Introduction
Champion X (CX) is an oilfield production company that works on the Western coast of Canada and is responsible for various services in this field, including distribution, selling, and manufacturing. The work of Champion X (CX) is vital for gas and oil producers because it ensures adequate oil circulation in tanks. The financial impact of these processes is critical for the functioning of the industry in general because of Champion X (CX). For this reason, the company uses integrated supply chain partners with the carrier delivery and the organization’s fleet.
Most company expenses are connected with logistics and the tank ecosystem in general. Other spending includes the payment for the employees participating in all projects Champion X (CX) starts. Therefore, logistics management is essential in analyzing the company’s functioning, and its financial impact is the most significant of all expenses.
Uncovered Problems
One of the problems uncovered after the case analysis is the disposal of empty tanks, which often needs to be considered by all sides. A container is typically added to the customer’s inventory when ordered and stored until needed. The tote is usually staged in the purchaser’s transportation area when it is empty. The following can be an issue since once the tote arrives at the departing customer dock, the operations staff at the customer site, who utilize the product, lose awareness about it. A sales representative will stop by occasionally to check if any unfilled containers are left around that require attention, or the customer shipping section will call it in for delivery. Finally, the driver can check the tank and request assistance.
It is possible to create a visual aid describing the potential causes of empty tank disposal to understand the reasons for this and find solutions. For instance, Table 1 illustrates the grounds of the issue, determines the actions required to solve it, assigns the person responsible for completing the task, and describes the results. It is essential to understand who is in charge of the problem of empty tanks because, at this moment, the effects depend on the employees who occasionally see unused containers. This approach to solving organizational issues in logistics management is not structural, and it does not suppose that the matter will be eliminated.
Table 1. Causes and Solutions.
Organizational Design Concerns
Oil producers constitute almost all of the customers in the industry, and they are typically used to this time of organizational design problems. However, these problems make the company’s work flawed, sometimes leading to financial damage. Distributions are made to the client’s location, where containers are left until they are empty. Then, the customer service center should pick them up, and the team in charge of transportation compiles the required documents for retrieval. Every container has a distinct barcode and identification number, and SAP should be utilized to track movements.
Factual matters, however, show substantial variations throughout the system. More than uncounted 650 tanks mysteriously appeared last year, and the company had to pay for them. Sometimes, container shortages impact operations and can cause delays in order delivery. However, when this occurs, the group typically mobilizes and quickly picks up orders. It is vital to address this organizational concern and to introduce a system of additional checks to avoid these problems.
Current Data Set Analysis and Discussion
Existing arrangements give a combined cost for chemicals, as is typical in this industry. In other words, the fee of the chemical container covers the tote’s employment and several related amenities. Substances sold in containers at an average cost of $15 per gallon of merchandise may account for 50% of the revenue. The remainder of each customer’s earnings comes from other sources like machinery, extraordinary profits, bulk purchases, and analytical services. Most packaged products require onsite inventories to include at least 30 days’ worth of supply, at times much more, as they are essential to the customer’s business. This information shows that the cost of the product consists of several critical components and expanses for logistics and management.
It allows the assumption that the logistics costs can be slightly increased to ensure the client receives the product they ordered on time without significant problems. At the same time, this solution is controversial from the financial point of view of the client, who needs to pay more in this case.
From the customer’s perspective, the problems in the stage of shipping oil do not necessarily occur. As a result, the product is delivered smoothly in most cases, so the customer is not motivated to pay more for the logistic services that usually work. From the buyer’s side, it is more rational to order oil totes significantly in advance to ensure some time is left until the situation becomes critical. It will decrease the number of problems connected with the occasional inability of the company to deliver the product on the initial terms.
Stratification Evaluation
The stratification of labor and job opportunities in logistics are related. Logistic processes contain extensive monitoring and require control measures. These are essential for generating value by supplying goods to commercial, private, and business clients at the precise moment that suits them (Dellanna, 2019). The Fordist system, which produced products in large quantities and then moved them through the supply chain to sellers, has been replaced by a post-Fordist system, where consumer demand directly influences production (Dellanna, 2019). The example of Champion X (CX) illustrates the post-Fordist approach because the number of oil totes is determined by customers’ demand (Dellanna, 2019). Without the order from the client’s side, the company will not deliver containers due to the buyer’s regulated need for this product and the logistics expenses Champion X (CX) experiences.
Conclusion
It is possible to assume that the problems in organizational management discussed in the case study are determined by this supply on the client’s demand. Controversy occurs when the company cannot deliver the totes in the required time and another party cannot proceed with the work. Without the significant degree of stratification and the use of the post-Fordist approach to logistics, the situation would be different. Champion X (CX) would deliver the containers in advance, and the oil-producing and selling companies will already have a certain quantity of totes in their possession in case of emergency.
In general, it is possible to evaluate the logistics management of Champion X (CX) as successful because the company manages its processes adequately. Simultaneously, it should address several organizational concerns to improve its business performance.
References
Dellanna, L. (2019). Best practices for operational excellence: Simple procedures that work for manufacturing and logistics. Independently Published.