Wyldeburd Ltd Analysis - Case Study Example

Wyldeburd Ltd Name: Course: Institution: Date: Wyldeburd Ltd Summary Wyldeburd Ltd is an emerging supplier of garden bird products, including seeds, feeding equipment, and other associated products. For the company, sunflower seed hearts as highly profitable products. The customers of the company include 176 garden centers, 25 pet shops, and 2 supermarkets and the public through internet sales. The company uses the national carrier transport system and its own transport in the distribution of products to its customers. This approach is an indication that the success of the supply chain is highly dependent on the design of an optimal logistical system. Wyldeburd Ltd still faces challenges in its inability to integrate all the logistical functions that define its operations. This is because the company has not been able to align the existing level of demand for its products, with the route of transportation and the seasons. Wyldeburd Ltd needs to develop techniques of tracking the performance of its competitors in the market. This provides a technique of understanding the relationship between its performance and that of its competitors in relation to the logistic activities. The company needs to reconfigure its supply chain management system, and determine the functions that it can perform internally and those that it can outsource. Introduction Wyldeburd Ltd is a small a supplier of garden bird products, which include seeds, feeding equipment, and other associated products. The company considers sunflower seed hearts as one of the most profitable products. When delivering to its customers in 176 garden centers, 25 pet shops, and 2 supermarkets and to the public through internet sales, Wyldeburd Ltd packages the sunflower seed hearts in 3kg, 5kg, and 10 keg packs. The company procures these seeds from the Chinese market in 50kg packs, which are delivers s a minimum of 11 tones. Wyldeburd Ltd has a storage capacity of 24 tons of finished products and 26 tons of 50 kg sacks. The target customers such as garden centers and pet shops place weekly orders while customers who order through the internet before 3pm often have their products dispatched on the same day. The company uses its own transport for the delivery to local garden centers and pet shops while national varies are used for distant outlets. The main objective of this essay is to assess and critically examine the challenges of returned goods from pet shops and supermarkets, shortage of 1kg and 3kg packs and insufficient storage capacity in the company by providing possible solutions. Critical assessment of logistic operations Logistic operation in Wyldeburd Ltd is defined as a major business area that defines the ability of the company to ensure customer satisfaction by delivering high quality products in a timely manner while considering the cost implication involved (Gubbins 2003). The realization that a significant percentage of the level of customer satisfaction results from the use of less than optimal logistic systems, defines the decision by the management to consider the incorporation of different approaches to supply chain management as a technique of realizing its mandate to the target customers (Myerson 2015). The company uses the national carrier transport system and its own transport in the distribution of products to its customers. This approach is an indication that the success of the supply chain is highly dependent on the design of an optimal logistical system, which increases the probability of significant reduction in the cost incurred while at the same time maintaining and improving customer satisfaction levels (Burns 2015). One way by which the company has been able to ensure a reduction of cost incurred in the design and operationalization of its logistic system is through bulk transportation of goods to supermarket chains, pet shops, and garden centers that are distant from the organization. In addition, to ensure the availability of products the company has a warehouse that stores more than 26 tons of packaged products to ensure constant availability of products upon order by customers. The realization that an increase in quality of customer service increases logistic cost in terms of inventory, transportation, and investments explains the decision by the company to introduce an online platform that allows customers to make orders in an effective and efficient ways (Khan and Zsidisin 2011). Despite the success of the company in the delivery of its products to target customers, Wyldeburd Ltd still faces challenges related to its inability to integrate all the logistical functions that define its operations. This is because the company has not been able to align the existing level of demand for its products, with the route of transportation and the seasons (Zanjirani et al 2011). Failure to consider these elements contributes to limit forecasting in terms of the prevailing level of demand in the market and the ability of the company to ensure the satisfaction of these demands through timely delivery of products. Furthermore, failure to integrate its logistic operations also explains why the company has not been able to establish a competitive advantage through its logistic system considering that it does not have the capacity to forecast and provide predetermined service levels to its customers using cost effective approaches (Kress 2016). Forecasting is considered as a beneficial approach in supply chain management because it helps in the determination of the quantity of goods to supply, as a way of meeting market demands (Kress 2016). In addition, it also facilitates the planning process by providing the company with a technique of ensuring an effective balance between the quantities of goods demanded and the ability of the company to package and repack products according to customer demands and the ability to ensure sufficient storage for the goods demanded by customer. This is enhanced by the ability of the company to provide effective transport systems, which not only protect the products from the possibility of damage but also ensures timely delivery (Burns 2015). Analysis of ways to improve The creation of a realistic and accurate plan on the techniques that can be used to enhance the efficiency of the supply chain management system with regard to cost reduction and improving on the level of customer satisfaction (Zanjirani et al 2011). This is an essential determinant of the ability of Wyldeburd Ltd to establish itself as a leader in the sale of garden birds’ products. In the process of integrating its logistic system, the company has the responsbility of improving on its distribution operations. This can be realized through effective order management, which requires high-level accuracy and consistency in processing and managing the products required by centers (Kress 2016). The internet, which provides varieties of online services for the management of logistic operations, can be used as an effective platform in the management of the company’s distribution operations. For instance through the development of a customer management system, Wyldeburd Ltd can use these links in order management