Company A uses a distribution center strategy to minimize transportation and fuel costs. It centralizes operations to reduce expenses. Company B packages goods for flat packing to reduce transportation and storage costs, sources materials near suppliers, and builds distribution centers near seaports. Company C uses a direct sales model with build-to-order and configure-to-order to eliminate inventory costs, cut delivery times, and maintain the latest technology. It provides various customer service options like online sales and next-day on-site repairs.

1. LOGISTIC STRATEGIES OF 3 COMPANIES
COMPANY A: SHENG SIONG
COMPANY B: IKEA
COMPANY C: DELL

3. Strategy 1: Distribution Centre
SUPPLIER 1
SUPPLIER 2
OUTLET 3
SUPPLIER 4
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OUTLET 2
SUPPLIER 3
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OUTLET 1
OUTLET 4
Minimize Transportation Cost and fuel costs.
Reduced operating expenses
Process larger quantities of goods
Centralized operations - Inventory, Warehousing and distribution all
under one roof
Reduced in labour cost
Centralize distribution centre to optimise inventory holding and lower
distribution costs

4. Strategy 2: Technology
Pick-to-Light Warehouse Management System
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Achieve zero error in goods handling
Reduce headcount
Productivity improvements of up to 25% to 50%
Paperless solution increases pick rates and accuracy
Reducing walk time
Minimized training time
Quick staff ramp-up to handle seasonal peaks

5. Management Information System
• Assist in controlling and replenish inventory levels
• Analysing operations aspects such as costs and human resource
requirements
• PDA and barcode scanners help to provide real-time updates of inventory
information on various store locations
• Identify fast and slow-moving products to minimize costs in maintaining
high inventory levels thus helping to allocate better space between
products hence achieving greater sales performance

6. Strategy 3: Transportation
Transport Management System
• Consolidation of goods from d/c to various outlets location
• Planned route to save fuel cost and time
• Dedicated truck fleet of 34 trucks to deliver goods from d/c to
stores
• Replenish the store shelves four times a day

8. Introduction of IKEA
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Founded in Sweden (1943): HQ in Nertherlands
Privately held , international home product
Specialized in affordable self-assembly
349 stores in 43 countries in January 2014

9. Strategy 1: Packaging
• Using flat packs :reduce costs in transportation , lowered storage
space and decreased transportation damage .
• Transportation goods where possible by rail and sea in large
quantity
• Utilizing fuel-saving techniques that allow to be cost-effective
and environmentally friendly.

10. Strategy 2: Facility location
• Sourcing materials close to the supply chain to reduce costs
• Building DC closer to seaports so that it can use more on ocean
and reduce transport on flight
• Delivering products directly from supplier to IKEA stores to cut
the handling cost , reduce road miles and lower the carbon
footprint

11. Strategy 3: Technology
( JDA ) Warehouse Management System
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Increased visibility in the sales patterns of the IKEA products
Improved forecast accuracy
Improved planner experience and productivity through exception-based
management
Enabled the consolidation of supplier base with a focus on low-cost countries
Increased overall supply chain visibility and efficiency

13. Introduction of DELL
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Founded by Michael Dell in 1984
Company headquartered in Round Rock, Texas, U.S.A.
Third largest PC vendor in the world after HP and Lenovo
With more than 103,300 employees today
It’s revenue around US$63.07 billion in 2012

14. Strategy 1: Technology
• Integrated Dell desktop (IDD) system connects directly to
customer

15. Strategy 2: Inventory Control
Direct sales model
• Dell sells product directly to customers. From suppliers to final customer thus
Dell does not carry any inventory
• Cutting out middle man
• Cut delivery time to meet the needs of the consumer
Build to order
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Dell manufactures a product only after customer places a order
Configure-To-Order program allows c
Does not need to maintain additional inventory that will incur in inventory cost
Eliminate risks of carrying large finished goods inventories
Build direct customer relationship
Maintain latest technology
Just-in-time manufacturing

16. Strategy 3: Customer Service
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Selling the full product range online
Customer can customize the product they needed
Provided free on-site service for a year after sale
Contracted with local service providers to handle customer
requests for repairs
• On-site service was provided on a next-day basis
• Technical support via a toll-free number, fax and e-mail
• 1300 technical support personnel accessible by phone 24 hours a
day