Cases in Logistics Decision Making

Cases in Logistics Decision Making

Question One

Possession utility refers to the amount of effectiveness or perceived value that a person gets from owning a product. The possession utility helps in describing the various benefits that one can derive from owning and using a particular product. Form utility is what is created by the design of a product or service. In other words, form utility is how well a product or service addresses the needs of the targeted consumers. Time utility is what is created by offering easy availability of a product or service the moment the consumer needs or wants it. Time utility occurs when a firm maximizes the availability of a product or service so that the consumers can purchase when it is most convenient for them. Lastly, place utility the concept of making products or services physically accessible to the customers. Place utility can be attained by making the products or services easily accessible to the costumers.

Logistics can contribute to possession utility by realizing that products or services are meant to add value to the consumers. Thus every idea that comes out as a product or service should seek to meet certain needs that make the consumers feel satisfied. Logistics can also contribute to the time utility by identifying that certain products are time-sensitive. For example, consumable products need to reach the desired market before they expire. Logics also contributes to place utility through recognizing that markets are segmented geographically, and thus products and services should be tailored to move to places where they are needed more.

Question Two

The system approach to problem-solving explains that the objectives of a company can be determined through the recognition of the mutual interdependence of key functional areas such as finance, logistics, production, and marketing. In turn, the decisions being made by a particular functional department can have significant implications on the other functional units. Regarding the logistics, the system approach highlights that managers should recognize the fact that there is a mutual interdependence of various activities that make up the logistic function. For example, the transport function may have an effect on the packaging, warehousing, and even inventory, among others.

Question Three

The key managerial issues faced by logistics managers are in line with the aspects of productivity, quality, risk, sustainability, and complexity. Productivity issues align with the amount of output divided by the amount of input, and this, in turn, affects the efficiency concerning how the resources of the organization are utilized. Managerial issues relating to quality identifies the need to produce products and services that meet the desired standards of the customers without defects or errors. The issue of quality is not a matter that only affects the external stakeholders but also internal stakeholders in the sense that they need to ensure quality input to their various roles and responsibilities. Risks as a management issue underpin the fact that logistics management needs to recognize the susceptibility to disruptions that might affect the supply chain process hence leading to a loss for the business. The managerial issue of sustainability mainly aligns with corporate social responsibility, and these are issues attached to various dimensions such as the impact of the organization on the environment, ethics,  diversity, safety, philanthropy, and human rights. The other managerial issue faced by the logistics managers is the complexity, and this can be felt in three dimensions; network, process, and complexity. Network complexity refers to the growing number of nodes and associated changes that might affect the communication process in the logistics systems. Process complexity associates with the haphazard development processes that might affect the output in the logistics system. Lastly, range complexity relates to the growing uniqueness and diversity of products and services that companies face when seeking to establish themselves as unique.

Question Four

It is reasonable that the team should consider other costs and benefits associated with implanting the WMS. It is because the WMS is a third-party system with separated packages required to be incorporated with the ERP, which encompasses the rest of the business management software, along with integrating external programs that can work. Such processes can easily be encountered with issues such as duplicate data entry, delays in the information process, expense in customization, and interface issues. The scope of the WMS operation varies significantly from the basic efficient practices in picking, packing, and shipping operations. Besides, the WMS aids in minimizing the possibilities of errors that may occur when the cost of the team is shipped and assist the teams in accomplishing deliverables more rapidly while promptly tracing ordered products within the warehouse.

It is also recommended that the team considers benefits or costs associated with implanting TMS, and this is mainly because TMS can offer substantial remunerations to logistic operation and supply chain. In turn, the most evident benefit is that implementing the system will significantly improve customer service levels. The collection of the performance data helps the supply operators in making changes to ineffective internal processes along with problem transportation partners. At the same time, there will be a significant improvement in data accuracy; thus, this implementation will eliminate data entry errors.

The main advantage of implementing both technologies simultaneously is that there will be an improvement in the delivery of service to the customers hence increasing the level of satisfaction. The other benefit is that there will be potential to bring together inbound shipments while reducing costs. Implementing both technologies will also improve the cash flow from enhanced freight payments. Lastly, this process will also improve the efficiency of the warehouse on inbound shipments. The main disadvantage, however, is that there are possibilities of duplicate data entry. Besides, this might lead to delays in information and trigger interface issues.

Pallotta’s firm and the suppliers will end up creating strategic relationships or collaborative sourcing relationships. The mentioned relationship is that which entails a potential supplier who has the desired qualifications, and they are trusted as partners in case there is a need for a review of the system or maintenance. Regarding transportation providers, they will be seen as strategic partners in a transportation system where they will help the organization achieve prompt delivery of products required either by the organization or the consumers.

The best recommendation that I would make for the team to implement the WMS because there are various benefits attached to the technology and thus would increase the efficiency of the organization. Some of the benefits as already identified include increased productivity, visibility and traceability, reduced errors, and enhanced responsiveness to the production plant. As a result, this would cut down the costs often encountered in the logistics system while addressing the needs of the customers effectively.