Aug 03, 2017

Do customers really drive location and how does this affect logistical planning?

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Customers, site selection and logistics planning

INSTRUCTIONS:
Readings. Crammer, L. J. & Wegfahrt, A. M., (2006). Ranked #9 Proximity to Major Markets. Area Development Site and Facility Planning; Easton, 41(5).Abstract:Although a company`s location criteria and business model change over time, it is really the customers who establish broad location strategy. Furthermore, the business model established by most companies will be based on customer preferences - which also change over time. For example, the old-school model used for manufacturing included the need to inventory raw materials and sub-assemblies at the manufacturing site.Then, in a 4-5 page paper answer the following question.Do customers really drive location and how does this affect logistical planning? Choose a specific industry (e.g. beer, clothing, automobiles, etc.). Compare the location decision of a Manufacturing company, to a Distributor, to a Retail location. How much influence does the customer of each of these types of businesses have on the location decision? How does this effect the logistics of each?Case Assignment Expectations:Research the topic with information from the background readings as well as any other resources you find on your own. The paper should be 4-5 pages in length and have a cover sheet and a reference page. Clarity of presentation is important, as well as your ability to cover the topic in a succinct, organized manner with research to back up your points. Use at least 3 different sources of information and annotate your sources of information appropriately on your references page and within the text as necessary. You will be assessed on how well you develop this case and demonstrate your understanding of location decisions as applied in a logistics context. Submit your assignment to CourseNet for grading by the end of this module. Case
CONTENT:
Customers, site selection and logistics planningName:Instructor:Date: Managing the movement of goods and flow of services and their storage is an important aspect of businesses which affects the supply chain and availability of goods to customers. In looking at logistical planning, the selection of site is paramount as this may affect the supply chain. But before there is site location it is paramount for organizations to factor in the customers in logistics operations. Thus, organizations typically research on the market requirements of the customers and ensure that they meet their needs, while also ensuring that the delivery of goods and services is at the right price, condition and location (Rushton, 2010). The location of consumers is vital for Hewlett- Packard, as the reliance on a buy/ sell model ensures that the delivery of products is faster (Industry Week, 2006). Essentially, this system works whereby the company buys some components from supplies and then sells directly to consumers. The company merely deals with the inventory, but does not own the goods. Another strategy applicable to the company is the use of e sourcing whereby, and HP also compares the cost differentials between numerous manufacturers and settles on the one that has the lowest prices (Industry Week, 2006).Even though, businesses have changed their logistics planning strategies because of globalization and better technology, proximity to markets is still a top priority issue that determines the location of organizations. Besides, the need to minimize transportation costs may also be influential in determining location, but the customer is the ultimate guide in location decisions. Proximity to market may connote different things in logistical planning of the electronics and computer market. Firstly, it could mean that there is physical proximity to the consumer and at times other manufactures of finished products. Secondly, it could mean proximity to distribution and warehousing facili...


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