Analysis Logistics in Secret Squirrel Stationer - Case Study Example

Student Name: Tutor: Title: Logistics: Case Study; Secret Squirrel Stationer. Institution: Due Date: Logistics Solutions to Lack of Communication and Integration A Secret Squirrel Stationer should replace its conventional management style, both operationally and organizational-wise and replace it with an integrated system that will assist the company in increasing the rapidity as well as fluidity of physical and information flow. For Secret Squirrel Stationer to reach this form of integration, it can invest on new Information and Communications Technologies (ICT). This will merge communications within the company and hence enable the company to fulfill the demands of its workers and clients and also allow for higher systems and information access. The communications requirements will be delivered in an integrated manner. Therefore, Secret Squirrel Stationer can make use of cloud computing which will enable the company to work better via more swift and cost effective access to information by everyone in the company. Component of an information and communications technology roadmap will entail merging infrastructures, whilst offering additional benefits to users in teamwork, instantaneous messaging, audio, video, in addition to Web conferencing (Gunasegaram 2004). B The general manager at Secret Squirrel Stationer should analyze the entire company and develop a communication strategy for the company. The most effective communication strategies at Secret Squirrel Stationer would be: Staff meetings The staff meeting can be used in communicating updates regarding various programs and departments. Such meetings can also be used in providing the employees with an overview of the company’s strategic plan and share management’s decisions with the workers. The employees can also give their feedback as well as their opinions. Finally, such meetings can comprise team building activities as well as other training activities for improving functioning of this company (Gunasegaram 2004). Individual meetings The management can use individual meeting in communicating sensitive matters to the employees. This includes matters such as continued employment, individual performance, training requirements or other behavioral matters (Gunasegaram 2004). Recognition programs Acknowledging the contribution and accomplishment of the company’s employees will keep them motivated. The management should come up with a well thought-out recognition program will make the employees feel valued (Gunasegaram 2004). Social events Social events will have an impact on the Secret Squirrel Stationer’s culture. These events will build team spirit, boost morale and also intensify the relationship between the employees and the company. Often, these events can build team spirit, increase morale, and deepen the connection between the staff and the organization (Gunasegaram 2004). Solution to problems within the inventory planner department Supply chain management Secret Squirrel Stationery Company should instill a supply management system which is an expanded management that takes into consideration the joined effect of all the companies involved within the production of goods and services, from the producer to the ultimate consumer. The management of production and logistics network will ensure that all parties involved within the process of goods delivery to the consumers are involved within the supply chain. The supply chain management will ensure that the company’s clients will get the correct products, at the appropriate time and at the preferred location. The company should make use of electronic mail and the internet to revolutionize communication and exchange information and this will enable it to facilitate the required information flow throughout the supply chain (Walker 2005). In order to accomplish the objectives of supply chain management, the company can utilize two methods: the procedures that accomplish the objectives by improving the processes in the chain’s links as well as the procedures that accomplish the objectives through chaining the roles of the supply chain (Tan 2005). The procedures used in process improvement consist of molding different alternatives, efficient measurement, enhanced forecasting, planning for the supply chain, cross-docking inventories, direct store delivery, and electronic data interchange (EDI) technology. Direct store delivery processes detour the distribution centre, cross docking will prevent the products from coming to the rest as inventory within a distribution centre whereby the products get at the distribution center and are off-loaded instantly, moved and loaded on the delivery vehicles instantly (Tan 2005). On the other hand, electronic data interchange (EDI) technology refers to the exchanging of data electronically between the computer networks of two or more organizations. EDI is utilized in the processing of transactions such as entering of the orders, confirming the orders, changing the orders, making the invoices as well as pre-shipment notices. The key element of EDI is the facilitation of continuous and quick information exchange between originations. For example, client order, invoice in addition to other data that would need hours for the information to be entered can be achieved within few minutes through electronic data interchange. Additionally, point of sale information can be conveyed within a few minutes or hours rather than a number of weeks (Tan 2005). Alternatively, the company can employ procedures that utilize changing roles and they comprise; strategy postponement, vendor managed inventory in addition to supplier integration. Postponement strategies delay hold up products’ differentiation with the aim of gaining flexibility to be able to be responsive to the changing needs of the customer. Product inventory is held within a generic outline to facilitate the understanding of precise demand, for the product to be finished and finally shipped at the appropriate time. In addition the company can employ vendor managed inventory or constant replenishment programs whereby the company reaches beyond its limitations and integrate its efforts with supplies and clients as well. Point of sale information is conveyed from the client to the supplier within real time and this enables automatic replenishments to take place. Finally, the company can even give up the role of inventory management