Citt Case Study

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ACE CORP CONFIDENTIAL ACE CORP “THE FAN-TASTIC DEMAND” SUPPLY CHAIN & LOGISTICS INITIATIVE FISCAL YEAR 2010 Prepared for: Prepared by: Date: Vickie McInnis, Chief Operations Officer Noel Nathan, Senior Manager - Logistics March 16, 2010 ACE CORP 4341 First Street London, ON Y14 2Z5 T 905-670-0453 1-888-FOR-FANS F 905-670-0455 ACE CORP CONFIDENTIAL Executive Summary Introduction ACE Corp currently procures units from a manufacturer based out of Baton Rouge, LA. Units are shipped via nine 53’ trailer loads per week to ACE Corp’s London, ON warehouse/distribution facility. From thereafter, units are distributed to the other three distribution facilities (Calgary, AB, Fredericton, NB, Vancouver, BC) via three 48’ trailer loads per week. The current logistics strategy utilized has served the current demand but in anticipation of higher demand, the current strategy will be unable to sustain the goal of keeping transportation cost low, increase units shipped per year, and maintain efficient transit times. Objective The objective of this study is to review the current Supply Chain and Logistics process and identify the best option which would reduce transportation cost, increase units shipped per year, and sustain an efficient transit time. This would ensure product availability in anticipation of the high product demand projected for fiscal year 2010. Analysis of Supply Chain and Logistics alternatives Three main facets of Supply Chain and Logistics processes were analyzed - cost of transportation, the number of units shipped per year, and the transit times of shipments. The current process yields a total of 146,0161 units per year with an annual transportation cost of $2,870,127 CDN 1. This cost is associated with procuring units from the Baton Rouge, LA manufacturer and having the units shipped directly to

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