D079 RNM1- Business Environment Applications II: Process,
Logistics, and Operations – Task 2 - Logistics & Operations
Management/Change Management
TEMPLATE FOR D079
(RNM1) TASK 2 SUBMISSION
Task 2: Logistics & Operations/Change Management
A. Discuss options and considerations for transporting the
product described in the scenario to the retail facilities by
doing the following:
1. (A1)
One type of product packaging we use is primary
packaging. Our mandolins are made using high quality
materials but are very fragile. Primary packaging allows us
to provide retailers with packaging that can be nicely
displayed while still effectively protecting the finished
product.
The second type of packaging utilized is tertiary. Due to
the high number of mandolins sold, tertiary packaging
allows us to effectively ship large quantities of mandolins,
inside their Primary packaging, to our retailers. Since
tertiary packaging uses pallets, this allows us to easily load
shipments using forklifts and hand trucks and allows
retailers the same convenience when unloading and
storing orders.
2. (A2)
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The fragility of our mandolins means there are risks
involved when storing them. Two of those risks are the
humidity of our storage areas and proper packaging prior
to storage. To protect our mandolins during storage, our
storage areas must be climate controlled. Moisture will
damage and ruin the mandolins. Our storage areas have
been carefully planned and constructed to maintain low
humidity and are inspected regularly to ensure they are
running properly. The retailers we provide to are also
notified of the risks of improper storage.
Proper packaging must be completed prior to placing
completed mandolins in storage holding. To protect our
finished products, all mandolins must be packaged in their
primary packaging prior to placement in storage. Primary
packaged mandolins will not be packaged in tertiary
packaging until all units for an order are complete and
ready to be shipped. Our primary packaging is designed
specifically for protecting finished mandolins, storing any
mandolins without primary packaging may lead to
accidental damage such as bumping two mandolins
together, or accidently bumping into them when walking
by.
3. (A3)
Tractor trailers are our main mode of transportation in the
United States. This is the most common type of
transportation of goods within the United States. Delivery
via tractor trailers is effective because they can transport
large quantities at a time. The drawback to transporting
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via tractor trailer is the time it takes when delivering to
areas that are great distances from manufacturing
facilities.
The second option for transportation is by air. Using
airplanes to deliver to retailers in Europe is the fastest
method available, ensuring deliveries are received on
time. The disadvantage of air transportation is the high
costs associated with it. Shipping via air is much higher
than ground transportation.
4. (A4)
Load and rout optimization allows our company to plan
shipments and routes in the most efficient way to protect
our products and save time and money. Load optimization
allows the transportation vehicle to be loaded in the most
efficient manner. Rout optimization considers factors such
as distance, traffic, and costs when planning a route.
With real-time track and trace our shipments are labeled
with RFID or GPS. As the name states, this characteristic
allows us to track and trace our products throughout
shipment to its destination. By using real-time track and
trace, we can provide our customers with up-to-date
delivery times, including any delays. If packages are lost,
stolen, or delivered to the wrong location, we have a
better chance of locating products, decreasing revenue
loss.
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B. Discuss how you would address a barrier or bottleneck in
transporting your product to the retail facilities by doing
the following:
1. (B1).
Receiving inferior raw materials from the supplier creates
a bottleneck for our company. The inferior materials
created a delay in manufacturing resulting in shipments to
retailers being late.
2. (B2)
The manufacturing bottleneck will be addressed by using the
ADKAR change management model.
Awareness – Creating awareness across the company
and our consumers that the wood being supplied is no
longer up to our standards.
Desire – Continue producing high quality mandolins and
addressing with the supplier the inferior quality of wood
they are providing.
Knowledge – Stricter quality control processes for
receiving materials from current supplier. Search for
potential alternate suppliers in the event our current
supplier does not return to providing quality materials.
Ability – Implement new quality control standards for
receiving products. Begin negotiations with alternate
suppliers.
Reinforcement – All materials received will be signed off
for by the employee accepting the shipments. If wood
used in production of a mandolin is inferior it can be
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traced back to who accepted the delivery and additional
training on acceptable standards of wood can be
provided. The supplier will be notified that if inferior
products are still being supplied, the company will
switch to alternate suppliers.
2. (B3)
We have an ethical commitment to our supplier of 20
years as well as to our retail customers. Without damaging
our relationship with the supplier, we need to let them
know we must seek alternative suppliers for quality wood.
We can minimize damage to the relationship by ensuring
them we will reconsider the partnership once they are
able to provide the quality materials we require. We also
have an ethical obligation to our retail customers to
provide high quality mandolins. We need to communicate
our supply dilemmas to our customers to ensure they
understand the reason for any delays is because we refuse
to provide inferior products. We will also communicate to
them that we are diligently working to partner with
alternate suppliers to satisfy all orders with high quality
mandolins as quickly as possible.
