supply chain management case study lott

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Case Study
10. As a Lott Global executive, what risks would need to be evaluated prior to deciding whether to accept the proposed seven-year contract?

Reputation risk: Seven-year-contract is lone term contract. Before signing this contract, Lott Global executive should evaluate and do a research about whether BCS is able to run so many years, the possibility of going bankrupt.

Management risk: Lott Global is an international logistics company. BCS is Chinese company. Different country has its own logistics management policy and system. There are some difficulties in adapting to local policies in management.

11. Should an LSP accept new business that may not be profitable, but which enhances its reputation in the market? If so, will it put contracts with other clients at risk if the new business fails?

Yes. Although the new business is not profitable, this indeed can enhance its reputation and creditworthiness if it is successful. Before that LSP should make a contract with other clients to decrease the possibility of fail.

12. Discuss the cultural challenges that may arise as the project is implemented and how they might affect the logistical performance of the project.

For example, in the aspects of transportation management system, China’s divisional management is according to the division of transportation type. In addition, each city of China has matching department to manage. There are barriers between higher and lower levels or between different departments and regions. This makes it very time-consuming and complex to cooperate and coordinate to each section because of the delay of information and large number of departments.

13. Discuss the impact of the decision by BCS to select a less-than-optimum distribution facility and buy equipment on the basis of lowest price. From the perspective of Lott Global, how would you seek to influence BCS to make future buying decisions based on other criteria?
a)

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