MID TERM QUESTION PAPER

Course: Logistics Transportation & Warehousing

Course Code: PGD SCM-532

Instructor: Mr. Mohammed Hanif Ajari

Submitted by : Sarmad Samad

ERP no : 21157

Open Date-Time: Saturday, July 11, 2020 at 9 PM (21:00)

Submission Date-Time: Sunday, July 12, 2020 at 9 PM (21:00)

Total Marks: 30

Note: any form of plagiarism, cheating, copying or help taken from peers,
resources, notes, books or the internet will be taken as a serious offence
– leading to direct disqualification. Comply with all instructions.
Instructions:

1. Read the questions and given scenario carefully

2. Answer all questions in chronological order

3. Submit word document on LMS Portal no other format will be accepted

4. Submission will happen only via LMS

5. File Name should be as follows: Full Name_ERP_Mid Term

6. Failure to comply to instructions will lead to a penalty

7. No extra time or change in submission method will be allowed

8. Make sure your internet device is stable and you submit before or on time.

9. Any hint of plagiarism will lead to direct disqualification

Good Luck

PAGE 2
PART I – 20 MARKS

In the emerging globalized and technology oriented trade, and business environment, the
traditional marketing approach has evolved from a product-led marketing philosophy to
“customer –centric “one. In this scenario, customers are becoming very demanding and
selective and their expectations are changing and increasing in terms of product quality, pricing,
real time delivery and timely after sales services, value for money, etc., while making
any business decision. The underlying motivation for changes in customer expectations is a shift
in their perspective of value. Value is perceived to be the benefits received from the product
chosen less the cost of the acquisition. The customer value is shifting from a combination of
benefits dominated by price to a range of benefits like superior quality, convenient and hassle
free transaction, consistency and reliability of product performance, problem solutions, and
value for money. Furthermore, different customer segments have different expectations and
needs. Their higher expectations and increasing wants have started putting enormous pressure
on firms to innovate their product and services.

Taking in to consideration the above real facts of business canvas and each and every company
is revisiting their logistics and distribution system of management.
Questions:

1. Can you define the logistics management? Support your answer with the figure containing

the difference components of logistics and their linkage as an integrated process (3 Marks)

Logistics Management.
Logistics management as “the art and science of obtaining, producing, and distributing material and
product in the proper place and in proper quantities.” It is a rapidly evolving business discipline that
involves management of order processing, warehousing, transportation, materials handling, and
packaging—all of which should be integrated throughout a network of facilities.

Logistics in Supply Chain.

The supply chain is about “moving” – or “transforming” – raw substances and thoughts into products
or services and getting them to customers. Well the question is, what's logistics management? In
deliver chain. Logistics is about moving materials or items from one vicinity to another. Logistics is, in
that sense, the servant of design, production, and marketing. But it's far a servant which could carry
added value by quickly and successfully doing its job. The following areas of logistics management
make a contribution to an integrated approach to logistics within supply chain management

Transportation:

Many modes of transportation play a role in the movement of products through deliver chains: air,
rail, road, water, pipeline. Selecting the most efficient combination of these modes can measurably
enhance the fee created for customers by cutting transport costs, improving the rate of transport,
and reducing harm to products.
Warehousing:

When inventory isn't on the move among locations, it could must spend a while in a warehouse.
Warehousing is “the activities associated with receiving, storing and shipping materials to and from
production or distribution locations. It is a very crucial factor, we want to take into account to realize
what is logistics.”

Third- and fourth-party logistics:

Like other elements of deliver chain management, the diverse logistics capabilities can be outsourced
to firms that specialize in a few or all of these services. Third-celebration logistics providers (3PLs)
actually carry out or manage one or extra logistics services. Fourth-birthday party providers (4PLs) are
logistics professionals and play the role of well-known contractor via taking on the whole logistics
feature for an organization and coordinating the combination of divisions or subcontractors
important to carry out the precise duties involved. This developing fashion consists of the supply
chain management philosophy of focusing on core abilities and partnering with other firms to
perform in areas outdoor your competence. We’ll learn greater approximately 3PLs and 4PLs later on
this section.

Logistics in Reverse logistics (or the reverse supply chain):

Another growing area of deliver chain control is opposite logistics, or how first-class to handle the
return, reuse, recycling, or disposal of products that make the opposite journey from the client to the
supplier. This business can be treated at a loss, or it is able to certainly turn out to be a earnings
center. We’ll also cover this subject matter in more element later in this section.

