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Cost Efficiency in Logistics Assignment

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Added on  2020-03-23

Cost Efficiency in Logistics Assignment

   Added on 2020-03-23

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LOGISTICS1Logistics.By[Student’s name]CourseInstitutionDate
Cost Efficiency in Logistics Assignment_1
LOGISTICS2Questions 1There are various success factors that led to the strategies employed by KANE to be successful. The factors include;Logistics quality.Logistics quality enables retailers to trust the services of the distributing facility, and this helps insaving costs and improving efficiency (Grabara, et al.2014, p.6). The quality of operations in the cross dock is very high, and retailers and customers trust the operations of the cross dock. Initially, KANE used to scan an item from each pallet to confirm that the content match with the purchase order content. The retailers realized that KANE provided the retailers with the right packages. This eliminated the need for the scanning of the contents of the pallet. Elimination of the quality checks helped to save time that was spent scanning the content and distribution of the products become more efficient. Logistics quality also allowed KANE to practice case picking operations when distributing pallet to the different stores. The logistics quality enabled the club store chain to save labor costs, and this made the strategies employed more effective.Ability to innovate.Being creative and innovative enables logistics operations to be more effective (Klewitz, and Hansen, 2014, p.65). KANE used barcodes which helped in improving the process of receiving products in stores. Before shipment, KANE ensured that a barcode that matches the customers’ goods is generated. At the store, the bar code is read using the machine and the information is downloaded into the store's inventory system. This makes the process of receiving goods easy, and retailers prefer the services of KANE due to its innovation and creativity.Cost efficiency.
Cost Efficiency in Logistics Assignment_2
LOGISTICS3Cost efficiency helps to make logistics strategies more effective and efficient (Fernie, 2014, p.35). KANE ensured that its services provided cost efficiency to the retailers. Through the elimination of the quality checks, labor costs were reduced as labor services that were used to conduct the checking process were no longer needed. Case picking operations also enabled KANE to save labor cost as the labor required to pick the pallets is reduced. Cross docking services also helped in reducing warehousing costs because no goods were held in warehouses asthey are supplied immediately after being received, and this ensured the strategies used are effective.Flexibility.Flexibility also helps in making logistics operations to be more effective as it ensures the logistics company is able to embrace change that will improve services (Roh, et al.2014, p.205). KANE adopted flexibility that made operations more effective like eliminating racking from the store floors to improve site lines to help retailers improve their merchandising strategy.Question 2The likely challenges associated with the employed strategies include;Technology and machine failures.Due to various factors, machines experience breakdowns, and this affects the products' distribution process (Chakraborty, and Mandal, 2014, p.60). KANE may experience machine failures that may cause the barcodes not to be generated. This will affect the distribution of the pallets and retailers may lose trust in the employed strategy. Customers receiving wrong content.
Cost Efficiency in Logistics Assignment_3

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