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2. Assuring the coexistence of the current and time-based logistics systems
Advantages:
Reveals the benefits of both current and time-based logistics systems
Fosters innovation in a context of maintained traditional safety
Allows for a period of testing of the new logistics system
Allows for a relevant and direct assessment and comparison of the two logistics systems
The combined model would support the creation of a new strategic approach, a relationship with the supply chain and as such an increased competitive position (College, 2009)
Finally, the dual system would create a more mobile and flexible supply chain, which would better allow the entity to respond to the challenges of the modern day market and industry (Supply Chain Management Review)
Disadvantages:
Implies additional costs with the maintenance of both systems, including capital, technologies and human resource costs
The work conducted through the dual logistics system is complex and could even be perceived as tedious
4.3. Disregarding the possibility of an alliance with HomeHelp and continuing with the current logistics system
Advantages:
No additional costs
No additional risks
Disadvantages:
Limited prospective gains
Possibility of losing the competitive position
5. The Selected Solution
The second proposed alternative solution is the most adequate one, at least for the time being, as it combines the advantages of both traditional and time-based logistics, while reducing their limitations. First of all, the adoption of the time-based logistics system allows the company to take the opportunity presented by HomeHelp and strengthen its competitive position, improve its internal supply chain operations, promote itself as an innovator and so on. Secondly, the maintenance of the traditional logistics system creates a safety net in case the deal with HomeHelp falls through or in case the new logistics system does not fully generate the benefits initially estimated. The most probable outcome however is that Woodmere will fully benefit from all advantages offered by...
In time, it is then expected for the removal of the traditional system and its full replacement with the time-based solution.
6. Implementation Plan
The dual logistics system would be implemented throughout seven successive steps, as follows:
(1) Communicate the decision for the time-based logistics system to Nan Peterson and get insight into their experience with time-based logistics
(2) Contract the specialized services of a company with vast expertise in managerial consultancy, especially a transition from one logistics system to the other as well as the implementation of change in a means that is accepted by the organization
(3) Offer training programs to the Woodmere employees to familiarize them with the time-based logistics system
(4) Launch operations based on the new logistics system
(5) Foster the fruitful relationship with HomeHelp
(6) Conduct internal analyses to reveal the consequences of the newly introduced system; these analyses would occur at all organizational levels including manufacturing, marketing or finance
(7) Formulating conclusions and making recommendations for the future based on the data retrieved through the analyses
References:
Andries, B., Gelders, L., 1995, Time-based manufacturing logistics, Logistics Information Management, Vol. 8, No. 6
Bowersox, D.J., Closs, D.J., Cooper, M.B., 2009, Supply Chain Logistics Management, 3rd Edition, McGraw-Hill / Irwin, New York
College, B., July 2009, Development and analysis of a supply chain strategy taxonomy, Journal of Supply Chain Management, Vol. 45, No. 3
Hise, R.T., September-October 1995, the implications of time-based competition on international logistics strategies, Business Horizons
Synchronizing the Distribution Supply Chain with Mobility, Supply Chain Management Review, http://scmr.resourcecenteronline.com/resource_center/asset/1660-Synchronizing_the_Distribution_Supply_Chain_with_Mobility?q=supply+chain last accessed on October 6, 2009
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