Causes of Timberland Logistic Problems
Logistics typically relates to the procedure of planning, organizing to make sure that the essential resources are in the right place where they ought to be with the aim of maintaining a successful flow of various processes. One of the causes of the existing logistic issues is the incredible growth that the industry has witnessed since the 1970s. In the early 1970s, the organization was considered a small New Hampshire-centered business that dealt with the production of rugged and high-quality shoes (Li, 2014). Due to the creation of these quality products, the industry eventually managed to attract the attention of an overseas buyer and began selling in a distant market. As the company increases to additional foreign markets, it’s once simply logistics and supply chain management mechanism became insufficient. The industry also discovered that its logistic systems were falling under due to the strains introduced by its rapid overseas development.
The logistic problems led to other fiscal, and competitive consequences as the competition can only be associated with product and service expense, target market, rapid response, and quick production by organizations. Any company that produces with limited cost and sells its products cheaply will be able to enhance its market share (Fernie & Grant, 2015). Consumers frequently have an immense multitude of choices in the market and turn; this affects the daily behaviors and decision of preference as they will need to acquire products quickly and in a more effective way than before. All these expectations require timely feedback from the business as this may lead to a decrease hence losing profit and market share. The industry must always be ready and willing to consider price, goods and services and clients preferences since they are significant international market requirements and considerations in the business environment.
Solving Timberland’s Logistical Problems
It is significant for the business to resolve the existing logistical issues by reducing the overall transportation expenses; for instance, a few frequent trips being made. They also solved the current problem when the industry decided to form a partnership operation with the ACS freight forwards and the Rockport group of a software house (Li, 2014). Inventory, adequate distribution mechanisms, and warehouse management is another method towards improving the existing logistics problems. The business also initiated improved consumer service as a strategy towards solving the problems as fulfilling consumer demands and providing enhanced services is considered as one of the essential advantages of proper logistic management.
Clients need improved services as this has ripple effects on the supply chain, initiating the need for shippers to avail useful, accurate and quality service. Proper and effective logistics management is typically essential for fulfilling customer wants. Logistic control is also significant for creating visibility into the industry’s supply chain (Fernie & Grant, 2015). Modernized transportation management system evaluates historical information and regularly track real-time movement of goods and services into and out of business. It is also crucial for the logistic controllers to utilize this data for process optimization and avoiding potential disruption. On the same note, effective logistics administration will increase revenues and proper customer service that in turn build a sufficient reputation to the organization’s brand and generate more business, and supply chain visibility is creating an opportunity for significant cost savings in operations.
References
Fernie, J., & Grant, D. B. (2015). Fashion logistics: Insights into the fashion retail supply chain. Kogan Page Publishers.
Li, L. (2014). Managing Supply Chain and Logistics: Competitive Strategy for a Sustainable Future. World Scientific Publishing Company.