Super Dolls is a toy manufacturing company which is in the business for the past two decades. The manufacturing unit is situated in Mumbai, while its sales and marketing are spread over a large geographical area, especially in the major cities across the country. Over the years, a number of competitors have sprung in the field. Far from child’s play, the company found that the toys’ sector is a tough business. Some of the problems faced by it are:

• There is a massive sale during the festival seasons. If the company’s product is delayed, the valuable market is missed.
• “Fashion” or “cult” status products influence the market. Any wrong decision in this matter, means loss of sales and build-up of unwanted inventory
• There are high marketing and promotional costs. If these programs go out, the sales drop massively
• Any misjudge of the market can also mean closing down of the company
• The company has problems regarding stock holding at its distribution centers. This is mainly due to wrong inputs from feedbacks and improper surveys.
• The company relies mainly on hired fleet of road transport. The services are not up to the mark in terms of delivery schedules, safety of goods from pilferage/theft, and mishandling of product.
• Marketing strategies are far from adequate. They are not effective enough to counter the strategies adopted by the competitors.

You are called upon by the management of Super Dolls to head their logistics operations. You are required to study and guide the company regarding the following matters.

1. Warehousing at distribution centers and large retailers to cut down inventory costs plus other suggestions in order to reduce inventory carrying costs
2. Advantages of outsourcing in terms of preparing girls’ and boys’ toys, toys in local languages, toys for different age ranges, packaging, effecting savings on damages/transport, responding fast to customers’ requests, etc.
3. Alternatives with regard to having own fleet of trucks
4. How to cut down cost on advertisement campaigns by alternative forms of spreading awareness
5. Suggestions to counter competitors’ strategies

Answer rating: 100% (QA)

In order to cut down the expenses one of the prime expenses which have to be brought down in the warehouses and inventory It includes the manpower the ... View the full answer