LOGISTICS VALUE PROPOSITION:

Service:

Cost Minimization
service failure would impact a customer’s business.

Classification of Logistical Activities:

Logistics (or Logistical Activities) may be Broadly Classified into Two Categories:
2. Define 3PL Company and their core functions (3 Marks)

A 3PL (third-celebration logistics) provider gives outsourced logistics services, which embody
whatever that includes management of 1 or extra sides of procurement and fulfillment activities. In
business, 3PL has a broad that means that applies to any carrier settlement that entails storing or
transport items. A 3PL service can be a single provider, together with transportation or warehouse
storage, or it is able to be a system wide package deal of services capable of handling supply chain
control

Transportation or Freight Management (which include technology, freight accounting, and services
around claims) –They would healthy in these kinds of services.

Public/Contract Warehousing

Distribution Management

Freight Consolidation

The following are the traits of the different sorts of third birthday party logistics offerings:

Transportation Based Third Party Logistics Services

• Services extend past transportation to offer a comprehensive set of logistics offerings.

• Leveraged 3PLs use belongings of other firms.

• Non-leveraged 3PLs use belongings belonging totally to the figure firm.

• Examples: Ryder, Schneider Logistics, FedEx Logistics, UPS Logistics

Warehouse/Distribution Based Third Party Logistics Services

• Many have former warehouse and/or distribution experience.

• Examples: DSC Logistics, USCO, Exel, Caterpillar Logistics

Forwarder Based Third Party Logistics Services

• Very unbiased middlemen with forwarder roles.

• Non-asset proprietors that offer a wide variety of logistics services.
• Examples: AEI, Kuehne & Nagle, Fritz, Circle, C. H. Robinson, Hub Group
Shipper/Management Based Third Party Logistics Services
Financial Based Third Party Logistics Services
Information-based firms Third Party Logistics Services
Warehousing
Supply Chain Management
Order Fulfilment
Consolidation Service
 3. What are the current challenges being faced by the logistics industry in Pakistan? (3 Marks)

CHALLLEGES FACED BY LOGISTICS INDUSTRY OF PAKISTAN

• Lack of infrastructure

01.There are insufficient inter-modal connections among the railroads, the maritime ports and the
inland distribution centers. Furthermore, the ports do no longer have the infrastructure to effectively
connect to railways and the truck transportation systems.

 Lack of Integration System

02.There is also a scarcity of efficiency in customs inspection with the result the average stay of
containers in the ports is double the international average.

But with a scarcity of fundamental infrastructure, knowledge in transportation and logistics is far
behind a number of countries and cities in the subject to make sure well timed and cost powerful
elements of products within usa or even large metropolis.
 Trust Issue: it’s obvious to have a trustworthy intermediate between the customer and
entrepreneur who could deliver the product /service 100 % as it was formed.
 Cheaper or relatively fair deliveries charges: Unfortunately we are living in the part of land
where every fare charges from taxi for person till loading transport is being decided on driver’s will
instead of measuring the miles to the destination. Nowadays, uber and Cream are relatively showing a
systematic manners of earning but again the consistency has not been shown too.
 Delivery on Time: products delivering within time is the one of the major issue. Logistics
companies are still failed to show proper time management. Complex traffic problem is the excuse
made by the logistics service providers.
 Payment Collection: The proper tracking on collection of payment could be trace mainly for the
deliveries order made by small entrepreneur.
Although there are many names in the city who are providing logistics services to the public, but
unfortunately their main focus is just limited to their earning and benefit instead of also putting little
focus on people’s requirements.
Keeping a wide eye on the issues mentioned above the Roadio App is helping people in the following
fields:
1. Home shifting/Relocating/office shifting
2. Bulk Deliveries(for Small Business Entrepreneur)
3. Deliveries for Big Businesses (Cost Cutting)
4. Displaying and delivering your products from home (Market Place)

 Absence of border crossing agreements for trucks, causing delay in import and export
processes
 Too many regulations import and export procedures and documentation all making
international trade slow and costly.
 Companies find it difficult to estimate their inventory and cargo movements due to lack
of HR expertise
 Lack of coordination in the supply chain
 Little use of IT by small and medium-sized companies. Most of these companies see IT
as an expense, rather than a tool or investment
 Uncertainty in business environment, which discourages investment.

