| Question 1: Push and Pull Supply Chain Strategies and | | | | bureaucracy or confusion during service delivery. It is |
| Centralized vs decentralized strategiesa) MBD should | | | | now possible for the driver to perform all these |
| consider implementing a push-pull strategy. This is | | | | functions through the use of automated systems. |
| because the company is in such a position where it | | | | Rack structures within the delivering vehicle can be |
| needs to inform other book retailers about the | | | | improved through employment of technology. For |
| services that it offers hence the need for the push | | | | instance, rack structures can be improved through |
| strategy. However, in order to curb demand | | | | the use of palletized unit loads. These racks are |
| uncertainty, the company could only be delivering the | | | | usually standardized and greatly assist in the process |
| books that have been requested for by the retailers. | | | | of either placing books within the delivery system or |
| (Harrison, Hau & Neale, 2005) | | | | retrieving them from there. Consequently, the |
| In order to deal with the push aspect of their | | | | process of unloading and loading is much faster today |
| distribution strategies, the company ought to invest | | | | than it was in other decades where these |
| in a lot of advertisement to its retail booksellers. It | | | | technological systems had not been introduced. |
| also requires a forecast of long term issues affecting | | | | (IIMM, 2007) |
| the company. On top of that, it would be necessary | | | | Sometimes, some companies employ the use of |
| to examine all the past orders made by customers | | | | machines to retrieve or sore material or parcels. In |
| with regard to certain warehouses so as to | | | | this case United Parcel Services Incorporated can |
| understand how the demand patterns works. This | | | | employ this method when performing those |
| would also mean that the company will require large | | | | functions. For instance, the company could use an S |
| production batches and large safety stock in order to | | | | R machine whose major function is to retrieve or |
| meet client requirements. | | | | store parcels. It allows a series of automated |
| However, in order to curb the negative effects of | | | | maneuvers that can be conducted by the driver. |
| the push system, it will also be favorable to include | | | | Some of these include accurate positioning of the |
| the pull system. This is because the books delivered | | | | parcels, high lifts for the products and locating where |
| to specific book retailers will be the ones that are | | | | the product or parcel may be. It should be noted |
| actually needed by them and what the company | | | | that the machine utilized pulley systems that come in |
| thinks should be sold. This aspect will require fewer | | | | various designs. Sometimes a series of parcels can be |
| inventories for the company. Additionally, MBD will | | | | picked by the machine at any one time or simply one |
| need to spread their knowledge across other supply | | | | unit can be retrieved. This goes a long way in |
| chain partners. This may require serious coordination | | | | enhancing the retrieval process. |
| levels but will eventually reduce the lead times that | | | | It is also possible to deploy the use of carousels. |
| have been assigned to a specific book type.b) MBD | | | | Carousels are applicable in cases where both vertical |
| has the option of maintaining their intermediaries | | | | and horizontal movements of the load or parcel are |
| through the Distribution centers when tackling | | | | required. Usually, vertical systems are preferred when |
| distribution to superstores. Additionally, they could | | | | there is a need to use a cube system. However, in |
| choose to deliver the books to these superstores | | | | cases where picking needs to be done in a |
| personally. While the distribution centers have been | | | | conventional method, then there may be a need to |
| enhancing communication and encouraging greater | | | | employ robotic arms for this process. |
| flow of money, they have been rendered powerless | | | | There are also certain methodologies that permit |
| by the power of the retailers. Most of these | | | | linkages of warehouse staff. For instance, if the |
| superstores are dictating terms to MBD thus | | | | driver under consideration was working with other |
| minimizing their profit margins. In order to reduce the | | | | employees, then he would have a chance of |
| losses experienced by these companies in the | | | | improving his communication mechanisms by talking |
| specific area under consideration, it would be | | | | with them through radio frequency data terminal. This |
| favorable for MBD to do direct selling where they can | | | | technology would allow the driver to be able to |
| negotiate terms and curb extra expenses. | | | | determine whether the respective colleagues actually |
| However, when dealing with the online stores, it | | | | have delivered a certain book to certain clients thus |
| would be favorable for the company to adopt a | | | | minimizing the chances of collisions or time wastage. |
| different distribution strategy. Since these companies | | | | (Hamilton, 2008) |
