Centennial College OMGT 709: Tools for Trade Supply Chain Report

This report provides a comprehensive analysis of the supply chain and integrated logistics of Tools for Trade (TFT), a Canadian company specializing in high-end tools. The report begins with an executive summary and introduction, defining integrated logistics and outlining the company's operations, including its headquarters in Calgary and its use of the DAT Halifax cross-dock facility and road/rail transport. The report explores the benefits and concerns of sourcing, vendor selection criteria, and TFT's expansion strategy, including plans for online commerce and a new facility in Halifax. It contrasts the single service model with practice segmentation, ultimately recommending the single service model for its simplicity and ability to support TFT's expansion goals in the USA and other parts of Canada. The report concludes with references to support its findings.

Running head: SUPPLY CHAIN
Supply chain and integrated logistics
Name of the student
Name of the university
Author Note:

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Executive Summary
The report here presents the case of Tools for Trade which is involved in the manufacturing
of high end machineries and tools for the use by everyday tradespeople. Headquartered in
Calgary, the company operates a strong supply chain using the DAT Halifax. The use of the
cross dock facility in Halifax and the use of road transport through heavy trucks helps the
company to reach its products in the stores of Ontario. The company also uses rail transport
to transport their cargo. However, the management has been in search of business
opportunities to expand its product line to other provinces. The expansion process of the
business will be launched with the consideration of opening a second dock facility in Halifax.
The report has presented a clear and transparent view of the integrated logistics systems that
the management of the company has planned to implement. The report starts with the
introductory section where the integrated logistics system has been defined and the purpose
and aim of the report has been presented. The sourcing benefits of the organization and the
different kinds of the disadvantages of the organization has also been presented here. The
Cheap labour, presence of large amount of unexploited resources are some of the advantages
of sourcing from low cost countries. On the other hand, the absence of skilled labours, too
much cost on infrastructure development hampers the growth opportunities of the
organizations. The report also highlights the different criterions for the selection of the
vendors where their capabilities, their strengths are assessed for the selection. The expansion
strategy of the company TFT in USA and other parts of Canda through the use of their own
strengths has also been mentioned in the report. Apart from this the selection of the single
service provider for the development of their logistics system has been discussed and justified
accordingly. A thorough analysis of the total report can present a great amount of information
for any kind of the future researches on the same subject.

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Table of Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................4
Benefits of change in sourcing...................................................................................................4
Concerns of Change in sourcing................................................................................................5
Criterion to evaluate the new vendors........................................................................................6
Expansion strategy of TFT.........................................................................................................7
Single Service Model.................................................................................................................7
Practice Segmentation................................................................................................................8
Appropriate Model to be selected and Justification for the selection........................................8
References..................................................................................................................................9

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Introduction
Integrated Logistics is defined as the process of anticipating the different needs of the
customers and the wants of the customers. The acquiring of the capital, different materials,
people, technologies and information that are needed for ensuring the completion of all the
needs and wants of the customers (Aggarwal, 2018). The integrated logistics system helps the
management of the business enterprises to utilize the resources and fulfil all the needs of the
customers accordingly. It is important for the management of the business enterprises to
select and implement a strong and efficient network for the movement of the raw materials as
well as the movement of the finished goods from the manufacturing centres to the end users
or to the processing centres. This total management of the goods in a systematic process can
be described as integrated logistics management.
The report here presents the case of Tools for Trade which is involved in the
manufacturing of high end machineries and tools for the use by everyday tradespeople.
Headquartered in Calgary, the company operates a strong supply chain using the DAT
Halifax. The use of the cross dock facility in Halifax and the use of road transport through
heavy trucks helps the company to reach its products in the stores of Ontario. The company
also uses rail transport to transport their cargo. However, the management has been in search
of business opportunities to expand its product line to other provinces. The expansion process
of the business will be launched with the consideration of opening a second dock facility in
Halifax. The report has presented a clear and transparent view of the integrated logistics
systems that the management of the company has planned to implement.
Benefits of change in sourcing
There are a number of benefits of low cost sourcing which can be enjoyed by Tools
for Trade. The benefits are as follows;

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a. Cheap Labour- Hiring labour in Canada is quite a tough task because of the high cost
of the labour. The presence of a high cost labour can help the organization can help
the management to develop the success of the organization properly (Copacino,
2019). The presence of unskilled labours in the countries of South East Asia, Middle
East and Africa can help the company to recruit cheap labours.
b. Low cost of products- The low cost of products in the countries of SE Asia and other
low cost countries can help the management of Tools for Trade to ensure a low cost of
procuring the raw materials and then manufacturing finished products in a much
lower price (Alonso et al. 2017).
c. Less energy and infrastructure spending cost- The less energy and infrastructure
spending costs in the low cost countries is surely one of the major benefits for
sourcing. The additional energy saved can be used for other purposes (Aggarwal,
2018). This can help the management of the company to ensure a higher profit.
d. Abundance of unexploited resources- The presence of abundant unexploited resources
like cheap labour, cheap infrastructure, presence of enough space for new dock
facilities can help the organization to provide a great opportunity for the company to
get the best of the organization.
Concerns of Change in sourcing
Low cost sourcing is surely one of the most effective way for the management of TFT
to gain competitiveness and ensure a better and developed profit for the business
organization. Though low cost sourcing can be a great option for the companies like TFT
(Alonso et al. 2017). The sourcing from low cost countries on the other hand can be a very
tough decision for the organization as because it leads to complex cases where the global
supply chain of the companies gets affected. Some of the major areas for concern are as
follows;

