Reference no: EM132952018
Jamblock is a Jamaican company, of which you are the Logistics Director. It is committed to making outdoor concrete tiles and various concrete structures for housing (walls, washtub, outdoor furniture, etc.). It has its production and distribution warehouse in Yallas, St. Thomas.
Jamblock has experienced an exponential rise in sales due to new decorative trends based on concrete tiles, whose attributes link to elegance, cleanliness and durability. In addition, the company is known for making high-quality washing tubs, one of the best in the market, with totally original designs and engravings. All this has caused the demand for their product to increase considerably in the last few years.
The company's Logistics Director has decided that it is time to export these new decorative trends to various Caribbean countries. They think that the taste and style in beautiful concepts are pretty similar, thus ensuring an excellent reception. To this end, an agreement has been signed with exclusive suppliers of outdoor concrete tiles and was htubs, a chain of luxury hardware stores dedicated exclusively to accessories, outdoor furniture and home installations.
The main characteristic of Jamblock, which has sales points throughout the Caribbean, is that it supplies the material to its customers in less than 24 hours after payment. This forces Jamblock to be very clear about the logistics processes, to avoid stock ruptures at times of peak demand, which would imply very significant monetary fines as a penalty, as stated in their agreement.
At this current time, the cargo must be distributed to three Caribbean locations:
- Trinidad and Tobago
- Barbados
- Cayman IslandsWe find that Jamblock is entering an entirely new export stage and there is a condition by a restrictive exclusivity contract. For this reason, as Logistics Director, you must develop a logistics plan. You were oriented to the internationalization of Jamblock products, considering all the mentioned particularities.
DEVELOP THE LOGISTICS PLAN
A. Explain why complete inventory control is significant in your company.
B. Propose actions to prevent disruption of the production process resulting from poor inventory management.
2. We know that it is necessary to highlight the distribution stage for the correct exploitation of the Jamblock logistics network.
A. Which variables must be engaged/taken into account for proper product coordination? Briefly propose an action to ensure these variables.
B. Propose also different actions that ensure sound management towards the client and at the same time, make you more competitive as a firm.
3. Do you consider it appropriate to apply the Just in Time philosophy in the new warehouses and overall business? Justify your answer.
4. Regarding the choice of Incoterms:
A. Which do you consider more appropriate if we want the client to be free, as much as possible, from all management and responsibility?
B. Imagine that you have implemented a service for the different island managers to collect the merchandise from our central warehouse, offering a 10% discount on the retail price. What type of Incoterm will interest you most in this case?