Logistics and Supply Chain Management

BUS 1055
Logistics and Supply Chain Management
Case Study Template
Student Name: Please key in your name
Student ID Number: Please key in your student ID number
Warehouses R Us, provides a range of warehouse and distribution services at the Port of
Vancouver.
The company has 50,000 square feet of space, with racking for product, oversize/bulk
capacity, and gated 24/7 surveillance. The company is also well known for its wide variety of
transportation and distribution options, operation of heated and refrigerated 40’-53’ dry
vans, and 5-ton trucks with either curtain sides or power tailgates.
As space at the Port of Vancouver is very limited, Warehouses R Us would like to add a
second warehouse in the Greater Vancouver Area. The Chief Executive Officer (CEO) of
the company has asked you to prepare them a report, using the Case Study template
provided.
The Case Study is marked out of 25, is worth 25% of your final grade, and encompasses
the three major components of warehousing. To help you along, I have added a series of
references to the Chapter 9 Power Point deck.
Please use MS Word, and key in your answer to the below questions.
Strategic warehousing considerations.
Chapter 9 Power Point Deck, Slides 1-8
Warehouses R Us intends the new facility to increase logistics value-add by acting as
distribution network for consumer goods, that offers consolidation, break-bulk, cross-
docking, and reverse logistics facilities. Please explain in one paragraph per difference,
what is the value-add of enabling a broader range of inventory mixing to meet customer
requirements, and how this is different from just storing inventory.
 Inventory mixing (1 mark): Rise in demand lead to explosion of the costumer
economy which further resulted in increase in distribution networks. This was the
reason for shifting form a passive storage of inventory to a more strategic assortment
that is inventory mixing. Inventory mixing provides a more effective way for the

manufacturers as it diminishes the dwelling time of the materials and parts of the
machines.
 Storing inventory (I mark): The system for storing inventories was efficient as it
required simply to store and fulfill the orders from one place. However, it was a
challenge for the pickers as they lost important proportion and date information.
Therefore, inventory mixing allows the storage facility to specify the SKUs (stock
keeping unit) and provide economic and service benefits by maximising flexibility and
respond to the transforming demands of the people.
Warehouses R Us needs to consider the geographic location of their new warehouse in the
Greater Vancouver Area. Please describe in one paragraph per consideration, what
they should be considering in terms of rail, highway, and port access
 Rail access (1 mark): As the most vital role for the new warehouse is to enhance
flexibility the organisation must ensure that it is close proximity to a railway station.
Rail in the contemporary world is playing a huge role in supply chain thus before
formulating upon a decision of new location for warehouse, they should make it in
direct access of trains. It is necessary to understand the option for transloading and
consider selecting terminals that are safe for transporting bulky commodities at a
long distance.
 Highway access (I mark): An efficient access to highways and roads is an important
aspect of consideration for a new warehouse. It is highly essential to understand the
density of local traffic as it might be the primary medium for transportation.
Considering factors like highway inter-connectivity, local transport penetration,
convenience to highways and exit ramps, mean traffic speed and volume, peak hours
for traffic, road safety and proper signal and signs in the road.
 Port access (I mark): The area selected has a direct link to the portside but it is
important to strategically acknowledge the deep-sea container terminals for
transportations. It will provide an effective and quick access to the deep sea with
main shipping lines.
Warehouses R Us will need to sell its customers on the economic benefits of this new
warehouse facility in the Greater Vancouver Area. Please describe in one paragraph per
economic benefit, the advantages of a consolidation/break-bulk facility, a customer sorting
facility, a seasonal storage facility, and a reverse logistics facility.
 Consolidation/break-bulk (1 mark): Consolidation aids in minimising the cost of
shipping and transportation for the company. It also diminishes the risk and requires
no capital investments as it account for several orders being merged at a same time.
As the operation acquired unified orders from the customers and it separates the
individual order, hence it requires lower inventory stages that will be economically
beneficial for the company.

 Customer sorting (I mark): Sorting or filtering the customers allows to analyze the
data efficiently. This will assist the organization to customise and sort its customers
on the basis of their demands and requirements. The customer sorting system will
add on to the economic benefits of the company as it will help to determine the
delivery route and select customers accessible to the direction minimising the
transportation cost.
 Seasonal storage (I mark): A complete storing scalability and protect the storage unit
items against dust and diverse temperature conditions. Having effective ventilation
system and temperature-controlled unit will assist to settle the dust inside the storage
which will further keep the products fresh and used as a long-term facility. It reduces
moisture and humidity from the unit making the room air-tight, keeping the
warehouse in pristine condition.
 Reverse logistics (I mark): With the advancement in strategic management system,
the company has discovered the reverse logistic method which enhances the velocity
and market share of the services. This system minimises transportation,
organizational and aftermarket sustenance cost as well as improves the supply chain
visibility and enhanced productivity. It is economically beneficial as the logistics
provide high rate for achieving sustainable goals and gives great services to the
customers making them loyal to the company.
Warehouses R Us will need to sell its customers on the service benefits of this new
warehouse facility in the Greater Vancouver Area. Please describe in one paragraph per
economic benefit, the advantages of a spot stocking facility, and a full-line stocking facility.
 Spot stocking (1 mark): As an alternative to utilising warehouse facilities the entire
year or delivering directly from the manufacturer, the spot stocking is a method in
which numerous warehouses are used simultaneously in diverse locations. The
warehouses are closer to the main market that reduces the transportation cost and it
immediately helps in meeting the demand of the customers without any delay.
 Full-line stocking (1 mark): The full-line stocking in warehouses is stated to be more
limited and restricted to a fewer location. These warehouses operate an entire year
and helps in improving the services by diminishing the number of suppliers that the
consumer must logistically deal. The collections also aid into making possible for
economically larger shipments. It is said to provide a one-stop shopping capability for
the products from various suppliers.
Cross docking and reverse logistics considerations.
Chapter 9 Power Point Deck, Slides 10-21
Warehouses R Us sees cross docking ability as a material value-add, but would like you to
confirm what they will need to make it happen. Please describe in one paragraph per

