Tuesday, May 5, 2020
Case Study Of The Club War Free Samples Ã¢â¬ MyAssignmenthelp.com
Question: Discuss about the Case Study Of Club War. Answer: The first major inefficiency that has been noticed is having the freight move on non-truckload quantities. This can be resolved by Jim by reducing the number of distribution centres. By having large number of inventory move from lesser number of locations Jim can decrease the incomplete truck loads. Another option that can be used by Jim is to outsource this by making the most of the 3PL companies to ship the goods to the customers. Another option which can be used by Jim is milk-run style of delivering the goods; this will help in distributing the loads to several locations in a single run, in case TL is not an option on every run for Jim. Better preparations will help in elimination of freight that is being shipped in small quantities. Continuous operations in this manner results in wastage of resources and does not allow the company to perform at optimum level. Truckload is considered to be the most cost effective option and even the freight cost analysis also supports the fact In order to find out various other options that are available for delivery from the suppliers Jim needs to do a system analysis. This system analysis can be done in best manner by making it on the basis of infrastructure available as well as the location of the shipment. Some other options that are available for Jim include prepayment for shipping, making use of the hidden supplier options along with offering a shipping allowance to the supplier. Delivery options should be analysed in order to ensure that the calculations are right before any major decision is being made regarding bringing a change in the delivery options. Some of the analyses that need to be conducted include: a risk analysis and a freight cost analysis. Information plays a very crucial role in both the planning as well as execution phase of the logistics activities. Accurate as well as timely information impacts the performance of supply chain. Thus Jim can also derive benefits through implementation of CPFR (Collaborative Planning Forecasting and Replenishing). Which is a unique technique that combines the benefits of VMI and EDI and also finally helps in providing higher visibility all through the supply chain? This helps in enchain and achieving better coordination when the back-haul as well as front-haul network is being planned. On the basis of as-is analysis the current dynamics of supply chain were analysed by Jim and there were 10 sources of inefficiencies that have been found. For example there was huge amount of freight that was moving in LTL quantities. LTL collects and combines freight from various customers stationed at various touch points and it needs material handling equipment , dock personal etc. and this results in increased material handling cost (Coyle, et al. 2011). Cross-docking facilities were being used by the firm in which the shipments from inbound trucks or suppliers come at a transit point and then they are being sent to the buyer locations directly without storing them. They have been able to leverage the TL economies but still there is an opportunity for making improvements (Chopra and Meindl 2013) . Maximum benefits from cross-docking can be achieved if the economies of scale are achieved both in outbound and inbound shipments that requires effective transportation mechanisms as we ll as coordination. Since the service and retail sector has higher demanding service needs, thus Jim should thoroughly assess the cost as well as service trade-offs. Information will play very critical role because the availability of timely as well as accurate information will help in enhancing the supply chain performance. The firm can combine CPFR with Transport Management Systems (TMS) and Warehouse Management System (WMS). In order to better design the inbound and outbound transportation network Jim needs to synchronise it with the sourcing and distribution network. In order to derive better advantages from CPFR Jim needs to establish stronger supplier buyer relationships so that both the parties work in close conjunction to achieve mutually agreed goals (Schoenthaler 2003). In order to make the transportation and distribution networks better Jim can make best use of Tailored Networks which is an efficient combination of cross-docking, TL, LTL and Milk runs. This will further help in cost reductions as well as help in improving the responsiveness of Sams Club supply chain. More emphasis should be on using TL because it is a lower cost option and the shipments need to be reduced using LTL that can be achieved by making use of TMS though optimization of trailer capacity. Bibliography Chopra, S., and P. Meindl. SUpply Chain Management- Strategy, Planning and OPerations. Pearson, 2013. Coyle, J., A. Novak, J. Gibsoin, J. Edward, and A. Robert. Transportation: A supply Chain Perspective. SOuth Western Cengage Learning, 2011. Schoenthaler, R. " Creating REal Time Suppkly Chain Visibility." Electronic Business, 2003: 12-13.