Case Study: Laarge Surma Cement

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Recommended: Role of logistics in customer service

For the case undertaken in this thesis work, the result we got according to the given options by the management of Lafarge Surma Cement Ltd. Indicates that, distributor storage with last mile delivery is the best choice of the distribution network. It is followed by retail storage with customer pick up and Manufacturer/Distributor storage with customer pickup. The selected network is tailored to match the characteristics of the product and the performance along with the needs of the customer. From the analysis, it is a suitable option for fast moving items for which some level of aggregation is beneficial. In this network, warehouse is much closer to the end customer and there is a requirement of high number of warehouses than other options. …show more content…

Most important part is that it is a justifiable option for bulky products for which the customer is willing to pay for home delivery. Home delivery of large bags of rice has proved quite successful in China. So, for bulky product like cement, it can also be a quite successful distribution network for Lafarge Surma Cement in Bangladesh. On the other hand, inventory cost in this network is quite higher than the other option because of its lack of aggregation. Facility cost is much lower for a network with retailer storage but it is much higher for either manufacturer storage or distributor storage with package carrier delivery because of the elimination of customer participation. Information infrastructure for last mile delivery is similar to that for distributor storage with package carrier delivery but it requires additional capability of scheduling deliveries. It has a fast response time than package carrier delivery. Many companies providing same-day delivery facility using this network whereas online grocers ensure next day delivery options for the end customer. Product variety in this option is lower compared to the distributor storage with carrier delivery. As LSC produces only two types of cement, it is should not be a big concern for their business strategy. If we focus on customer experience, it is probably the best distribution network among the

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