Case Study: Aricia Logistics - Challenges, Analysis, and Solutions

This case study examines Aricia Logistics, a leading UK logistics firm, and analyzes its operational challenges. The report identifies issues such as manpower management, compliance, and customer service inefficiencies. It explores the impact of these problems, including loss of customer base and the need for technological advancements. The analysis delves into solutions like improved communication, implementation of new technologies, and application of Just-in-Time and Total Quality Management principles. The study highlights the importance of waste reduction, efficient machinery use, and quality control to enhance operational effectiveness and customer satisfaction. The report references various sources to support its findings and recommendations.

CASE STUDY

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, in order to improve the same Aricia can implement new and latest
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 of Just-in-Time principles Aricia, 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-focused organisation: Each and every organisation is confined with
customers and they provide services and facilities according to the needs and requirements.
2

Aricia must give priorities to its clients who hire them for delivering goods from one place to
another.
Leadership: Manager of Aricia must have this leadership quality so that proper
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
for operating business in an effective manner. Just-in-Time principles and total quality
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. In Regression 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
Total Quality Management Principles. 2018. [Online]. Available Through:
<http://www.yourarticlelibrary.com/organization/total-quality-management-8-
principles/45167>
Just-in-Time Principles. 2018. [Online]. Available Through:
<https://www.brighthubpm.com/methods-strategies/72095-five-major-principles-of-
jit/>
4