Fully analyse the direct costs of this new option and prepare a brief report for Mike and John. The report should include but not be limited to:
Table of key projected costs of all options. These options should include lease, hire and buy options for vehicles as well as lease or buy options for warehousing.
Brief discussion of the hire/leasing/ buy options available along with recommendations.
Recommendations on the optimum location to operate this contract from and why
Minimum required revenues from the contract to deliver a gross profit of 10%.
Major areas of risk and recommended safeguards. These should also include strategic risks.
Students must be able to demonstrate an understanding of relevant theories and analytical models and apply them to aid the analysis of the organisational environment and decision-making processes.
You will be expected to critically evaluate all of the key perspectives of this assignment rather than a description.
This is a 1500 word (or equivalent) assignment (excluding contents page and appendices) in the form of a structured report that follows the assessment strategy.
Students are advised to stick closely to the word limit within a maximum +/- 10% variation in total word count. Work submitted that exceeds the word limit may be penalised by 10 percentage points on the basis of failure to demonstrate academic discipline
You are the Logistics Director for Tip Top Logistics Ltd. Founded in 2008 by two friends Mike Smith and John Clarke they currently operate in a rented 7500 sq. ft. warehouse in Derby.
They currently have a dedicated storage and delivery contract with Central Midlands Furnishings to collect assembled Wardrobes from their Derby Factory and store them until they are ready to be delivered to retailers throughout the Midlands. They have six Ford Transits on contract lease. Contracts for three of these expire in May 2018 and the remaining three in May 2019.
Apart from this contract Tip Top Logistics have no other major business apart from ad hoc collections and deliveries, which only account for 2-3% of overall business.
The contract with Central Midlands is due to expire in 2019.
Central Midlands Furnishings have acquired a Leeds based manufacturer beds and mattresses and have approached you to see if you would be interested in collecting storing and delivering this new range for them for them.
They estimate that 70% of the deliveries will be made in Yorkshire and Lancashire with the remaining 30% in the Midlands….