Faced by the Holt Renews In Logistics are mostly due to inefficient supply chain and can be classified into the following 1 . Most of the time people in logistics department were on the phone so as to confirm the order and also readjust previous orders With the suppliers 2. Also the Staff at Logistics had to search for merchandise whenever stores managers called 3. They had to continuously follow up on orders with supplier and also enquire about the status of order with the transportation service provider 4. Orders from suppliers were received unknowingly due to which there was chaos and delays 5.
Also nobody knew what was the order they were receiving and how much should be the quantity and what should be quality of the good. 6. There was no space available in the Distribution center 7. The Movement of goods from DC to Stores is one of the big issues NAS 5. Yes they should build a mezzanine because 1. They will be able to consolidate all the operations into one Distribution center. 2. Less staff will be required to manage and also costs will decrease 3. Tony can concentrate more on the consolidated distribution center 4.
Even though there is no space available in Main Distribution Center that is only due o the inefficient logistics due to which most of the goods remain at the Distribution Center and cause stock out in Stores. As a result after streamlining the supply chain is required rather than a secondary distribution center and this will in turn reduce the inventory in the distribution center.