to its suppliers. Supplier integration is more than being into partnership with the supplier and will focus on aligning with every supplier within the supply chain (Walker 2005). Overview of the real world examples The electronic data interchange (EDI) at Kmart Company Kmart has installed a Direct EDI system that enables it and its vendors to exchange business documents through the internet. This web interface provides outstanding customer services. This ensures exact and reliable means of conveying information. The following elements are integrated within the service without any costs: Email notification for incoming documents. All alternative EDI transactions for sales reporting, inventory levels and many others On demand invoice Storage plus archiving of each and every EDI document. This saves time and hence facilitates constant and quick information exchange between Kmart Company and its suppliers and also clients (Lisa 2010). Secret Squirrel Stationer should adopt the system to benefit from the services provided by it. Dell’s computer strategy Dell management had a very resourceful business model. The strategy of the company was established around several aspects, namely; build-to-order manufacturing, being partners with suppliers, just-in-time mechanism inventories, direct sales to clients, technical support, along with pioneering Internet and e-commerce technology usage (Grossman & Helpman 2005). Partnership with suppliers and just-in-Time Inventory Practices The strategy that Dell Computer Company used was to assess its suppliers and select the best and form partnership with them. The company also conducted a three-year plan with all its main suppliers and worked with them to reduce the number of varying stock-keeping units of parts and constituents used in product designing. Existing plans comprised utilizing internet to enhance supply chain management in addition to accomplishing higher manufacturing and assembly competences (Lisa 2010). Just-in-time inventory resulted into remarkable cost advantages and reduced the time Dell Company took in getting new generations of its computers in the market. New developments were coming rapidly in some computer parts that a given time within inventory was outdated within some months and at times faster. This implied that Dell Company would be trapped within the transition from one generation of computer parts to another. Besides, prices of some component dropped by 50%. For instance, Intel often lowered the cost of its older chips on the introduction of new chips which were introduced after each three months. The cost of hard disks with higher memory capacity fell drastically as disk drive manufacturers’ integrated latest technology than enabled them to add further gigabytes of hard disk memory at extremely low prices (Grossman & Helpman 2005). Partnership with suppliers enabled Dell to run the company with just few days of inventory for some computer parts and a few hours for other parts. Dell Computers supplied information regarding inventories and replenishment requirements to its suppliers at least one time daily and after every hour if the delivery of the computer parts was done numerous times every day from close by source. Within a number of times, the close partnership of Dell Company with merchants enabled it to run without inventories and this saved time, energy and costs considerably (Grossman & Helpman 2005). Dell Company had, within years enhanced its inventory tracking abilities, it’s working relationships with the suppliers as well as its processes for working together with minor inventories. In the financial year 1995, the company had an inventory turn ratio of thirty two days while at the end of financial year 1997 the company had an inventory turn ratio of thirteen days. In 1998, the inventory turn ratio was seven days while in the financial year 1999, Dell Company worked with a standard of six days’ supply in inventory. Furthermore, selling direct to clients provide Dell direct intelligence regarding client preferences and requirements, and instant response regarding design and quality problems (Grossman & Helpman 2005). For communication, the management in Dell Company took a lot of time in communicating to workers, elaborating what was happening, the organization’s strategy, the company’s position in the market, company’s plans and what the company required in accomplish its goals. The Dell’s CEO also carried out “town hall” meeting with the employees at different locations yearly and spent a lot of time in answering questions. Most of the communication occurred through widespread use of e-mail and the organizational intranet (Grossman & Helpman 2005) The electronic data interchange (EDI) at Wal-Mart Wal-Mart established a new EDI policy based on technology from iSoft and this has enabled thousands of its suppliers to send and get EDI information through the website. The Website-based EDI is secure and dependable and can serve as the platform for the company’s supplier communications. As a result, the company will save a lot of money since it will no longer be using public internet and the EDI can contain more forms of communications as well as online transactions. This EDI will enable Wal-Mart Company to reduce costs and get suppliers online very fast (Lisa 2010). Recommendations Better computer programs, forced team meetings (everyone has to socialize), create a culture within the company of communication (keep the information flowing). The staff at Secret Squirrel Stationers should have hands on training about stock handling; even if they may not be qualified in stock management. Given the global terrorism issue, most of the logistics chain supply companies monitor and track their consignments from the point of origin to the destination, to avoid any disaster of terrorism, so should Secret Squirrel Fashion Stationary. Bibliography Grossman, G., & Helpman, E., 2005, Outsourcing in a global economy, Review of Economic Studies, Vol. 72/135-159 Gunasegaram, A., 2004, Virtual Supply-Chain Management, Production Planning & Control, Vol. 15/6. Lisa, G., 2010, The Management of Business Logistics," Distribution, Vol. 2/4. Roy, W., 2004, Understanding Supply Chains: Concepts, Critiques & Futures, Oxford University Press, Oxford. Tan, K., 2005, Principles of Supply Chain Management: A Balanced Approach, Mason, OH: Thomson South-Western. Walker, W., 2005, Supply Chain Architecture, CRC Press, Boca Raton. Read More