WE PROVIDE W & D SERVICEs Distribution network. WE PROVIDE W & D SERVICEs sell more than 3000 products in various packaging and labelling. The product is produced at more than 20 production facilities in South Africa (SA) and are distributed through WE PROVIDE W & D SERVICE distribution centres to field warehouses and then to 500 organisations and dealers. Still, managing finished goods is a considerable problem. Customer requires the product to be delivered in a short space of time, and manufacturing organisation lead-time is quite extensive. To add the size and complication of the distribution facility, create a complex in managing the distribution facility at WE PROVIDE W & D SERVICE. Management at WE PROVIDE W & D SERVICE realise that the organisations structure does not align with the supply chain management plan. WE PROVIDE W & D SERVICE is to introduce an integrated logistics system, which integrates planning, purchasing, manufacturing, marketing, and distribution activities. WE PROVIDE W & D SERVICE will need information on the level of individual stock-keeping unit (SKU) production through material requirement planning (MRP) and information on how many products to deploy and where to deploy these products. This will require WE PROVIDE W & D SERVICE to have the warehouse management system (WMS) and distribution requirement planning (DRP) system. Improvement in sharing of information will lead to improved product forecasting. WE PROVIDE W & D SERVICE is utilising public warehouses in most cases. However, management of the organisation decided to build warehouses close to the plant to support 20 production facilities in South Africa (SA). WE PROVIDE W & D SERVICE own trucks, however, during high customer demand, the organisation also opt for the service of carriers. Management at WE PROVIDE W & D SERVICE believes having plenty of carriers to keep products moving in their supply chain is safer.

QUESTION 3

3.1 Give examples of effective planning in the case study and justify your answer. (1 mark theory, 1 marks application) [3]

3.2 If WE PROVIDE W & D SERVICEs Distribution network decides to build more facilities, elaborate on the feasibility assessment that WE PROVIDE W & D SERVICEs Distribution Network should conduct when building more facilities. (3 marks theory, 3 marks application) [6]

3.3 Looking at the logistics operation processes at WE PROVIDE W & D SERVICEs Distribution network, what will be the primary function of warehouse management systems (WMS)? (2 marks theory, 4 marks application)