs Code of Business Conduct & Ethics permits TD employees and Business Associates to accept invitations to reasonable corporate events that will help encourage good working relationships between TD and its suppliers and to accept gifts which are of a nominal value and which are consistent with normal business practices and/or local customs. However:
Employees and Business Associates must never use gifts or hospitality to improperly influence the business decision-making process or cause others to perceive an improper influence.
Always follow this ABC Policy when giving or receiving a gift or hospitality. This will explain what is prohibited and permitted and whether you need permission to give or accept gifts or hospitality.
You must never give or accept:
o cash or cash equivalents (see further below)
o loans
o travel and / or accommodation costs for family members
o events or meals where you are not present; or
o gifts or hospitality during periods when important decisions, regarding the award or retention of business, are being made
Gifts or hospitality to the value of AUD$75 (or local equivalent) per person may be given or received without prior written approval.
The cost of any hospitality or gift must be kept within the limits set out above. Where a proposed gift or hospitality is above the limit, you must seek prior written approval from your General Manager or seek advice from TD's Legal Counsel. When seeking approval, you should provide details of the intended recipient(s), the purpose of the gift or hospitality and the total value of gifts and hospitality provided to that individual in the last year. General Managers must retain a copy of the request and, if granted, their approval.
It is important to consider that a bribe could be made up of many small gifts or many occurrences of providing hospitality over a period of time.
TD recognises that certain of the jurisdictions it operates in have a cash culture where, for example, travel costs for attendees at seminars or workshops are required to be paid in cash. Please refer to the [Cash Payments Policy for your jurisdiction] to determine the circumstances in which such cash payments are permitted.
You must not try to hide improper gifts and hospitality by giving or receiving them through a third party.
The occasional acceptance or offer of modest gifts and hospitality may be a legitimate contribution to good business relationships. There may also be times when refusing to accept gifts or hospitality or declining to provide them would be considered impolite, e.g. where it is local custom. Notwithstanding this, you must comply with this ABC Policy.
You should consider the following questions before accepting or offering a gift or hospitality:
Could my acceptance or offer lead to an obligation on TD, or imply such an obligation?
Is this gift or hospitality event a 'reward' for the award or retention of business or a business advantage for TD or its members?
Does the gift or hospitality seem to be excessive or expensive in any way?
Am I likely to breach any applicable laws?
Would I or TD be embarrassed if this gift or hospitality were to be reported in the press?
If the answer to any of these questions is yes, the gift or hospitality should not be offered or accepted. If you are in doubt, you should refuse to make or receive the gift or hospitality and/or seek advice from TD's Legal Counsel.
6. DONATIONS AND SPONSORSHIPS
All TD sponsorships must be approved in writing by the CEO in advance.
TD prohibits its Employees and Business Associates from making donations to political parties or individual politicians on its behalf.
As bribes can be concealed in the form of charitable, political, educational or other donations or sponsorships, you must not agree to make such payments on behalf of TD unless you have prior written approval as set out above.
Sponsorships must only be made to organisations and not to an individual.
Prior to awarding sponsorships, research must be carried out to ensure that the organisation is registered as a corporate entity under the local country's laws, or is otherwise a legitimate entity. Due diligence must also be undertaken on the organisation itself and on its managers and representatives. The findings of such due diligence should be included in the project documentation when seeking approval for the sponsorship. Details of all sponsorships must be documented and processed through SAP for approval prior to payment being made.
We recognise the right of Employees and Business Associates as individuals to make political and charitable donations and sponsorships. This is permitted, subject to making it entirely clear that your donation is personal in nature and not made as a representative of TD, and that your views and actions are your own. In addition, individuals are asked to give consideration to potential conflicts of interest in their professional capacity and their personal affiliations to political parties, charities or sponsorship beneficiaries.
