What are the risks, costs with in house distribution when converting from Third party logisticsAMB303 International Logistics
Semester 1, 2012
via ASSIGNMENT MINDER
Individual or group:
Written report using size 12 Arial or Times New Roman font
with 1.5 line spacing.
APA Referencing required.
Stapled, top left-hand corner – NO BINDING.
To assess students’ ability to evaluate logistics and supply
chain management strategies and formulate recommendations
to improve the contribution of Logistics and Supply Chain
Management to corporate performance.
A global consumer electronics firm has entered the Australian market some 10
years ago. New to the market, they initially utilised 3PL’s to manage their supply
chain strategy. However, after many years of success, enjoying strong retail sales
growth, they are now in a position to consider moving to an in-house distribution
You have been engaged as a Logistics and Supply Chain Consultant. At a meeting
with the management team, you are advised;
“We considered the consumer electronic goods market in Australia to be fiercely
competitive and the effectiveness of our supply chain has a huge affect on our
sales in Australia”.
“We want to ensure we minimise the possibility of stock outs happening with our
products, hence, our focus is on making sure we provide the highest levels of
“Equally important is the long term profitability of our business, so cost reductions
in relation to logistics operations, need to be considered”.
Carry out an extensive analysis of the impact that bringing distribution in-house
could have on the business. Consider advantages/disadvantages.
The likelihood of cost reductions and potential improvements in customer service
You are to make realistic recommendations on whether the organisation should
develop its own warehouse/distribution centres. These recommendations should be
justified and supported with contemporary distribution theories/strategies.
The recommended format of the report is provided below and will be discussed in
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