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Logistics Process Services (LPS) Firm Report

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lecturer
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case study
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5 pages
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  1. Introduction
  2. Transport Logistics
  3. Annual Transport cost
  4. Cost per unit
  5. Summary and conclusion

LPS firm has transformed in a tremendous way in the transport sector. Its ways of approach to development of transport and integrated logistics is a sign of reshaping of its trade flows. The step this company has taken is yet to make a great contribution to its transport sector. The main aim of carrying out a research is to work with the best way possible in dealing with the transportation of the materials needed for the manufacture of soap products. This specific paper carries out a research on two suppliers. Its main aim is to establish which supplier between Mexico and Louisiana will supply caustic soda with minimization of cost and maximization of profits.

The supply operation is to be carried out among three major centers of distribution: Moncton NB, Airdrie AB and Mississauga ON. Therefore, the most appropriate approach to this situation is by qualitative analysis and cost benefit analysis of these two suppliers. First and foremost LPS should work out the total cost in a year in both cases. Another essential aspect to work on is the amount of cost for every unit of soap in denomination of cents. This is performed strictly on the method of the Mexican supply and the shipping method that has been proposed. The research also contains the recommendations made after identifying the supplier the company opts for. The discrimination is mainly based on cost and the cons and pros details in a broader perspective.

[...] Dedicated transportation This includes transportation of the supplies to the three DCs via dry vans and because of their capacities they seem to cost more than the other two options. Taking an example of the van moving to Mississauga, its cost of transportation is 2.3 million Canadian dollars annually while for the one heading to Moncton NB incurs a transportation cost of 4.1 million Canadian dollars annually which is far much expensive than the other two. Looking at the time of transit, there are risks involved. If this technique is taken into deliberation, the LPS may be forced to pass the added costs to the customers. [...]


[...] The selection has been based on the cost incurred from employment of the two options. The advantages of using the proposed method as LPS' supplier is that the cost of transportation of this supplier compared to the Mexican supplier is lower and seems to be more efficient. This because this firm has worked with LA suppliers for a very long time and therefore, are well versed with their modes of operations and the quality of their services. In addition, given that LPS has worked with them for many years, they are aware of the weaknesses and strengths of the supplier in question. [...]


[...] Given that there are 145 rail cars the annual cost of transport will be the product of cost of transportation to Airdrie from LA and the number of rail cars which is 145 4190.48 dollars= dollars annually. Demand Forecast Transport Rates Distances Assumptions This case study will not consider annual excess inventory. Features and/or benefits if any, listed in this report are fully supported with a discussion. Mexican method The proposed method comprises of the potential supplier of caustic soda which is the Mexican suppliers. This is the potential LPS' supplier of caustic soda. [...]


[...] In a nutshell, for efficient establishment of any effective and efficient logistics network, detailed studies should be done to acquire a substantial knowledge and understanding of present state of systems of logistics and advancement in the requirements of logistics assessment not only for competition purposes, but also in a globalised perspective. Hence, in order for this firm in study to achieve the vision it desires, logistic links based on its interest and under a framework that is common to all is of essence. Introduction This research paper talks of transport logistics as its main focus. By definition, logistics is the manner in which goods and services stream from the place where they are created to the point at which they are disposed. [...]


[...] The research also contains the recommendations made after identifying the supplier the company opts for. The discrimination is mainly based on cost and the cons and pros details in a broader perspective. Introduction This paper also dwells on the analysis of utilization of dedicated carrier in transportation to outbound areas to the distribution centers. The analysis comprises mainly of cost of the dedicated fleet and SWOT analysis, which involves consideration of threats, strengths, opportunities and weaknesses. On the other hand, a qualitative analysis is carried out on the two options where the issues which may arise, the involved risks and opportunities are taken into account. [...]

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