consideration, what cross-docking means for product delivery, the type of equipment
needed, and the amount of space required. State whether this new facility will be big
enough, and why?
 Product delivery (1 mark): The value-add services used will comprise of work which
will be effective and add value for the consumers. The cross-docking system used as
a value-add service is a logistics for unloading the materials from an inbound delivery
vehicle and then loading it onto an outbound transport. This commonly occurs in a
dedicated docking terminal at a warehouse in which the inbound products are initially
acquired at a dock and then they are sorted in accordance to their final destination.
This makes delivering much easier and quicker.
 Type of equipment (I mark): The cross-docking system will be using the same basic
level of equipment that are used in traditional warehousing. This equipment
comprises of containers, pallets, forklifts and loading docks. Various machines and
packing table will also be required.
 Space required (I mark): As cross-docking requires restructuring the supply chain
from the point of initiation to the point of scale it diminishes the amount of space
required thereby eliminating the warehousing cost. The space required is minimum
as it does not need any inventory reducing the storage capacity.
 Statement and why (1 mark): The new facility introduced for constructing the
warehouse is quite effective and big enough for the planning and management
strategies that will be implemented. It is a huge facility and can incorporate all the
activities of the management system.
Warehouses R Us believes that a clean environment is just good business, and sees
reverse logistics processing ability as a material value-add, but would like you to confirm
what reverse logistics is. Please describe in one paragraph per consideration, what
returns management is, what remanufacturing/repair is, what remarketing is, what recycling
is, and what responsible disposal is. State whether reverse logistics processing would be a
better use of this new facility, and why.
 Returns management (1 mark): Returns management is considered as a process of
supply chain management through which all the activities which are connected
with revenues, gatekeeping, reverse logistics and circumvention are maintained and
achieved inside the organisation and across all the primary members of the supply
chain. It assimilates with efficient logistics and prepares the company for a productive
return.
 Remanufacturing/repair (I mark): Remanufacturing is considered to be as a method
of transporting the product or services in a new way or condition by substituting and
upgrading component parts. It is also believed that attains the maximum value of
products tracked by servicing, then repair. The worn out or obsolete components are
repaired and replaced in this process.

 Remarketing (I mark): Remarketing is a smart and creative way to get connected and
attached with the customers by means of the company’s website who might not have
made an instant procurement or query. It lets the company to locate targeted
advertisements in front of the demarcated audience who have formerly visited the
website by coincidently browsing somewhere else around the internet. These
campaigns provide the company with an additional report and setting specially to
reach previous visitor or users.
 Recycling (I mark): The process of recycling is utilised for converting and changing
waste resources into new objects and materials. The recyclability of the substance
particularly depends on its capability to reacquire its virgin properties. It can be also
signified as a substitute to conventional waste disposal system which can rescue the
material and support lower greenhouse gas emissions.
 Responsible disposal (I mark): Every organisation must be responsible for disposing
its waste in an effective and sustainable manner. The Waste Duty of Care expects
the producer of the waste to be more vigilant and responsible. The waste producers
must have knowledge on where they are transporting their waste. The organisation
must also take possible steps to guarantee those they have given contract to
accumulate and manage the waste and look if they are functioning legally as well as
taking the waste to proper treatment, legal disposal, and recycling sites.
 Statement and why (1 mark): Reverse logistics will be an effective fit for the new
facility as it has several advantages and will be a sustainable option for the company.
It will reduce harmful energy and emission and is intrinsically aligned with a
sustainable environment. It will have zero-landfill and provide a proper recycling and
disposal system for returned products.

Other issues.
Chapter 9 Power Point Deck, Slides 30-32
Warehouses R Us would like to know if there are any other warehouse issues that they
should be considering. Please describe in one paragraph per issue, what the audit issue
is, what the security issue is, and what the maintenance consideration is. State whether you
think that final assembly will increasingly be done in a warehouse, and why.
 Audit issue (1 mark): The accuracy of inventories is primarily managed by counting
portions the cycle counting is stated to be the audit the chosen inventory on a cyclical
schedule. The audit issue specifically deals with safety of the warehouse and having
an effective compliance of rules and regulations will assist to improve the processes.
 Security issue (I mark): Most important safety issue for the company opening a new
warehouse involves protecting the storage unit from damage and pilferage. It can
result to losing of accurate materials and refilling it with bogus products. This can
damage the reputation of the company and can consequence to dropping in the
sales structure of the organisation.
 Maintenance consideration (I mark): While planning the warehouse, the issues if
safety and maintenance must be considered and taken into account for effective
designing. Wide-ranging safety agendas and training must be followed up for
preventing and investigating potential accidents. For protecting the warehouse from
environmental damage and making it sustainable spill plans and spill kits must be
prepared. The organization must schedule regular maintenance of the handling
materials, buildings, the equipment used during the manufacturing process and take
effective measures for collision damage.
 Statement and why (1 mark): After analysing all the aspects and benefits of the
processes used by the company and the issues that can arise, it is evident that the
final assembly will be enhanced and done in the warehouse. The warehouse
therefore might be used as the line for final assembly as the unit will be quite safe
and has all the possible management techniques that will help the manufacturer to
create the final product.