Ingersoll Luxury Hotel: Integrated Logistics Report and Analysis

This report provides a comprehensive analysis of the integrated logistics challenges faced by Ingersoll Luxury Hotel. The study identifies key issues, including the high costs of outside storage, trucking, and lost opportunities due to inefficient supply chain management. The report delves into the roles of various managers within the logistics department, such as purchasing, distribution, and shipping heads, and examines the application of relevant theories like value chain analysis. It also evaluates transportation methods and the pros and cons of public transport regulations. Based on these findings, the report offers specific recommendations to improve the hotel's logistics operations, aiming to enhance efficiency, reduce costs, and streamline the overall supply chain process. The analysis includes qualitative findings based on the case study scenario and provides insights into how the hotel can overcome its current challenges and improve its business expansion and overseas operations.

Running head: INTEGRATED LOGISTICS
Integrated Logistics
Name of the Student
Name of the University
Author’s Note

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Executive Summary
This particular study has provided detailed overview about the importance of maintaining
integrated logistic sector within an organization. In the case scenario, provided in this study it is
observed that supply chain manager is facing immense challenges in maintaining their overall
shipping procedure effectively due to frequent shipping method in different distribution centers
at a same time. As a result, the managers had to hire outside storage space.
Due to this particular issue, Ingersoll Luxury Hotel had to invest large amount of money for
storing goods. After identifying the business issue, some major recommendations have provided
to the managers for overcoming crisis. The study has focused to implement relevant supply chain
theories as well for controlling business flow.
The role of an efficient supply chain managers are to collaborate and coordinate with the channel
partners such as suppliers, intermediaries, third party service providers and so on. However,
logistic can be defined as one of the most integral parts of supply chain management that
primarily controls the flow of storing goods and services and transports those goods to proper
destination. In this specific business scenario, lack of sufficient storage is one of the most
effective issues due to which the entire supply chain process if getting affected immensely.
In other word, logistic can be considered as operational component of supply chain management
which includes quantification, procurement, inventory management and transportation. In order
to maintain an effective balance between supply and demand the logistic sector has to be
proactive.
As per the case study, it is observed that Ingersoll Luxury Hotel is situated in different places of
North America. The organization receives their goods and services from various geographical

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areas like Spain Ukrain and so many. However, while maintaining their entire supply chain
process this organization is facing immense difficulties due to the lack of managing skill among
employees. A particular logistic department is constituted with supply chain managers,
purchasing managers, distribution managers and shipping heads primarily. The role of
purchasing managers is to maintain a proper balance between the supply and demand of the
products as well as services.
Purchasing managers have to keep a constant track on the overall storage of products. If the
products are not sufficient for fulfilling the demands of customers, purchasing managers have to
take an immediate step. On the other hand, an efficient purchasing manager has to make an
effective future analysis about the inflation rate of market. Based on that analysis, the managers
intend to store their products in warehouses.

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Table of Content
1. Introduction:................................................................................................................................3
2. Problems Identified:.....................................................................................................................4
3. Role of managers in logistics department:...................................................................................6
5. Theories:......................................................................................................................................8
6. Qualitative findings from the business issue:............................................................................11
7. Recommendation:......................................................................................................................11
8. Conclusion:................................................................................................................................16
Reference List:...............................................................................................................................18

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1. Introduction:
Various eminent scholars have expressed their opinion while defining the concept of
logistics. Before giving an in-depth overview about logistic the study provides a brief
introduction on supply chain management and its various concepts. Supply chain management
primarily encompasses a method involved in sourcing and procurement along with logistic
management activities. The role of an efficient supply chain managers are to collaborate and
coordinate with the channel partners such as suppliers, intermediaries, third party service
providers and so on. However, logistic can be defined as one of the most integral parts of supply
chain management that primarily controls the flow of storing goods and services and transports
those goods to proper destination. In other word, logistic can be considered as operational
component of supply chain management which includes quantification, procurement, inventory
management and transportation. In order to maintain an effective balance between supply and
demand the logistic sector has to be proactive.
This very specific study has focused to evaluate the problems of Ingersoll Luxury Hotel
mentioned in this case study. After identifying the issue faced by the business experts the study
provides detailed overview on how the organization should use various transportation policies as
well as logistic theories for overcoming the crisis happened at workplace. A qualitative analysis
by involving the employee of this hotel has also been conducted for analyzing the findings based
on the issue. In addition, the study has focused to provide some major recommendations as well
based on which the issues faced by food manufacturer can be overcome.