4. Can you draw a figure showing typical physical flow of material from suppliers through to

customers showing stationary functions and movement functions, linked to a diagram that

reflect the value added nature of logistics? (3 Marks)

 5. Draw a figure specifying 7 components of customer services---R (2 Marks)

The 7 Core Elements of a Great Customer Experience

A great customer experience does more than please your customers. It influences them to change
their behaviors and do more business with your organization. That means a great customer experience
will ultimately make you more money

But how do you offer a great customer experience? Here are seven core elements:

 Offering relevant solutions

In dealing with customers, you must leverage your understanding of what your customers are
really trying to accomplish — that is, the series of actions they seek to complete — and of how
they think about and react to what happens to them along the way. You must also ferret out
ways to solve problems that customers may not be able to articulate or even realize that they
have.
 Assuring and protecting trust

If your organization violates a customer’s trust, it’s an experience killer; you can bet that
customer will think twice before doing business with you again.

 Eliminating the unjust

Customers often have a surprisingly vehement reaction to things they perceive as unfair. Just
because you can charge for something doesn’t mean you should.

 Going above and beyond

Customer experiences that deliver just a tiny bit more than the customer expects can go
further in fostering engagement than you may expect. You don’t want to miss any opportunity
to go beyond what’s expected to engage and delight your customers. Any communication you
have with customers is an opportunity to delight them.

 Balancing customer experience with business profitability

You can buy happiness, just not for long. Creating a great customer experience is easy if you’re
willing to throw a lot of money at the effort. But unfortunately, no business can sustain that for
long.

The best customer experiences create recognizable and obvious value for your customers, at
no or little cost to your organization. To achieve this, you must ensure that your human assets
— the people you’re already paying — are at the root of those experiences.

 Engaging all human facets

Your customers are human beings (even if they don’t always act that way). As such, they are
complicated beings with complex lives. They’re not numbers, nor are they transactions. It’s
imperative that you and your organization remember this, and treat them accordingly.

Providing a great customer experience means addressing all facets of your fellow human
beings’ physical, intellectual, and emotional needs. In other words, it means treating customers
as the unique individuals they are.

 Having a consistent and authentic brand

Each and every year, organizations spend hundreds of millions of marketing dollars in branding
efforts. That means creating positioning statements, developing logos, and poring over
 presentation decks, all in an attempt to establish in their customers’ minds an idea of who the
organization really is.

The reality is, any branding effort will result in a description of who the organization wants to
be, not what it is. What an organization is — what its brand really means — is nothing other
than the sum total of how its customers perceive it in their minute-by-minute, day-by-day
touchpoint interactions.

Often, customers experience a disconnect between marketing dreams and operational reality.
Put another way, what’s on the box doesn’t match what’s inside. If the brand you put forth in
your marketing efforts doesn’t jibe with what your customers experience in real life — if your
story isn’t backed up by the facts — you’re not just wasting your marketing dollars, you’re
alienating your customers.

6. Can you specify the financial impacts of Logistics costs while drawing a figure specifying an

impact on an organization’s (ROI) Return on Investment? Can you specify what ROI and other

impact company can have when it is structured Asset based or non-Asset based organization

(4 Marks)
7. What competitive advantage an organization can get through logistics? Please support your

answer through a figure showing the different competitive positions? (2 Marks)

Competitive Advantage Through Logistics

Cost Advantage

The main route to cost reduction was suggested traditionally to be through the achievement of greater
sales volume and in particular by improving market share.

Value Advantage

A product or service may be seen as a ‘commodity’ and sale will tend to go to the cheapest supplier
unless the product or service offered could be distinguished in some way from its competitors

Combining Cost Advantage and Value Advantage

Successful companies often seek to achieve a position based upon both a cost advantage and a value
advantage.

STRATEGIC LOGISTICS PLANNING

logistics strategic planning as a unified, comprehensive, and integrated planning process to achieve
competitive advantage through increased value and customer service, which results in superior
customer satisfaction, by anticipating future demand for logistics services and managing the resources
of the entire supply chain.

The Logistics Plan

This will determine inventory goals and deployment strategies, warehouse strategies and programs,
transportation strategies and programs and order processing strategies and programs.

