During the past six months, Mr. Seth Koranteng, Director of Transport for Atiwaa Metals and Electronic…

During the past six months, Mr. Seth Koranteng, Director of
Transport for Atiwaa Metals and Electronic Group Limited (AMEG), a
company with two groups, Aluminum and Coper mining company and
Electronic Manufacturing and Retailing with operations in eight
regions, has been soliciting bids for the movement of tool alloy
used for manufacturing tools and related products. Tonys goal is
to reduce the shipping cost of this high-value alloy as well as
reduce issues of pilfering. The supplier is located in Atiwaa, west
Akim, 350 miles from Accra, service center and the project site is
in Mankesim (Central Region). Steel haulers, Inc (SHI), a regional
contract motor carrier, currently moves the tools steel under
contract. Steal hauler`s currents rate are incremental:
GHC2.80/cwt for shipments weighing less than 150 cwt., GHC2.60/cw.
for shipment between 150 and 250 cwt, GHC2.40/cwt. for shipment
between 250 and 400 cwt, and

GHC2.25/cwt for shipment weights in excess of 400 cwt up to a
maximum of 450 cwt. TT Brothers submitted a rate of GHC2.25/cwt for
weights in excess of 400 cwt two hours before the submission
deadline for the carrier proposals. One issue bordering AMEG is the
rate of pilfering as well as the security issues between Atiwaa and
Mankesim. Management has decided to consider using a third party
logistics partner to deal with its transport needs in the next four
years in a long term basis but at the moment will have to settle
with any of the above transport proposals. AMEGs material
requirement planning has been associated with a lot of challenges
as well as its distribution across the regions.

AMEG has also taken several initiatives with respect to waste
management. Many of its retailstores offer customers the facility
to return and sort waste for recycling. The group has also started
investigating the opportunities to facilitate full recyclability of
different materials used in its products. In order to reduce its
water footprint, the group ensures that most of its suppliers,
primarily based in South Asia, make use of biological water
treatment plants. For this, the group provides its suppliers with
specialists and external consultants, who, in turn, assist the
suppliers to upgrade their water treatment plants and also provide
technical know-how. The groups social responsibility initiatives
cover three key areas: employees, suppliers, and communities. AMEG
has taken up several measures to ensure the wellbeing of these
groups.

According to the 26th Januarys 2020 of the Crusading Guide report,
the AMEG brand has a very powerful connection with consumers across
the nation. The AMEG brand ranks fourth overall behind three
technology firms, G3, Ascension and Samsung, in the report which
assesses brands based their perception as Visionary, Inspiring,
Bold and Exciting (VIBE). The research involves more than 62,000
respondents in 10 countries, covering 160 brands and 15
sectors.

In spite of high raw material prices, expensive transport and
inflation, the group reduced its average prices by 1% in 2016. Over
the past decade, AMEG has continued to lower prices to customers.
The groups low-cost proposition is central to its product offering
and is also a key driver for customers. Low prices have enabled
AMEG to hold a strong market presence which, in turn, gives the
group considerable bargaining power and an advantage in terms of
higher customer recall. In order to achieve its low-cost strategy,
AMEG relies on a combination of innovative design, cost reduction
initiatives, a global supply chain strategy, and close
relationships with customers and suppliers. Another strategy
adopted by AMEG is to offer unique services that its competitors do
not possess especially with the management of retuned
logistics.

Thus, shopping experience facilitated through improved range,
price, ambience, layout and facilities could be one such
differentiating factor for specialists which can give them a
competitive edge. According to a survey carried out by a leading
research firm, consumers have scored AMEG high on loyalty, based on
improved range, price, ambience, layout, and facilities. This
indicates the importance of these factors to consumers when making
shopping decisions. Improved price perception and shopping
experience will increase footfall which gives scope for increasing
the customer base. AMEGs clear superior shopping experience and
price range enables it to differentiate itself from other
competitors and also drive loyalty in a market where the customer
is more fickle than ever.

Case Question

Answer all Questions

a. As the Consultants of AMEG, advise management on the factors to
consider when selecting the appropriate mode of
transport
(40marks)

b. Outline the integrated logistics functions of AMEG, suggesting
the best ways of dealing with the issues of AMEGs logistics
challenges.
(30marks)

c. One of the major challenges of AMEG retail logistics is the
increase in the return of the electronic products. Consumers have
become so agile that major reasons they often give is they prefer
to deal in the latest design. Your company, AMEG, dealing in the
variety of house hold equipment, has offered you an appointment as
the Senior Logistics Officer to deal with its reverse logistics
situation. Identify the key element of reverse logistics in the
company and outline an effective management systems to deal with
the m