JAN/FEB
MEMO
1.1The appropriate logistics structure that Takealot.com could implement
to prevent logistical failures is the flexible structure.
Flexible operations are pre planned contingency strategies to prevent
logistical failures. A typical emergency occurs when an assigned shipping
facility is out of stock or for some other reason cannot complete a customer’s
, order. For example, a Takealot may be out of an item with no replenishment
inventory scheduled to arrive until after the customer’s specified order delivery
date.
To prevent back- ordering or delivery cancellation, a contingency operating
policy may assign the total order, or at least those items not available, for
shipment from an alternative warehouse for example there are three main
large warehouses for Takealot so if an item is not available at Cape town
warehouse, it may be send from a Johannesburg warehouse. The use of
flexible operations is typically based on the importance of meeting the needs
of a specific customer or the critical nature of the product being ordered.
A flexible logistics capability that has gained popularity as a result of improved
communications involves procedures for serving predetermined situations as
part of the basic logistical strategy. Takealot has a well-structured online
ordering site, warehouses, distribution centres and a delivery structure.
A strategy that utilizes flexible operations is common practice in four different
situations which are:
First, the customer designated delivery facility might be near a point of equal
logistics cost or equal delivery time from two different logistics facilities.
Customers located at such points offer the supplying firm an opportunity to
fully utilize available inventory and logistical capacity. Orders can be serviced
from the facility having the best inventory position or the available
transportation capacity to achieve timely delivery. The Takealot delivery team
delivers to more South African homes than any other courier company in the
country.
A second situation justifying flexible distribution is when the size of a
customer’s order creates an opportunity to improve logistical efficiency if
serviced through an alternative channel arrangement.Around 80% of the
ordered items are already available on the warehouse shelves; the rest
are ordered and bought from distributors as the orders come in. Through the
recent expansion and upgrade, the orders have been streamlined to ensure a
seamless process takes place between the DC’s receiving depot, storage of
items on shelves, boxing and packaging, and classifying orders according to
their delivery destination
A third type of flexible operation may result from a selective inventory stocking
strategy.Around 80% of the ordered items are already available on the
warehouse shelves; the rest are ordered and bought from distributors as the
orders come in The cost and risk associated with stocking inventory require
careful analysis to determine which items and how much to place in each
warehouse.In general-merchandise retailing, a store or distribution center
located in a small community may stock only a limited or restricted version of
a firm’s total line. When customers desire non stocked items, orders must be
satisfied from an alternative facility.
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