7. WORKING WITH GOVERNMENTS AND GOVERNMENT OFFICIALS
Whenever TD deals with any national or local governments, government agencies, government or other public officials or public international agencies, our Employees and Business Associates must apply the highest ethical standards and comply with all applicable laws.
Improper or secret payments or improper transfers of any value (including 'facilitation payments') made to government officials are prohibited.
Improper payments or transfers of items of value made through intermediaries, or to a third party, while knowing that all or a portion of the payment will go directly or indirectly to a government official are prohibited.
No one acting on behalf of TD should exert, or attempt to exert, any improper or illegal influence on government officials.
If asked to provide information in connection with a government or regulatory agency enquiry, you must always seek advice before responding and then ensure that all information provided is truthful and accurate.
You should take extra care when dealing with government officials. It is against our ABC Policy to bribe any government official anywhere in the world. Most countries in the world have made it an offence to bribe their own government officials; many have also made it an offence to bribe a foreign government official. Under UK legislation, the definition of bribery includes a person making a payment with the intention of "influencing" a foreign government official, in their capacity as a government official, with the intention to obtain or retain business or an advantage in the course of business. This is a very low threshold - there is no requirement that the person paying the bribe intends the government official to act "improperly" in any way.
A government official is defined as:
an officer or employee of a government or any department, agency or instrumentality thereof, including anyone who holds a legislative, administrative or judicial position of any kind, whether elected or not, or who exercises a public function for or on behalf of a country or territory or for any public agency or public enterprise of a country or territory (e.g. civil servants, local government and the armed forces);
an officer, agent or employee of a public international organisation (e.g. the United Nations, the
World Bank, the European Commission);
any person acting in an official capacity for or on behalf of any government (or any department, agency or instrumentality thereof) or any public international organisation;
an employee of a company or other business entity in which a governmental body has an ownership interest and / or over which such governmental body may, directly or indirectly, exercise a dominant influence (e.g. state owned commercial enterprises);
a political party or a member of a political party or a candidate for political office; and
any person known or suspected to be a close family member or associate of any of the above, or companies who are controlled by close family members or associates of any of the above.
8. WORKING WITH BUSINESS ASSOCIATES
TD expects Business Associates to adopt a "no bribes" policy and to comply with this ABC Policy when conducting business on TD's behalf.
TD forbids Business Associates and Employees from using third parties to undertake any activity which they are prohibited from engaging in under the ABC Policy.
Prior to engaging Business Associates, due diligence must be performed to assess the bribery and corruption risk of working with them (see further below).
Business Associates should be supervised and monitored to ensure they are complying with the AB Policy. Where breaches are identified, immediate remedial action must be taken. This may require termination of the relevant contract.
Payments must never be made through or to a Business Associates if you know or suspect that all of part of the payment will be used for a purpose which violates the ABC Policy.
You must not allow Business Associates to represent TD in high risk situations without proper supervision, e.g. in dealings with government officials.
When undertaking due diligence on Business Associates prior to engagement, you must assess whether they:
have any record or a reputation for corruption, including whether they are being investigated o prosecuted for any corruption-related offence, or have been convicted / sanctioned for such an offence
have a reputation for corruption
have been disbarred from practice, if the third party is a lawyer or other professional, or
are related or closely connected to a government official who will be involved with, or can influence the process for which, the third party has been engaged.
When engaging a Business Associate to act on behalf of TD:
compliance with the ABC Policy should be made a condition of the contract of engagement
payments, especially commission based payments, must be reasonable and accurately reflect the value of the services to be provided by the Business Associate
the Business Associate should have a proven track record in the business discipline and geographical location concerned
we should know whether the Business Associate has any connections to government or government officials
the services to be rendered by the Business Associate must be legitimate, and the nature of the services, as well as the price, must be accurately described in a written contract
consideration should be given, together with TD's Legal Counsel, to the content of the written contract, which may need to include provisions such as: covenants and undertakings from the Business Associate that it will not engage in bribery or corrupt activity; reasonable access for TD t the Business Associate's books and records; annual compliance certifications; payment restrictions termination rights; and covenants that the Business Associate will indemnify TD from breaches of applicable anti-bribery and corruption laws, if allowed by such laws, and
payments should not be made to unnamed accounts or offshore locations unconnected with the Business Associate or the country where the work is carried out, unless there are genuine and legitimate reasons for doing so.
