Md Robi Islam Robin

Question 4
Is it reasonable for Roland to be horrified at the idea of growing UNIT wage costs caused by the
necessity to work at nights and during weekends?

Concerns:
Rod is right to be concerned about growing wages as a result of having to work weekends and evenings.
His concerns stem from a number of significant factors:

Tight Control of Costs: As can be seen from the thorough cost breakdown in Table 1, the company's
current focus is on cost containment. The implementation of overtime work has the potential to
significantly raise labor expenses and affect overall profitability.

Dispatch Time Commitment: All purchases will be dispatched by the organization within three
working days after receipt. It will be not easy to keep this promise if sales quantities rise. While it may
seem like a short-term fix, overtime may cause staff fatigue and decreased productivity.

Stock Levels and Space Constraints: There are already space issues with the current warehouse. It
can become more difficult to accommodate the growing stock as sales volumes rise. Running out of
warehouse space can cause order fulfillment and stock management to become inefficient.

Concerns about Profit Margins: Rod is also worried that the company's hard-earned earnings might
be undermined by rising operating expenses, such as overtime compensation. Any business's capacity to
be financially sustainable depends on its ability to maintain good profit margins.

Alternative Solutions:
To address these challenges and sustain profitability while accommodating growth, Rod can explore the
following alternative solutions:

Warehouse Optimization:
 Make the most of vertical storage options and rearranged layouts to maximize space use.
 Use cutting-edge inventory control strategies, such Just-In-Time (JIT) inventory, to cut
down on excess inventory and storage requirements.

Process Automation:
 Make an investment in automated order processing technologies to effectively manage a
high number of orders.
 To improve overall efficiency, take into consideration using robotics for activities like
selecting and packaging.
Flexible Work Schedules:
 Implement flexible work schedules, including staggered shifts or compressed
workweeks, to accommodate employee preferences and reduce the need for overtime.
 Hire part-time employees during peak seasons to manage increased workloads without
the long-term commitment of full-time positions.

Investment in Technology:
 To improve inventory and forecast demand, invest in cutting-edge technological
solutions like order management systems and analytics driven by artificial intelligence.
 Give staff members mobile devices and applications so they can track orders and
communicate in real time.

Continuous Process Improvement:

Monitor and enhance warehouse operations on a regular basis. Encourage staff input and
recommendations to spot bottlenecks and inefficiencies early on.

Rod could continue to provide excellent customer service and preserve profitability while increasing
operational efficiency, accommodating expansion, and mitigating the impact of growing wage expenses
by combining these tactics.

References
Bringg (Director). (2018). 10 Best Practices for Automating Your Dispatch and Delivery Operations
[Motion Picture]. Retrieved from https://www.youtube.com/watch?v=2muFfkle9js

fleetroot (Director). (2023). Automate Delivery Operations For Better Efficiency [Motion Picture].
Retrieved from https://www.youtube.com/watch?v=Vs52Z3UeNZw

Lewis, C. D. (2007). Operations Management in Practice.