| usually assign MBD with the task of delivering goods | | | | International logistics strategya) For a manager |
| to their clientele directly, then it would be favorable | | | | dealing with a small company, then it would be |
| for the company to consider provision of certain | | | | favorable to embrace a hedge strategy.b) This is |
| wholesaling functions alone. In other words, in order | | | | because the company will be able to distribute its risk |
| to enhance efficiency, then it would be favorable to | | | | evenly in those various locations. There are a series |
| adopt a streamlined system for the production of | | | | of problems that companies have to deal with |
| most of their products.c) MBD can benefit from | | | | whenever they choose to direct their distributional |
| changes in its distribution strategies by reducing the | | | | functions internationally. For instance, there may |
| amount of lead time that the company needs to | | | | differences in infrastructure between the mother |
| take in order to deliver books to their clientele. | | | | country and the other country chosen for distribution. |
| Additionally, the company will benefit from greater | | | | Besides this, there may be problems faced in the |
| accuracy in their distributional approach because their | | | | business environment such as |
| work will be more coordinated. It would be plausible | | | | - standardized equipment |
| to consider changes in distribution because it can | | | | - post dated checks |
| encourage greater returns to the company. Supply | | | | - cultural differences |
| chains are just as important as any other aspect of | | | | - foreign government issues |
| production and if managed properly, they can lead to | | | | - requirements for success |
| greater output levels. Lastly, changes in distribution | | | | If the target company chosen is located in the third |
| can also cause lead to other non-financial benefits | | | | world, then chances are that those respective |
| such as increased safety or better ergonomics. | | | | partners may not have sufficient infrastructure to |
| (IIMM, 2007)d) Having fewer ware houses and | | | | support the logistical requirements of that company. |
| greater centralization can add to the value offered | | | | However, it may be possible to find that that third |
| by any given company due to the following reasons. | | | | world country may have cheap labor necessary to |
| First of all, it allows greater understanding of the | | | | coordinate logistics services. Consequently in order to |
| logistics process thus allowing an identification of the | | | | deal with the inefficiencies in one country, then it is |
| strengths and weakness inherent in that particular | | | | necessary to offset these problems by investing in |
| company. Additionally, it allows a given company to | | | | another country. For instance, if the other country |
| control volumes present in its warehouses. This | | | | chosen for investment is in the first world, then |
| means that changes in inventory levels can be | | | | chances are that they would have better |
| adequately monitored. This also implies that turn rates | | | | infrastructure or less cultural and political differences |
| can also be assessed. Through these analyses, | | | | with the mother country. However, first world |
| companies can then determine types of materials | | | | country would have high labor cost and these can be |
| that are needed to meet client needs. (Gallagher, | | | | a problem. As it can be seen hedging will help the |
| ODwyer & Maher, 2000) | | | | electronics company to compensate for the lack of |
| On the other hand, decentralization may also benefit | | | | certain features in one country through the |
| the company because it allows greater customization | | | | prevalence of those features in another and this can |
| of service provision. This is because there is a high | | | | go a long way in minimizing their risk. Small companies |
| degree of personalization by the company's | | | | have minimal resources, consequently, they cannot |
| representatives since logistical decisions do not have | | | | afford to take up too much risk as it would harm |
| to pass through central logistics mangers or leaders | | | | them tremendously if their risk did not translated into |
| alone. | | | | rewardsc) If the electronics firm was a large firm, |
| Logistics strategya) Sometimes, internal logistics may | | | | then it would be advisable to employ a flexible |
| be the best way to go for a company if supply chain | | | | distributional strategy.d) This is because a flexible |
| management serves as a value additional point. If the | | | | strategy allows the company to embrace operational |
| latter part of production plays an important role in | | | | exposure. This is only possible if the company |
| sustaining competitive advantage, then it would be | | | | employing this strategy has excess capacity. Since it |
| wiser to stick to internal logistics. | | | | is a large firm then excess capacity is not a problem |
| In other scenarios, a company's internal capabilities | | | | and it can therefore implement it. This strategy also |
| may be sufficient enough to handle supply chain | | | | requires a series of distribution channels and this is |
