Case 8-3 Isol -Global Value Chain Logistics Case Analysis

1032 words 5 pages
Global Value Chain Logistics Case Analysis
University of Phoenix
Global Value Chain Management
June 25, 2012

Global Value Chain Logistics Case Analysis ISOL + Group produces and sells a variety of products within France, Spain, and Italy. The general manager Mr. Dupont has initiated a thorough rethinking of logistics matter for the group. Based on his recommendations, the management team must identify, analyzed, discuss, and recommend the most appropriated solutions for the recommendations made by Mr. Dupont. Identify Based on the global value chain strategies, it would be best for ISOL to “build a new manufacturing facility with one production line in France close to the firm’s southern European
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By reducing to 48 hours, then ISOL present shipping system direct from the plant to its customers will have to be given up. However, ISOL may need to look at distributions centers that make and have the finish products ready to ship, to help ISOL meet the proposed 48-hour delivery schedule. The current transportation planning can no longer be in place if it needs to meet the delivery schedules because the current system it is based on the production planning, and transportation will have to be conduct much quicker once the order is received from the customer. However, ISOL will have to look at different carriers or even use multiple carriers depending on where the product must be shipped to so it can meet the 48-hour delivery. With all the changes needed for inventory, shipping will increase the logistic budget. However, it is in the best interest not changing the current delivery schedule or current pallets in place because if Mr. Dupont recommended plan moves forward, it will increase the logistics budget and may decrease its value in its products and services to its customers. Other thing that needs to be looked at is if the French facility is used, the transportation cost from the plant to Italy and to Spain as shown by the data will cost more. For example, the French plant to Italy is 17.4 F/m and to Spain is 19.2 F/m. In order to reduce the cost of the new production line, it must be located in area closer to both