Strategies For Enhancing Service Quality And Cost Competitiveness: A Critical Evaluation Of Riverwood Integrated Logistics

Problem Statement

This report provides the critical evaluation of the problems of Riverwood Integrated Logistics Solutions which have been already identified in the previous section of the project. This is one of the most reputed logistic management companies whose home country is situated in Singapore (Riverwood.com.sg 2018). Besides that, their primary activities are manufacturing and supply chain optimisation, product realisation as well as operational management. From the discussions of Bennett and Lemoine (2014), this has been identified that recently the firm has faced some problems. One significant fact must be mentioned in this context that a company cannot survive in this competitive market unless it takes some strategies in order to overcome those difficulties. As a consequent, the main aim of this report is to provide some recommendations to those problems which the company has faced recently.

Apart from that, the study would also analyse how the management problems of the firm would be solved by those solutions. In other words, this report would evaluate whether the chosen approaches are useful in order to provide the best solutions to the Riverwood Solutions company. Following the literature of Bondarenko et al. (2017), it can be mentioned in this context that people always want the best services at the reasonable price in this period. As a result, every business organisation should upgrade their business so that they can retain their existing customers and attract new customers at the same time. This report would describe the research questions on the basis of the previous assessment and also conduct a literature review in order to understand the management challenges. The next section of the paper would demonstrate the advantage and disadvantages of the selected tool and also provide an alternative method in order to mitigate those weaknesses.

This section of the paper would represent the problems of the Riverwood Integrated Logistics Solutions from the management perspectives. Apart from that, the management challenges would be discussed in the form of the research question which is presented below.

Apart from the above question, this paper would also identify how the firm would keep themselves upgraded and able to meet all the requirements of their customers.  Moreover, the paper would discuss in what way, the company will gain the visibility as well as improve their productivity in order to compete with their rival companies. From the above discussion, this fact is clear that the profitability of the company has been reduced to a certain extent due to those difficulties. Chae et al. (2014) have mentioned in a research paper that logistics management is one of the most remunerative businesses in this recent period.

Literature Review of Contemporary Management

As a consequent, various large business organisations have come forward and invested a considerable amount of capital in this business. This, in turn, has increased the competition for the Riverwood Solutions as they have to provide the best services to the customers and has to keep the prices also. Apart from that, the primary job responsibilities of the logistics managers are to manage the storage, coordinate the transportation and deliver the goods to the customers. As discussed by Fernie and Sparks (2014),it is clear that the managers have to ensure that all the products are delivered to the customers within the proper time. Riverwood Solutions have already expanded their business in almost all countries all over the world and earned a reputation in their business. On the other hand, this fact is also true that they are facing some difficulties and severe competition from their rival companies. Gutierrez et al. (2015) have discussed the fact in a paper that this logistic management is a profitable business and the company should take this opportunity. It can be expected that the Riverwood Solutions would be able to mitigate their difficulties and earn a huge profit margin in the near future.

This part of the report would provide the review of the existing literature as well as theories which have been executed on this issue. In other words, all those theories would provide immense help to the investigator in order to identify the possible solutions to all those problems of the firm. From the discussions of Kim et al. (2015), the cost competitiveness occurs whenever a company sells its products or services at comparatively lower prices than its rival companies. It is nothing but a competitive strategy which is used by different business organizations in order to capture the significant portion of the market.

A different argument has been mentioned by Matsuno et al. (2016) who have stated that this policy would lead to the reduction in profit for the firms. Comparing these two different views, Riverwood Solutions should implement some strategies which may reduce their cost and increase their profit margin as well. For example, the company may mitigate their supply expenses, avoid time consuming procedures, use updated technologies and so on. All those strategies would help this logistic company to generate higher revenue while maintaining the cost competitiveness at the same time. From the discussions of Shatskaya et al. (2017), this problem has already occurred in the automobile industry, and the problem has been solved by this strategy.

Significance of the Tool: TOWS Matrix

As discussed by Szpitter and Sadkowska (2016), it is the responsibility of every business organisation to improve the quality of their customer service. Following those arguments, Riverwood Solutions should perform consistently and be transparent in their business. Apart from that, the company should analyse the feedback of their customers and try to identify their expectations. On the other hand, Utami and Lantu (2014) have emphasised on another issue which isthe training and development of the employees. They have mentioned that the logistic firms should train their employees so that they can make a proper communication with all the agents. In the recent period, the retailing industry has faced this problem and also recovered from the problem using this strategy (Waller and Fawcett 2014).

The report has also identified that the Riverwood Solutions has failed to keep them updated and as a consequent, they have been unable to fulfil all the requirements of the customers. From the literature of Zalengera et al. (2014), the firm should use the latest techniques which can make their performances upgraded. Besides that, the company may also recruit some experts for the purpose of research and development. If they find out some latest technologies and apply those techniques to the company, then their activities would be developed. As discussed by Feng and Kiely (2018), it may increase the cost of the company in the initial stage, but ultimately the company would be benefitted by this strategy.  Some of the IT (Information Technology) companies have faced this difficulty and used the latest technologies in order to get rid of this problem.

