A modern manufacturer of a variety of products is facing many
challenges due to Covid- 19 and the backlash of the Russian/
Ukraine War. Their logistics flow (supply chain and distribution)
includes significant purchases of raw materials and packaging
products from international companies. The logistics function is
the key competitive element in the market. The Company is seriously
considering assuming full control of its inbound and outbound
logistics functions which are presently handled by a third party.
These logistic functions have a direct bearing upon the
inventories, losses due to transit delays, transit time, service
unreliability and terminal problems. The company however has to
look into the cost implications of such changes and also cost
implication due to a fragile global situation. The Company has been
the leader in the manufacturer market in Jamaica for several years.
Since the advent of globalization, the company entered a joint
venture with a French company to expand its business in can foods.
Despite the new joint venture, the company still continue the
manufacturing of its products at the Industrial Terrace location in
Kingston, near Greenwich Farm. The company has also invested in a
new state of the art manufacturing plant in Miami, USA to compete
with other market players. The company has planned to undertake the
distribution of products made and packed in the plant in Kingston
and maintain control over the design, quality, and service channel
of its product. Globalization has pushed the market to have grown
and matured with higher expectations of the customers towards the
features of the products for which technology and the design have
improved considerably. All the competitors have equally good
quality product in the market. Presently the area of logistics,
inventory, distribution, customer service and satisfaction are the
areas of prime focus in order to have extra value added to the
product. Product defects due to its nature, terminal, inventory and
transportation are now under increasing scrutiny. From the cost
control point of view, the amount of money held up in pipeline
inventory is significant. The large variety of products now mean
more raw materials and components are to be in stock. Presently,
the incoming supplies are CIF (cost insurance and freight) which
means arrangements are made by the supplier (vendor) who has to be
persuaded to opt for jointly approved transportation
(consolidation). Due to product variations, the order fulfilment
and its processing are of considerable importance. The traditional
information system has become inadequate. There are 50 retail
outlets through which the finish products are distributed using 10
delivery trucks in the transportation network. Lead- time
variability is creating problems of buffer stocks with
distributors. The transit time fluctuations are due to breakdown of
trucks, improper documentation, and terminal problems. Such
variability must be reduced. Major portion of logistics cost was
allocated in fleet management whereas warehousing, raw material
management and information flow have insignificant cost.
Based on the above case, answer the following questions:
A. Explain the logistics flow of the product from the supply
channel through the distribution channel both inbound and outbound.
Include a visual representation (diagram or otherwise). Please
ensure the full range of the logistics flow is covered. (Looking at
the possible drawbacks due to the worlds current state) (20
Marks)
B. Outline 5 possible terminal problems and 5 solutions. (10
Marks)
C. Outline 5 possible trading and scheduling problems that can
occur due to the global situation and 5 recommend solutions (10
Marks) D. Discuss 5 possible inventory problems and 5 solutions (10
Marks)
E. State 3 strategies to reduce the cost of the inbound and
outbound logistics function? (15 Marks)
F. What could be the major problem in exploiting inbound and
outbound logistics functions? (15 Marks)
G. Discuss 2 advantages and 2 disadvantages of having a
dedicated transport system to operate packaged materials mainly for
the company? (10 Marks)
H. What arrangements must be made to ensure the service quality
for the customers? (10 Marks)
A modern manufacturer of a variety of products is facing many challenges due to Covid- 19 and the backlash of the Russia
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