American Lighting Product Case

3566 WordsFeb 28, 201115 Pages
Daniele Francescon Stephane Nicolay AMERICAN LIGHTING PRODUCTS Case Study Business Logistics November 2008 TABLE OF CONTENTS Preface 3 Analysis of the situation 3 Physical flow of goods 3 Organisational structure 3 Information management: order processing and demand forecasting 4 Performance 4 Costs 5 Identification of major issues and problems 6 Incipit 6 Initial consideration: need to redesign the system 6 Generation of alternative solutions 7 First solution: centralization for the west area 7 Second solution: LOC for consumer products 8 Further considerations and conclusions 9 List of references 10 Appendix 1 – Calculations 12 Preface…show more content…
There are different ways through which a performance of a system can be assessed (order fill rate, production condition, accurate documentation among the most important), and the measure used by ALP seems to have some deficiencies in assessing the real impact of the operations undergone by the company and the final customer satisfaction. In fact can be said that such a measure doesn’t take in to consideration returned items, and considered the logistic process concluded in the moment in which the freight leaves the stocking point, in this way lacking an overall view of the process that can be seen as an old view of the logistic system. If customer service is defined as “the entire process of filling customer’s order […] handling the possible return of the goods” the current measurement system adopted by ALP is leaving out all the post-transaction elements which are vital to establish a good relationship with the customer and have to be planned for in advance. This is also one of the reasons why the service level is so strongly affected by stock availability. Focusing on the end-user side could give a more realistic picture of the performance of the company at a logistic level. The variability of logistics performance is quite relevant. ALP has not been able to guarantee a reliable service to its customers in the last years. There seems to be a lack of organization when providing the service to the customers, in the sense of establishing priorities and
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