Ngee Ann Polytechnic
School of Business & Accountancy Logistics Management Course
SUPPLY CHAIN MANAGEMENT
Case study
The Big China Store
Management
10. As a Lott Global executive, what risks would need to be evaluated prior to deciding whether to accept the proposed seven-year contract?
The set-up and implementation schedule is tight and will provide many challenges. The most immediate are:
The scale of change management required in BCS to transition from store ordering to central ordering.
The staged implementation of the WMS IT application that must be capable of supporting the revised retail process, while being Chinese-localized.
The limited site options, as most facilities are traditional flat warehouses built for non-system-aided operations.
The longer time it will take to build a new DC rather than acquiring an existing building.
The fact that BCS is very price-conscious and wishes to buy on price rather than any other criteria.
The selection of a suitable WMS application has also become a challenge.
11. Should an LSP accept new business that may not be profitable, but which enhances its reputation in the market? If so, will it put contracts with other clients at risk if the new business fails?
I think the LSP should accept this new business, though the business only can guarantee to enhance its reputation rather than make profit in the market.
As a Logistics Service Provider (Lott), the reputation of the logistics industry is one of the most important factors on influencing the customer’s decision on which 3PL will be selected.
In addition, a good supply chain relationship with BCS is also an opportunity to extend business to other companies in China market.
If the new business fails, there is no doubt that it will be at risk on putting contracts with other clients. In capital cost aspect, the BSC will responsible for all of it, therefore, Lott won’t be affected by loss of capital. However, Lott’s reputation in logistics industry will be influenced by failure of the business, which will block their progress on entering China market.
12. Discuss the cultural challenges that may arise as the project is implemented and how they might affect the logistical performance of the project.
The main problems
1 unbalanced development
In real practice, some key works or good projects, corporate culture has been a high degree of attention, the company actively implemented in these areas of enterprise culture, developed and implemented outline the criteria specified cultural construction projects, vigorous and resolute, and effective measures to regulate place, and forceful, effective, cultural construction did very well, but in small projects, poor projects, corporate culture has been ignored, slow, standards are not high, there is no practical results.
2 solid enough work
Although embodiments have a good approach, but some projects did not able to reflect the corporate culture of the specific management work, resulting in the cultural construction of the project and the actual management of the project there is a
considerable degreeof mismatch phenomenon. In addition, some projects just work arrangements made general requirements, the lack of assessment and evaluation system, implementation of work rather difficult.
Affect the logistical performance of the project
From the long-term development, logistics and corporate culture for a logistics enterprise to grow and play a more significant role, although this effect often looks not very straightforward, but in the subtle to be effective, the development of logistics enterprises is the most persistent determinants. Because the logistics enterprise culture is the core of logistics enterprises concerned members ideas, which determines the logistics enterprise members of thinking and behavior, so good corporate culture logistics enterprises can fully discover the potential of each member, inspire them morale. Meanwhile, the logistics enterprise culture as a spiritual force, is bound up with the logistics enterprises invisible pillars, when the team of logistics management trends, it is the logistics enterprise bonds of solidarity, the communication channels within a
team or between teams mutual understanding of the “common language.” Therefore, a good logistics company culture in place, it brings the group 's wisdom, the spirit of collaboration , fresh vitality , which is equivalent to the deep structure of the logistics enterprises in the \full horsepower engine , continuously available to the logistics business innovation and progressive spiritual power.
13. Discuss the impact of the decision by BCS to select a less-than-optimum distribution facility and buy equipment on the basis of lowest price. From the perspective of Lott Global, how would you seek to influence BCS to make future buying decisions based on other criteria?
Lott needs to act fast and develop creative solutions to overcome these pressures.
After an extensive search, few suitable warehouses are found and the cost is not acceptable for either the existing racked DC ora new facility. The final selection is therefore a warehouse that has been used to store bagged grain. The facility consists of a row of 5 x 2000 m2 buildings, each divided into two halves by a firewall, creating ten spaces of 1000 m2 each. The dear height is 5 m. It has been decided to take only three warehouses for the first stage, which total 6000 m2. The remaining two warehouses can be rented at a later stage.
14. What metrics would you use to measure success of the training program for staff at the distribution facility?
1. Determine needs of personnel
Demand for talent is mainly based on two aspects of the situation to determine. First, the company's new store opening program. According opening plan, the company needs to determine the appropriate personnel; Second, dynamic talent needs. Company personnel may result of staff turnover, talent promotion, redeployment, corporate development departments etc. addendum vacancies arise. According to the above two cases, HR statistics entire company needs talent.
2. Determine the source of talent
Source of talent in two ways; one is the internal competition, selection. Through the company's existing human resources in the selection of personnel needs to achieve, can stimulate the potential of employees, improve employee motivation, and selection of talent but also a better understanding of the company's situation, which is easier to integrate into the entire team . Another way is external recruitment. Needs through the recruitment and selection of personnel for the company, in time to meet the company's talent needs, and enables the company to obtain more fresh concepts and methods. 3.Ways of training
Training of personnel in the following ways, one for job training , on the job training in higher level managers work guidance , which is one of the most direct and rapid increases in their job skills , and accumulated experience in the industry approach to training ; First in different positions , different areas of practice, through this way , cultivating high-level managers ; First, in accordance with the requirements of its professional quality training to improve their professional quality , management skills.
15. Develop the change management approach for transitioning the DC staff to think and behave as operational staff of a growing and successful commercial enterprise. 1. service program
We usually work, you feel there is cumbersome workflow, to know that in our complex processes at the same time, the customer will feel our work is not efficient, can we work to ensure the correctness of the premise, slightly streamline workflow, or is not continuous actions are divided into steps simultaneously to ensure the shortest possible time, to the best quality service to complete the work.
2. customer psychology
When we buy something at the mall , when you feel service than the service to wait before the wait much longer , anxious and eager to make the wait becomes unbearable , do not wait more than ascertain the knowledge, limited to wait long , alone wait uncomfortable than collective , also , in our delivery service carried out when our customers there will still be the issue of this series , when we empathy for each other's point of view to deal with the problem and they will get understanding and respect for the customer , so that customers will have such an idea : the higher the value the more worth the wait service . 3. Technology Applications
Adopt more high-tech means of modern logistics , a relatively high degree of information technology , communications convenient, fast , so you can improve service efficiency , provide consistent service , increasing service options, providing personalized service , extended standby time. When we conducted the service, you can take advantage of this feature , for example: in the face of poor road conditions , traffic jams, when it snows , we can make a phone call to the customer , inform each other of current status , which may result in the delay time apologize and ask the customer less impatient , waiting patiently .This would not exist because customers anxiously awaiting the result of complaints , the same , customers will feel good about our dedication , to facilitate future communication and work.