Logistics Management and Product Coordination for CERAMICOSA

Project Supply Chain

INTRODUCTION
Logistics that refers to the process of moving and coordinating resources,
material, inventory and equipment from one location to another destination of storage.
This report discuss logistics management and how CERAMICOSA can manage to
deliver its products to Furniturest so that their contract does not get affected. This report
includes various aspects of Logistics Management, these are inventory control and
actions to prevent disruption of the production process. Report also includes proper
product coordination and how CERAMICOSA ensure a good management towards the
client and how it can become more competitive. Discussion for Just in Time philosophy
of production have also been included in this report this philosophy states and considers
that production process should be undertaken by the company after it receives orders
from clients and there is no requirement of storing material and goods in advance.
Finally, what type of incoterms that can interest CERAMICOSA have discuused along
with most suited route plan.
1. Inventory
Importance of Inventory Control
A process that ensures that inventory of a company is able to maximise use of its
inventory. For Inventory Control system is employed in the company that encompasses
all the aspects of managing a company's inventories; purchasing, receiving, shipping,
tracking and warehousing and storage turnover and reordering (Shenoy and Rosas,
2018). These systems in most of the companies are performed in sequence in order to
have a well-run inventory control system. When these systems are computerized this
make better integration of all these activities. For CERAMICOSA it is very important as
 They have a contract with strict terms and according to that they have to provide
products to their customers within 24 hours of their payment to Furniturest.
Other reasons and factors that make it important for CERAMICOSA to control their
inventory are-
 Efficient inventory control helps in fluctuations in demand. Due to their contract
with Furniturest it becomes more important that their demand may fluctuate and
that requires them to control their inventory.
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 Better service to customers. Inventory control ensures availability of stocks all the
time and that is why company can provide products to their customers without
any delay.
 Inventory control also keeps continuity of production operations and smooth flow
of raw materials.
 Effective use of Working capital (Kumar and et.al., 2017). Inventory Control
ensures that inventory is available all the time and that keeps production process
going on and ensures that working capital is effectively being used.
 Avoids duplication in ordering. Company an avoid duplication of purchase when
they are controlling their inventory.
Propose actions to prevent disruption of the production process
There are various symptoms from which company can understand that inventory
is not properly being controlled and managed. These symptoms are-
 Consistent stock outs.
 High amount of obsolete inventory.
 High cost of storage.
 Delay in Shipping.
 High amount of working capital.
 Loss of cost-effectiveness.
The causes for this are-
 Poor high and less forecasting of demand.
 Ineffective and misleading communication.
 Improper tracking of the stock.
Actions to prevent disruption of Production Process are-
 Correct forecasting of demand (Thorsen and Yao, 2017). This requires that
CERAMICOSA have good and accurate timely communication with Furniturest
so that they can understand their demand and demand from Furniturest. Proper
communication will allow them to understand trends of demand.
 To adopt best practices for Inventory Control. These practices are ABC analysis,
Batch tracking, streamline stocktake etc. Company need to employ best
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