Improving Operational Effectiveness And Customer Service At Gant Logistics

Description: Working in groups of no more than four students, you are required to prepare a report based on the  case study provided below. All group members will need to contribute equally to the preparation of this report.  Please ensure that you provide a coversheet for your group report listing the names and student identification  numbers of all group members, and the word count for your assignment. Your lecturer will not assess any material  beyond the set word count. The report should be written in 12-point font with 1.5 line spacing. It is important that you do not submit more than one assignment per group. 

Feedback: Comments and a mark will be returned to you within two weeks of submission. 

Case Study: Improving operational effectiveness and customer service at Gant Logistics 

Gant Logistics Ltd is a new company formed from the management buyout of a transport and logistics business. Gant has inherited a variety of information systems which should enable it to continue operating the current business  successfully (e.g., enterprise resource planning system (SAP), office automation (Microsoft Office), and a data  warehousing system (Oracle)). Gant operates distribution centres in 11 locations across Australia and utilises a fleet  of 182 trucks. Gant's store (warehouse) and deliver fast-moving consumer goods (FMCGs), building products,  outdoor furniture, and domestic appliances.  

Fuel is major cost element for the business and the company has an annual fuel bill in excess of $60 million. Gant is  contemplating a further move into third-party logistics (3PL). The aim is to provide a wider suite of supply chain  management services to its customers. Optimisation of its warehouse and distribution centres will be important in  boosting Gant's 3PL capabilities. 

Gant Logistics have identified operational efficiency and customer orientation as two key elements of the strategy  required for this new company to grow its business. You have been asked by Gant's Chief Information Officer (CIO) to identify the information systems and technology that will help support Gant's business strategy. The CIO has  identified that systems supporting customer relationship management (CRM) and the efficient operation of the  company's warehouses and truck fleet are likely to be particularly important (e.g., warehouse optimisation, RFIDs,  telemetry, GPS, and truck routing and dispatch systems). Moreover, the company is concerned about driver fatigue,  and thus is interested in systems or technology that will help monitor and manage this issue. 

INTRODUCTION

Gant is a very new company formed from an existing logistics and transport business. The management faces a dual situation of managing a high level of customer orientation as well as ensuring highly efficient operations. The complexity of the logistics management business, varied nature of customers and the target of the above mentioned dual objectives make the situation complicated for the management. The following report aims to analyze and suggest how using an efficient strategy with the help of effective information systems and latest technologies can aid in achieving the mentioned objectives. The vision of the report is to help Gant to be a customer focused and efficient logistic provider and also to enable it to develop into a successful third-party logistics provider.

OVERVIEW OF LOGISTICS INFORMATION SYSTEM AND TECHNOLOGIES

Efficient and Customer Oriented Logistics Services

Customer satisfaction and efficient operations are the two most important aspects of a successful logistic service. But maintaining both of them side by side is not as easy as it sounds. From a logistics providers' point of view, different customers have different needs in terms of speed, flexibility, pricing, penetration and so on. Managing customer satisfaction for so many different customers often can hamper the operational efficiency and thus, the profitability. However, with effective planning and implementation of well-thought strategies can help logistics service providers to cater to the above-maintained issues (Rahmee, 2010). Some very important features that a logistics service provider have to be efficient and customer focused are shown in figure 1.

• Service Quality: Quality has been defined as the difference between the committed level of product or service and the actual product or service. Now as to compete with the current high level of competition, logistics providers must commit and fulfill high-quality services for its clients. High-quality service will include basically two factors.
  • Punctuality: On-time delivery is a very critical factor for any logistics services provider.
  • Delivery Quality: This will include maintaining a high quality of the products being transported ensuring zero damage to them.

• Supplier-Customer Relationship: It is very critical that the logistics services provider maintain very healthy relationships with its customers. It can be ensured by coordinating, collaborating and maintaining the basic objectives in terms of place, time and possession of goods (Cheng & Phillips, 2011). As far as the supplier-customer relationship is concerned, ensuring the following objectives can help achieve that.
  • Flexibility
  • Maintaining trust
  • Commitment and Collaboration
  • Feedback mechanism
• Technological Capabilities: High technological capabilities are a must today for logistics service providers for maintaining operational efficiency and strong customer relationship. Technological capabilities of logistics services usually will include two basic sets of technologies:
  • Information System: An efficient information system in the lines of an ERP, data management, and warehouse management is required for maintaining efficiency in operations.
  • Communication Technologies: This will basically include efficient data tracking, data analysis and flow optimization of products across the complete supply chain, etc.