| logistics. Consequently, the need to employ external | | | | also plausible for a large company. Besides these, the |
| parties may not be necessary. In other words, when | | | | electronic manufacturer would require numerous |
| the technology, infrastructure and core competencies | | | | suppliers which is likely to be the case if it is a large |
| within a certain company have not been surpassed, | | | | firm. (Hamilton, 2008) |
| then it is advisable to continue utilizing internal logistics | | | | The flexible strategies require that a company's |
| expertise. (Hamilton, 2008) | | | | coordinating mechanisms be improved tremendously. |
| Sometimes, the culture within a specific company | | | | Again, since this is large firm, then chances are that it |
| may not fall in line with that respective company's | | | | may have efficient coordination. A small firm would |
| logistical strategies. This means that even if a | | | | not b bale to effectively implement the flexible |
| company has assessed its logistics requirements and | | | | strategy because it requires the use of heavy capital |
| found that there is a need to employ external | | | | investment which would only possible after |
| parties, prevailing organizational culture may make it | | | | conducting business for a long time or if there are |
| impossible to do so and this may undermine the | | | | already high levels of returns emanating from the |
| success of outsourcing. Consequently, such | | | | company under consideration. |
| companies would rather stick to what they know | | | | This kind of strategy would assist the company in |
| best i.e. internal logistics expertise.b) Acquiring a | | | | improving its political leverage within any company |
| company with this expertise may also be another | | | | under consideration. It would also help them in the |
| option owing to the fact that certain challenges or | | | | process of improving its availability. |
| opportunities may occur within a given company thus | | | | Dimensions related to supply chain managementa) |
| heightening the need to consult with other categories | | | | Distribution would go a long way in boosting |
| or persons. Usually, this may be necessary when the | | | | conformance requirements. This is because through |
| firm under consideration has specialized in a certain | | | | transportation functions in supply chain management, |
| logistical areas. One such example is a technological | | | | it is possible for goods to reach the consumer or |
| company. In order to optimize large supply chains, it | | | | retailer for intermediaries. Transportation function are |
| may be necessary for respective companies to | | | | essential because they can either make or break the |
| consider alternatives such as automation or the use | | | | supply chain. Their choice determines the speed with |
| of information technology. Such functions may | | | | which products reached their intended consumers and |
| eventually become part of supply chain management | | | | also the condition of the products before reaching |
| and will need to be constantly monitored by those | | | | those receptive areas. For instance, the use of air |
| respective providers. It would therefore be plausible | | | | transport would ensure that goods reach consumers |
| to acquire such companies. By doing this, companies | | | | in good conditions and as fast as possible. (Paul, |
| can deliver goods at a faster pace and a lower | | | | 2007) |
| price.c) A company would be better off developing a | | | | Additionally, supply chain management ensures that |
| strategy then employing external partners to carry | | | | goods are stored in the right manner so as to ensure |
| out their strategy for them instances where the | | | | that they can be easily retrieved when needed, that |
| company under consideration would like to focus its | | | | their volume is sufficient enough to meet consumer |
| energies on its core competency functions. This | | | | demand and that they keep goods in the best |
| means that when companies want to increase the | | | | conditions. |
| rate at which their revenue is growing, then they | | | | Supply chain management also streamlines the buying |
| should consider this as a viable option. Also, in the | | | | or selling process that companies must engage in. If |
| event that a company would like to differentiate the | | | | supply chain management is not done well, then |
| kind of services which they offer to the public, then | | | | goods and services will not be produced or delivered |
| it would be plausible to consider differentiation as an | | | | in the right manner and this may eventually hamper |
| appropriate method for service delivery. (Hamilton, | | | | conformation processes.b) Product selection is also an |
| 2008) | | | | inevitable function in supply chain management. This is |
| Many companies tend to turn to deployment of | | | | because through the latter mechanism, companies |
| logistics functions so as to ensure that their internal | | | | can be able to standardize their products. Also, |
| logistics costs are transferred from them to other | | | | through logistics handling, products may be graded |
| external parties. This allows them to stick to the | | | | depending on their respective categories and this |
