Strategic Purchasing and Logistics Case Study Report

This report examines strategic purchasing and logistics, focusing on transportation methods and supply chain management within the context of the textile industry. The report highlights the importance of trucking as a primary mode of transportation for raw materials due to its flexibility. It further discusses the growing trend of same-day delivery and its impact on customer expectations. The report analyzes the challenges associated with this trend, including the need for reduced intermediaries and the increased costs associated with expedited transportation, such as air freight. The report references relevant academic sources to support its analysis and conclusions. This report provides insights into the complexities of modern supply chain operations and the strategic considerations involved in meeting customer demands while managing costs.

Running head: STRATEGIC PURCHASING AND LOGISTICS
Strategic purchasing and logistics
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STRATEGIC PURCHASING AND LOGISTICS
Answer 1: There are many modes of transportation like air, water, road which are used by
various companies in their supply chains system. In case of Textile industry, where there is a lot
of requirement of various raw materials at different stages of production, the trucking mode of
transportation is best suited. Trucking is a form of transportation in which goods are collected
from warehouses and supplied to the manufacturer via road (Ngai, et al., 2014).
Answer 2: The current trend of providing the transportation on same day is having high value
for the customers as it offers less time to wait for their required product and services. Many
online shopping sites are providing this service and now the customer expectations are set
according to the delivery and transportation time a company a takes to deliver the product. In
order to continue this trend successfully, the companies need to reduce their intermediaries in the
distribution channel of their supply chain system. By reducing the number of intermediaries like
retailers or wholesalers, agents, brokers etc., they can directly reach out to the customers in
shorter time. However, this system is not viable economically as it costs much higher than the
normal cost. If sufficient time is given to deliver a product, the transporters can manage to
efficiently make use of alternative modes of transportation. However, in case of same day
delivery, the transporters have to take the first flight to reach out to the customers, even if it costs
high amount (Ramanathan, et al., 2014).

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STRATEGIC PURCHASING AND LOGISTICS
REFERENCE
Ngai, E. W. T., Peng, S., Alexander, P., & Moon, K. K. (2014). Decision support and intelligent
systems in the textile and apparel supply chain: An academic review of research articles. Expert
Systems with Applications,41(1), 81-91.
Ramanathan, U., & Gunasekaran, A. (2014). Supply chain collaboration: Impact of success in
long-term partnerships. International Journal of Production Economics, 147, 252-259.