Essay Sample on Centralized Warehouse

Introduction

Lawson stands a better chance of improving its product utility by adopting the centralized warehouse system. In this approach, all the company products will be stored in a single warehouse, and this has some benefits compared to the decentralized system which it currently uses. Kokemuller (2018) states that some of the benefits that the business is likely to enjoy from this system include improved customer service, lower operational costs, lower inbound costs, and improved online retailer relationship.

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First, through centralized warehousing, Lawson will become a better distributor. In the long run, it will be able to meet all the demands of its customers and therefore improve their demands. In the same way, it would be able to lower its operational costs since they will have few buildings to manage, the rate of transportation of costs will be reduced, and a minimum number of computers and other technology will be used. Additionally, according to Ten benefits of a centralized distribution system (2017), the company will only have to hire a few personnel to assist in the management of its warehouse. In the long run, it will cut down its costs of operations and used the extra income for investment purposes.

Lawson will also lower its inbound costs by having a single location where the suppliers can shift the product, and the distributors and other customers can obtain them. Usually, suppliers add more if shipping costs are high and this ends up causing Lawson to increase their prices. Besides, the organization will be able to focus more on expanding its online service care platform and thus attract more customers to buy and use their products (Kokemuller, 2018). Through the online system, the company distributors will have the power to promote their products, conduct a product promotion, get orders, answer customer inquiries, and attract more customers. It is an excellent strategy to improve price and place utility for the products.

Manufacturer (USA or Canada)

Supply Chain

• Online Retailers
• Supplier
• Lawson
• Customers
• Distributors

Each of these participants in the supply chain plays a specific role in enhancing the product utility and enhances improving the value of the product. First, consider the manufacturers, the create time, place, and possession utility. They are the initiators of the supply chain. Lawson makes an order with the suppliers who contact the manufacturers giving them specifications of the company. Once goods are produced, the manufacturers ship them to the warehouse of Lawson. Thus, the suppliers improve product value by ensuring that goods are continually available for Lawson to offer to their customers.

For this reason, they are able to stabilize the demand for the product and ensure that there are not shortages especially during high demands (Farfan, 2018). Lawson then uses online retailers and distributors to contact their customers. The retailers and distributors are therefore responsible for product promotion and advertising of the goods and services that Lawson offers. They guarantee that the corporate remains relevant in the market and that its products are continually demanded by the customers. They also link the business with the customers and are therefore responsible for answering questions and providing after sale services to the customers. In so doing, they offer a strong and reliable customer base between the company and its consumers. In the final stage, there are customers. They buy and use the goods and services provided by Lawson. They, therefore, create price utility. Their level of demand determines the distribution and price of the goods. For example, as Principles of a Good Supply Chain Strategy (2019) state, when the request by the customers is high, the prices are high. In so doing, the business is able to cater for additional costs that come with increased demand like hiring additional personnel, faster packaging, and quick distribution of the products to the various destinations of the customers.

Project Team

The project team will consist of operation manager, supply manager, procurement officer, fleet manager, drivers, and assistant personnel and their deputies. In total, the team should include fifteen people who will be in charge of managing and operating the supply chain for the organization. However, for this operation to be effective, each of the team members must possess specific skills and qualifications.

First, the operations manager will be in charge of the whole process. He or she will formulate policies and assign tasks to other members of this team. Therefore, to effectively perform these roles, he or she must have a diploma in human resource management or different related course, must have at least ten years of experience, excellent communication skills, and must have good teamwork skills (Segur, Suso, Garcia, Combalia, Farinas, & Llovera, 2000). Similarly, he or she must be an open-minded leader. The supply manager must share the same qualifications and skills in addition to having a diploma in the supply chain. The supply manager must also be willing to travel long distances looking for customers. The role of the supply manager would be contact suppliers and ensure that the supply delivery remains constant.

The procurement officer must have a diploma in procurement or any other related course. They must have a minimum of five years of experience and must have worked in at least three different companies. They must also understand the current trends in business. Their role would be to take orders and organize for delivery. They must, therefore, be good communicators, fast-decision makers, and have the ability to keep good records of company transaction. They must have experience with various pieces of software like SPSS or the use of Microsoft Excel for data storage purposes (Hoskin, Soneja, & Zagata, 2007).

The drivers and the assistant personnel will act as support staff. They will initiate most actions of the team like collecting goods from suppliers and delivering them to the customers. The drivers must drive licenses from approved schools while the assistant personnel may be semi-skilled since their roles would be loading and off-loading the tracks (Hoskin, Soneja, & Zagata, 2007). However, for every member of the team, it is essential to have a certificate of good conducts in addition to other legal requirements like identification cards.

Project Evaluation

After establishing the project, Lawson can evaluate its performances by focusing their attention on supply quantity, demand and distribution rates, and costs. For example, to determine the project efficiency on customer impact and business success positioning, the organization should measure the order requests, delivery time, and associates. That is, the company gets comparatively higher order requests compared to when it used a decentralized system, then it proves that the new approach is practical. Similarly, if the costs on storage, shipping, personnel and data storage go down, then it means that the new system is effective and the there company has generated additional income. As Principles of a Good Supply Chain Strategy (2019) states, the best requirement for the measure of success would increase therefore before the total net revenue of the company. If the company has recorded an increase in its net profit after implementing the new program, then it means it is useful and should be encouraged.

References

Ten benefits of a centralized distribution system. (2017). Business Partner Magazine. Retrieved from https://businesspartnermagazine.com/10-benefits-of-a-centralised-distribution-system/

Kokemuller, N. (2018). The advantages of a centralized warehouse. Chron. Retrieved from https://work.chron.com/advantages-centralized-warehouse-16128.html

Farfan, B. (2018). Supply chain management and logistics, retail example. Small Business. Retrieved from www.thebalancesmb.com/definition-of-supply-chain-management-2892749

Principles of a Good Supply Chain Strategy. (2019). SmartSheet. Retrieved from www.smartsheet.com/supply-chain-management

Segur, J. M., Suso, S., Garcia, S., Combalia, A., Farinas, O., & Llovera, A. (2000). The procurement team as a factor of bone allograft contamination. Cell and Tissue banking, 1(2), 117-119.

Hoskin, G. W., Soneja, V., & Zagata, J. (2007). U.S. Patent No. 7,302,405. Washington, DC: U.S. Patent and Trademark Office.