Logistics Industry Value Chain Analysis

Does management know the strategic implications?

How is production scheduling done?

Describing the activities of the production scheduling is also important in order to understand its challenges and main limitations for obtaining better production plan.

According to Strack and Pochet (2010:48), the success of the warehouse operations relies on the replenishment decisions, the rightful allocation and assignment of products to storage locations. Furthermore; Van Den Berg (2007:106) pointed out that the centre of a more transparent operation lies in effective warehouse stock management.

One important characteristic that describes the activity of a production schedules is inventory turns. Product Order may require goods in broken cases

It is not likely that any strategy can be completely defined or executed without resolving strategic-level conflicts. Hopefully this document is the start of a process that uses a simple, logic-based cause-and-effect approach to develop, articulate and deploy a dynamic strategy – one that is capable of responding and adjusting effectively to the organisation’s response to the business environment.

Has there been any recent re-engineering of the logistics network or logistics department.

Are such initiatives being considered, or considered to be important?

3.5. Channel dynamics and inter-relationships

Is the organisation able to respond to unique customer requests?

Could you site any examples of such requests where the organisation was/was not able to comply with any unique requests?

3.6. Cost budget/structure

The key factors that influence the warehousing decision include of operating cost, initial investment, cost control, risk, tax advantages, and economies of scale, consolidation of shipments, storage and handling (Tulsian, 2009:36). On contrary, Stock and Lambert (2001:394) pointed out that the key ingredients behind effective warehousing rests on time, quality, asset productivity and the involvement of management in developing a new kind of workforce to enhance warehouse

The importance of inventory savings depends on the magnitude of both the quantity reduction and the cost reduction.

At what level of detail is the particular system used?

Is the logistics budget a separate component within the overall organisation budget?

At what level of detail is the logistics budget?

Figure 3.1: Various type of costs in the logistics departments

Source: Compiled by research

Logistics department have its own separate and distinct budget or is the budget included as part of the budget of another discipline (e.g. marketing dept)?

Is this budget detailed and split into separate and distinct components and monitored?

4. LOGISTICS RELATED SERVICES

4.1. General

What is the overall commercial philosophy of the organisation?

What is the thinking regarding own in-house services vs. contractual vs. an outsourcing approach?

What criteria are used to select and/or evaluate service providers?

Have the organisation’s major service providers improved their customer service levels, information availability and accuracy, delivery lead times, etc. during the previous relevant