In this assessment you will discuss the driver shortage affecting the logistics industry and the inventory shortages in retail outlets. The Covid-19 pandemic has been cited as a major cause although some commentators point to the effects of Brexit as a major cause for shortages. Meanwhile, industry experts suggest that JIT is no longer effective for the current business environment. “Companies traditionally focused on optimizing inventory, leveraging offshore sourcing and just-in-time processes to reduce costs. Not anymore,” believes Erik Caldwell, Divisional Chief Operations Officer, XPO Logistics – Supply Chain (Americas & Asia Pacific). “COVID-19 disruptions made it difficult for them to manage their supply chains.”
This is a multi-faceted problem; however, you will take on the role of a Transport manager in a Logistics company for this assessment. Your task is to write a report outlining logistics solutions that mitigate the driver shortage. You will investigate resource utilisation that goes beyond recruitment of more drivers, for example, but not limited to collaboration with competitors, and use of supporting technology. Your goal is to service your retail clients and create solutions that eliminate increasing inventory stock outs. Finally, you will critique the comments made by Erik Caldwell regarding JIT. Is JIT no longer a fit for the current business environment?
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