In this assessment you will have opportunities to provide evidence against the following criteria.
Indicate the page numbers where the evidence can be found.
LO1 Understand the roles and responsibilities in vehicle parts supply and management
1.1 Compare the role of different types of parts suppliers
1.2 Explain the different approaches and methods of dealing with customers
1.3 Explain the responsibilities of the parts manager
1.4 Explain the obligations and responsibilities of the franchise supplier
LO2
Understand stock management systems
2.1 Determine the efficiency of stock management
2.2 Evaluate stock control systems
2.3 Explain the benefits of a computerized stock management system
2.4 Identify lost sales and new demand
Assignment brief
Purpose of this assignment
This assignment gives an opportunity to demonstrate understanding of the management of vehicle parts distribution and supply in the retail sector of the motor industry.
Scenario
Having undergone internship in Parts Supply Department of a local car distributor company, and armed with knowledge on automotive engineering, Mr. A decided to venture into vehicle parts supply business in Petaling Jaya, with Greater Kuala Lumpur as its hinterland. As founder of the company, Mr. A wants the new company up and running within the shortest time possible. He needs good advice and appointed you as Chief Operation Officer-designate(COO) of the company.
Task 1: (LO1:1.1, M1)
Mr. A wants to make it big in vehicle parts supply business. Yet he has no clear idea on which role he should play in the industry. His only idea is to buy, sell and makes profit if he sells at a higher price; and vice versa.
As COO, you are to brief him on all possible roles he can play in this business. In the briefing, you are required to compare the role of different types of parts suppliers. Finally, recommend the most suitable type of part suppliers to him.
Task 2 : (LO1:1.2, M2)
Mr. A is fully aware that getting the stock of vehicle parts is only one side of the equation. The other side is to get the stock reaching the customers. Both must be complementing each other for a vehicle part to reach the customer. He understands that vehicle parts supply must meet its demand, and vice versa.
In the following week, another briefing session, in which you are the main speaker, is being organised. You are required to explain the different approaches and methods of dealing with customers.
Task 3 :(LO 1: 1.3, M1)
Mr. A needs personnel to run the vehicle parts supply business. He intends to hire a Vehicle Parts Manager to handle the logistics of vehicle parts supply and management. He has tasked you to handle the recruitment. As you are preparing job vacancy advertisement, there is a column on job scope of Vehicle Parts Manager which needs to be filled up.
Explain the responsibilities of the Vehicle Parts Manager.
Task 4 :(LO 1: 1.4, M3)
Any business grows from small to big scale. Mr. A isn't contented with just an ordinary parts supplier in Greater Kuala Lumpur conurbation. He wants to take the company to greater height within 3 years. One of the options is to become franchise supplier for the whole of Malaysia. The job is not going to be easy as many things are to be in place, but Mr. A and his staffs are with him and ever ready for greater challenges.
Task 4a :
In a separate knowledge-sharing session, you are tasked to explain the obligations of the franchise supplier to Mr. A and other top management of the company.
Task 4b :
In the same session, you are requested to explain the responsibilities of the franchise supplier the same audience.
Task 5 : (LO 2: 2.1, D2)
After one year of operation, Mr. A received a resignation letter from Vehicle the Parts Manager. For the sake of continuity, he filled the position by promoting a purchasing assistant. Before long, the company was running out of most popular vehicle parts items. There was a lost sale in those particular items and hence disappointed customers, having waited long enough for parts, turned to other parts suppliers. On hindsight, Mr. A realised that a proper managed inventory involves more than just making hiring people and there are some common mistakes to avoid in any inventory management.
In a brainstorming session, Mr. A shared his side of story on the current scenario on the stock of vehicle parts in the company:
- Wrong quantity
- Internal and external theft
- Wrong locations of stocks
- Wrong labels
- Parts out of stock
- Frequent accident
- Inadequate store capacity
Mr. A finds current stock management is becoming a headache to staffs with resignation of Vehicle Parts Manager. He wants both the goods in and goods out be managed properly and accurately. You are required todetermine the efficiency of current stock management and present recommendations to Mr. A.
Task 6 :(LO 2: 2.2, D3)
Stock of vehicle parts of too great or too small quantities on hand can cause business failures. As COO, you have found out that the company is losing revenue due to out of stock in vehicle parts and stock grew at a faster rate than its sales. Coupled with less consideration is given to the movement of the stock, the company has lower earnings.
Mr. A wants you to fix this problem of stock control. For this task, you are required to evaluate the stock control systems and recommend the most appropriate system.
Task 7 : (LO 2: 2.3, D1)
Mr. A, as a responsible vehicle parts businessman, wants to take all of the correct steps to ensure the smooth operation of the business. He wants vehicle parts stock management to be as intuitive as possible for the staffs and that all necessary vehicle parts are always in stock. Recently, he learnt from customers that there is software for stock management which could make this job efficiently done.
You are required to explain the benefits of a computerised stock management system to Mr. A.
Task 8 :
After 3 years in business, Mr. A discovered several mysterious patterns among his customers, for example, an almost-sure sale dries up at the last minute because customer decided to do nothing, a formerly enthusiastic buyer goes silent and doesn't even return phone calls, just before closing the deal. He wonders why the customer never bought the vehicle parts, where they buy instead and at what price, and the list goes on. Mr. A decided that enough is enough - he needs to get back on track.Mr. A needs assistance to diagnose the situation he is facing and some tips to get back on track.
Task 8a: (LO 2: 2.4, M3)
For first part of this task, you are required to identify lost sales in vehicle parts for the company.
Task 8B: (LO 2: 2.4, M3)
In order to get back on track, Mr. A has to recover lost sales by creating new sales. As next part of the task, you are required to assist him in identifying new demand for vehicle parts. Present your findings to Mr. A.
Tasks
1 to 8 - Table of contents
- List of figure
- List of table
- Written assignment
- A bibliography with references must be supplied using the Harvard System of referencing.
- Copy of journals, articles, etc for research and study.
LO 1
1.1 Compare the role of different types of parts suppliers
1.2 Explain the different approaches and methods of dealing with customers
1.3 Explain the responsibilities of the parts manager
1.4 Explain the obligations and responsibilities of the franchise supplier
LO 2
2.1 Determine the efficiency of stock management
2.2 Evaluate stock control systems
2.3 Explain the benefits of a computerized stock management system
2.4 Identify lost sales and new demand
M1: Identify and apply strategies to find appropriate solutions
M2: Select / design and apply appropriate methods / techniques
M3: Present and communicate appropriate findings