A company involved in the field of childcare articles, caters to three different product families: - Large childcare (strollers, chairs, child seats etc.), small nursery (baby bottles, tableware, small toys etc.) and distribution of textile products.
The distribution of textile products takes place via two separate networks: - specialty stores that are the direct delivery of small orders with short delivery times (low storage capacity in store) and the supermarkets format where there are promotions representing 70% of sales and service rate.
The high critical distribution management in France is from 3 sites: - 2 of these are disjoint-operated sites a site operated by a logistics provider to ensure the distribution in France. The company we are studying wanted to overhaul its organization as it was no longer suitable (a process very different from one site to another, lack of quality, current organizations saturated, and outdated sites) to cope with the new service requirements and changes in flow.
In this process, we will study three scenarios: a scenario called "baseline", which is upgrading existing sites; a scenario called "internal target scenario" which involves the implementation of a new Distribution Center (DC), and a scenario called "External Target scenario" which involves outsourcing distribution.
Tags: management of supply chain, distribution management in France, outsourcing distribution
[...] Make your choices and why 3. Determine the level of implementation (at least 3 actions ordered) Corrects the case 2 Presentation of pros and cons of each solution SOLUTION "NEW CENTER OUTSOURCING SOLUTION INTERNAL" Benefits • Control over all • Offers a "package" of activities solutions • Acquire a new • Proposal for solutions storage space is a real enabling the company to estate capital keep one hand on deliveries • Serves as a • Homogeneity of the "showcase" for customers process of storage and distribution • Monitoring quality is assured (less breakage and damaged parcels) • The sites are not saturated and are maintained in good condition • No management personnel are provided regarding the distribution, or property management which represents saving of time and money • Relief organization operating • Increases the storage capacity at lower cost • Allows you to reposition its core competencies • More flexibility and responsiveness (to accommodate peak flow unexpected, out of stock for example) DISADVANTAGES • This is not the core • Lack of privacy (the business of the company so carrier may have to do with there is a lack of competitors) efficacy • Dependence: the risk • Few opportunities for of any unexpected, risk of development price increases, HR risk • Many managements to within the carrier (strike, realize real estate etc.) . [...]
[...] Action Three - Evaluate the different alternatives After conducting these actions prior to the selection, the company will proceed with the evaluation of different options available to it. Why it should analyze the costs, risks, terms and quality of infrastructure and means at its disposal. Fourth Action - Select the logistics provider This last step is critical and acts downstream of the previous. The company, having defined its goals, needs, and after searching and looking at various offers on the market must now have found a provider that can offer solutions to its extent and thus make a final choice by signing the contract. [...]
[...] ) ♣ Baby care (feeding bottles, tableware, small toys . ) ♣ Textile Product distribution is via two separate networks: ♣ specialty stores: direct deliveries of small orders with short delivery times (low storage capacities in store) ♣ mass distribution: promotions representing 70% of sales and a high service rate required The distribution management operates from 3 sites in France: ♣ 2 sites-operated separately ♣ A site operated by logistics France, for the distribution, the company wanted to consolidate its organization. [...]
[...] To carry out this strategy, it is necessary to define an effective action plan and define step by step to make the best choice when selecting logistics provider. First action - Define the parameters of work or needs: A search procedure and information collection should be implemented. It is necessary to collect information on future needs of the company and ask the right questions: the number of shipments per day / month / period, shipping methods and disposal sites, activities that the provider will achieve in terms of packaging (re-packaging, palletizing, labeling) and shipping. The effects of seasonality can also be a factor to consider. [...]
[...] Action Two - Finding and selecting potential suppliers (sourcing and a call for tenders) The goal here is to identify and evaluate various providers who potentially could potentially satisfy the needs and company goals. This action will be to seek donation in the first stage actors logistics adequacy with which need-offer is possible. In a second step it will be to analyze bids and retain at least three of those who responded to the call for tenders. Subsequently, a facility tour of the various selected providers will be very helpful. Furthermore, a first attempt at negotiation may be possible to test the level of bargaining power of providers and their possible flexibility. [...]
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