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Group - Deepak Yadav 2020MBA124 Shreem Kohli 2020MBA161 Sanka Manoj Chandra 2020MBA Srinath S 2020MBA

The document discusses Calleja Group's reasons for centralizing deliveries in a distribution center. This allowed them to reduce expenses in logistics and administration costs while also improving product handling and reducing damage. Outsourcing to a foreign logistics operator allowed Calleja Group to scale up operations across multiple cities while focusing on quality, service, and margins. It also discusses the advantages Zablah group gained from consolidating logistics operations with OPLS, including increased control, reduced costs, and access to new resources. When selecting a warehouse for Christmas operations, Mr. Zablah should prioritize space, lease terms, structure/flow, cost, and location to minimize expenses and transportation costs.

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Deepak Yadav
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107 views6 pages

Group - Deepak Yadav 2020MBA124 Shreem Kohli 2020MBA161 Sanka Manoj Chandra 2020MBA Srinath S 2020MBA

The document discusses Calleja Group's reasons for centralizing deliveries in a distribution center. This allowed them to reduce expenses in logistics and administration costs while also improving product handling and reducing damage. Outsourcing to a foreign logistics operator allowed Calleja Group to scale up operations across multiple cities while focusing on quality, service, and margins. It also discusses the advantages Zablah group gained from consolidating logistics operations with OPLS, including increased control, reduced costs, and access to new resources. When selecting a warehouse for Christmas operations, Mr. Zablah should prioritize space, lease terms, structure/flow, cost, and location to minimize expenses and transportation costs.

Uploaded by

Deepak Yadav
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Warehouse

&
Inventory
Manageme
nt
Group –
Deepak Yadav 2020MBA124
Shreem Kohli 2020MBA161
Sanka Manoj Chandra 2020MBA
Srinath S 2020MBA
Why did Calleja Group centralize its deliveries in a distribution center? What were the
reasons behind its outsourcing decision? And for selecting a foreign logistics operator?

When Calleja Group centralized its deliveries in a distribution center it was able to not only save expenses in
administrative and logistics costs but also redirect focus on enhanced product handling, therefore, reducing
merchandise damage.

Savings were carried over to the vendors as well making operations smoother and volume-based
Large competitors like Walmart brought their operational efficiency through Retail linked data management
systems and centralized DCs. The outsourcing decision would enable Calleja Group to become more
competitive.

A foreign logistics operator that has excelled in operations but also has a presence in multiple cities. This can
help the Calleja Group scale up and expand while focusing on product quality, customer service, and margins.
What did Zablah group gain from consolidating its distribution companies’ logistics
operations in OPLS?

Zablah group went for vertical Integration when they consolidated


its logistics distribution with OPLS which will, in turn, help them
gain control over the operational processes of the company. Some
of the advantages of this vertical integration are:

• Increased control over the whole operational process


• Financially beneficial in long run due to reduction in logistics
cost
• Covering six major areas: Operations, engineering, quality,
purchasing, marketing, back office, and fleet
• Lower cost through economies of scale
• Gaining resources that the Zablah group did not have
beforehand
What improvement opportunities for OPLS did the gap analysis identify? Which should
Mr. Zablah use to prioritize? Why?
What criteria should Mr. Zablah use in selecting a warehouse for the Christmas
operation? 
How will the decision affect OPLS operations?

Factors to consider for picking a warehouse:

• Enough space with zones/silos to accommodate all pallets, which are growing with the growing number
of stores and categories
 
• Acceptable and flexible lease terms, if the minimum lease duration is higher than required then it will
carry a higher cost

• Warehouse built structure should not possess any complication during the Entry, storage, and exit of
goods

• Cost should be fair and should not increase the rental or Maintenance cost significantly

• Location, farther the location is to the destination, the more will be the transportation cost
THANK YOU

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