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2. Problems Identified:
As per the case scenario, it has been observed that Ingersoll Luxury Hotel runs their all
over North America. Suppliers like to provide foods and products from various locations such as
Spain, Ukraine and so on. Due to the limited storage space, the managers fail to purchase the
products in bulk. After the information is delivered to distribution manager that specific
individual has faced innumerable difficulties while storing the material as no excess company
storage is there. Managers are very well equipped with the flow of supply and demand. The
entire operation process of Ingersoll Luxury Hotel is very much systematic. The primary issue
that this organization is facing includes lack of sufficient storage. However, the organization at
that very specific time has faced some of the major issues that are as follows:
2.1 Cost of outside storage:
As already stated that no excess company storage is there within the organization based
on which the distribution manager can maintain an effective inbound logistics. As a result, after
purchasing additional products such as furniture for hotels, toiletry: soap, towels etc, the
distribution manager of this Ingersoll Luxury Hotel had to hire a outside storage space which
costs additional amount of money. In this kind of situation, the company has to invest certain
amount of money for storing their products in outside. This is certainly a major issue for any
organization if the business experts have economic barrier.
2.2 Cost of trucking to storage point
In order to transport the goods to the outside storage destination the supply chain
managers have to pay additional amount of money (Christopher, 2016). This particular expense
may be a burden for Ingersoll Luxury Hotel. As a result, the profit level of the organization is

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getting affected ultimately. In this kind of situation, both the internal stakeholders and the
external stakeholders are facing challenges in being associated with the organization.
2.3 Cost of money
Cost of money has become major concern for every supply chain managers associated
with this organization. In order to hire an individual storage space the organization has to invest
large amount of money that actually affecting the operation cost highly (Govindan, Soleimani &
Kannan, 2015). On the other hand, transportation of goods from destination to the outside
storage is a major factor for distribution managers. They have to bear the cost of money as well
as time. In this kind of situation, distribution manager has to face immense difficulties to
maintain the entire process of supply chain.
2.4 Cost of lost opportunity
It has been observed from the case scenario that Ingersoll Luxury Hotel has to invest
huge amount of money for maintaining their entire procurement effectiely. As a result, the
distribution manager has to pay additional amount for outside storage, trucking goods to the
stipulated point, work forces for maintenance (Sweeney, 2013). As a result, the organization has
lost the opportunity of investing their money for improving supply chain process. As a result,
customers are getting deprived of improving their business process.
However, due to these issues faced by Ingersoll Luxury Hotel, the distribution manager
has faced huge loss of amount for additional purposes. The primary problem that Ingersoll
Luxury Hotel is facing for running their entire process of business includes problem in business
expansion and oversees. Due to the frequent shipment delivered to same time, Ingersoll Luxury
Hotel had to face immense challenges in managing the products properly.

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Figure 1: Four Key Business Issues
(Source: As Created by the Author)
3. Role of managers in logistics department:
A particular logistic department is constituted with supply chain managers, purchasing
managers, distribution managers and shipping heads primarily. The role of purchasing
managers is to maintain a proper balance between the supply and demand of the products as well
as services. Purchasing managers have to keep a constant track on the overall storage of
products. If the products are not sufficient for fulfilling the demands of customers, purchasing
managers have to take an immediate step (Dyckhoff, Lackes & Reese, 2013). On the other hand,
an efficient purchasing manager has to make an effective future analysis about the inflation rate
of market. Based on that analysis, the managers intend to store their products in warehouses.
Cost of
outside
storage
Cost of
trucking to
storage
point
Cost of
money
Cost of lost
opportunity

