Addressing Bradstar's supply chain and delivery logistics challenges

Logistics

Causes of Logistics Problems

Companies like Bradstar are not alone; many companies today experience logistics complications, the causes of which include growing supply chains, increasing demand for the products Bradstar provides to their customers, and an inefficient delivery system. Bradstar provides rush delivery which is not organized in a fashion that provides customers with guaranteed product delivery. There is no system of checks in balances in place to ensure customers get the products they requested. Customers require above all else on-time delivery (Macdonald 2007) and one of the reasons Bradstar's demand has grown is because they offer fast delivery of their products. However, that delivery is not always reliable, though the quality of the product is decent. The provider reacts to the customer's needs rapidly, which allows Bradstar to remain in business. However, Bradstar has outsourced delivery, which has raised the cost of delivering products significantly. This would ordinarily create synchronization of product supply and demand, but the company hired is inefficient which has raised the cost of doing business even more (Wallenburg, 2011).

From a fundamental or basic perspective Bradstar underestimated the complexity involved with domestic and international trade logistics (Piszczalski, 2002). This is a problem many manufacturers have. There is much involved with attempting to accommodate global transportation, which typically involves many players and more documentation than is required for domestic shipments alone (Piszczalski, 2002). There are longer shipment or "order-to-delivery" times associated with overseas deliveries, something that Bradstar likely did not account for, and certainly deliveries were delayed by the re-allocating of products to domestic customers. There is no real science behind estimating delivery times when dealing with overseas product deliveries.

There is no mention of Bradstar building relationships with its third party players. It is critical for any company doing business to form solid business relationships if it plans to succeed in any industry (Wallenburg, Cahill, Knemeyer, & Goldsby, 2011). Without a good relationship, gross misconduct can be expected, and the highest possible fees will be charged to the party being charged. However, the better the relationships that Bradstar builds, the less likely their outsourcing parties are to take advantage of the company. They will even work with Bradstar to help them streamline their services and reduce the costs associated with doing business. Errors do not simply cost Bradstar money, it will also cost the business partners the company works with money; therefore the more they work with companies to do better, the more likely other organizations will be to do business with them, as their reputation in the community and abroad will improve (Wallenburg, 2011).

Lastly, shipments must be consolidated in some way, as this is costing Bradstar a fortune in expenses. There are many ways the company can look to consolidate deliveries so they save money when shipping domestic products and overseas products.

Alternatives

One alternative that has not been suggested that may save Bradstar money may be partnering with another company. Sometimes when a company is facing staggering losses, the best solution is one that is the last one a company may think of. Logistics may sometimes seem an impossible challenge to a company like Bradstar. There are many obstacles that Bradstar must overcome. These include securing reliable delivery, improving visibility, overcoming problems with overseas transport, streamlining and expediting railing to truck shipments, warehousing and land transportation issues. The company requires representatives on the ground and overseas to deal with many of these issues. One efficient way to manage some of these issues in various markets and overseas may be to partner with a company that could provide a reliable representative, such as a transportation provider that may have a strong influence and reputation in the domestic location or abroad to help assure reliable warehousing, transport and ensure lower costs associated with doing business (Macdonald, 2007). This could ensure that Bradstar had more leverage when conducting business; this person should be familiar with the culture and the dynamics of doing business in the area where they were working or representing the company (Macdonald, 2007). They may be working with another company and could act as a permanent consultant with Bradstar, until the company began to see results that were meaningful and reliable.

Some companies have to deal with issues including takeovers or buyouts from other businesses. This is not likely to be the case as long as Bradstar is willing to remain flexible, to re-construct its current methods of doing business, to create strong partnerships with other organizations, to streamline its technological enterprises, and to consider entering into stronger relationships with the current people it conducts business with. It may even consider partnering with another business or hiring a consultant especially when doing business abroad, to ensure its deliveries make it where they need to on time, without damage, and in a cost-efficient manner.

References:

Lesonsky, R. 1998. Tracking Inventory. Entrepreneur Magazine. Retrieved:

http://www.entrepreneur.com/management/operations/inventory/article21852.html

Macdonald, A. 2007 May. Global logistics solutions: A guide to the problems shippers face.

World Trade. Retrieved: http://www.worldtradewt100.com/articles/global-logistics-solutions-a-guide-to-the-problems-shippers-face

Piszczalski, M. 2002. Global logistics issues. Gardner Publications Inc., Gale Group.

"The growing pains of logistics outsourcing." Outsourcing Center, 1999. Retrieved: http://www.outsourcing-center.com/1999-04-the-growing-pains-of-logistics-outsourcing-article-38979.html

Wallenburg, C., Cahill, D., Michael Knemeyer, A. And Goldsby, T. 2011. Commitment and trust as drivers of loyalty in logistics outsourcing relationships: Cultural differences between the United States and Germany. Journal of Business Logistics, Vol. 32: No. 1, pp. 83-98.