This case study analyzes the challenges faced by Aricia, a leading logistics company in the UK. It explores issues like manpower management, compliance, and cost optimization, and proposes solutions using Just-in-Time principles and Total Quality Management. The study emphasizes the importance of effective logistics management for business success.
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CASE STUDY
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Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 CONCLUSION................................................................................................................................3 REFERENCES................................................................................................................................4 .........................................................................................................................................................4
INTRODUCTION Logistics is a determined as an overall performance that helps in managing activities and transporting goods to final destinations (Agrawal, Singh and Murtaza, 2015). Thus, for this process it is important that company has proper distribution channel and suppliers. Aricia is a company which is taken in this assignment and it is one of the leading firm in logistics industry. This report will include the process area of workplace that are not properly managed and what can be done for finding solutions for the same. MAIN BODY Logistics, in simple terms refer as a system through which right amount of resources are managed in limited period of time. In order to do the same, there are various factors that are to be considered for delivering best quality of products to its internal or external customers. Thus, if there is poor logistics than it can put a negative impact on business and ultimately causes loss in business. Primary functions of logistic company is to oversee and managing inventory by managing appropriate transportation and adequate storage. Aricia, although it is one of the prime company in United Kingdom for the purpose of logistics and most of the other companies rely on Aricia for transporting goods from one place to another. But from couple of time, company is going through many complications and issues while handing the process of logistics and because of this, firm is loosing its customer's base(Wu and Chang, 2015). With the change in course of time, many new technologies have evolved and they are providing benefits to the organisation as well but these are creating problems for the company as well. Majorly, Aricia is facing issues related to delivering services and it has some problem like manpower management, compliance with regulations, offering segmented, customised services, slashing down of transportation cost, etc., Issues evolved when senior manager resigned from the job this created miss-communication between employees and executives in the company. Employees develop their own team or group and prefer to work within it. Therefore, lack of transparency is one of the reason. Thus, to resolve this issue company must conduct meetings in order to know main component of issues and problems. Other than this, by increasing real time communication with employees better opportunities can be grabbed. As a result, it will increase efficiency and cost of an organisation(Savino, Manzini and Mazza, 2015). 1
Mismanagement within the organisation gave birth to ineffective customer services and this is the reason why most of the companies are preferring other firm for accomplishing the task.Furthermore,inordertoimprovethesameAriciacanimplementnewandlatest technologies for operating their business in an effective manner. In addition to this, with proper management of activities company will able to manage manpower(Mangla, Kumar and Barua, 2015). In addition to this, with the help ofJust-in-Time principlesAricia, can provide better services and facilities in limited time frame (Just-in-Time Principles,2018). Just-in-time was defined in order to reduce wastage and use of equipments, materials and parts in an effective manner. Its principles are explained below: Processing waste:Logistics includes different kinds of activities and their prime work is to so packaging and transporting goods of their clients from one place to another. In relation with processing waste, company make minimise the use of thermocols, bubble wrap as per the needs and wants. For example: if packing of bigger product is being done the whatever waste is collected it should be used for packing small goods. Waste due to idling time of machinery:There is a possibility that at a time Aricia gets numerous consignment but it is important that entire task are managed and furthermore, activities are being executed in an effective manner. Whatever consignment company will get it should be processed in quick time without delaying the same. Waste due to protect defects:While loading goods from one place to another there can be a possibility that products gets damaged or gets defected too. This can be considered as a wastage and company can face losses in regards to this. Therefore, company can develop a department of handling fragile products so that damage from the same can be avoided. Waste of motion or faulty working techniques:As Aricia uses automation techniques so as to move goods from one place to another. Therefore, whatever technologies they are using it should be checked on a continuous basis so that errors can be avoided. Total Quality Management principles is another effective model through which quality can be managed properly without any complications. It has 8 principles and these are explained below: Customer-focusedorganisation:Eachandeveryorganisationisconfinedwith customers and they provide services and facilities according to the needs and requirements. 2
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Aricia must give priorities to its clients who hire them for delivering goods from one place to another. Leadership:ManagerofAriciamusthavethisleadershipqualitysothatproper directions can be provided to employees. For this, it is crucial that superiors have proper knowledge about external and internal environment. As a result, it will help company in maintaining and delivering quality of products. Involvement of people:People are one of the crucial factor and for an organisation they perform their activities and enable firm in achieving goals and objectives in speculated time frame (Total Quality Management Principles,2018) Process Approach:Logistics, department must use all the resources that are available t them for instance their transportation system should be very effective because the entire work depends on this. System approach to management:While operating business there are three factors that plays crucial and Aricia must look for the same. These are identifying the issues, understanding and managing. Continual Improvement:In order to get success company should make changes on a regular basis. For example: nowadays, there are many new technologies that has come up in the sector of logistics and it has made the process of delivering goods from one place to another more easier. Factual Approach to decision making:With the help of this, Aricia can determine their performance and make effective strategies for having better growth. Mutually beneficial supplier relationship:Maintaining this kind of relationship always adds value to the services and it helps in fulfilling customer's satisfaction. Therefore, for Aricia, as it is a logistic company it is crucial that they have effective relation with their suppliers who provides raw materials such as bubble wrap, cartoon etc., CONCLUSION From the above report, it has been evaluated that proper planning and strategies are made foroperatingbusinessinaneffectivemanner.Just-in-Timeprinciplesandtotalquality management helps in delivering best services to customers. Through this report, it has been learned that former aid in providing services in time and latter one help in delivering goods of best quality. 3
REFERENCES Books and Journals Harrell, F. E., 2015. Ordinal logistic regression. InRegression modeling strategies(pp. 311- 325). Springer, Cham. Mangla, S. K., Kumar, P. and Barua, M. K., 2015. Risk analysis in green supply chain using fuzzy AHP approach: A case study.Resources, Conservation and Recycling.104. pp.375-390. Savino, M. M., Manzini, R. and Mazza, A., 2015. Environmental and economic assessment of fresh fruit supply chain through value chain analysis. A case study in chestnuts industry.Production Planning & Control.26(1). pp.1-18. Wu, H. H. and Chang, S. Y., 2015. A case study of using DEMATEL method to identify critical factors in green supply chain management.Applied Mathematics and Computation.256. pp.394-403. Agrawal, S., Singh, R. K. and Murtaza, Q., 2015. A literature review and perspectives in reverse logistics.Resources, Conservation and Recycling.,97.pp.76-92. Online TotalQualityManagementPrinciples.2018.[Online].AvailableThrough: <http://www.yourarticlelibrary.com/organization/total-quality-management-8- principles/45167> Just-in-TimePrinciples.2018.[Online].AvailableThrough: <https://www.brighthubpm.com/methods-strategies/72095-five-major-principles-of- jit/> 4