Case Study Of Westminster Company Essay

thither ar three alternatives which come to view for musing by the Westminster companionship in foothold of logistical adjustments. The first alternative would be to consolidate its wargonhouses. The second choice is to check use of humanity wargonhouses and the third election would be to absorb private w behouses. totally the options have improvements and disadvantages which should be considered before a decision is made on the outmatch part of depot that should be take by the telephoner. strategy consolidation for the Westminster Compevery would result in easy amass of economies of transportation. This is because it would be easy to gather truckloads to and from the centers of distribution. This allow lower both the customer cargo as well as the take away be. The effects of warehouse consolidation have some great impacts on the costs of transportation. Firstly, it would reduce the list carrying costs. This pass on be as a result of the simplification of dup lication of effort and use of separate facilities. There would as well be an usefulness on order fill rates. This will be achieved because the inventory will distributed from few locations of storage.Moreover, the number of freight transfers needed to touch on the implys of the customer would be intimately reduced. System consolidation would therefore result in great savings in name of costs. Another advantage of using the unite system is that it offers greater opportunities for huge volumes of lading using trucks. The consolidated system also makes it possible to practice mixed shipment. The large volumes of shipment would mean that there would be need for fewer shipments, each carrying a large quantity. This would improve the economies of scale. There are also some disadvantages of the consolidated system. There are some customers who feel cozy when the stores are near them. Consolidating the warehouses would increase the length from some customers. This may pose a ch allenge on the time interpreted to deliver the customers. The distance from the distribution centers would be longer and may result in a considerable increase in the cost of transportation.The other alternative is public warehousing. In this form of warehousing, the first advantage is that there is no need for restore investment. The quality of performance is also comfortably high. The first disadvantage of this system is that the enigmatical costs involved are well high. Secondly, when handling products of high volume, one mustiness incur high costs in scathe of storage and handling. The third option is private warehousing. It is easy to work with this type of warehousing when handling products which have uncertain nature in terms of their sales. However, this option would not be the best for Westminster products since they are health products which are in demand throughout the year.Use of third caller warehousing and transfer would result into higher(prenominal) invent ory costs. However, in case there are no fixed investments, the inventory costs would be considerably reduced. iodin of the advantages of third party warehousing is that since specialists are involved, the service provided is usually better at a lower cost. In terms of cost reduction, consolidated public warehousing would be the best alternative to explore. This is because the general initial costs are considerably reduced using this option. This would be achieved since the company would not need to make any fixed investments of its own.