Analyzing Logistics Costs

One of the challenges in managing the supply chain is the integration work of the company merger. In this allocation, we analyze the logistics costs in this case. In addition, we will discuss challenges in the consolidated system.

Please check attached case 6 "Western Pharmaceuticals (A)" and case 7 "Western Pharmaceuticals (B)".

Fill in the paper supporting the appendix on pages 3 and 4 (not included in the reference and cover page) and answer questions 1, 2, and 3. To answer these questions, please use the Excel that is referenced in the case. Data In addition, Western Pharmaceuticals and Atlantic Medical use two different ERP systems. In addition, discuss management challenges that combine the systems fields of both companies, as well as opportunities for innovation and growth. For example, how does management use this integration to upgrade technology and add new competitive features? In your thesis, please be sure.

Written communication: Written communication is error-free and has an adverse effect on the entire information.

APA format: Your paper should be formatted according to the current APA style and format guidelines

Logistics: Singapore has strong, cost-effective cross-border e-commerce logistics with geographically superior location and high port efficiency. The cost and production capacity of Malaysian and Thai logistics companies is high, but we need to deal with that country's last mile issue. In the Philippines and Vietnam there is a network of small logistics companies in the Metro area, but transportation to rural areas may be difficult. Indonesia consists of more than 15K islands, and only 53% of the population lives in cities. These islands have many problems on logistics.

In India, logistics of e-commerce accounts for 10% of AOV (average order price). This is about 2 dollars to order. The equivalent logistics cost per order in China is $ 2.2, but AOV will be three times higher. Due to the specific challenges the market faces, delivery costs in India are high. The industry's profitability is high, the industry average is 20-25%, and the logistics return cost is 1.5 times the long-term logistics cost. Nearly 50% of orders come from cash on delivery (cash on delivery), and cash on delivery is considered to be highly correlated with returns. In order to maintain the industry, it is necessary to reduce logistics cost to 6 to 7% of AOV.

One of the biggest reasons for delivery failure is CoD. As inspection and replenishment of products are required, reverse logistics due to CoD's failure will seriously damage inventory costs. Because of this reduction, the redistribution rate drops dramatically, so companies lower the logistics costs. India has an Internet user base behind China, but only 14% of Internet users are online in India. Meanwhile, Brazil and Russia are 30% to 35%, and China is 55%. Over the next few years, it is estimated that 40 million potential consumers in the 19-24 age group will spend time and money online. This trend is rapidly working with the e-commerce retail industry to promote the development of the logistics industry.