Logistics Management Assignment
On
Case Analysis
(Group 4)
Submitted by,
Madhan Kumar N (215116007)
Jibin Thomas (215116028)
Sajin Mathew Zacharia (215116046)
Ahmed Unais (215116068)
Questions:
Why UNIT II doesn’t care about the goods?
Unit II doesn’t care about goods because of the following reasons:
1. They might not have enough storage space to store the incoming goods.
2. Their demand was wrongly forecasted, and they do not actually require the
goods.
3. Production delays might have caused piling up of inventory and thereby space
might not be available.
4. Irresponsibility from the side of Unit II store manager.
Why UNIT II have ordered without the requirement?
Unit II might have wrongly forecasted their requirement and placed the order.
Another reason can be that, they might be expecting a new project but later on the
new project might have got cancelled and the goods are no more required.
Why UNIT II ordered without concern about the space constraint
Unit II placed the order without the concern about space constraint due to the following
reasons:
1. Inventory miscalculation
2. Inventory holding due to production delays or any other unexpected events
Why UNIT II doesn’t respond to the “LR Reminder” given by the VRT?
Unit II didn’t respond to the LR reminder given by VRT may be because of:
1. Miscommunication between VRT, UNIT II and KL
2. storage constraints in Unit II
3. mismanagement (no one to take responsibility)
Why KL has given the LR to UNIT II?
KL has given the LR to Unit II to get approval and schedule of transportation of goods
to unit II from VRT.
Why KL doesn’t follow up this LR?
1. Its UNIT II’s requirement and they should have responded to the LR from KL
2. KL was neither holding the consignment, nor did not receive any
communication from Unit II, so they thought it is not their duty to follow up.
Why VRT doesn’t inform to either KL or COMPANY Transport Division?
VRT sent the lorry reminder to KL and informed the unit II stores when they didn’t
get any response. VRT might not be clear to whom they should have informed
regarding the consignment as there was no proper system or process in place. VRT
might have thought that it is the company’s responsibility or KL’s responsibility to
check and enquire about the consignment and would have waited for a
communication from them. Another reason can be that, since they didn’t receive any
response to the LR to KL and intimation to Unit II stores, they might have thought
that there is no use in further informing anyone.
Why VRT had sent only reminder about 2 bundles? (They supposed to send for 3
bundles)
1. Company was not responding for the first two bundles, so they might have
thought that its useless sending reminder for the third.
2. Also, VRT also had other engagements so they might be busy handling those
consignments.
3. Or they might have wanted to charge demurrage and increase their revenue
taking advantage of the company’s irresponsibility.
What do u do if u r the logistics manager?
As a logistics manager, the following actions should be taken:
1. Make further arrangements to get the consignment to unit II stores.
2. Negotiate with VRT to arrive upon a feasible settlement with respect to the
demurrage charges.
3. Take disciplinary actions against managers of Unit II stores and KL for their
passive approach and not taking up responsibility resulting in losses for the
company in terms of material and money.
4. Escalate the issue to the Company transport division to avoid such instances in
future.
5. Establish a comprehensive system which clearly defines the roles and
responsibilities of all the parties involved, to ensure proper information flow
so that the consignment will not get held up in between.
Provide Option 1 answer on what short term action you would do to solve this
problem with 2-3 lines rationale
1. Negotiation with concerned parties to a feasible settlement,
2. develop a proper system in which roles and responsibilities are clearly defined
3. a proper process flow and monitoring system
Provide atleast 1 or 2 best practices to be adopted by each party in this supply
chain.,
– Centralized Transport Department
1. Establish a tracking system to track the consignment at any given point of
time.
2. Coordinate with 3PL and 4PL logistics providers to ensure that proper hand
over from one party to another party takes place until the consignment reaches its
destination.
– Centralized Purchase Department
1. Acknowledge Unit II stores when they receive a purchase order.
2. Intimate the centralized transport department that the order has been
placed with the supplier and take necessary actions for transport.
3. Intimate unit II stores that the purchase order is placed and ask them to
coordinate with transport department and be ready to accept the
consignment.
– Unit II Stores
1. Place the order only if it is actually required.
2. Coordinate with the transport department and their 3PL logistics
partner to ensure that the consignment reaches the stores.
3. Make necessary arrangements to receive the consignment.
4. Inform Purchase department once the consignment is delivered.
– Varun Road Transport
1. Intimate KL when they receive the consignment.
2. Intimate the transport department when the consignment is to be
transferred to KL
3. Inform the supplier, if they are not receiving any response from the
company or KL.
– Kali Logistics
1. Coordinate with VRT when they are about to receive the consignment.
2. Inform transport department, when they take possession of the
consignment.
3. Inform Unit II stores to be ready to receive the consignment.
– Supplier
1. Intimate the purchase department and company’s transport department
once they ship the consignment through VRT.
2. Request a delivery receipt from the purchase department, when the
consignment gets delivered.
Everyone can be integrated to a centralized ERP system, to track orders, shipment &
inventory status, bills etc
