Economic Influences On Logistics - Business Case Study 2023
Economic Influences On Logistics - Business Case Study 2023
Economic Influences On Logistics - Business Case Study 2023
on Logistics
Business Case Assignments
Throughout Economic Influences on Logistics, you will submit three critical
responses from the viewpoint of working for a subject company. This
organization and the details of the case are fictitious but have been design to
mimic industry and supplement your learnings by demonstrating your ability to
think critically about situations and apply your course learnings.
Canada’s Logistics
Association
Business Case
The Company: Deal’s Choice Imports
Dealer’s Choice Imports (DCI) is a small to medium size Canadian firm based out of
Mississauga, Ontario. The company was founded in 1999 and imports a variety of
products from all over the world to serve the Ontario market. The company currently
leases a 500,000 square foot warehouse with the option to expand to 1,000,000 square
feet. Examples of products currently imported include textiles and apparel, low to
medium value electronics, cookware such as pots and pans, and small appliances. The
company avoids importing perishable or fragile goods like glass or ceramic due to the
risk of spoilage and damage. The owners of the company favor a growth strategy and are
currently looking at opportunities to double their current sales of $30 million within 3
years. DCI currently import products from China however due to the recent port issues
off the west coast and the resulting supply chain disruptions, the company is looking
at alternative countries to import from. To help increase sales, the company is also
looking at expanding into the Quebec market and exporting to northeast USA. Both can
be served from the Mississauga warehouse or alternatively, from a new warehouse in
Montreal.
Your Role:
You have recently been promoted to Director of Operations, however as it is a smaller
company, part of your role is business development (You have been at the company
for 2 years). You have been in the transportation industry for ten years and have
your CCLP designation. Your responsibilities include warehousing, selecting, and
coordinating work with 3PLs, transportation, and inventory management.
The Market:
Due to the rising inflation occurring after the COVID pandemic, there has been a
recent increase in demand for low-cost consumer products. Research conducted
in the spring of 2022 determined that there is a significant opportunity to increase
sales by entering the Quebec and the north-eastern US markets.
There are currently two options available to DCI for increasing their import
volumes to distribute to Quebec and northeastern US:
Option #1
Increase the import volumes with the existing suppliers in China, ship the product
intermodally from China to Vancouver and then by rail to a distribution center in
Mississauga, Ontario, where the product will be unloaded, stored, and distributed
to Ontario, Quebec, and the northeastern US. As mentioned above, you can choose
whether to service the new markets from the existing Mississauga location or open a
new warehouse in Montreal to serve the new markets. The suppliers in China can meet
the additional volumes.
Option #2
As the Director of Operations, your task is to choose another country to import the
new and existing products from. You will conduct some initial research on that country
to ensure that it is a suitable region to source from. Once you’ve chosen a country, you
will complete a qualitative analysis, which will then be used by the finance department
to complete a quantitative analysis on both options. As mentioned above, you can
choose whether to service the new markets from the existing Mississauga location or
open a new warehouse in Montreal to serve the new markets.
In this initial phase of researching the project, you have been tasked with completing a
qualitative analysis, which will then be used by the financial department to complete a
quantitative analysis on both options.