Executive Summary 2
Issue Identification 3
Environmental and Root Cause Analysis 4
Alternatives and Options 6
UPS Global Logistics 6
Ingram Micro 7
Recommendations and Implementation 8
Monitor and Control 10
EasyInternetcafe was started by the easyGroup in the midst of the Internet boom in the United Kingdom. The mission of this company is to provide customers with access to the internet at the lowest possible cost. After the Internet Investment bubble burst, easyInternetcafe is experiencing a loss in profits and is struggling to survive.
The original business concept was to have large, stand-alone cafes with 250-800 PCs per store. After the initial internet boom phased out, a…show more content… Since logistics is one of the non-core activities, the present logistics system needs to be analyzed to determine the most efficient and effective strategy that will be aligned with the companies objectives.
The table below shows the events and timelines that occur when opening a new franchise.
Find a space for the café – EIC will help the franchise owner find a location
Set up broadband internet connection
Deliver and install server
Deliver and install PCs
Deliver and install CVM
Deliver and install chairs
Complete system testing
Open for business
As some of the activities overlap, the average time it should take to open a new location is approximate 70 days. However, depending on the franchise location, the outbound transportation costs will change. They are classified into 3 zones based on their distance from the UK:
Zone 1 – closest to UK (France, Spain, Netherlands) @ £300 per store
Zone 2 – mid-range from UK (Poland, Czech, Finland) @ £450 per store
Zone 3 – farthest from UK (Greece, Turkey, Bulgaria) @ £750 per store
The majority of the stores (23 locations) are located in Zone 1, which is £6900 in outbound transport costs. Zone 2 has 13 stores, which is £5850, and Zone 3 has the remaining 11 which is £8250. That results in a total £21,000 in outbound transportation costs for the stores in all three zones. Management needs to