Supply Chain Management: A Case Study

According to Persson(1991), The strategic planning for logistics in business context can see in several strategies. As the first strategy, the cost minimization would be the strategic planning for logistics in a business. Logistics costs can be reduced by remove the supply chain bottlenecks. Strategies to reduce or eliminate bottlenecks include addressing vessel schedule planning, confirming proper documentation and regulatory agreement for imports and exports, and restoring network design. Cost minimization on logistics can also be done by reduce inventory at the port, manufacturing locations and warehouses. Companies often stock surplus inventory because they lack supply chain visibility. Excess inventory can effectively reduce by gaining

This channel integration relates the retailers in online. According to Jim Bengier, the success of online retailers over the past few years has encouraged catalog retailers and department stores to focus their energy on ecommerce, providing a wide-ranging of products online. Not only do these retailers have to focus on providing customer service and storing shopper loyalty, but they must also handle the challenges of cross channel retailing and multi brand management.

The downfall of multi brand selling, as well as multichannel selling, is that retailers may be motivated to run their operations as though they are managing several independent businesses, with separate warehouses and, most importantly, separate logistics and satisfaction processes. This is by no means an ideal retail strategy. To successfully manage multi brand and multichannel selling, retailers need to optimize customer order fulfillment across all brands and channels. This is only possible if they break down silos and have inventory visibility and third party supplier management (Jim Bengier, March

It is very common for order processing to be programmed using Electronic Data Interchange (EDI). Often companies improve their order processing system to increase quick response performance. Unfortunately, the effort to automate the current process has lowest advantage toward reaching the goal of quick response. What operations needs is advance notice of what the customer is about to order so that it can be made existing when he orders it. A quicker handover of a customer order or a new order entry system still leaves operations with the need fill the order from an inventory or from a very flexible manufacturing operation. Inventory built in anticipation of future orders depend on the precision of the forecast. Because there is no such thing as an accurate forecast, failure in achieving quick response is practically