NEW CELL PHONE COMPANY Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

NEW CELL PHONE COMPANY Case Study Analysis

Advantages:

The community of business around the inland port and more to come.
Centralized market.
Generates wealth, investment and jobs for the Province.
The largest inland port in North America.
Easy access to rail, trucks, and air.

Disadvantages:

High transportation cost for getting products from the port.
The high volume of imports and exports.
Large capital investment.
An increased number of businesses on-site to compete with

Alternate 3:

Alternate 3 is to establish an inland port in Calgary, Alberta. The advantages and disadvantagesof establishing an inland port in Calgary, Alberta are mentioned below:

Advantages:

Closest to the port of Vancouver, i.e. 972 KMs.
Nearestto the TransCanada number one.
351 KMs from TransCanada number 16.
No Provincial sales tax.
Strong workforce with the population of approximately 1,214,839 people.
Economy encourages alternative energies and green power.
The location serves as a streamline for Push/Pull inventory systems.
Manufacturer (China)
Port of Vancouver.
Distribution Channel = 8 weeks lead time.

Disadvantages:

High unemployment rate.
Significant increase in crime rates during the past few years.
Many of Calgary’s highways and roads are congested.

Alternate 4:

Alternate 4 is to do nothing. Continue to ship hand held or cellphone device from China via air. The advantages and disadvantages of this alternate are mentioned below:

Advantages:

Faster delivery or turnaround time.
Follow the status of your cargo.
Less need for warehousing and fewer items in stock.

Disadvantages:

Higher costs.
Weight and size restrictions.
Poor method to satisfy the customers’ demands.
Increased chances of delays.

Regression Analysis:

Exhibit one of the document has shown that the coefficient to locate Inland Port in Calgary, Alberta has the lowest possible delivery rates. The coefficient of Inland Port in Calgary, Alberta is 0.00032, which shows that an increase of one delivery will increase the delivery cost to 0.00032 dollars. This delivery cost is lower in all of the four available options.

Recommendation:

As being hired to make a supply chain or logistics suggestion, I recommend the hand held or Cell Phone Company to create a single distribution center (DC) in Calgary, Alberta. This adheres to the company’s request of being near the TransCanada number one rail as well as in the proximity to major highways and roads. With the same rail and roads stretching from Alberta to the other Prairie Provinces, it will cover the logistics for all the sales being generated. With TransCanada number 16 being in Jasper, Alberta provides the flexibility of meeting demands in other major cities, such a:s Edmonton, Saskatoon, and Winnipeg.

Implementation:

Short Term: 6 Months to 1 Year

The product will travel from Shanghai via cargo ship across the Pacific Ocean into thePort of Vancouver, Canada. Containers will then be unloaded and placed on the TransCanada number 1 rail system, which then make their way East to Calgary where the distribution center will unload and store the cargo.

Long Term: 1 Year to 3 Years

Having a distribution center in Calgary is the superior choice because it allows the supply chain to be vertically integrated with many distribution channels.The product moves in one direction without designing complicated routes. If the distribution centerwas in Regina or Winnipeg, there would have been an over-lap when it would have come to orders in Calgary or Edmonton due to the cargo leaving Albert and Saskatchewan just to end up to back being distributed to those provinces. Travelling the same path twice will be costly. Having the distribution center in Calgary allows for the practice of both push and pull inventory methods.

China would be saving a lot of travel time by using this option, which would result in revenue being saved, faster turn-around times, easier replenishment and happy customers. This also creates a longevity in the North American market due to the United States being a couple of hours away from Calgary...........................

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