Case study 1:
Situation: You have been recently appointed as the logistics manager for a company that supplies nutraceuticals. The product is new in India and has a lot of existing competition in the market. Your warehouse is responsible for supplying to primarily B2B E-Commerce and Modern Trade customers in Eastern region of India. This warehouse is a 3PL company warehouse where your company has rented space for operations. Your objective is to manage the operations smoothly following the 7 Rs of Logistics and also optimize the cost including the space in your warehouse, which might have been underutilized for some period of time.
Data available: You have this data from past 1 year – No of orders received, no of quantities fulfilled, space area of the warehouse, space occupied by each SKU, stacking norms, no. of inventory days of customers, transportation data for these fulfilled orders. If you feel you need additional data, state that in the assumptions.
Problem statement: Some E-Commerce customers work on automated replenishment, which might result in repetition of specific SKU orders, when previous orders are not fulfilled by your company. So using just the order quantities might not be a picture of the true demand and hence forecasting becomes difficult.
How will you, in this case, Arrive at a conclusion that warehouse space was underutilized in the past?
Optimize the current and future space requirement in the warehouse?
Instructions: You can assume a set of dummy data if you wish to present your approach in MS Excel. Otherwise, clearly mention the steps in your approach taken to arrive at possible solution(s) of the problem. Please state all assumptions clearly.
Case study 2:
Situation: You have been recently appointed as the regional logistics manager for a company that supplies nutraceuticals. The product is new in India and has a lot of existing competition in the market. Your warehouse is responsible for supplying to primarily B2B E-Commerce and Modern Trade customers in Eastern region of India. This warehouse is a 3PL company warehouse where your company has rented space for operations. Your objective is to manage the operations smoothly following the 7 Rs of Logistics and improve the current efficiency and save costs on current operations.
Problem Statement: Your 3PL partner uses its own transportation fleet to service our transportation needs. There are long delays in unloading at specific B2B customer’s warehouses, 70% of the time. And due to this your company’s 3PL partner is adamant to increase the transportation tariff. Even though rates were mutually agreed and revised in Dec-20, 3PL partner is also using this opportunity to increase the tariff on other customer deliveries, giving reasons of Diesel hike and COVID-19.
How would you tackle this situation and ensure smooth operations and customer deliveries are not affected? Please state all assumptions clearly.
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