1.2 The final element of the Supply Chain Integration Model recommends an annual reevaluation of the level of integration. In the context of the Maersk case study, this reevaluation is one of the most important actions Maersk should undertake over the next 12 months. Using the case study and theory from the prescribed textbook, answer the following questions: [8] a) Recommend two issues that Maersk must review. (2) b) Justify the benefits and trade-offs of the answer provided in question (a) above. (4) c) Provide two performance indicators they must use to measure success in (a). (2) Same case study

Here's an assessment of Maersk's re-evaluation based on the case study:

a) Recommend two issues that Maersk must review.
Maersk must review the following two issues:

1. Communication Network Coverage and Reliability: The case study highlights that containers pass through areas with weak coverage, causing information delays or unavailability.
2. Effectiveness of Alert Management System: This includes addressing inaccurate sensor readings, false alerts that waste staff time, and the challenge of employees distinguishing urgent problems from minor variations due to the large volume of alerts.

b) Justify the benefits and trade-offs of the answer provided in question (a) above.

Issue 1: Communication Network Coverage and Reliability

• Benefits: Improving network coverage ensures continuous, real-time data flow from containers, even in remote locations. This leads to earlier detection of potential issues (e.g., temperature deviations, power interruptions), enabling faster intervention and significantly reducing cargo spoilage and financial losses. It also provides more complete and reliable data for strategic planning and operational decision-making.
• Trade-offs: Achieving ubiquitous and reliable communication coverage globally, especially in maritime environments, requires substantial investment in advanced satellite communication technologies and potentially new mobile network partnerships. This incurs high capital expenditure, increased operational costs, and adds complexity to system management and maintenance.

Issue 2: Effectiveness of Alert Management System

• Benefits: Refining the alert management system, including improving sensor accuracy and implementing smarter alert prioritization, will drastically reduce the number of false positives. This saves valuable staff time and resources that would otherwise be spent investigating non-existent problems. It also ensures that critical issues are highlighted effectively, preventing "alert fatigue" and leading to more timely and focused responses to genuine threats to cargo.
• Trade-offs: Implementing more sophisticated sensor technology and developing advanced analytical algorithms (e.g., using AI/ML for anomaly detection and prioritization) requires significant investment in R&D, software development, and hardware upgrades. There are also costs associated with integrating these new systems with existing infrastructure and providing comprehensive training for employees to effectively utilize the refined alert system.

c) Provide two performance indicators they must use to measure success in (a).

1. Data Transmission Uptime Rate: The percentage of time a container's IoT system is actively transmitting data without interruption.
2. Reduction in False Positive Alerts: The percentage decrease in alerts that do not correspond to an actual problem or require intervention.