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Logistics management
NMIMS Global Access
School for Continuing Education (NGA-SCE)
1. Explain how an organization can provide basic customer service and enhance it with services that may add some value so as to improve its customer service level through channel relationship.
Answer: In today’s competitive environment, customer service has become inessential part of a product. Thus, customer service is used as a competitive tool by retailers in order to get an edge over their competitors. Earlier, companies used to compete with each other mainly in terms of product quality and price. However, better technological knowhow, access to more information and availability of skilled labor have significantly reduced the quality gap of the products offered by the competitors. In addition, companies cannot lower the prices beyond a certain limit; otherwise, it would erode the profits of the companies. In such circumstances, customer service has emerged to be
2. If you are to design logistical system and administration, what will be your operational objectives which may help in determining logistical performance.
Answer: In terms of logistical system design and administration, each firm must simultaneously achieve at least six different operational objectives. These operational objectives, which are the primary determinants of logistical performance, are:
Rapid Response: Rapid response is concerned with a firm’s ability to satisfy customer service requirements in a timely manner. Information technology has increased the capability to postpone logistical operations to the latest possible time and then accomplish rapid delivery of required inventory. The result is elimination of excessive inventories traditionally stocked in anticipation of customer requirements. For example, a popular style of winter-weight slacks is about to sell out early in the fall, a retailer records the product through direct links with Benetton’s mainframe computer in Italy. The order is downloaded to an automated machine that makes the slacks in the necessary range of sizes and colours. Workers pack the order in a bar-coded carton addressed to the retail store, and then send the box to Benetton’s single warehouse – a highly
3. Mr. Vijay, the logistic head of Alfa Auto Parts, believes combining private and public transport in a multimodal transport system offers opportunities to capitalize on the strengths of the various systems while avoiding their weaknesses. However, as the consignment moves through different modes of transport, his main concern is efficient tracking and control of consignment in transit.
a. Do you think container management system may help Vijay?
b. Vijay would also like to know if apportionment will help the consumer who buys in small quantity.
Answer: a) The increasing complexity of manufacturing and purchasing networks poses huge challenges for container management. Oftentimes, new business models are needed. Container processes are often carried out manually and are neither standardized nor integrated. Containers are not located where they should be and go missing. This has a negative effect on how well materials and goods can be supplied. In addition to substantial inefficiencies in the entire container planning and management system, there is also a great lack of transparency about container
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