The firm has faced another problem in order to gain the visibility and understand the complicated situations of different regions as well.  As per the discussions of Ringsberg and Lumsden (2016), the Riverwood Solutions would recruit some experienced employees and make a separate department. The primary responsibilities of those employees would be to look after the complex circumstances and recommend possible solutions to those difficulties. A different argument has been raised by Ghobadian et al. (2016) who have discussed that all the logistic companies should build the stronger relationship with their employees. It would provide them immense help to generate the visibility and also create a brand image among the customers as well. Yanget al. (2015) have mentioned thatthis problem has been already faced by the fashion industry and they have used this visibility policy as well.

This section of the paper would illustrate the tool which has been used to identify the problems of the Riverwood Solutions. In order to execute the external analysis of the company, the study has chosen the TOWS matrix. As mentioned by Ringsberg and Lumsden (2016), this model investigates the external opportunities as well as threats of a company and also compares them with the weaknesses and strengths. The TOWS matrix of the Riverwood Solutions is discussed below with the help of table 1.

Table 1: TOWS Model

(Source: Prasad and Singh 2015)

The tool of TOWS analysis is recognized by many leading organizations for establishing an effective marketing strategy. Similarly, the tool has been applied within the Riverwood Integrated Logistics Solution Company for generating, comparing and selecting the best strategy to enhance the success growth (Ghobadian et al. 2016). Basically, TOWS is a tool for strategy generation and selection and it is often applied at the end of a planning process.

Strengths:

• Through the application of this tool a company is able to utilize its strengths for exploiting the present opportunities within a market. Additionally it also helps in mitigating weaknesses to exploit the opportunities.
• The developed strategy includes the internal development for merger, growth, acquisitions and joint ventures

Weaknesses:

• Like many other TOWS is a subjective model. It is only robust as the data which is included within the model.
• It requires others frameworks and model to support its strategic choices.

Alternative suggested tool:

This tool is also marketing planning model or a market growth matrix that suggests a business organization to grow by considering the markets in which it exists or entering. The output from this market matrix is classified into four categories for setting a direction to the business strategy. TOWS matrix fail to validate the developed marketing plan which is because this tool is helpful. Therefore this tool is highly advantageous for filing the disadvantages of TOWS matrix marketing strategy. These are market penetration, market development and product development and diversification (Waller and Fawcett, 2014). All these factors essentially help in securing dominance over growth markets as well as influence the innovation through research and development.

This section of the report would justify why this research approach is beneficial to solve the management problems which have been faced by the Riverwood Solutions. The TOWS model is one of the most significant models which have been used by different firms in analyzing their present situation. From the literature of Szpitter and Sadkowska (2016), it can be stated in this context that this tool would help to establish the linkage between the strengths and weaknesses of the firm with its opportunities and threats. The study has already identified that the company has faced a problem in fulfilling all the requirement of their customers. Apart from that, it has also been discussed in the paper that the firm has faced a difficulty in allocating the limited resources in several sectors. As discussed by Waller and Fawcett (2014), the alternative model would not only help to distribute the scarce resources but also identify the role of the supporting and related industries as well.

Sánchez et al. (2015) have mentioned the fact in a study that the government has a significant role in the growth and profitability of every company. This model has also incorporated the significance of the latest technologies which helps the firm to enhance their productivity. One fact must be mentioned in the context that the Riverwood Solutions should take the role of every government into consideration. More precisely, they have to consider the Singapore government (which is their home country) and the other nations (in which they are operating) as well. As discussed byWaller and Fawcett (2014), this would also help to build the visibility and create a clear brand image as well. On the other hand, the firm would also be able to build the healthier relationship with their customers by using this tool efficiently.

Conclusion

This section of the report would sum up the entire findings as well as discussions which have been described in this paper. The report is based on the problems which have been faced by the Riverwood Integrated Logistics Solutions company. The study has identified the difficulties of this logistic company using some tools, theories and models. More precisely, it can be mentioned in the context that the tool which has been used by this report is the TOWS matrix. This tool has some advantages, but at the same time, this model has some disadvantages also. This report has identified the advantages as well as disadvantages of this model and has also presented Ansoff’s Matrix Porters’ Generic Strategies model as an alternative tool. On the other hand, the problems which have been identified using those problems are cost competitiveness, maintaining the higher standard of the services, gaining visibility as well as identifying the complicated situations.