| overall distribution strategy but reduce economic | | | | goes a long way in improving marketing functions or |
| repercussions of their logistics chains.d) In certain | | | | competitive advantage.c) Supply chain management |
| instances, companies may require a third party's help | | | | can also be linked to price through a series of ways. |
| in developing their logistics strategies owing to the | | | | First of all, the decision to offer discounts to retailers |
| fact that some supply chain expertise may not be | | | | can increase the competitive advantage for any one |
| present internally. Usually, this may occur when a | | | | product and this can go a long way in promoting a |
| company desires to change their logistics systems to | | | | company's ability to excel. Additionally, many retailers |
| incorporate consumer demand. Additionally, it may be | | | | are well aware of the pricing of a number of |
| necessary to include third parties in strategies | | | | competitors. Consequently, when their suppliers offer |
| formation when a company chooses to go global and | | | | them certain low price ranges, then they may opt to |
| they lack little internal knowledge about the intricacies | | | | take their business elsewhere and this goes a long |
| of global logistics. (Paul, 2007) | | | | way in promoting their performance. (Gallagher, |
| Sometimes some companies may employ the | | | | ODwyer & Maher, 2000)d) Supply chain |
| services of an external partner in strategy | | | | management can impact on a company's ability to |
| formulation in the event that they want to maximize | | | | compete though value added services. For instance, a |
| their production levels but lack the knowledge on | | | | large number of companies use the aspect of fast |
| how this can be achieved practically. Usually, this can | | | | and efficient delivery as an item that promotes |
| occur when the company under consideration has | | | | competitive advantage. Consequently, when those |
| been operating below its profit margins or when it | | | | respective companies are able to streamline their |
| has been underutilizing its resources or time. | | | | supply chain management functions to achieve those |
| Information technology and its role in logistics | | | | goals, then they can boost their competiveness.e) |
| Technology can be very instrumental in the process | | | | Relationships and experiences are also another |
| of delivering parcels for United Parcel Services | | | | pathway that supply chain management can utilize to |
| Incorporated. This is usually as a result of a series of | | | | add to a certain company's competitive advantage. |
| areas that may have been improved through | | | | For instance, supply chain management provides a link |
| technology. For instance, automated warehousing | | | | between suppliers to a certain company prior to |
| processes assists in stacking parcels or commodities | | | | production and they also act as link to the respective |
| in an efficient method and also retrieving them easily. | | | | retailers. This means that through this function, the |
| Consequently, the driver under consideration will save | | | | company can easily understand the mechanisms that |
| time by utilizing these automated systems to retrieve | | | | other companies use to source their products and |
| books whenever there is need to deliver them. | | | | this therefore enhances a certain business process. |
| Also, storage systems can be linked to distribution | | | | Additionally, marketing is fundamental in understanding |
| systems through computerization. Consequently, the | | | | the way the world of retail works. They usually add |
| driver under consideration may have a greater | | | | efficiency to these relationships and also promote a |
| chance of improving system performance through | | | | wider client reach through the processes that they |
| technology. | | | | institute. |
| Technology can also enhance the efficiency of parcel | | | | Reference |
| delivery by providing a tracking system. This will go | | | | Gallagher, S., ODwyer, M. & Maher, J. (2000): |
| long way in ascertaining that all the respective books | | | | The importance of a distribution strategy within the |
| are delivered to the right clientele and that this is | | | | farmhouse cheese industry, Irish marketing review, |
| done quickly and efficiently. (Harrison, Hau & | | | | 12, 3, 67-78 |
| Neale, 2005) | | | | Harrison, T., Hau, L. & Neale, J. (2005): The |
| Before incorporation of greater amounts of | | | | practice of supply chain management, Springer |
| manpower in product delivery, it was necessary to | | | | Publishers, p 35-46 |
| employ a large employee base to deliver a number of | | | | IIMM (2007): Automated warehousing perspectives |
| goods. This was because the entire process of | | | | and trends; Associated press, p 12-30 |
| storing, retrieving and arranging parcels was done by | | | | Hamilton, S. (2008): Must Chemical companies |
| human beings. However, with the advent of | | | | outsource logistics to save money?, ChemLogix |
| technology, this is no longer the case. The United | | | | White paper, p 3-17 |
| Parcel Services driver needs not deal with a wide | | | | Paul, S. |
| variety of co-workers who will only increase the | | | | |