LOGISTICS PERFORMANCE MEASURES

The logistics function has long been under pressure to demonstrate its contribution to organizational
performance (Rutner and Langley 2000). Consequently, research in logistics has examined the
influence on organizational performance of high-performance logistics.
PART II – 6 MARKS

STUDENT BIYRYANI: is a famous national brand making waves in the ethnic food markets in
Pakistan for last four decades. A unique and sumptuous Biryani with a consistent taste and
quality, and a number of other sub continental cuisines are prepared in their
kitchens. They enjoy market leadership and are fast expanding. They have the largest
franchise network of outlets within the country, having presence in all major urban centers,
and are prepared to explore market potential in Gulf, UK, USA and Europe soon. Student
Biryani is an organization built up totally, on hard work, passion, honesty and dedication

It’s a long history of 40 years of hard work, perseverance and passion. The idea of establishing
Café Students was conceived and materialized by Haji Mohammad Ali (Late) in 1969 with very
humble beginnings. It all started from home cooked Biryani and a few other dishes served
from a small eatery located in the middle of the city, Saddar, Karachi. It is that popular taste of
Biryani which dominated the business name of Café Students, and now Student Biryani is the
title of fame.

Patience and hard work resulted in a stable and gradual increase in the business. Responding to
market demands resulted in various milestone achievements. In 1976, the first infrastructural
improvement was made by creating a seating capacity of a hundred people. Afterwards, there
was a series of daring business decisions taking into account various market needs spanning
from business development, beating competition, making use of technological
improvements, development of management systems, creating a market niche, to
ensuring a dominating presence within this cosmopolitan.

A. There SERVICES Portfolio: Their customers are their priority and they have adopted a
number of approaches to serve their customers in the most efficient and appropriate
manner. For this purpose they have expanded their operations in the following business
forms;
B. Dine in Restaurants: They have ensured their presence in almost all the main residential,
commercial and business areas all across Karachi through their own and franchised
restaurants. All these restaurants offer a comparable dining experience of international
standards and service quality.
C. Take Away Counter Service: Take Away Counter Service is available in all their restaurants
for customers satisfying their various types of needs. This service is cherished by customers
due to its high level of efficiency.
D. Delco Units: These small setups concentrate more on delivery operation and serve a few
dine-Ins. Through this operation, a small contingent of motor bikers reaches customers of
those areas where a full flagged restaurant is less viable.
PAGE 5
E. Home Delivery Service: This dedicated motorbike service delivers their food at customer’s
doorstep with highest level of efficiency. They take their delicious food verities literally to
every home through a modern centralized Call Center System. Remote Resort Bulk Delivery
This unique and daring service is their daring initiative. They add spice to the joys of
picnickers and deliver their delicious hot foods at the picnic points of their choice, within or
around the city. They have a fleet of Suzuki pickups, and Shahzor Trucks for bulk
deliveries having a wireless communication system and experienced staff.
F. Corporate Sales/Institutional Catering: They have the capacity of catering to big orders of
any volumes keeping consistent taste and service standard. They provide food to
various commercial and business organizations for their daily employee consumption. In
addition, they offer Prepaid Meal Voucher for their corporate customer which may be co-
branded as per their requirement.
G. Party / Outside Catering: They have a big kitchen facility run by our experienced chefs. They
also cater to the needs of bulk supplies for all kinds of parties, birthday functions, wedding &
valima receptions, religious festivals and all social and cultural gatherings. They have a
credible backup of vendors and suppliers for quality ingredients and food accessories to
cater to urgent and voluminous need of the customers all around the year.
H. Their Specialty: Student Biryani, specialize in preparing the most sumptuous Biryani, so
much famous for its unique taste and aroma that it has put the name of the café in the
background and today they are more famous with the name of their brand name STUDENT
BIRYANI.
Questions:

8. As a fourth party consultant to the company can you consider the above supply chain of

Student Biryani and draw the supply chain/logistics model of Student Biryani (2 Marks)

9. What SCM strategy company will pursue –PUSH/PULL for different services portfolio (1
 Mark)

Given the nature of the restaurant business, this can be categorized as the service industry. It would be
able to make the most of its SCM strategy only if it implements the blend of both PUSH and PULL
Strategies to deal with different services portfolios.

To serve its customers on timely basis and in order to avoid delays, PUSH System is recommended, as it
would ensure the availability of cuisine, when the customers place their orders. However, for the raw
material PULL System is encouraged given the shorter shelf life of food related products, but the defined
level of stock of raw material must also be stored to ensure that it is available whenever required.

