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