Supply Chain Logistics Management

Woodmere and HomeHelp should consider several implications of the change over. The first implication is cost. There will be many costs in the change over. For example, there will be high investment in information technology; the organization will need to buy many computers and install bar code readers to monitor the movement of products in and out of the firm. Secondly, HomeHelp will incur substantial costs in training its staff on working with the new system. It may take a lot of time for employees to adapt to the new system. There is also the obvious ambivalence to change that the employees will have; the management should ensure that the employees are fully ready for the change so that it does not awry in the future. Another implication notable from the survey by the organizations change team from the Jean organization; is the considerable losses that abound on the inception of time based supply chain management system. The organization should ensure that it is ready for the losses that the new system will bring before it moves into profitability in the long run.

Time based logistics is a right strategy for both companies, to start with, implementation of such control will be high profitability for the companies. Operations in the supply chain will be on the large part on the monitoring of ICT. This will bring high efficiency by cutting down costs under the supply chain considerably. Majority of the tasks previously done by employees will be now done by computers; computers. Computers will require minimum labor force to operate, therefore, the organization will incur significantly low costs for manpower and hence profitability will increase. Secondly, the organizations will increase accuracy in their delivery systems. Computers are more accurate than manual systems. Customer deliveries will, therefore, be accurate through ensuring consideration of all the customer specifications. This will in turn increase reliability of firms to customers; they will develop high loyalty to the organization and continue buying from them, and this can also bring in new customers and increase the organization’s market share in the long run.

The short term barriers are in terms of the high costs of the acquisition of the infrastructure that the new systems will require. Another barrier is the losses that will abound in the short run on implementation of the systems. Long term implication of the system is the loss of reputation to the organization, the high reliance on information technology may see many employees in the organization loss their jobs, and this is a negative impact to the organizations’ CSR. The organizations should consider strategies for improving their image to the community in the long run.

I would propose strategies for improving the organization’s image in the long run, for example; I would propose for high investment in the community social responsibility projects, if I was a top level manager in the organizations. For example, the organizations could start a foundation for charity in the communities they operate in; this will assure the communities that the organizations have a commitment to their welfare. If I were a manager in HomeHelp I would accept the proposal because it brings about the use of IT which is a current trend in many organizations, it would also bring down the costs of operations considerably in the long run and, therefore, bring high profitability to the organization, Bowersox, Closs, Cooper & Bowersox (2010).

References

Bowersox, D.J., Closs, D.J., Cooper, M.B. & Bowersox, J.C. (2010). Supply chain logistics management. USA: McGraw Hill

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