Write a 2 page essay. Need to be logical
Provide a thorough discussion of this case and the following casequestions (at the bottom). Use good business communication style. The case will, in part, begraded according to the COB writing rubric.Spanner Supplies, Inc. is an up-and-coming retailer of restaurant suppliesand equipment. They handle cooking utensils, ovens, dish washers, tables, andother necessary restaurant items from around the world. SSI’s 36 stores arelocated in six cities— Kissimmee, (4), Orlando (6), Atlanta (6), San Diego (6),Los Angeles (10), and Las Vegas (4).Initially, SSI focused on building stores, and very little attention wasgiven to supply chain management until a Vice President of Logistics was hiredto improve global product flows. Emily, the new VP, began her tenure by hostinga conference call with Ernesto, SSI’s transport manager, and Juan, thecompany’s senior-most buyer.Emily: Thanks for meeting on such short notice. The CEO has instructed me toreduce our transportation spend without hurting service quality. The attitudeof“let’s get it to the store, no matter what” has got to go.Juan: Ok, but I don’t understand why I’m called upon. Delivery issues arenot my responsibility. I don’t see where my organization could cause yourheadaches.Emily: Some of your decisions impact transportation, and you could give ussome insights.Juan: Ok, I’ll try.Emily: Ernesto, how do you make decisions on international routes andcarriers?Ernesto: Juan’s team tell me the product vendor, location, shipment size,and how soon they want it. I go to carriers that I know well and cut the bestdeals that I can.Emily: What’s your split between ocean and air?Ernesto: It’s about 50/50. We use air to expedite hot orders and anythingsmaller than a TEU. For FCL, I route it through the Port of Los Angeles, breakthe container, and send out smaller amounts as LTL.Juan: No wonder our margins are terrible. You’re using premium air servicehalf the time!Ernesto: It’s not my fault that your people finish most of their deals atthe last minute. Plus, if you would find me suppliers in strategically-locatedspots, buy larger quantities, and give me more warning, I could move 90% of ourcargo on ocean carriers.Emily: Wait, this is not the time to be assigning blame. We need strategiesand solutions.Juan: Maybe we’ve gotten too big to manage this cargo on our own. Can’t welook for some outside assistance?Ernesto: That’s a possibility, but I’m good at what I do. With a more stablecargo volume, we could create some ocean contracts and maybe even a chartermovement. For air cargo, Juan has to get our suppliers to pack inefficiently-sized boxes. They use huge boxes that weigh almost nothing and arefilled with packing peanuts.Emily: Now, we’re making some progress. Let’s investigate the feasibility ofthese ideas and also think of some new ideas for improving transportation andreport at our next meeting.CASE QUESTIONS1. Based on what you know, what are some causes of SSI’s transportationproblems?2. Given their product lines, do you think SSI using the right mixture ofglobal transportation services? Explain your answer.3. How can SSI use Juan’s idea about external assistance withtransportation?4. What about Ernesto’s ideas? How could routing, contracting, or charteringimpact ocean service?5. Is Ernesto’s complaint about product packing legitimate? What, ifanything, should be done?
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