After reading the case study below:
What would you suggest are the alternatives that the company could follow?
Using the materials from the unit, what would the strengths and weaknesses of your alternative solutions be?
While travelling after a well-earned, post MBA holiday, you happen to sit next to a worried looking man on the long flight home. As the flight progresses the two of you begin to talk about your jobs and when you disclose that you have just completed a course on Business Logistics he gulps down his coffee and begins to tell you how worried he is about how his company is planning its logistics process.
œLook, he says, œwe’re not the best at customer service but we aren’t the worst either. We make industrial kitchen units, the kind that you would see in any modern restaurant. Ours are pretty expensive and we sell mostly to the Australian market but we are getting much more interest from overseas. The US market is looking good but the one that we really want to get into is the Chinese market.
œThat sounds great, you say, œso why look so worried?
He replies, œOur problem is that we just don’t know how to manage a long logistics process.
We are based in Sydney and the longest distance that we have had to dispatch products over is to Perth. Our products are quite bulky and metal so are not particularly light. We’ve looked at manufacturing them in the countries that we will sell into but that looks like a real problem for us in terms of investment. So, we are trying to find out what are the key issues that we need to think about before we decide what to do next. Can you give me any advice?
As you sit back in your seat you begin to think “ what could they do? What are their
alternatives, what seems the best solution? While you do not have all of the relevant
information that you would need to give a definite answer, you know that you can use what you have learned on your course to give some alternatives.