Keeping in view the nature of business, the company apart from keeping the balance of PUSH and PULL
Strategies, must also focus on data recording and analysis to aid in maintaining the said balance as it
would support in forecasting, ordering the adequate raw material quantity and preparing the cuisine.
Apart from this, the business also is recommended to make the use of deals and promotions to enlarge
its customer markets and to ensure that no food is left over and wasted.

Their Specialty-----------75 % Push--------25% Pull

Party / Outside Catering______75% Push---------25% Pull
Corporate Sales/Institutional Catering________50% Push-----------50% Pull
Home Delivery Service___________90% Push-----------------10% Pull
Delco Units______________80% Push ------------------20% Pull
Take Away Counter Service-------------60% Push-------------40% Pull
Dine in Restaurants-----------------40% Push----------------60%Pull
 10. What logistics components are involved in this supply chain? (2 Marks)

Components of a logistics system

The logistics system consists of the following components: Customer service, Inventory management,
Transportation, Storage and materials handling, Packaging, Information processing, Demand
forecasting, Production planning, Purchasing, Facility location and other activities.
 

11. The management of the company is apprehensive of unabated increase in the logistic

network cost. What are the reasons for the increase? (1 Mark)
REASON INCREASE IN LOGISTICS COST:

Student Biryani has got confined wide variety of outlets. So, serving the Home Delivery Service and
different associated customers, consequences in greater transportation and delivery carrier cost, and
outsourcing the whole transportation too effects inside the cost growth.
The food items have a completely lower shelf life, which ought to be considered in ordering and
storing of raw substances, lower stock might also result in the unavailability of the raw substances
whilst the number of purchaser orders increase and extra inventory food related uncooked material
objects may additionally bring about the expiry of the stated items.
Furthermore, retaining in view the character of food gadgets, the standards of compliance are also
very stressful as any discrepancy in the garage and transportation of food related items may have
destructive consequences, for instance, negative food great may also have hazardous impact on the
fitness of customers.
The outdated Logistics System in Pakistan along with bad regulation and order scenario and poor
infrastructure ultimately outcomes in more documentation, poor coordination, bad monitoring and
visibility of the consignment therefore main to better management and administrative prices at the
side of the opposite indirect expenses.

Not Outsource Logistics

Involve to have responsive in all sections

Their Business Core functioned not support expertise in Logistics

They should Outsource Logistics

PART III – 4 MARKS

Ahmer a junior at IBA had thoroughly captivated & enjoyed his initial six semesters. But this
summer, he had a rude awakening: His parents informed him that in one year he would be on
his own. Previously, Ahmer had assumed that he would after completing PGD---may be
even continue to become masters (MBA)---anything to be able to remain at IBA---
affectionately known as IBAIN
In the fall, Ahmer enrolled in a course on Logistics: Transportation & Warehousing. The very
first day of class, something clicked---this is it! “If I have got to work for a living (in contrast with
being a Professional Accountant!), it should be in a profession with both challenges
and the potential for great satisfaction in “Logistics: Transportation & Warehousing”.
With this momentous decision behind him, Ahmer planned to take follow- on courses in
sourcing and procurement strategy, cost and pricing and negotiations and to take an internship
in DDL. Life was more interesting than ever now that he had a direction and sense of purpose.
There was only one fly in the ointment----Ahmer`s mother and father was both accountants,
and they had always assumed that Ahmer would be also.

This weekend, Ahmer`s parents would be in Karachi to see him and, he hoped, take his laundry
home. Although Ahmer was determined to pursue a career in Distribution and Logistics
management, he would like his parents` approval.

Question:

12. If you were Ahmer, what arguments would you present in favor of such a decision? Can you
make a justification which can help Ahmer preparing his case to his parents? (4 Marks)

“The first actual day of class, he comes to knew that it is something clicked---that is it!”.
Supply chain management is an effective device for each business manner improvement
and its critical increases day via day. It has a very giant and dynamic scope. It is
covers entire chain system starts off evolved from initial raw material sourcing to finished goods
consumption.

It is a well-known pronouncing that; it isn't always necessary that an accountant’s son may want to be
a success as had been their ancestor. Today we are dealing in twenty first century which has
end up the world of AI (Artificial Intelligence). It needs from us (people) to have
multiple abilities to survive in any other case we are able to be crushed and out of scene.

Therefore, Ahmer has an advantage to recognize the accountant information from their
mother and father as an additional talents and may make his provider direction in Supply Chan will
growth his know-how and soft skills. So, making supply chain as a service oriented
will groomed his expert provider with more success.