Logistics quality enables retailers to trust the services of the distributing facility, and this helps in saving costs and improving efficiency (Grabara, et al.2014, p.6). The quality of operations in the cross dock is very high, and retailers and customers trust the operations of the cross dock. Initially, KANE used to scan an item from each pallet to confirm that the content match with the purchase order content. The retailers realized that KANE provided the retailers with the right packages. This eliminated the need for the scanning of the contents of the pallet. Elimination of the quality checks helped to save time that was spent scanning the content and distribution of the products become more efficient. Logistics quality also allowed KANE to practice case picking operations when distributing pallet to the different stores. The logistics quality enabled the club store chain to save labor costs, and this made the strategies employed more effective.
Ability to innovate.
Being creative and innovative enables logistics operations to be more effective (Klewitz, and Hansen, 2014, p.65). KANE used barcodes which helped in improving the process of receiving products in stores. Before shipment, KANE ensured that a barcode that matches the customers’ goods is generated. At the store, the bar code is read using the machine and the information is downloaded into the store's inventory system. This makes the process of receiving goods easy, and retailers prefer the services of KANE due to its innovation and creativity.
Cost efficiency helps to make logistics strategies more effective and efficient (Fernie, 2014, p.35). KANE ensured that its services provided cost efficiency to the retailers. Through the elimination of the quality checks, labor costs were reduced as labor services that were used to conduct the checking process were no longer needed. Case picking operations also enabled KANE to save labor cost as the labor required to pick the pallets is reduced. Cross docking services also helped in reducing warehousing costs because no goods were held in warehouses as they are supplied immediately after being received, and this ensured the strategies used are effective.
Flexibility also helps in making logistics operations to be more effective as it ensures the logistics company is able to embrace change that will improve services (Roh, et al.2014, p.205). KANE adopted flexibility that made operations more effective like eliminating racking from the store floors to improve site lines to help retailers improve their merchandising strategy.
The likely challenges associated with the employed strategies include;
Technology and machine failures.
Due to various factors, machines experience breakdowns, and this affects the products' distribution process (Chakraborty, and Mandal, 2014, p.60). KANE may experience machine failures that may cause the barcodes not to be generated. This will affect the distribution of the pallets and retailers may lose trust in the employed strategy.
Customers receiving wrong content.
Elimination of quality checks will be associated with various challenges. The customers will sometimes receive contents that do not much the content of the purchase order (Chakraborty, and Mandal, 2014, p.60). KANE may also face such challenges due to case picking operations which can also cause the vendor to receive the wrong pallet. This challenges will lead KANE to experience extra costs because the firm will be forced to experience transportation costs to deliver the right pallet to the right vendor.
Logistics is made effective and efficient by having a reliable transportation means. If the transportation aspect of the logistics is faced with challenges, the employed strategies will not be effective (Evangelista, 2014, p.66). KANE may face challenges associated with transportation as the trucks and trailers may break down. This will force KANE is Able to experience warehousing costs as there will be no trailers to receive the goods and this will increase the distribution costs.
KANE should implement various strategies to maintain the efficiency of the logistics operation. The first strategy should be automating the case picking operations (Accorsi, et al.2014, p.180). This strategy will help in saving labor costs and ensure that the possibilities of vendors receiving the wrong pallet are minimized.
KANE should also set up remedy and corrections procedures which will help in highlighting the process to be followed in case a retailer receives pallet with wrong contents or even specifications. This strategy will help to minimize the amount of time spent in handling and correcting mistakes in shipping and outbound logistics. Setting up a clear procedure will helpg to minimize costs associated with distribution. KANE should also push for compliance with the set guidelines to ensure that the correct content of goods is shipped (Ellinger, and Ellinger, 2014, p.125). KANE should also at times seek the services of experts in logistics operations who will help the company streamline its services and improve the quality of the logistics operations.
Accorsi, R., Manzini, R. and Maranesi, F., 2014. A decision-support system for the design and management of warehousing systems. Computers in Industry, 65(1), pp.175-186.
Chakraborty, A. and Mandal, P., 2014. Understanding challenges of supply chain sustainability in Asia. International Journal of Process Management and Benchmarking, 4(1), pp.51-68.
Ellinger, A.E. and Ellinger, A.D., 2014. Leveraging human resource development expertise to improve supply chain managers' skills and competencies. European Journal of Training and Development, 38(1/2), pp.118-135.
Evangelista, P., 2014. Environmental sustainability practices in the transport and logistics service industry: An exploratory case study investigation. Research in Transportation Business & Management, 12, pp.63-72.
Fernie, J., 2014. 02 Relationships in the supply chain. Logistics and retail management: Emerging issues and new challenges in the retail supply chain, p.35.
Grabara, J., Kolcun, M. and Kot, S., 2014. The role of information systems in transport logistics. International Journal of Education and Research, 2(2), pp.1-8.
Klewitz, J. and Hansen, E.G., 2014. Sustainability-oriented innovation of SMEs: a systematic review. Journal of Cleaner Production, 65, pp.57-75.
Roh, J., Hong, P. and Min, H., 2014. Implementation of a responsive supply chain strategy in global complexity: The case of manufacturing firms. International Journal of Production Economics, 147, pp.198-210.