The need for companies to put more focus on their core competencies has often pushed several of them into cost-cutting strategies to remain competent and profitable while also providing quality services to their customers. In the view of the logistics, the storage and transportation of goods remain the greatest challenge for companies as customers continue to grow unquestionable impatience due to the availability of multiple alternatives (Awasthi & Grzybowska, 15-30). As such companies must develop proper ways of moving around their products to meet the customers’ timelines as well as offer them the desired quality to enjoy a significant market share.
Proactive-one of the operational aspects of a consumer product company is its proactive operations. Consumer companies must often operate with the aim of creating opportunities for their products (Awasthi & Grzybowska 15-30). In such particular operational actions meant to enhance sales opportunities for the outbound products. As such, the consumer product company must provoke a consumer reaction to their products so as to increase sales. It is the aim of every company to optimize the sale of its products in the market. As a result, it must not wait to react to the customers changing consumption dynamics. However, it should put much focus on the creating the need for use of the outbound products. Through the strategy, the company stands to benefit from controlling the consumer taste and setting the ground for their products.
High-tolerance-outbound operations are often meant to meet the customer cold-call environments. The customer environment is often marred with rejection, and the consumer product company must develop services aimed at tolerating the customer unpredictability and volatility. Consumer markets have become more volatile, and the availability of competing products means that consumers have can have alternatives thus are prone to intolerant behaviors (Awasthi & Grzybowska 15-30). As a result, outbound operations should be made highly tolerant to potential customers’ shifts in demand.
Intrusive-the operational logistics on the consumer company end are often focused on sales. The focus of outbound operations is normally characterized by sales focus and meeting the customers’ requirements. As a result, the operations must take care of the competitors thus; be intrusive. Meeting the set goals will require that companies must outwit their market competitors and, as a result, be intrusive into the market opportunities.
Problem areas of the consumer product company considered in the case
The case study presents a situation of logistics problems experienced by the company rising from transportation and warehousing logistics. It is important to underline the demystifying situation of inventory which has led to the high inventory and fleet costs. Due to the numerous distribution points and warehousing facilities in over fifty locations, the challenge of meeting the logistics needs of the distribution centers presented a serious challenge regarding meeting the customer deadlines and expectations. As a result, there was the necessity to limit the number of warehouses within the business environment and maximize or optimizing the services to the customers. At the same time, the hired consultant provided overhaul services that ensured the customers services were optimized, but the logistics costs remained minimal. Consequently, it led to the realization of profit margins coupled with quality customer services. The restructuring of the distribution network enabled the company to have readily available inventory while also maintaining level customer services. It ensured that the client base remained intact despite the restructuring prompted by the analysis.
The target areas of improvement (by LeanCor) are elucidated in the case. Link these target areas of improvement to the areas in logistics. Do you recommend adopting lean technique in the demand chain of this consumer products company? What is your opinion for adopting the agile technique for the case company? Provide substantial technical reasons behind your opinion.
The case study demonstrates a series of failed logistical operations that have led to operational problems experienced by the consumer company. The study provides a list of operations and services that are proving problematic to handle and thus leading to high costs of operations. In the case study, the target areas elucidated include;
Fleet and inventory costs -the costs of accessing transportation became excess due to the presence of many distributions units located in different parts. The need to provide proper distribution to the outlets meant that enormous transportation costs had to be met by the company. Regarding logistics, fleet costs fall under the transportation management. There are often quests to manage the transportation of products and services to provide optimized customers service and satisfaction. In the long-term, managing transport is important to ensure efficiency in customer service. Managing fleet costs would also ensure that costs of transportation are well reduced. Inventory is also a component of warehousing management. In warehousing management, it is important to provide customers with ready inventory that does not waste their time while waiting for the delivery. Warehousing is thus; a critical element of logistics that is indispensable. Proper transportation framework will ensure that inventory is readily available as well as proper replenished. Also reducing the number of distribution centers ensures that the inventory costs and costs of transport are minimized. It is important to adopt lean technology so that the process optimization can be actualized. It will help reduce costs of transport but also improve services. On agile techniques, the company should adopt the technique to help optimize its services and distribution chain thus improves the customer-oriented services. The techniques will couple the logistics process from the inbound to the outbound thus making it easy to productivity and service quality.
The case delineates
The reduction in the number of warehouses by the consultant served to enhance the distribution of the resources by providing optimized levels of services and minimizing supply risks. In a bid to provide efficient services, serious considerations for storage must also be made since warehousing services should be moved closer to the customers to minimize transportation cost. Moving the warehouse within the confines of the customers will also offer additional benefits regarding less time taken by the distributor to reach the customers with goods. The logistics management thus plays a critical role in enhancing efficiency regarding handling logistical operations as pertains to the point-of –origin and the point-of-consumption. Storage of materials, inventory services, information, and finished products are all bound to the operations of logistics. On the supply chain, the operations are categorized into inbound and outbound logistics operations. The inbound logistics encompasses the operations that take place between the supplier and the manufacturer whereas outbound is confined to manufacturer-consumer operations. In light of the above, logistics are aimed at improving the flow of information throughout the supply chain. Consequently, the flow of information will lead to timely delivery of services as well as meeting the schedules. The supply risks will limit the flow of services and products within the supply chain. It can result from widely established inventory facilities thus provide the need to reduce the warehousing. By eliminating the supply risks, the company improves the service delivery and distribution to the customer points thus promotes the quality of logistics in the supply chain (Awasthi & Grzybowska 15-30).
Work Cited
Awasthi, Anjali, and Katarzyna Grzybowska. "Barriers of the Supply Chain Integration Process." EcoProduction Logistics Operations, Supply Chain Management and Sustainability (2014): 15-30. Web.
