- + A Read aloud Draw High evaluation and entered contract for freight with shipping company agent. The response for company's export was very good and the company could get as many as 15 customers within first two months and reached to a level of USD 250.000 per month by the end of first half of the year. Based on this response the export volumes were expected to grow to a level of USD 400,000 per month by the end of the year. When the review was made at the end of the year, company found that export volumes had in fact come down to the level of USD 120,000 which was much lower than it had reached in the first half of the year. The managing committee had an emergency meeting to discuss this and the export manager was entrusted with the task of identifying the reasons for this decline. Mr. Faris Al Khalasi decided to visit the customers for getting the first-hand information. When he discussed the matter with the customers, the feedback on the quality and price were good but the customers were very upset on the logistic services due to delayed shipments, frequent changes in shipping schedules, improper documentation, improper identifications, package sizes, losses due to transit damages etc. After coming back, the export manager checked the dispatch schedules and found that production and ex- works schedules were all proper. Then he studied the logistics systems and found that the logistics cost was very high, and all the logistics people were de motivated due to overwork and were complaining of total lack of co-ordination and the system had become totally disorganized Questions 1. Explain what are the challenges faced by Hinni LLC and its main reasons? 2. What type of logistics model company should follow for proper operations? 3. You being operation manager, how are you going to manage M/s Hinai challenges? O x] lenovo