Question

During the past six months, Mr. Seth Koranteng, Director of Transport for Atiwaa Metals and Electronic Group Limited (AMEG), a company with two groups, Aluminum and Coper mining company and Electronic Manufacturing and Retailing with operations in eight regions, has been soliciting bids for the movement of ‘tool alloy’ used for manufacturing tools and related products. Tony’s goal is to reduce the shipping cost of this high-value alloy as well as reduce issues of pilfering. The supplier is located in Atiwaa, west Akim, 350 miles from Accra, service center and the project site is in Mankesim (Central Region). Steel haulers, Inc (SHI), a regional contract motor carrier, currently moves the tools steel under contract. Steal hauler`s current’s rate are incremental: GHC2.80/cwt for shipments weighing less than 150 cwt., GHC2.60/cw. for shipment between 150 and 250 cwt, GHC2.40/cwt. for shipment between 250 and 400 cwt, and
GHC2.25/cwt for shipment weights in excess of 400 cwt up to a maximum of 450 cwt. TT Brothers submitted a rate of GHC2.25/cwt for weights in excess of 400 cwt two hours before the submission deadline for the carrier proposals. One issue bordering AMEG is the rate of pilfering as well as the security issues between Atiwaa and Mankesim. Management has decided to consider using a third party logistics partner to deal with its transport needs in the next four years in a long term basis but at the moment will have to settle with any of the above transport proposals. AMEG’s material requirement planning has been associated with a lot of challenges as well as its distribution across the regions.
AMEG has also taken several initiatives with respect to waste management. Many of its retailstores offer customers the facility to return and sort waste for recycling. The group has also started investigating the opportunities to facilitate full recyclability of different materials used in its products. In order to reduce its water footprint, the group ensures that most of its suppliers, primarily based in South Asia, make use of biological water treatment plants. For this, the group provides its suppliers with specialists and external consultants, who, in turn, assist the suppliers to upgrade their water treatment plants and also provide technical know-how. The group’s social responsibility initiatives cover three key areas: employees, suppliers, and communities. AMEG has taken up several measures to ensure the wellbeing of these groups.

According to the 26th January’s 2020 of the Crusading Guide report, the AMEG brand has a very powerful connection with consumers across the nation. The AMEG brand ranks fourth overall behind three technology firms, G3, Ascension and Samsung, in the report which assesses brands based their perception as Visionary, Inspiring, Bold and Exciting (VIBE). The research involves more than 62,000 respondents in 10 countries, covering 160 brands and 15 sectors.



In spite of high raw material prices, expensive transport and inflation, the group reduced its average prices by 1% in 2016. Over the past decade, AMEG has continued to lower prices to customers. The groups low-cost proposition is central to its product offering and is also a key driver for customers. Low prices have enabled AMEG to hold a strong market presence which, in turn, gives the group considerable bargaining power and an advantage in terms of higher customer recall. In order to achieve its low-cost strategy, AMEG relies on a combination of innovative design, cost reduction initiatives, a global supply chain strategy, and close relationships with customers and suppliers. Another strategy adopted by AMEG is to offer unique services that its competitors do not possess especially with the management of retuned logistics.

Thus, shopping experience facilitated through improved range, price, ambience, layout and facilities could be one such differentiating factor for specialists which can give them a competitive edge. According to a survey carried out by a leading research firm, consumers have scored AMEG high on loyalty, based on improved range, price, ambience, layout, and facilities. This indicates the importance of these factors to consumers when making shopping decisions. Improved price perception and shopping experience will increase footfall which gives scope for increasing the customer base. AMEG’s clear superior shopping experience and price range enables it to differentiate itself from other competitors and also drive loyalty in a market where the customer is more fickle than ever.

Case Question
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a. As the Consultants of AMEG, advise management on the factors to consider when selecting the appropriate mode of transport                                                          (40marks)                                                                                             

b. Outline the integrated logistics functions of AMEG, suggesting the best ways of dealing with the issues of AMEG’s logistics challenges.                                                   (30marks)

c. One of the major challenges of AMEG retail logistics is the increase in the return of the electronic products. Consumers have become so agile that major reasons they often give is they prefer to deal in the latest design. Your company, AMEG, dealing in the variety of house hold equipment, has offered you an appointment as the Senior Logistics Officer to deal with its reverse logistics situation. Identify the key element of reverse logistics in the company and outline an effective management systems to deal with the m

