CTU SCM210 Phase 4 Individual Project

SCM210-1501A-03 Introduction to Logistics/Supply Chain
Management
Task Name: Phase
4 Individual Project
Deliverable Length: 1,200
words
Details:

Weekly tasks or assignments (Individual or Group Projects)
will be due by Monday and late submissions will be assigned a late penalty in
accordance with the late penalty policy found in the syllabus. NOTE: All
submission posting times are based on midnight Central Time.

Key Assignment Draft

The rough draft must be a completed paper, with APA
formatting, all 7 sections complete (using Roman numerals of each section per
the outline), references, and good grammar.

You were recently hired as the VP of Logistics for the ABC
Manufacturing Company. This is a new position. During the lengthy interview
process, the CEO shared her strategic plans for worldwide growth in the
company’s consumer sales. Previously, sales had been confined to domestic sales
only. As a result of little staff logistics expertise, the company had kept the
traditional logistics model of shipping all finished products from its
warehouse and factory location on the East Coast of the United States, even
though there was a growing market on the West Coast that competition was
serving from a West Coast warehouse. However, the CEO pointed out that despite
its national popularity from a feature and quality perspective, it seemed to
penetrate poorly on the West Coast because of her need to charge higher prices
as the result of higher shipping costs.

The marketing manager tried to mitigate this competitive
disadvantage by freight equalization so that end customers would pay the same
amount of shipping costs as West Coast competition charged, regardless of where
they were located. This met with some insignificant success because timeliness
of delivery was another important issue. Therefore, the CEO had asked you, as
your first assignment, to write a white paper to address the following specific
points. She remembered that you had quite a bit of experience addressing some
or all of these issues during your career. As a stickler for formatting, she
has specifically asked you to use the following Roman numeral sections and
headings in the paper:

Section I: Introduction (200 words)

In general, what
are the qualitative pros and cons for domestic sales of having multiple
distribution centers and shipping locations in the United States?
In general, what
are qualitative pros and cons of having one or more international distribution
centers for international sales, as opposed to shipping directly from a U.S.
manufacturing location warehouse?

Section II: Decision-Making Criteria (300 words)

The CEO is considering three options with the same total
construction and operating costs: expanding the warehouse next to the East
Coast manufacturing plant; building a West Coast distribution center; or building
a combination manufacturing and warehouse location on the West Coast. As a
completely separate issue, she is also considering opening a distribution
center overseas, to serve the fast-growing warm weather markets of France and
Spain.

Given the following general information, what are at least 5
criteria that must be considered when locating a new or expanded shipping
warehouse domestically? Internationally?

The products are
primarily medium- and large-size insulated coolers, like you might use for a
picnic or trip to the beach. Transportation firms charge by space, or cubic
feet, rather than weight, which is the more normal method.
The coolers are
made of 3 components, which are all produced by suppliers solely on the East
Coast; the raw materials to make this product are bulky, and inbound shipping
from the East Coast suppliers currently represents 20% of total raw material
costs.
The market is very
competitive with generally stable or decreasing marketplace prices.
In states and countries
that are warm year-round, sales are pretty steady; in countries and states that
have seasons, 90% of sales occur in the May–August period.
Domestic demand is
expected to increase 5% annually; international demand is expected to increase
15% annually.
Right now, to keep
West Coast customers happy, the CEO says that they only charge those customers
the local freight cost of shipping, which is $200 for anything up to half a
truckload.
The current
exchange rate is 1 euro = $1.50.

Section III: Metrics to Assess Success (250 words)

Describe 3 metrics
that you would use to assess the success of any logistics plan involving you as
a manufacturer and an internationally based mass merchandiser. Provide support
for your selections.

Section IV: nonquantitative Factors (200 words)

Identify 3 subjective, qualitative factors to consider in
the recommendation.

Section V: Conclusion (200 words)

What are the 3 most important points that you want the CEO
to understand about this entire decision-making process?

Please submit your assignment.