The report has tried to identify the possible solutions of those problems and has also shown whether those solutions have been used by other industries as well. It has been identified from the report that the logistics management is a highly competitive industry and as a result, this form has to face the tough competition. On the other hand, this is one of the very profitable sectors which have provided employment to a large section of the population in several countries. As a consequent, the company should use proper policies which can solve their problems to a certain extent and enhance their profitability as well.

Besides that, this firm belongs to the logistic management industry whose main responsibility is to deliver the products to people at the proper time. In order to run their business efficiently, the firm should recruit some efficient staffs and conduct a training and development program for them. In this highly competitive world, it is a challenge for all the companies to retain their old customers and attract new customers. In order to do so, the firm should maintain the cost competitiveness by keeping their prices lower than their rival companies. It can be concluded from the entire report that if the firm uses all those strategies, then they must reduce their problems and expand their business as well.

Reference List

Bennett, N. and Lemoine, G.J., 2014. What a difference a word makes: Understanding threats to performance in a VUCA world. Business Horizons, 57(3), pp.311-317.

Bondarenko, T.G., Isaeva, E.A., Orekhov, S.A. and Soltakhanov, A.U., 2017. Optimization of the company strategic management system in the context of economic instability. European Research Studies, 20(2), p.3.

Chae, B., Olson, D. and Sheu, C., 2014. The impact of supply chain analytics on operational performance: a resource-based view. International Journal of Production Research, 52(16), pp.4695-4710.

Feng, F. and Kiely, D., 2018. Logistic management of gaming supplies for gaming establishments. U.S. Patent Application 15/396,308.

Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new challenges in the retail supply chain. Kogan page publishers.

Ferreira, C.N., Squiassi, H.B. and Santana, C.F., 2016. Cost Of Wastage In Logistic Management: Thermolabile Drugs In The Treatment Of Rheumatoid Arthritis In Brazil. Value in Health, 19(3), p.A240.

Ghobadian, A., Stainer, A., Liu, J. and Kiss, T., 2016. A computerised vendor rating system. In Developments in Logistics and Supply Chain Management (pp. 103-112). Palgrave Macmillan, London.

Gutierrez, D.M., Scavarda, L.F., Fiorencio, L. and Martins, R.A., 2015. Evolution of the performance measurement system in the Logistics Department of a broadcasting company: An action research. International Journal of Production Economics, 160, pp.1-12.

Kim, M., Song, J. and Triche, J., 2015. Toward an integrated framework for innovation in service: A resource-based view and dynamic capabilities approach. Information Systems Frontiers, 17(3), pp.533-546.

Matsuno, S., Tagawa, S.Y., Uchida, Y., Ito, T. and Ito, T., 2016. The TCE-RBV framework for information systems outsourcing: empirical testing using survey data in Japan. Journal of Robotics, Networking and Artificial Life, 3(3), pp.205-208.

Prasad, G. and Singh, Y.N., 2015. Logistic Management-A Case Study with Special Reference on Physical Infrastructure. Anusandhanika, 7(1), p.100.

Ringsberg, H. and Lumsden, K.K., 2016. Logistic management of trailers based on the EPCIS standard: A cross-case analysis. Research in Transportation Business & Management, 19, pp.65-72.

Riverwood.com.sg, 2018. riverwood.com.sg [online] Riverwood.com.sg. Available at: https://riverwood.com.sg [Accessed 8 Sep. 2018].

Sánchez, M.J.G., Buiza, G., Beltran, J., Stanley, M.T., Veloqui, M., Cerbán, M.M. and Turias, I., 2015. Logistic Management Optimization in the Ports.

Shatskaya, E., Komaristaya, E. and Kafian, K., 2017. The study of the hungarian car refinish market on the basis of pestle analysis. SCOPE ACADEMIC HOUSE B&M PUBLISHING, p.54.

Szpitter, A. and Sadkowska, J., 2016. Using VUCA Matrix for the Assessment of Project Environment Risk. Zarz?dzanie i Finans, 14(2/1), pp.401-413.

Utami, R.M. and Lantu, D.C., 2014. Development competitiveness model for small-medium enterprises among the creative industry in bandung. Procedia-Social and Behavioral Sciences, 115, pp.305-323.

Waller, M.A. and Fawcett, S.E., 2014. Data science, predictive analytics, and big data: a revolution that will transform supply chain design and management. Journal of Business Logistics, 34(2), pp.77-84.

Yang, X., Jiang, Y., Zhang, Y. and Liu, Z., 2015, November. Vehicle type and route selection for emergency logistic management under road damage. In Service Operations And Logistics, And Informatics (SOLI), 2015 IEEE International Conference on (pp. 100-105). IEEE.

Zalengera, C., Blanchard, R.E., Eames, P.C., Juma, A.M., Chitawo, M.L. and Gondwe, K.T., 2014. Overview of the Malawi energy situation and A PESTLE analysis for sustainable development of renewable energy. Renewable and Sustainable Energy Reviews, 38, pp.335-347.

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order