9. DOCUMENTATION AND RECORDKEEPING
Many businesses have faced sanctions in the past for offences such as failing to maintain accurate books and records, for false accounting and for misleading auditors. If a bribe is described as a "consultancy payment", this in itself could constitute an offence, leading to significant fines for TD.
TD requires all of its businesses to maintain accurate books and records.
Accurate and complete records of all business transactions must be kept:
o in accordance with generally accepted accounting principles and practices,
o in accordance with TDs accounting and finance policies, and
o in a manner that reasonably reflects the underlying transactions and events.
It is the responsibility of all Employees to ensure that all business transactions are recorded honestly and accurately and that any errors or falsification of documents are promptly reported to the appropriate member of the senior management team of the relevant TD entity and corrected.
10. BRIBERY AND CORRUPTION RED FLAGS
The following 'red flags' are some common indicators of bribery and corruption (note, this list is not exhaustive):
A request for abnormal cash payments
Pressure exerted for payments to be made urgently or ahead of schedule
Requests for commission payments which do not match the level of services being provided by Business Associates
Payments being made through unrelated third parties / offshore countries / family members
Expensive gifts being given or received
A colleague who is reluctant to take time off (even if ill) or who insists on dealing with specific Business
Associates him / herself - they may be worried that improper activity or an improper business relationship will be uncovered if someone else takes over their workload
Abuse of the decision-making process or delegated powers in specific cases
The failure of government officials or customers to follow their own required processes (including contracting processes) when contracting with TD
Invoices being agreed to in excess of contractual terms without reasonable cause
Missing documents or records regarding meetings or decisions
Internal procedures or guidelines not being followed
Making funds available for high value expenses relating to Business Associates e.g. charities or school fees.
11. CONSEQUENCES OF BREACHING THIS POLICY
If you fail to follow the ABC Policy, you put yourself, your colleagues and TD at risk, and your act or omission may result in disciplinary action, dismissal or termination of contract.
If a supplier or Business Associate breaches the ABC Policy, then TD may terminate contract and report the incident to authorities.
In addition, you and TD could be committing a serious criminal or civil offence, which may result in a large fine for TD, confiscation of assets and imprisonment or a fine for you and anyone else involved.
12. ASKING QUESTIONS AND REPORTING CONCERNS
If you have any queries in relation to the ABC Policy or the applicable laws, please contact:
a Manager;
the HR Manager;
TD's Legal Counsel
the Company Secretary; or
the CEO.
If you suspect, or believe that the Code of Business Conduct and Ethics or the ABC Policy has been, or is being breached, you have an obligation to report your concerns to someone who can deal with the situation. You must not ignore your concerns. Immediately contact:
a Manager;
the HR Manager;
TD's Legal Counsel'
the Company Secretary; or
the CEO.
If you do not wish to report directly to the individuals listed above, you are able to make a report to TD's independent and confidential external whistleblowing hotline called STOPline (please refer to the Whistleblowing Policy for more information).
Your concerns will be taken seriously and investigated quickly. Where permitted by local law, your anonymity will be protected if you wish. You can be absolutely sure that TD will not tolerate retaliation directed against anyone who makes such a report. We will protect anyone who makes a legitimate report. However, anyone who files a knowingly untrue report for illegitimate purposes or to threaten or damage any employee's reputation, will be subject to disciplinary action.
All significant issues will be reported to the CEO, who will report any material breaches to the Audit & Risk Committee of the Board.
(This policy and procedure document has been based on an AML document.)
