Question

Section 1: Read the following Case Study:

Case Studyà Fairview Global:

Fairview Global is a manufacturer of Robots. Fairview Global supply chain is in broken into 3 parts:

·         Foreign Suppliers and Internal Manufacturing Sites to the central DC,

·         Domestic Suppliers and Internal Manufacturing Sites to the central DC,

·         Central DC to Regional Warehouses.

All products in transit are branded finished goods (no raw materials). Finished Goods are all shipped to retailers and customers from the Regional Warehouses. Fairview Global uses various modes of contracted transportation throughout the supply network: LTL, Full Truck Load, Intermodal, Rail, Ship, Air Cargo, and Express shipping.

Fairview Global is a global manufacturer of Robots. Fairview distribution network is comprised of one (1) full line distribution center located in Toronto. This facility serves as the source of supply for the company’s four (4) regional warehouses located in Montreal, Calgary Victoria, and Halifax. These regional warehouses service customers in their respective regions of the Canadian market.

Toronto distribution center manages its own freight movement to the regional warehouses that they serve. They have negotiated favorable truckload rates to each of the regional warehouses, and have established a procedure of shipping a full 40,000 pound truckload to each regional warehouse- three days each week (Monday, Wednesday, and Friday). 

The regional warehouses, however, can place special fill-in orders upon the D/C and request which carrier should be used to deliver those orders from the D/C to their regional warehouse.  Recent increases in carrier rates have been more than 20% over the previous year, and there have been times the carrier did not have either equipment or drivers available resulting in late shipments

Exercise:

Using Fairview Global  transportation spending analysis, establish a transportation plan for Fairview Global’ s Distribution Center to Regional Warehouse freight services and answer the following in a 1,000 word paper and show your work (in excel). The paper must answer the following questions: 

1. Which mode of transportation would you use?

2. With which carriers would you negotiate?

3. How would you leverage Farview’s volume in your negotiation strategy?

4. What operational procedures would you change?

5. How would you ensure transportation being available while also lowering cost or avoid another year of 20% increase in transportation cost?