A.

Examine the possibility of alternatives in transportation of the inbound and outbound

materials
The possible alternatives are
1. Take control of both inbound and outbound logistics
This will help the company to gain great control over distribution
and quality of the materials. The market is highly advanced and there is no differentiation
over technology. The main differentiating factors are customer service and distribution.
Doing the logistics function by itself will help the company to have better control over
distribution which will help the company reduce inventory, quality problems
documentation errors and provide better customer service. The decision to handle both
inbound and outbound logistics will involve substantial financial investment and also
managerial attention and the management has to consider these two factors.
2. Do outbound logistics and contract inbound logistics to third party
Taking control of outbound logistics will help the company to
provide service at a better quality to the customers.
3. Reduce the number of transporters
Reducing the number of transporters will help the company to
reduce complexities in transportation and also to reduce the cost.

B. How to reduce the cost of the inbound and outbound logistics functions?
The cost can be reduced by the following methods
1. Reduce the number of transporters
2. Proper planning
By proper planning the company can achieve better consolidation of
products.
3. Take control of inbound and outbound logistics
The major cost in logistics in this case is incurred for fleet
management. If the company does logistics function by itself it can control overcharging
by other companies, better control over inventory which will help to reduce the cost.
4. Have proper information systems
5. Select the logistics company which have a good track record of fleet
management

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C. What could be the major problems in exploiting the inbound and outbound logistics
functions?
The major factor is the cost incurred and the managerial attention
required for the job. Substantial financial investment will be needed for doing this. The
processes in the company have to be changed. Since it is not the core competency of the
company it is a great challenge for them.

D. Is it advisable to have a dedicated transport system to operate packaged materials

mainly for the company?

It is advisable to have a dedicated transport to operate packaged

materials because that will help the company to pay more attention to it and achieve
better control. The company gets a distinct advantage if it is able to deliver the goods at
better quality by reducing the defects and delivering at the proper time.

E. What arrangements have to be made to ensure the service quality for the customers?

The service quality can be ensured by delivering the products

without defects, delivering at the right time. The exchange of information among
different partners in the supply chain will help to reduce the lead time for delivery and to
meet the customer demand in the most efficient manner.