Water direct Limited has realised the importance of logistics as a tool for competitive advantage and decided to implement a dynamic supply chain that would keep its inventory costs down and, at the same time, deliver within a short lead-time to a wide array of customers. Logistics-wise, Water direct Limited tried to excel on the following three elements: (a) warehousing, which they consider as the heart of Water direct supply chain; (b) various information systems, such as RFID technology and Warehouse Management Systems (WMS), interfacing them with the ERP system in order to integrate all the organization’s decision elements; and (c) order fulfilment process (OFP) recognising that ordering and its associated information flows should be at the heart of a good customer service.

  1. Using suitable examples or references, explain why investing in an RFID system can make the supply chain significantly more accurate while at the same time improve the efficiency and reliability of the chain.
  2. Using suitable examples or references, explain why the efficient management of a warehouse is critical for minimising cost and contributing to an effective and efficient supply chain.
  3. Using suitable examples or references, why implementing a warehouse management system is essential to manage the complex activities performed in a warehouse.
  4. Using suitable examples or references, explain how an ERP system can serve as a basis to build a dynamic data warehouse that can support decision making and analysis.
  5. Using suitable examples or references, explain why seamless freight flow reveals efficient loading, unloading and shipping, as well as high utilisation levels for fixed assets.
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