QUESTION $1(40$ Marks$)$

Read Case Study Below and answer a question $1$ & $2$

Supply chain and logistics management of Warehouse $($Pty$)$ Ltd: A clothing manufacturing organisation

Warehouse $($Pty$)$ Ltd is a clothing organisation that is situated in Pietermaritzburg $($KwaZulu$-$Natal

Province$).$ Warehouse $($Pty$)$ Ltd recently established another small clothing manufacturing facility in Durban $70$km from Pietermaritzburg manufacturing plant. In future the organisation also plans to establish another manufacturing plant in Newcastle $270$km from the Pietermaritzburg plant.

Operations

The Pietermaritzburg clothing production facility specialises in both corporate and basic clothing production and uses suppliers in Dubai and China. The newly established clothing facility in Durban specialises in fashionable African dresses, trousers, tops and skirts. It acquires various fabrics from retailers in the Warwick Junction. Warehouse $($Pty$)$ Ltd plans to improve the clothing operations by:

offering an extensive range of products at the shortest possible time plan products according to customers needs, producing broader product range such as fashionable African clothes, corporate and basic clothes, improving the planning process of customer demand for clothing which stretches from the producers of raw materials to fabric suppliers clothing manufacturers and finally to the end customer, making demand satisfaction a fundamental concept in the organisation, establishing relationships with both local and global supplier of clothing fabrics and finally, lowering the total cost of clothing production.

Supplier relationships

Warehouse $($Pty$)$ Ltd has established relationships with local and international suppliers of clothing fabrics. In ensuring that material fabrics arrives on time for production Warehouse $($Pty$)$ Ltd established a contractual agreement with suppliers in Dubai and China the contract is built around service delivery. Warehouse $($Pty$)$ Ltd has a five years agreement with these suppliers in term of the types of corporate fabrics as well as fabrics for basic clothes they will need in the clothing manufacturing process. One of the suppliers in China advised Warehouse $($Pty$)$ Ltd to send one of the organisations delegates to visit their plant in order to witness how they operate. Warehouse $($Pty$)$ Ltd attends quarterly supplier development exhibition hosted in Johannesburg where various manufacturing enterprises are provided with financial support, education, mentorship and market access. These exhibitions had awarded Warehouse $($Pty$)$ Ltd opportunities to enter into contracts which are built on product and service delivery with various fabric retailers from Warwick Junction.

Warehouse management

Warehouse $($Pty$)$ Ltd has a small warehouse were clothing fabrics of both $($Pietermaritzburg and Durban$)$ manufacturing plants are kept. Warehouse $($Pty$)$ Ltd makes use of a double cab truck to collect fabrics ordered from fabric retailers in Warwick Junction. The very same truck is used to deliver fabrics at the Pietermaritzburg manufacturing plant. The activities which are performed at warehouse $($Pty$)$ Ltd involve: Receiving, collecting and delivering fabrics to the Durban plant.

Fabric cloth verifications.

Storage of fabrics and clothing garments which are ready for delivery.

Control of inventory movement.

Documentation of purchasing transactions and raw materials and finished goods.

Rejection of defective fabric and customer returns

Future plans

In future Warehouse $($Pty$)$ Ltd plans to integrate clothing manufacturing system of its operations with that the supplier systems facilitate replenishment processes. Warehouse $($Pty$)$ Ltd also plans to install a warehouse management system $($WMS$)$ software that will enable the organisation to track inventory level and stock location.

Sources Adapted from

Evans, J$.$R and Collier, D$.$A$\mathrm{.}2007.$ Operations Management: An integrated goods and services approach. Thomson South$-$Western. China.

$1\mathrm{.}1$ Elaborate on the difference between Logistics Management and Supply Chain $($SC$).(10$ Marks$)$

$1\mathrm{.}2$ You have been recently been employed as a Logistics Manager at Warehouse $($Pty$)$ Ltd$.$ Advice Warehouse $($Pty$)$ Ltd on the characteristics of road transport and the advantages and disadvantages thereof. Support your answer with examples from the case study. $(30$ Marks$)$