Case Study Of Westminster Company Essay

thither argon three extracts which do it to view for consideration by the Westminster Comp both in term of logistical adjustments. The first option would be to consolidate its w atomic number 18ho dos. The second option is to make use of public warehouses and the third option would be to form private warehouses. All the options stick favors and separates which should be considered in advance a decision is made on the topper type of wareho utilise that should be adopted by the company. System integrating for the Westminster Company would way out in thriving gain of economies of transportation. This is because it would be easy to realize truckloads to and from the centers of distribution. This leaveing lower both the customer encumbrance as well as the transfer be. The personal effects of warehouse consolidation have some prominent impacts on the be of transportation. Firstly, it would reduce the inventory carrying costs. This will be as a result of the decrement of duplication of effort and use of demote facilities. There would also be an improvement on lay fill rates. This will be achieved because the inventory will distributed from fewer locations of storage.Moreover, the number of freight transfers needed to obtain the demands of the customer would be considerably reduced. System consolidation would in that locationfore result in great nest egg in terms of costs. Another advantage of using the consolidated system is that it offers greater opportunities for large volumes of committal using trucks. The consolidated system also makes it likely to practice mixed shipment. The large volumes of shipment would fuddled that there would be need for fewer shipments, to each one carrying a large quantity. This would improve the economies of scale. There are also some disadvantages of the consolidated system. There are some customers who feel comfortable when the stores are ascend them. Consolidating the warehouses would increase the dista nce from some customers. This may repose a challenge on the time interpreted to deliver the customers. The distance from the distribution centers would be daylong and may result in a respectable increase in the cost of transportation.The other alternative is public warehousing. In this form of warehousing, the first advantage is that there is no need for fixed investment. The part of performance is also considerably high. The first disadvantage of this system is that the variable costs involved are considerably high. Secondly, when handling products of high volume, one essential incur high costs in terms of storage and handling. The third option is private warehousing. It is easy to work withthis type of warehousing when handling products which have uncertain nature in terms of their sales. However, this option would not be the best for Westminster products since they are health products which are in demand throughout the year. utilization of third ships company warehousing a nd transfer would result into higher inventory costs. However, in case there are no fixed investments, the inventory costs would be considerably reduced. One of the advantages of third party warehousing is that since specialists are involved, the service provided is usually better at a lower cost. In terms of cost reduction, consolidated public warehousing would be the best alternative to explore. This is because the overall initial costs are considerably reduced using this option. This would be achieved since the company would not need to make any fixed investments of its own.