A&U Logistics and Inventory: Business Summary and Analysis

The assignment presents a business summary for A&U Logistics and Inventory, a company offering an advanced logistics and inventory control system. This system aims to provide real-time data on product availability and physical condition using satellite transmission for tracking. The business addresses the problem of inventory mismanagement, which leads to significant financial losses for companies. The proposed solution includes automated stock updates, real-time data tracking, and customer order tracking. The target market includes multinational corporations that have experienced inventory losses. The value proposition is to reduce misplaced goods and enhance customer satisfaction through efficient order tracking. The business model is B2B, targeting large organizations. The document also highlights market potential, differentiation through satellite tracking, and competition in the logistics sector. References support the business concept, providing validation for the problem and the proposed solution. The business aims to leverage technology to improve inventory control and customer service within the import/export and logistics industries.

A & U Logistics and Inventory
Business Summary:
The name of the business is A&U logistics and inventory. It provides
advanced logistics and inventory control system that will help in
providing exact data of the products available in stores as well as it will
provide the details of the physical condition.
 When new inventory enters, then the stock will be
automatically updated, and the sales team will be notified
regarding the stock details on every second.
 The deductions of the stock after the sales or damaged product
will be made automatically.
 Moreover, it will utilize satellite transmission of data to track
the goods, and it will keep customers updated until the
delivery is done.
Technology Opportunity:
The delivering of the poor logistics and inventory system in the US has
reflected the unsatisfactory services that are delivered to the customers
while ordering online 1. Few of the data reflects the opportunity for the
development of an advanced inventory system in the United States. JP
Morgan Chase lost $6 billion in the year 2012 due to the errors
provided by Microsoft in the excel spreadsheets. Walmart's several
goods were missing, the CEO of this company told that Misplaced
goods have resulted in inventory loss of $3 billion for the firm2. The
above examples reflect the opportunity to boost the growth of the
inventory business by utilizing advanced innovative techniques and by
using satellites to track and update the stock automatically.
________________________________________________________
1 Yevhen Mishenin, Inna Koblianska, Viktoriia Medvid, and Yuliia Maistrenko. "Sustainable
regional development policy formation: role of industrial ecology and logistics." Entrepreneurship
and Sustainability Issues 6, no. 1 (2018): 329-341.
2 Eugene YC Wong, "Development of mobile voice picking and cargo tracing systems with internet of
things in third-party logistics warehouse operations." International Journal of Management and
Sustainability 5, no. 4 (2016): 23-29.
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Founder:
Major:
Graduation: Spring 2021
Phone:
Email:
Hometown:
Founder Experiences:
(Relevant to business only, 2
items)
Business Location:
Industry: Import/Export

Problem:
The impact of the problem is huge and it occurs when there is misplacing issue regarding the goods. The issue
occurs in inventory management. The tracking of the stock and updating the data in every second was a crucial issue
which resulted in a loss for many companies, and thus, it is important to resolve this issue by bringing innovative
technology in the business. To save companies from loss, the issue needs to be addressed. It creates opportunity
because as there is a need to manage the inventories and logistics as per customer’s satisfaction level.
Features: It will help in keeping the database updated automatically as spoons as a product is sold or a new product
comes in without delaying for a minute in processing the data. Moreover, it will track the product until it reaches the
customers with the help of satellite transmission.
Target Market: The target markets will be the multinational companies like Nike, JP Morgan and Walmart as these
firms have suffered from inventory loss, and therefore, they will understand its importance quite well.
Value Proposition: It will deliver value to the clients by stopping the misplacing of the goods as well as by
increasing the satisfaction level of the customers by tracking the order without any gap3. The number of the
consumers will be attracted towards it as it will help in providing the tracking of the orders by using the GPS
satellite systems along with enhanced security measures so that there remains no gap or delay in updating the exact
location of the products.
Competition:
Lack in inventory controlling from many of the companies has lowered down the competition level throughout the
United States. Few of the crucial competitors will be XPO Logistics, DHL Supply Chain North America (Exel) and
Americold.
Differentiation:
The differentiation will be in satellite tracking and keeping the system updated automatically whenever a new good
comes in or goes out. Furthermore, the customers will easily track the exact location of their products without any
misplacing or error in the data transmission.
Market Potential:
The growing demand for the online business markets has expanded the platform for the logistics and inventory
business systems to boost the overall growth of the firm. Lack in logistics and inventory control systems in
corporations like Nike, Walmart etc. has increased the market potential for new firms to come up with new and
enhanced business idea4.
3 Pierre-Daniel Sarte, Felipe Schwartzman, and Thomas A. Lubik. "What inventory behavior tells us
about how business cycles have changed." Journal of Monetary Economics 76 (2015): 264-283.
4 Seungjae Shin, Kevin L. Ennis, and W. Paul Spurlin. "Effect of inventory management efficiency on
profitability: Current evidence from the US manufacturing industry." Journal of Economics and Economic
Education Research 16, no. 1 (2015): 98.
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Business Model:
It will follow a B2B business procedure accompanying a canvas business model. The business will be executed with
different business organizations present throughout the market segments which will help to turn inputs into outputs.
It will reach the customers through the partner company and it will be executed when customer orders online. The
pricing will be based on services delivered and the business will work for other firms like Nike, Walmart etc.
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References
Mishenin, Yevhen, Inna Koblianska, Viktoriia Medvid, and Yuliia Maistrenko. "Sustainable regional
development policy formation: role of industrial ecology and logistics." Entrepreneurship and
Sustainability Issues 6, no. 1 (2018): 329-341.
Sarte, Pierre-Daniel, Felipe Schwartzman, and Thomas A. Lubik. "What inventory behavior tells us about
how business cycles have changed." Journal of Monetary Economics 76 (2015): 264-283.
Shin, Seungjae, Kevin L. Ennis, and W. Paul Spurlin. "Effect of inventory management efficiency on
profitability: Current evidence from the US manufacturing industry." Journal of Economics and
Economic Education Research 16, no. 1 (2015): 98.
Wong, Eugene YC. "Development of mobile voice picking and cargo tracing systems with internet of
things in third-party logistics warehouse operations." International Journal of Management and
Sustainability 5, no. 4 (2016): 23-29.
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