Logistics Management Assignment # 1
Group Members
Muhammad Adil
Syed Muzammil Hussain Rizvi
Talha Shafiq
Muhammad Haris
Muhammad Laraib
Tariq Bin Waris
A newly established bread manufacturing company is facing problems in distribution of bread
and other related items to the market, timely. The owner, Mr. XYZ, meets with you in a social
gathering and he finds your interest and command in logistics management. He seeks your
consultation.
Requirement:
Counsel him with the importance of logistics, its possible objectives, and types, which can be
helpful in his bread business.
Bread is one of the world’s toughest distribution challenges.The company dispatches hundreds
of bread daily to several thousand sales outlets in their target market.The activity of the
company is compounded by the large reverse logistics effort required due to the fact that bread
is generally sold to major supermarkets on a sale or return basis.
Research shows that empty shelves mean lower sales; so grocery category managers always
aim to have their shelves fully stocked at and during peak demand periods – an interesting
problem for merchandisers when you remember that bread demand is compressed into these
two daily time slots.
So supplying enough bread to fill shelves is a critical tactic in the overall strategy.
In measuring the impact of distribution costs on profitability we found that the change
management focus was on:
Cost to serve various customers and channels
Stock item profitability
Profitability of different customer types.
Distribution channels such as retail, route, industrial, food services
Costs of transferring product between plants to consolidate orders.
The below mention are the Points which can help the company in the bread business.
1. Benefit from efficient operations
When introducing specials and trying different bread , the company should ensure that constant
changes won’t weaken business operations. One of the best ways to achieve this is to choose a
flexible POS system. Therefore, when choosing a POS system, company should look for a
program that can provide adjustments the experiments. The best way to find one is testing
several systems with business goals in mind.
2. Make the most out of your promotions
Obviously, it can be hard to make a profit in the bread business without having high-quality.
However, if company don't promote them, people will never find out that company brown bread
recipe is the best in town. One of the great advantages of a timely promotion is that it can turn a
random buyer into a regular customer.
3. Be nice to your customers
To improve Bread profits, company need to find the right way to communicate with customers.
Figure out who frequents your place, get to know them better, and find out what their interests
are. Try best to develop meaningful relationships with customers.
4. Try different distribution methods
If company want to make more profit and reach more customers, try to use a couple of different
distribution methods. Consider going online. Company can develop own website marketing
strategy for a bread , or try to cooperate with popular online ordering and delivery platforms.
Trying to participate in local events, festivals, concerts, etc. It doesn't require a huge
investments to organize your own pop-up and cater to people attending an open-air event. At
the same time, it's a chance to reach people who don't frequent the area where your company
is located.
5. Care about your customers
People do appreciate when company employees care about their experience and make them
feel welcome. They'll come back again and again even if your prices are a bit higher than in
another option around the corner. Try to do everything to make your customers’ lives as easy
as possible. For example, use colored price tags to mark diabetic, vegan and gluten-free
products.
