TOPIC 4

Managing logistics internationally

Activity:
Case Study 4.3
Questions:

1. What are the reasons for a company, such as Nike, with a centralized distribution centre
to ship some products directly to customers, not through the distribution centre?

 A company with a centralized distribution center, such as Nike, may ship some
goods to consumers directly instead of going through the distribution center in
order to eliminate unwarranted swaths and save time. To prevent unnecessary
gross mismanagement again from solitary delivery platform, as well as to meet
credibility.

2. What are the reasons to start satellite centres when a company such as Nike has a
centralized distribution centre?

 Despite the fact that Nike had a centralized distribution center, it began the
satellite center to integrate the wings and cater to the needs of customers in the
new market, allowing Nike to save distribution time and money.

3. What are the pros and cons of locating materials handling operations such as labelling
and packing in a distribution centre, as opposed to in the factory?

 The benefits and drawbacks of locating materials handling operations such as

labeling and packaging in a distribution center rather than a factory are as
follows: Pros: While locating the operations of labeling and packaging
operations helps in logistic control, labeling and re-packaging as the package get
distorted for some of the products and require replenishments that incur the
extra cost thus to curtail such unnecessary wastage of time and money.
Furthermore, it increases the amount of control over the clients. Cons: It adds
unnecessary internal workload to the company and raises unneeded make the
supply.
4. What are the pros and cons for a company such as Nike to take on these materials
handling services as opposed to leaving them to retail customers?

 The advantages and disadvantages of a company such as Nike taking on these

material handling equipment services but instead of leaving them to retail
customers are as follows: Pros: The immediate service saves time and customizes
the service according to the needs of retail customers, fully satisfying them by
timely delivery. Cons: Depending on the local service provider for the company's
products, the service may not be up to the standard that the company originally
recommended. Furthermore, an extra service person must be appointed, which
may keep increasing the additional expense.