The Reduction of Logistical Costs in the Supply Chain in the Tervolina Company

Costs are there to be reduced. This paper will thoroughly break down the supply chain of a footwear company in order to minimize logistic costs and shorten the delivery time. The company is currently hindered by factors that decrease its efficiency. The company purchases products from numerous countries such as China, Brazil, Turkey and Italy. Each country creates problematic situations in terms of logistics. The issues include a lack of sufficient transport, storage mishaps, complications with documents, etc. The goal of this project is to suggest solutions to existing logistical problems and establish a novel system of cooperation with the aforementioned countries, specifically China. The proposed system will include innovations in inventory management, demand forecast models and warehousing. The research will be carried out using quantitative and qualitative methods. In terms of qualitative analysis, a series of interviews will be conducted with logistical executives that actively request shipments from China, the executives will be asked to explain how he or she had previously addressed similar issues. The goal will be to discover potential obstacles that stood in the way when implementing local warehousing in China. In addition, articles written on the topic of Inventory Management and Forecast Models will be perused in order to see what concepts are actively discussed by academia in that regard and the methods that are proposed for smoothing demand volatility as well as supply and production failures. In terms of quantitative research, key performance indicators of companies similar to Tervolina will be studied and evaluated for successful implementation.