Grainger: Reengineering the China/U.S. Supply Chain - Case Study Example

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This paper comprise of a case study on Grainger global supplies Company that is responsible for transit of massive goods and services around the globe. There is a critical analysis of its logistical operations, as well as the adjustments that should be made within the Company so…
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Grainger: Reengineering the China/U.S. Supply Chain
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Download file to see previous pages This is with the assumption that the current volume of around 190,000 CBM is involved, and that almost 89% of the products are directly shipped from the entire supply in containers. The other assumption is that; the container is around 85% full, and the consolidation centers uses the 40-foot containers only, and are filled to the capacity of 96%.
Based on their rates, the cost of supplying a 40-foot container is at $600 from any port location. These containers carry up to 67 CBMs. So the number of containers that shall be involved = (190000/67) = 2835.8, which is approximately 2836.
The next segment dwells on the aspect of evaluating alternatives that involves consolidation of all the 20-foot volumes by use of a single consolidation center that is based in Shanghai. The cost of shipping a 20-foot container is at around $480.
So, since it can hold 34 CBM, the number of these containers shall be equivalent to (190,000/ 34) = 5588. So, the total cost for transiting them shall be equivalent to (5588 × $480) = $2682353. This hence seems to be un-economical as compared to the other entity.
Grainger Company is a global broad supplier of facility maintenance goods that serves institutions and businesses. Jacobs & Chase (2012) says that such a company is endowed with more than 18000 employees who are largely driven towards serving the community and consumers in more exceptional ways that keeps focus on delivery of the highest service levels. The entire team works in tandem with consumers so as to understand some of their concrete challenges better, hence providing cost-effective solutions. Graingers employees usually serve customers in a sequence of up to 115,000 times per day based on their multiple networks (Jacobs, & Chase, 2012).
This Branch-based Distributor has been segmented into the Industrial Supply segment; the Export division; the Global Sourcing division; Grainger Mexico; Grainger ...Download file to see next pagesRead More
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