Professional Documents
Culture Documents
(ADS)
Presented by
• Arka Jyoti Paul
• Rajesh Kumar
• Muggi Sowmya
• Kondala Prabhavati
• Rani Garg
Introduction
Introductionto
toCase
Case
ADS
ADSInc.
Inc.isisaacassette
cassetteand
andCD
CDduplication
duplicationand
and
distribution services provider.
distribution services provider.
Three
Threemain
mainparties
partiesindulged
indulged: :
a)a)ADS
ADSInc.
Inc.
b)b)Big
BigRecord
RecordCompanies
Companies
c)c)Large national retailers
Large national retailers
CURRENT SITUATION
Record
(order) companies
ADS
ADSInc.
Inc.
Retails
Retails
Requirement
Requirement of
of Record
Record Companies
Companies
Large record
Large record
companies
1. Direct shipment companies
Orders
2. VMI implementation Orders
ADS
ADS
VMI implementation
VMI implementation
stores stores
stores stores
stores stores
stores stores
Options to evaluate
Purchase
Purchase fleet
fleet of
of trucks
trucks to
to supply
supply to
to retails
retails
-- Costly
Costly deal
deal
3PL
3PL implementation
implementation :: Entire
Entire shipping
shipping
Take
Take aa decision
decision of
of taking
taking trucks
trucks on
on lease
lease
(( from
from warehouse
warehouse toto retailers)
retailers)
Q1: Why are ADS customers’ customer
moving towards VMI arrangements?
Increase
Increase in
in shipping
shipping cost.
cost.
Increase
Increase in
in inventory
inventory holding
holding cost.
cost.
••Result
Result in
in global
global optimization.
optimization.
••Reduce
Reduce bullwhip
bullwhip effect
effect maintaining
maintaining high
high service
service level.
level.
•• Strategic
Strategic alliance(3PL)
alliance(3PL) can
can be
be coordinated
coordinated with
withVMI
VMI
Q3: How should ADS manage logistics?
Warehousing VMI
Warehousing VMI
stores
stores stores
stores stores stores stores
stores stores stores
Q4: Why are the large national retailers moving
toward a direct shipment model?