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You are an importer of glassware (crystal wine glasses) from

the Czech Republic. You have about 100 retailers all over

Australia but most of the glassware is sold in Sydney and

Melbourne through small gift shops. The challenges you have

are as follows.

  1. The retailers place small orders of less than $1000 each

time. These orders are expensive to process and deliver.

  1. The retailers are unable to place orders in advance; they

do however expect fast delivery.

  1. Five percent of the glassware is broken on arrival at the

retailer and you spend a lot of time dealing with returns

and refunds

  1. You are using Australia Post to deliver the glassware from

a centralised warehouse in Melbourne but it seems to be

very costly and slow

  1. Many of your customers pay their invoice late. You are

afraid of chasing them up because of the risk of losing

them as customers.

  1. You order more stock from the Czech Republic two or

three times a year, but you have little information on what

to order and when. You make sure that you fill one 40 feet

container every time. You have no real control over what

is in the warehouse and which products are selling well

and it takes about 12 weeks for the container to arrive

from order.

  1. The pricing for the products are based on individual

contracts between you and every retailer. This system is

very costly and time consuming to maintain.

  1. You have just got an enquiry from Myers that would if

successful double your volume of sold products in

Australia. You are not sure if you are able to handle this

volume in terms of warehousing and distribution.

Based on the scenario above you have two alternatives that

you want to investigate.

  1. 1 Outsource the whole logistics process to a 3rd party
  2. 2 Improve your existing structure.

Prepare a report for a Board meeting where you compare and

contrast the two alternatives and how they would solve your

problems. Make a recommendation based on this.

Assessment Criteria for Group Assignment 

Report structure, referencing and written report.

Knowledge of concepts, critical analysis of issues

Investigative and research skills shown

Implications for company and strength of arguments.

Report (20 marks)

Presentation (10 marks)


TOTAL 30 marks