Question: summarize project scope and limitations based off Expansion Strategy As part of its global expansion strategy, ILS has acquired a warehouse and a truck fleet
summarize project scope and limitations based off Expansion Strategy As part of its global expansion strategy, ILS has acquired a warehouse and a truck fleet in the country. This is the first logistics operation that ILS has acquired in this country. A specific strategic objective is to obtain Walmart as a customer. Walmart currently uses ILS in other countries. ILS recently acquired a warehouse in the country, which employs warehouse employees and drivers. ILS paid $ for the business. Additionally, they have allocated $ upon recognizing that the facility has a number of issues. ILS will form a project team that will work with existing employees to resolve the issues during Year Zero. Given that the problems can be solved, ILS expects to see a net cash flow revenue costs depreciation add back of $ per year starting in Year One. Moreover, they are assuming a fiveyear investment life with a salvage value of $ for continued earnings from Year Six and beyond. ILS plans to secure business from Walmart and other customers in the area surrounding the warehouse once the current issues are resolved. Getting business from Walmart is a strategic objective. Inherited Issues The logistics service currently in the country has experienced low customer satisfaction, safety issues, and wasted resources resulting in financial losses. Employee turnover was in the warehouse last year before ILS acquired the business. The facility is not meeting the values for a company striving to maximize the triple bottom line that involves financial, social, and environmental concerns Slaper & Hall, There are several specific issues which include: In there were lost time accidents in the warehouse and two serious accidents while transporting inventory to a customers facility. Electric bills are high, and energy is wasted. Lights are often left on after hours. The warehouse is disorganized. Often, inventory cannot be located in the warehouse, leading to late deliveries even though the warehouse is not congested. Equipment is outdated and maintenance costs are excessive, in addition to high fuel consumption. Associates have received only informal onthejob training in their positions and on safety procedures. Processes are not documented.
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