to ensure the elimination of certain steps hence reducing the lead time from days to minutes (Wang 2014). The process of eliminating unnecessary steps in order management through the internet increases the level of accuracy. This results in the development of a faster and more accurate process whose performance requires less capacity (Kress 2016). To decrease the number of returned goods from pet shops, garden centers and supermarkets damaged during transportation and offloading process can be improved through the introduction of more effective and efficient transporting and product management apparatus (Wang 2014). For instance, it is possible for the company to introduce new packaging material for its products destined for garden centers, supermarkets, and pets sops located far from the company. This is because through such an approach will not only ensure a reduction in the number of products damaged during the transportation and offloading process, it will also enhance the level of customer satisfaction and trust in the ability of the company to deliver products in a timely manner (Khan and Zsidisin 2011). Furthermore, through this approach the company will also have the ability to ensure a reduction in losses incurred from danged and returned products (Khan and Zsidisin 2011). The company faces the challenge of limited storage capacity. To ensure effective solution to this problem, it will be important for the management to establish a bar coding system (Khan and Zsidisin 2011). Through this approach to the management of warehouse operations, it will be easier for the company to increase the speed and accuracy of its operatin in terms of clearing and forwarding products in and out of the warehouse (Wang 2014). This not only reduces the risk of distributing the wrong product to the customers but also increases inventory accuracy while ensuring constant flow of products in and out of the warehouse as planning strategy for ensuring sufficient storage capacity (Kamath and Swapnil 2016). Through an effective inventory management function, it becomes possible for Wyldeburd Ltd to link all its distribution operations and limit the possibility of choosing lower cost carrier with lower performance. In addition, it also increases the company’s understanding of customer needs as way of enhancing its ability to ensure that the packaging process is in accordance with the prevailing market demands hence improving on efficiency and the possibility f establish a competitive advantage (Sabri 2015). Explanation of issues in other functional areas The success of the logistic system in any organization is dependent on the ability of the managements to develop an effective plan on how to integrate and manage different logistic functions. One way through which such level of improvement can be realized is by verifying the existing customer requirements (Sabri 2015). This is realizable through the development of techniques for assessing regular customer needs. This enhances the ability of the company to engage in the most appropriate ways of identifying and defining their total logistic service needs (Kress 2016). Through these verification processes, it will also be possible for companies such as Wyldeburd Ltd to track the extent to which it is able to realize its logistics needs. An additional strategy that Wyldeburd Ltd can use to ensure enhanced logistical system is the development of techniques of tracking the performance of its competitors in the market. This will provide a technique of understanding the relationship between its performance and that of its competitors in relation to the logistic activities (Lee and Michael 2010). The company engages in the supply of garden bird products. The logistic activities of competitive vendors will help in the determination of the position of the company in the marketplace in relation to the provision of products in a timely and reliable manner (Lee and Michael 2010). Upon assessment of the prevailing organizational situation with regard to the existing logistic structure, it will be possible for the company reconfigure its supply chain management system, which will be essential in the determination of the functions that the company can perform internally and those that the company can outsource (Sabri 2015). Conclusion Wyldeburd Ltd is a small a supplier of garden bird products, including seeds, feeding equipment, and other associated products. Wyldeburd Ltd considers sunflower seed hearts as highly profitable products. The customers of the company include 176 garden centers, 25 pet shops, and 2 supermarkets and the public through internet sales. Failure to integrate its logistic operations also explains why the company has not been able to establish a competitive advantage through its logistic system considering that it does not have the capacity to forecast and provide predetermined service levels to its customers using cost effective approaches. The realization that a significant percentage of the level of customer satisfaction results from the use of less than optimal logistic systems, defines the decision by the management to consider the incorporation of different approaches to supply chain management as a technique of realizing its mandate to the target customers. To decrease the number of returned goods from pet shops, garden centers and supermarkets damaged during transportation and offloading process can be improved through the introduction of more effective and efficient transporting and product management apparatus. Through an effective inventory management function, it becomes possible for Wyldeburd Ltd to link all its distribution operations and limit the possibility of choosing lower cost carrier with lower performance. References Burns, MG 2015, Logistics and Transportation Security A Strategic, Tactical, and Operational Guide to Resilience. CRC Pr I Llc. Gubbins, EJ 2003, Managing transport operations. London: Kogan Page. Kamath, N, and Swapnil, S 2016. Handbook of research on strategic supply chain management in the retail industry. Hershey: Business Science Reference. Khan, O, and Zsidisin, GA. 2011. Handbook for supply chain risk management: case studies, effective practices, and emerging trends. Ft. Lauderdale, FL: J. Ross Pub. Kress, M 2016, Operational logistics: the art and science of sustaining military operations. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=1089125. Lee, WB, and Michael K 2010. Leading effective supply chain transformations: a guide to sustainable world-class capability and results. Ft. Lauderdale, FL: J. Ross Pub. Myerson, P 2015, Supply chain and logistics management made easy: methods and applications for planning, operations, integration, control and improvement, and network design. Old Tappan, New Jersey : Pearson Education, Inc Sabri, EH 2015, Optimization of supply chain management in contemporary organizations. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=972311. Wang, J 2014, Management science, logistics, and operations research. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=677537. Zanjirani F, Reza, SR, and Laleh, K 2011, Logistics operations and management: concepts and models. London: Elsevier. Read More