Logistics Improvement Plan

Logistic Improvement Plan

Student’s Name

Institutional Affiliation

Problem Statement

Kantara Fashion Line has become a global industry and therefore needs to increase its supplies. There is need to achieve the customer satisfaction which must be effected through certain changes when it comes to logistics. It is a firm that has created its presence through online marketing, but it cannot be able to meet its global customer base if they cannot be able to create a wider technological application in their logistic network. The lack of an online presence has meant that the customers have lacked a point where they can be able to raise certain issues that affect the business. This is a situation that has been in existence ever since the business opened up to different countries around the world, it became apparent that the business would not be effective through the same means of supply. This is important to the business since it is a factor which has the potential of losing the company sales. Companies such as Kantara have made efforts that are aimed at optimization of the production and deployment of the inventory which has had a great impact on the sales and the revenues.

The BCG model can be used to illustrate the forecasting of the problem (Peck & Jüttner, 2002).

Data and Measurements

The above problem can be illustrated through the use of a fish bone diagram as shown below

Equipment Process Customers

Kantara Fashion Line

Material Environment Management

This is a tool that will be used to determine why the situation is as it is. The main problem that is suffered by Kantara is that its supply chain is not able to meet the needs of the customer due to management, material, environment that are not met sufficiently. When the company has an inefficient supply chain as it is, then it becomes quite difficult to cut down the cost and increase the levels of revenue.

Flow Chart

This chart shows how the company will be able to change the situation if they concentrate on opening up the access to the customers.

Causes and effect

When the organization expanded and set up its operation to other countries, there was need to expand the online presence too in the manner in which they would gain access to the customer. The management failed to understand that the operational environment had changed, and that the material operation was supposed to change too. This situation affects the business in the sense that they have not been able to create a proper website in which they can be able to attract the customers where they can be able to make orders and even inquiries (Braithwaite & Hall, 1999)

Kantara Fashion Line needs to increase its supplies since it's a global industry. A business operating globally tends to have many customers, and if production is an issue, the consumers will be unsatisfied with the services. More clothes need to be produced at all seasons. However, special consideration needs to be put in countries that do not experience winter and summer. During the winter season, for example, the company should not major in producing warm clothes and forget the potential clients in the tropical regions in need of loose fitting clothes.

Cost Benefits Summary

The cost that will be faced by the company will entail the funds that will be incurred when coming up with the new platform for the customer through the website, and the benefits will come through the amount of extra revenue that will be collected through efficient supply chain. It will be costly to create the customers and supplier database, especially when it comes to keeping both the first and second class suppliers (Sheffi, 2002).

Aspect	Cost
Domain Name	$10/year
Hosting	$10 to $100, after the end of test hosting and the project is taken fully by firm
Web Planning, Design and Dev.	60hrs and up, majorly engaged colleagues from IT
Web Maintenance	$500 a year and up, depending on updates that will be needed
Marketing the Website	$450 every month and up

From having the supply chain changed, the cost cannot be compared benefits that will be brought by it. The efficiency of the supply chain will cut the costs in large degree; the fact is that efficiency will attract more clients to the business. Most people tend to find it easy when they can be able to access their data at the comfort of their offices. The information that will be accessed through the website will be important when it comes to creating sales and seeking for cheap supply.

Conclusion

If the situation continues as it is in the company then it would mean that it will lack efficiency in handling orders and placing orders to the suppliers. If it is improved then it would mean that the level of efficiency will increase and therefore it will cut on costs and increase the revenue of the business. It might also have an impact when it comes to the relationship that the business will have with the suppliers as the database will be run better and efficiently. The financial benefits will be important to the stakeholders as they will have much more profits.

References

Braithwaite, A. & Hall, D. (1999), Risky business? Critical decisions in supply chain management”, Part 1, Supply Chain Practice

Peck, H. & Jüttner, U. (2002). Risk Management in the Supply Chain, Focus, December, pp 17 22

Sheffi, Y. (2002). Supply Chain Management under Threat of International Terrorism, International Journal of Logistics Management

Technological Application

Proper Supply Chain Planning

Supply Chain Management