Supply Chain and Logistic is a Critical Component of Any Organizations

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Supply chain and logistic is a critical component of any organizations. Warehouse managers are tasked with the role of ensuring that commodities are well-stored, hazard assessment is conducted in the warehouses on a regular basis and that proper records are kept about the products that are under storage. In this paper, an assessment is conducted on the description of the problem on the supply chain case study, solutions to be adopted from Tim's perspective, solutions from Virgil and Big-Jim's perspective and a conclusion on the appropriate measure to be embraced by the firm.

Description of the situation and the problem

Warehouse cleanliness is an integral aspect for any organization. Supply chain and warehouse managers have to ensure that product storage is done in a manner that meets international safety standards (Kildow 45). The Continental Mutual is sending its representatives to perform a safety inspection on an organization. Tim Brown, the operational manager is well-aware that the warehouse is in good shape but there are cylinders that were brought by the maintenance department. Currently, there are no shipping boxes with fitted safety brackets that can be used for the storage of the cylinders. The organization is left with the option of importing regular boxes that are not marked and packaged correctly. Ideally, going for regular boxes may not be appropriate and will put the company at odds with the insurance carrier. Consequently, this implies that the combustible and hazardous material will be poorly stored in the warehouses and this may not go down well with the insurance carrier. The surprise visit by the representatives of Continental Mutual puts Tim, Virgil, and Big-Jim on a dilemma about the approach that they need to embrace in dealing with the issue at hand.

Solution from Tim's perspective

As the operational manager, Tim needs to think about the most suitable solution for addressing the problem at hand. If I were Tim, I would have requested Virgil to have the cylinders transferred from the warehouse to one of the firm's stores where the insurance carrier representatives may not think about access. The inspection will primarily focus on the warehouse and the results will be impressive. Tim also needs to focus on long-lasting solutions to deal with the issue once the inspection is completed. He may, for instance, propose to the finance and accounting department to allocate funds that will be used in the construction of an extra warehouse for hazardous and combustible products such as the gas cylinders (Blanchard 76).

Solution from Virgil's perspective

Virgil should have ordered for the shipping of boxes fitted with safety brackets on time. The boxes would have been used for the proper storage of the gas cylinders. However, with the planned visit by the Continental Mutual representatives, Virgil will have no other option but to relocate the combustible and hazardous gas cylinders to an unsuspecting storage facility. After the inspection, the warehouse manager may go ahead with the plans of ordering for safety packages boxes for proper storage of the gas cylinders (Bolstorff and Rosenbaum 83). Virgil may also work in collaboration with Tim in pushing for the construction of a warehouse specifically meant for the gas cylinders. Once the proposal becomes a reality, the organization will not have to face storage issues in the future.

Big-Jim Peterson's perspective

The issue of warehouse cleaning puts Virgil, Tim, and Big-Jim in an awkward position bearing that the representatives from the insurance carriers want to come and conduct an inspection. Any negative report from the inspectors will be an indication that employees such as Big-Jim have are failing in running the supply chain and logistics department. As the vice president of operations, Big-Jim has to work in collaboration with Tim in brainstorming a solution that will be appropriate for the company. The first measure that Big-Jim will have to propose will entail moving the hazardous material (gas cylinders) from the warehouses to another storage room within the firm's perimeter (Waters and Rinsler 12).


Effective supply chain management is essential for an organization due to various reasons. Firstly, it contributes to an improvement in a firm's ability to deliver products and services to consumers on time. Subsequently, this increases the satisfaction levels of the customers and their loyalty to the firm. Moreover, it eliminates hazards and damages on products and this in return boosts the brand image of a company. Based on the case study, it is evident that the presence of gas cylinders in the warehouses is against the standards of the insurance company. The operational manager, the vice president of operations and the warehouse manager need to remove the gas cylinders and lock them away in a storage facility where the insurance representatives will not be able to access. Once the inspection is completed, the warehouse manager needs to implement measures including the purchase of safety package boxes that will be critical in ensuring that warehouse is properly arranged and that the gas cylinders are stored in accordance with the safety standards.

Work Cited

Blanchard, David. Supply Chain Management Best Practices. Hoboken, N.J.: Wiley, 2013. Print.

Bolstorff, Peter, and Robert Rosenbaum. Supply Chain Excellence. New York: American Management Association, 2012. Print.

Kildow, Betty A. A Supply Chain Management Guide To Business Continuity. New York: American Management Association, 2011. Print.

Waters, C. D. J, and Stephen Rinsler. Global Logistics. London: Kogan Page, 2014. Print.

September 04, 2023

Business Economics

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Company Organization

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