Transporting inventory to customer facility

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Reference no: EM133823354

International Logistics Services (ILS), a firm with $5 billion in annual revenues, provides inventory storage-that is, a place to store goods near the point of sale-and last-mile delivery services to customers worldwide. ILS's values are based on the triple bottom line of profits, people, and planet (Slaper and Hall, 2011). The firm's mission is to provide reliable, accurate, and consistent inventory management and local delivery services in a socially responsible manner.

In addition to inventory storage, ILS also provides cross-dock services at strategic locations around the world. They also own fleets of trucks in each country to deliver goods directly to retail outlets or consumers. Thus, ILS offers their customers a unique value proposition as a specialized third-party logistics provider. ILS's focus on providing logistics services to their own customers enables the latter to effectively and efficiently serve their consumers in a just-in-time manner with minimal stock-outs. ILS's customers include Walmart, car dealerships, and other retailers that serve consumers directly. As part of its global expansion strategy, ILS has acquired a warehouse and a truck fleet in the
New Zealand. This is the first logistics operation that ILS has acquired in this country. A specific strategic objective is to obtain Walmart as a customer. Walmart currently uses ILS in other countries.

The logistics service currently in the country has experienced low customer satisfaction, safety issues, and wasted resources resulting in financial losses. Employee turnover was 25% in the warehouse last year before ILS acquired the business. The facility is not meeting the values for a company striving to maximize the triple bottom line that involves financial, social, and environmental concerns (Slaper & Hall, 2011).

There are several specific issues which include:

• In 2018, there were 13 lost time accidents in the warehouse and two serious accidents while transporting inventory to a customer's facility.

• Electric bills are high, and energy is wasted. Lights are often left on after hours.

• The warehouse is disorganized. Often, inventory cannot be located in the warehouse, leading to late deliveries even though the warehouse is not congested.

• Equipment is outdated and maintenance costs are excessive, in addition to high fuel consumption.

• Associates have received only informal on-the-job training in their positions and on safety procedures.

• Processes are not documented

The DLS has asked you to develop a project charter for his approval by this coming Monday and the essentials of a project management plan are due within three weeks (Project Management Institute, 2017). The DLS indicated John (operations expert) and Alice (business analysis expert) from the U.S. can serve on the project team. Harriet, Harry, and Harvey are also available as advisors in the United States as they are experts in global technology, robotics, and solar power. Lena will also be an advisor to the team as an expert in lean methods (Mirdad and

Eseonu, 2014).

Predict the projects risks, threats, and opportunities.

Reference no: EM133823354

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