Logistics Director: Evaluation Guidelines for CERAMICOSA’s Logistics Process

Evaluation Guidelines

The knowledge acquired throughout the course of the subject will be evaluated through the analysis of the theoretical data shown in the project presented by the student.

 The interpretation of the thesis subject by the student and its development will be evaluated in a coherent and analytical manner.

The final evaluation is based on coherent solutions applied to solve objectives set out in the paper. The presentation must be conclusive and formatting must meet established parameters.

Additional information regarding the research and subject matter will be evaluated and taken into consideration as a bonus. This consist of: bibliography, visual graphics, charts, independent studies carried out by the student, external academic sources, articles of opinion, etc

 Ceramicosa sa is a Spanish company of which you are the logistics director. It is dedicated to the manufacture of plates, tiles and various ceramic structures for housing (walls, floors, countertops, etc.). It has its production and distribution warehouse in La Vall d'Uixó (Castellón).

Ceramicosa has experienced an exponential rise in sales due to new decorative trends based on the use of ceramics, whose attributes are linked to elegance, cleanliness and durability. In addition, the company is known for making high quality ceramics, one of the best in the market, with totally original designs and engravings. All this has caused the demand for their product to increase considerably in the last few years.

The strategic director of the company has decided that it is time to export these new decorative trends to various Western European countries, as she thinks that the taste and fashion in aesthetic concepts are quite similar, thus ensuring a very good reception. To this end, an agreement has been signed as exclusive suppliers of Furniturest, a chain of luxury department stores dedicated exclusively to the sale of accessories, furniture and home installations.

The main characteristic of Furniturest, which has salespoints throughout Europe, is that it supplies the material to its customers in less than 24 hours after payment. This forces CERAMICOSA to be very clear about the logistic processes to avoid stock ruptures at times of peak demand, which would imply very important monetary fines as a penalty, as stated in their agreement.

1. In the first place, focus on the Inventorystage of the logistics process.

Explain why an exhaustive inventory controlis especially important in your company.

Propose actions to prevent disruption of the production processresulting from poor inventory management.

2. We know that for the correct exploitation of CERAMICOSA’s logistics network it is necessary to emphasize on the distribution stage.

What variables must be taken into account for a proper product coordination? Briefly propose an action to ensure these variables.   

Propose also different actions that ensure a good management towards the clientand that, at the same time, make you more competitive as a firm.

3. Since delivery timings are so tight due to the commitment of Furniturest with its customers, CERAMICOSA has decided to rent intermediate and/or final warehousesto quickly supply the demand of its client.

Locate geographically the ideal spot for the warehousestaking into account the location of each physical store (Stockholm, Palermo and Vienna) whilst also considering that CERAMICOSA must be able to send the goods to any point in those countries (Sweden, Italy and Austria), since Furniturest’s customers can make purchases online.

Propose a route from the central warehouse to the final customer, bearing in mind that these new intermediate warehouses exists. Apply it to the three scenarios/cities.

4. Do you consider it appropriate to apply the Just in Timephilosophy in our new warehouses? Justify your answer.  

5. Regarding the choice of Incoterms:

Which do you consider more appropriate if we want our client to be freed, as much as possible, from all management and responsibility?

Imagine that you have implemented a service for Furniturest to collect the merchandise from our central warehouse, offering a discount on the retail price. What type of Incoterm will interest you most in this case?  

6. Decides which route planning system is best suited for CERAMICOSA’s activity.