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a. Problem with unskilled labours- The unskilled labours of the low cost countries is a
major threat to the success of the logistics system (Copacino, 2019). The presence of
the unskilled labours in the system and the absence of proper skilled labours in
abundance can hamper the logistical support of the company.
b. Problem with red tapism- Red Tapism is one of the major problems in low cost
countries where the development level is not upto the mark. The absence of skilled
labour and the absence of strong laws that can help control the business sector can be
a major issue for the organization (Aggarwal, 2018). The red tapism issues can be a
major problem for the business to get supplies on time.
c. Issues with lack of professionalism- The absence of a strong professionalism nature
can be a problem for the organizations like TFT which has to ensure a smooth and
faster logistical support network to deliver the products within time (Alonso et al.
2017). The absence of professional set up can lead to issues which is not acceptable to
the business management.
d. Infrastructure Issues- Infrastructural issues can also act as a factor behind the sourcing
problems. The sourcing problems thus can be a problem for the business.
Criterion to evaluate the new vendors
The management of TFT must select the new vendors by selecting a process that suits
their franchisee retail model and also through online process. The general basis for the
selection are as follows;
a. Capacity of the suppliers is a major criterion. The suppliers must have the capacity to
fulfil the huge demand for the tools across Canada
b. The suppliers must be competent enough as competency can help to ensure the
creation of an expert supplier with the best capabilities

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c. The control of the supplier over the supplies of the organization is another major
achievement of the business organization
Expansion strategy of TFT
The management of TFT is based on the sourcing of the products based on the recent
success of the organization. The expansion strategy of the organization will be undertaken to
spread the business in USA and some other provinces of Canada. According to, Alavi et al.
(2018) the expansion strategy of the business allows the management of the company to
expand their business through the achievement of new markets, investing in the customer
acquisition and also expanding the product line of the organization. TFT has plans to expand
their business through the implementation of online commerce (Al Shibli, Daud & Karim
2018). The online availability of the tools can help the company to add a new type of
customers to their database. The online site of the company will be dedicated for the
personalised users of the different tools. Apart from the online marketing strategy of the
organization, the company has plans to open their own facility in Halifax which can help
them to support their logistics management. The presence of a stable supply can help TFT to
expand their product line as per the demand of the customers in the new markets. Their own
personal facility will help them to easily provide logistics support to all of their products.
Single Service Model
A single service model can be defined as the third party logistics provider
organization that is capable for the management of the total supply chain in a proper manner.
The company in these cases depend on third party logistics provider for all the logistics
related activities. The working with a single source provider also helps the management to
provide a better view of the supply chain which helps to reduce the waste and gain
effectiveness.

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Practice Segmentation
The segmentation model in logistics generally involves the segmentation of the
different tasks that are involved in the carrying out of the logistical system of business
operations. The division of the warehousing, transportation, stocking, processing and then
finally transporting the products to the end users (Al Shibli, Daud & Karim 2018). The
brands enter into a segmented relationship with the different providers of logistics. This
segmentation thus involves a number of different providers and suppliers in the total logistics
service providers.
Appropriate Model to be selected and Justification for the selection
Both the Single service model as well as the practice segmentation model is important
for the organization as both of them are capable enough to provide a strong logistics supply
infrastructure that can help the management to ensure the success of the organization in a
better manner (Al Shibli, Daud & Karim 2018). However given the current scenario and the
expansion strategy of the business it is important for the company to select the model of
Single Service Model.
The very first benefit for the selection of the single service model lies in the fact that
the management has been in pursuit of expansion of the company in USA and other areas of
Canada and thus selecting a single service provider with vast range of experience in the
market can be one of the best choices for the organization. Apart from this, the simplicity in
the supply chain is also an important factor as the presence of only one company will help
maintain a proper schedule and also is capable of supporting TFT to fulfil their commitments
for the customers. On the other hand, the particular model also helps to ensure flexibility and
improved pricing for the products of the organization.

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References
Aggarwal, A. K. (2018). Futuristic Trends in Integrated Logistics Quality. Available at SSRN
3184131.
Al Shibli, S. S., Daud, D. B., & Karim, A. M. (2018). Integrated Logistics Strategies on the
Omani Logistics Firms’ Competitiveness: A Measurement Model
Approach. Australian Academy of Accounting and Finance Review, 4(1), 37-46.
Alavi, A., Nguyen, H. O., Fei, J., & Sayareh, J. (2018). Port logistics integration: challenges
and approaches. International Journal of Supply Chain Management, 7(6), 389-402.
Alonso, L., Rubio, E. M., de Agustina, B., & Domingo, R. (2017). Latest clean
manufacturing trends applied to a world class manufacturing management for
improving logistics and environmental performance. Procedia Manufacturing, 13,
1151-1158.
Copacino, W. C. (2019). Supply chain management: The basics and beyond. Routledge.
Hart, M. (2017). The design of integrated logistics management system of an industrial
company. In MATEC Web of Conferences (Vol. 134, p. 00018). EDP Sciences.
Hazen, B. T., & Ellinger, A. E. (2019). Special issue editorial: logistics customer service
revisited. International Journal of Physical Distribution & Logistics Management.
Hristov, V. N. (2019). Marketing research as part of integrated logistics management system.
Mohanty, M., & Shankar, R. (2017). Modelling uncertainty in sustainable integrated logistics
using Fuzzy-TISM. Transportation research part D: transport and environment, 53,
471-491.

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Wu, L. (2017). An integrated logistics performance measurement system for logistics
management (Doctoral dissertation, University of Missouri--Columbia).
Yuan, L. (2019, August). Site Selection of Dangerous Goods Integrated Logistics
Management System Based on Line Selection Model. In 2019 International
Conference on Smart Grid and Electrical Automation (ICSGEA) (pp. 527-532). IEEE.