GC 30203

Logistics Management

SEMESTER 2 2019/2020

Case Study 2.1

PREPARED BY:

NAME Matrix Number

1 TAN WEE ZHANG (L) BG 17160465

2 LEE HUI XIN BG 17160725

3 TOH JIA QI BG 17160554

4 TEH ZHI YAN BG 17110418

Question 1: Should the team take into account any other costs or benefits from
implementing the Warehouse Management System MS? If so, what are they

Yes. Since most warehouse management systems are third-party systems, different
packages need to be integrated with other business management software, i.e. ERP and the
integration of external programs can work, the process is normally fraught with problems
( i.e. duplicate data entry, information delays and silos, interface issues and customization
expenses.) The scope of warehouse inventory management software operation varies
greatly from basic best practices in pick, pack, and ship operation to erudite programs
coordinating progressive interactions with material-handling devices and yard management.
The warehouse management system minimizes the possibility of errors that may happen
when a team’s cost is shipped and help the teams accomplish orders more rapidly and
promptly trace ordered products within the warehouse.

Question 2: Should the team take into account any other costs or benefits from
implementing the Transportation Management System TMS? If so, what are they?

Yes. This is because the key operational functions when automated using Transportation
Management System can offer substantial remunerations to any supply chain or logistics
operation thus the benefits often recognized are the significant improvement in the level of
customer service. The output data obtained helps supply providers to make improvements
to both inefficient internal processes and transport partners with problems. Data accuracy
will also see significant improvement hence when integrated into ERP or WMS systems data
entry errors are completely eliminated.

Question 3: What are the advantages and disadvantages of implementing both

technologies simultaneously?

Although these two innovations have typically been applied by different groups
independently, possible convergence may lead to better collaboration and preparation
across these two crucial logistics activities. Because each technology supports a part of the
order chain, improved delivery speed, decreased communication costs, and data accuracy
may offer advantages in organizing implementation. Potential drawbacks include increased
implementation complexity, challenges in finding solutions that are well incorporated across
both areas and ensuring that both sets of users are pleased with a combined solution.
Question 4: If both technologies are adopted, what changes, if any, should occur in the
relationships between Pallotta’s firm and his suppliers of components? His transportation
providers? Discuss.

It is important for students to understand that the decision to implement a WMS or

a TMS should involve clear communication with other members of one’s supply chain. As
the company undertakes these implementations, it will be critical to clearly set expectations
with affected suppliers and transportation providers. How will the ways the companies
interact be affected by the projects? What is the plan for implementation, and how might
suppliers and transportation providers support any issues during implementation that could
hurt customer relationships? In addition, providing regular updates on the status of the
implementation can reduce any potential negative effects on their relationships with these
parties as the implementation occurs.

Question 5: What would you recommend the team decide to do? Why?

Leader may want to start with a general vote as to what the teammates would
suggest the firm does in this situation. Team members typically have varying opinions on
what is best to do. Some will focus on the idea of starting where the firm is currently feeling
the pressure (WMS) and then move on the TMS implementation. Others will focus on the
simplicity of implementing separately and focus on financial benefit by suggesting the firms
start with the TMS and then proceed with WMS implementation. Another set of teammates
will focus on the advantages of coordinating the implementations and point out that while
the risks and benefits aren’t as clear, the intangible benefits of coordinating would be the
best solution. Leader should push the teammates to provide clarity around their decision-
making process. The discussion provides an opportunity for instructors to discuss the need
for both financial and nonfinancial considerations of these types of decisions.