Answer 1

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As the Consultants of AMEG, advise management on the factors to consider when selecting the appropriate mode of transport

Factors to consider when selecting the appropriate mode of transport

• This is another important factor particularly for strategic organizations, which is necessary if a rally happens. You can't hope to take different vehicles while traveling with your total class due to concerns about well-being and safety, a vehicle with more conveying limits is much appealing. If a carriage of goods occurs, it is best misused for financial advantage to understand the size of economies while managing mass demands.
• Many people and organizations want to choose the best choice with a smaller carbon impression with the development of ecological concerns. In view of the "green" tag, some people favor electric vehicles exclusively. Eco-friendliness is strongly related to carbon outflow, thus making a study that often draws more from the same amount of coal.
• The chosen mode has to be solid. All variables are useless if the vehicle produces a few weaknesses or appears to trigger a problem. If the mode doesn't get strong then, both time and cash will be wasted. Again, reliance on the circumstances is significant.
• Another important factor is the expanded instances of failure security. Everyone wants to guarantee their friends and family the most accessible well-being. If logistics occurs in addition to the well-being, it is important to handle the delicate material.
• In general, this factor is ignored and is often taken into account, particularly when the motivation behind the outing is classified as if work excursions are to take place. All discussions on the trip should be kept confidential. It can also be used if someone wants to spend quality energy with someone. Open transport does not give a choice of protection or give it as irrelevant if at times. The level of safety of private vehicles can be high.

Outline the integrated logistics functions of AMEG, suggesting the best ways of dealing with the issues of AMEG’s logistics challenges

FUNCTIONS:

• For any logistics organization, the customers are the key driving force and its requirements should look for innovative solutions. Omnichannel 's experience is a strong concept now. Customers may want to use custom choices like requesting or disconnecting from the network, distributing or joining a package and monitoring their products at all times.
• The use of the accessible limit in a viable way is of extraordinary importance for storage and transport. If we can store only half of it due to the lack of commodities, the location will be no less than the distribution center. The costs of equivalent prices can not be borne by a semi-stacked truck or a truck with excessive load. If we do not use room in an optimal way, then costs may be high, and if we make the best use of them this can well be an effective tool for lowering costs and producing profits for ourselves.
• It is of extraordinary importance for warehousing and transport as to how we can use the accessible limit in a viable manner. We can not manage the cost for a semi-stacked truck or a vehicle with an extreme load because of cargo. If space is not used correctly, costs can be high.

SOLUTIONS:

• You can certainly not quantify the type of product that is only available if you look at it in a huge stockroom supplied. The organization can develop new cost reduction procedures by unraveling the programmed stock management storage, stock deportation and support for the accessible stock portfolio.
• In expansion of item life, graceful chains, viable practices and buyer inclinations, reverse logistics can be significant; these must be strengthened in order to preserve productivity and growth.
• Improved customer satisfaction and value by taking faulty products and service replacements further into account. Reverse logistics may involve criticism to strengthen and better understand true reasons behind item returns.

One of the major challenges of AMEG retail logistics is the increase in the return of the electronic products. Consumers have become so agile that major reasons they often give is they prefer to deal in the latest design. Your company, AMEG, dealing in the variety of house hold equipment, has offered you an appointment as the Senior Logistics Officer to deal with its reverse logistics situation. Identify the key element of reverse logistics in the company and outline an effective management systems to deal with them

Reasons for Reverse Logistics Strategies:

• Requires a supplier to take products from the company again or send the unsold goods to a distributor for dismounting, organizing, reassembling or reuse, limiting the association's total expenditure.
• Improved customer satisfaction and value by taking faulty products and service replacements further into account. Reverse logistics should provide criticism to strengthen the way that legitimate examples of item returns are understood.

Strategies Suppliers are utilizing to Handle Reverse Logistics:

• With more purchasers buying products on the web, the costs of transport are rising. To high costs and improve profitability, one network provider uses transport and collection to simplify transport. Either by expanding existing offices or opening centralized return centers to increase the effectiveness of profits, they are also looking for a new foundation. In offices with only a few dock entrances and limited space, returns are gradually and unmanaged.
• Furthermore, manufacturers and retailers examine their business understanding. Although costs were often a matter of fact, many rethink their approach to arrival. Manufacturers don't know much about the way retailers treat it. There is no extra duty for producers to achieve the coordinated efforts. Organizations offer reverse logistics solutions that they indicate can help recovery rates , reduce vendor dependence and mechanize the aura process.