QUESTION 1

Case Study: Road to Centralization

The owners of Fuchsia Clothing Store and Stanleys Auto Parts merged into a department and auto store called Ferdinand Distributors Ltd in December 2021. As a result of the merger, they now own 15 large distribution centers and 45 smaller storage outlets across the United States of America and Canada (only 3 storage outlets in Toronto, Canada). The company must ensure uninterrupted supply of over one hundred thousand (100,000) different products to more than 500 department auto stores in the merchandise division. Currently, Ferdinand Distributors Ltd supplies 50 department stores across Canada (5 in each of the ten provinces), there are four hundred department stores spanning: New York, New Jersey, North and South Carolina, Florida, Kentucky, Virginia, Maryland, Rhode Island, Ohio and Tennessee.

Their products are mostly imported from the United Kingdom and Venezuela.

Before they merged, the company's logistics function was highly decentralized; for this reason, it was very difficult to locate the origin of a logistical problem. They are now considering centralizing their operations by renting or purchasing a warehouse as their official headquarters and distribution center, so that it acts as a focal point for all the company's logistics-related problems.

You are hired as their logistics consultant to provide expert advice on the centralization of their logistics operation. Suggest the best course of action for the:

1) Identify the impact of logistics on the environment and propose ways in which the organization can implement sustainable supply chain ethics to improve Supply Chain Sustainability.