Case 6
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School
University of Maryland, College Park *
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Course
370
Subject
Information Systems
Date
Dec 6, 2023
Type
docx
Pages
3
Uploaded by MajorKingfisher3714
Low
Medium
High
High
Medium
Product temperature sensitivity
Late delivery fines
Border delays and customs fines
Port congestion
Theft in ports
Low
Wet, bounced
around product
Unauthorized distribution channels
Piracy
Based on the figure above, I believe that the three primary risks are going to be ones that fall somewhere in the medium impact or medium likelihood categories. Obviously, all these risks
are important in some way. However, it costs both money and time to gather the necessary resources to mitigate risk. Some risks on the list simply are going to carry more attention than others. The three primary risks that I think are going to be the most important to address are theft
in ports, port congestion, and border delays and customs fines. As previously mentioned, these all fall in that medium range of impact and or probability. You might sit back and ask, why not address problems with high risk like piracy or unauthorized black market selling. While these are
risks with high impact, the probability that they occur are very low. There are going to be many more instances of ports being congested than there are instances of pirates raiding cargo ships and stealing. Additionally, while risks like temperature sensitivity and wet packaging may be easier to mitigate, I don’t see the investment as being as valuable. These risks that I mentioned are crucial when it comes to getting the product to the end consumer. Once the shipments have docked or landed, reaching the last mile of the journey, that is where I feel valuable change can be made. I also believe that there are solutions to these problems that are attainable and can mitigate some of the severity they might cause.
For both the problem of port congestion, as well as customs delays, the same types of solutions can be applied. The most important thing that YAP can do is have its operations under control and understand from a planning perspective the necessary lead times. If YAP knows that they are in peak season, it is important that they adjust their lead times properly. This will help to
ensure that if buffers arise, whether it be at ports or customs, the product is still going to reach the end consumer in the proper amount of time. Port congestion specifically can also be mitigated by shipping product across multiple vessels or looking for other ports to enter in case of a buffer. By doing this, YAP can help to ensure that at least some of the products that they are shipping are going to reach customers. There is also the option of diversifying the mode of transportation they are utilizing. Not all the shipments possibly have to go by ship or air. If there are opportunities where the mode of transportation can be changed, it might be in their best interest to do so. With customs delays, it is important again that the operations side of the house be in order. Before any shipment leaves the distribution centers in Ireland, it is crucial that there be a system in place to ensure everything is properly documented. Whether this be the establishment of an information system or the utilization of some other technology, it is important that all regulations be met before the product leaves YAP’s hands. When it comes to theft in ports, the best thing YAP can do is invest in highest quality cargo locks they can. This risk is a little trickier to assess, simply because you cannot have personnel always watching the cargo while it is in port. If cargo is being transported on the road, setting guidelines about when trucks can be idle could help mitigate some of the risk. If a driver must make a stop, they should be trained on how and where to park. They should not be sitting idle in areas where cargo theft is
potentially high. Like previously mentioned for cargo sitting in ports, it is also ideal that YAP invests in the highest quality locks for the cargo in trailers.
From a safety perspective, once these risks have been mitigated, I think it is important that they improve security measures at their laboratories. The fact that product is being stolen from the lab itself is concerning and proves that proper security is not in place. YAP’s product is very valuable and must be treated as so.
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