The company's distribution strategy
The company's distribution strategy, which was implemented to cut costs, would involve upgrading the planning and decision-making processes.
Awareness of the supply chain process
The company should first be aware of the supply chain process. The procedure aids in streamlining the transfer of commodities from producers to consumers. Also, management should focus on comprehending the intricate nature of the procedures and activities involved in providing goods to clients.
Reducing the role of intermediaries
In order to reduce the role that intermediaries play in the process, which raises expenses, I would set up an effective grasp of it. Also, it would assist in lowering the cost of storage and transportation. Some of the factors determining the logistics costs include labor, storage, transportation, and administrative costs. The primary causes include the fuel costs, delays in the port arrival for the goods, the complexity of the regulation and the increase in the warehouse cost (Flavián & Guinalú, 2015).
Consolidating shipments strategy
However, to reduce the cost, I would adopt different measures. Firstly, consolidating shipments strategy which entails loading all goods in containers used for shipment. The rule normally is safe and relatively cost-effective. It serves to reduce the conflict when it comes to space for the goods and delays in delivering the goods. The consolidation of smaller shipments from different suppliers but with the same destination plays a vital role in reducing the cost. Additionally, combining with another importer to make a full delivery also would help in reducing the cost.
Cargo insurance strategy
Secondly, to reduce the logistics cost, using the cargo insurance strategy. The insurance helps in providing cover to all the products in case of any unpredicted scenarios. The use of a single integrated platform approach would also play a key role. It helps in avoiding duplicating of the services during operating in the company.
Outsourcing strategy
Moreover, the outsourcing strategy would assist in reducing cost, increasing efficiency and convenience due to the use of professional services. Some of the outsourced services would entail storage and transportation (Burns et al, 2015). Additionally, fully utilize the resources available. It entails fully using all the business assets thus improving the efficiency of the firm. Rearranging the delivery schedules helps to achieve high customer satisfaction through allowing everyone ample time in contributing their maximum potential. During the peak period, hiring additional space would help in providing additional space for the products. Lastly, using appropriate planning strategy would assist in lowering the cost. It helps in planning processes such as shipping routes, production schedule, and the transit time. Proper decision making facilitates in improving the image of the business through the timely delivery of goods.
Improving customer satisfaction
The strategies that would assist in improving customer satisfaction would include proper preparation. It helps in getting the right suppliers thus unlikely to disappoint the customers. The company is likely to have all the supplies under control thus customers get their requirement at the right time. The company also should adopt an appropriate shipping price. The customers will trust the business thus building customer's loyalty. Additionally, the company should also offer a variety of goods and services to its clients thus creating some flexibility. Lastly, use of best-shipping partners and tools would also improve customer satisfaction (Flavián & Guinalú, 2015). The reduction in the variability, the business would adopt strategies that reduce the lead time. The factors that would affect variability include the production schedules, inventory requirements, and the supply chain strategy.
Best logistics strategies for centralized management
The best logistics strategies for centralized management would entail the establishment of a council in charge of the directorate (Simchi et al, 2012). It would direct all the activities and policies of the business. Additionally, using the technology strategy would also play a vital role and allocating the right staffs to carry out logistics. In cross-docking, the organization would either perform continuous cross-docking or consolidation of the arrangements. The strategy to suit to trans-shipping includes consolidating shipment and acquiring cargo insurance.
Implementation
The recommendations to reduce cost increased variability, and address the decrease in customer satisfaction relies upon proper planning. It allows for all the business assets used to help in dealing with the key to good management. The company would put all the right mechanism to prevent and address the main challenges arising due to logistics problem. The action would assist in reducing the costs involved, reducing variability, and increasing customer satisfaction (Burns et al, 2015).
Primary steps in implementing timely planning
The primary steps in implementing timely planning include understanding the main factors considered during planning. Some of the factors include the products, organizational issues, and transportation issues. Secondly, adopting technology help in improve efficiency through addressing some matters such as the procurement of the goods. It also focuses on the delivery of the goods to their preferred destination. Thirdly, value relation is an essential step and analyzes the factors affecting growth. Additionally, warehouse management and transportation planning also help in achieving the appropriate plan.
Challenges
The primary challenges experienced in completing the scenario include information network layout. The movement of the available information does not provide adequate facts to move materials and products. The company also lacks a better strategy on the movement of their goods. Moreover, time was inadequate to respond to various matters arising during the process. Finally, the firm had to cope with different cost while at the same time maintaining quality.
Use of additional information
The use of additional information provides significant effects in the distribution strategy. The use of information helps the firm to adapt and enhance different values during supply. It also helps the organization take advantage of various models in the business. The company also adopts different capabilities in dealing with the economic challenges.
References
Burns, L. D., Hall, R. W., Blumenfeld, D. E., & Daganzo, C. F. (2015). Distribution strategies that minimize transportation and inventory costs. Operations Research, 33(3), 469-490.
Flavián, C., & Guinalíu, M. (2015). The influence of virtual communities on distribution strategies in the internet. International Journal of Retail & Distribution Management, 33(6), 405-425.
Simchi-Levi, D., Simchi-Levi, E., & Kaminsky, P. (2012). Designing and managing the supply chain: Concepts, strategies, and cases. New York: McGraw-Hill.