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Distribution managers are primarily concerned for inbound logistics. The role of an
efficient distribution manager is to maintain the entire process of inbound logistics to outbound
logistics. Most importantly, the distribution manager has to take a constant track about the stored
precuts and the way of dispatch. The employees associated with shipping process have to keep a
constant contact with the distribution managers (Ahi & Searcy, 2013). As a result, the manager
can give an effective feedback to the customers about delivery of products and services.
Shipping head is primarily concerned about the delivery of products towards proper destination.
The shipping executives control the entire transportation system. In addition, the role of an
efficient supply chain manager is to keep a constant control over the entire operation process.
Supply chain managers primarily tend to focus on delivering the products towards proper
destination within stipulated time. The managers tend to keep a track on the overall performance
of employees along with customers’ needs and demands (Mellat-Parast & Spillan, 2014). After
collecting feedback from the customers regarding the delivery of products and services, the
supply chain managers provide necessary suggestion to the employees so that they can improve
their competency level.
4. Necessary policies applied for controlling operation process:
 Using proper mode of transportation:
There are three modes of transportation methods that a particular organization can use for
maintaining their entire logistics. The three primary methods of transportation include air,
surface and vehicle. Ingersoll Luxury Hotel primarily uses vehicles for delivering their products
and services (Turrisi, Bruccoleri & Cannella, 2013). It can be suggested however that the
organization can use water transport system in order to reduce the cost of shipping. Transport

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through vehicles such as rail or road is very much time consuming. In this kind of situation, the
customers may not get proper services within the stipulated time. Water transportation is not
very cost effective. Therefore, the organization can save operation cost.
 Pros and cons of regulating public transport:
Public transportation is very much liberal and deregulated. The government controls it.
As a result the business experts do not have to bear large amount of money for shipping their
orders through public transportation system. It is undeniable at the same time that public
transportation cannot deliver products within stipulated time. Business authorities do not have
any control over the entire shipping method in public transport. As a result, clients have to wait
for a long time in order to receive the order. Winter & Knemeyer (2013) stated on the other hand,
the organizations while maintaining the shipping process should maintain a proper regulations of
road transportation so that the business experts do not have to face any barrier regarding while
shipping the products and services.
5. Theories:
In order to maintain the entire logistic process systematic the organizations tend to follow
several theories among which the value chain analysis is most prominent. This particular model
is constituted with five major steps including inbound logistics, operations, outbound logistics,
marketing and sales and services.
 Inbound logistics:
Inbound logistics signifies the process of receiving, storing and distributing inputs
internally. The distribution manager has to pay the major role for maintaining the products in

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inbound logistic method (Manzini & Accorsi, 2013). Large numbers of employees are associated
in warehouses for maintaining their entire method of logistic process effectively.
 Operations:
Operation is considered as the entire method from inputs to outputs. The supply chain
managers in this specific step are responsible from storing the product to delivering it towards
appropriate destination (Wisner, Tan & Leong, 2014). The business managers are very much
responsible in delivering the products to the customers within stipulated deadline. Customers’
satisfaction level is highly dependent on operation managers.
 Outbound logistics:
Outbound logistics is the process of delivering services to proper destination. The supply
chain managers by appointing certain number of employees in the shipping process deliver the
products within stipulated deadline (Khajavi, Partanen & Holmström, 2014). As a result, the
communication between service users and service providers become very much effective.
 Marketing and sales:
Maintaining superior quality of products and services is not the primary aim of a business
organization. The managers have to focus on making an effective making plans and policies so
that customers tend to show their interest in purchasing products. After the emergence of
technology the consuming behavior of the customers have become very much advanced.
Customers of now a day before using the services from organization tend to give an in-depth
overview about products as well as services (Prajogo, Oke & Olhager, 2016). As a result, both

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the service providers and the customers get equal benefits and facilities. Consumers’ purchasing
behavior is highly influenced due to this very specific reason.
 Services:
Along with maintaining the quality of products, the business experts have to follow the
service quality as well. Customers should not wait for a long time in order to receive the order.
As a result, the shipping executives have to be very much concerned while transporting the
services.
However, every business organization should follow Porters’ value chain analysis in
order to control the entire operation process of business. As per this very specific case study, the
organization is facing immense difficulties in maintaining business image and reputation due to
the lack of proper distribution policy (Chen, Sohal & Prajogo, 2013). However, the company can
implement value chain theory at the workplace so that the business managers do not have to face
challenges in maintaining the entire shipping process effectively.