Sample Case Study Paper on MGT 300 – Production and Operations Management

From the case study, it is evident that the logistic system of ABC Limited was experiencing numerous problems, which eventually led to customers being dissatisfied, demotivated employees, and a reduction in its export volumes. In particular, the main cause of these problems was the lack of an appropriate logistics model that could effectively coordinate the activities of the company, the shipping company agent, and the customer. Notably, this caused a lack of harmonization on the logistics duties of the different sections that handled the supplies.

In addition, the lack of a proper logistics model led to upset customers because of losses due to damages during transportation, package sizes, improper identifications, frequent shipping schedules’ changes, and delayed shipments. Evidently, it is notable that the functions of ABC Limited were well coordinated, and the major challenges were from the point of dispatch of goods to the shipping agent, and finally to the customers. Initially, the response of the company in the first two months was overwhelming, and the export volumes were able to increase exceptionally. However, this changed and by the end of the year, the export volumes had decreased drastically.

In addition, the team of Marketing and Materials department that was formed to guide the company’s management on how to handle global logistics misguided the organization. Notably, this team was tasked with gathering and researching on the best manner to deal with such a magnitude issue because it involved many logistics operations. Hence, the advice that global logistics was similar to domestic logistics was wrong because these two concepts were different. This led to the lack of an appropriate logistics model to be implemented to handle global logistics.

In principle, global logistics is a complex undertaking, which required effective coordination because it has to incorporate various parts such as customs departments, shipping agents, overseas coordination offices, and the customer. Thus, a proper coordination of these sections is integral since they work as a chain and when one fails, it leads to the failure of the entire system. The company also failed to increase the employees when the export volumes increased, which demotivated them because of increased workload and disorganization.

Most importantly, the logistics model that the company should go for to ensure appropriate operations of the company is the building of an effective, sustainable logistics model, which handles the globalization process. Ideally, this sustainable logistics model ensures that it connects all the relevant parties in the supply chain through the provision of an integrated information technology system that enables proper coordination. This logistics model also ensures that parties enter the information, which is required and a centralized office is established whose role is to ensure that coordination activities between them are workable. It also monitors any complaints or issues that may arise in the logistics system and supply chain because parties can lodge the challenges easily they are experiencing. Hence, this enables these challenges to be handled amicably as the take place, and this leads to highly satisfied customers.

On the other hand, the sustainable logistic model is cost-effective, which ensures that the company saves its money for other developmental purposes. It is also easy to operate although the initial capital costs are high when implementing the system. Nonetheless, these initial costs reduce once the model is operational. Subsequently, this model can handle large volumes of export as the company’s demands grow, which ensures that the system is competent.