Best Lady Apparel Logistics
Best Lady Apparels, is a new multinational company in Los Angeles, US that specializes with the manufacture of women jackets. Best Lady is a subsidiary of one of the rapidly expanding apparel companies in the world, Darling Apparels that is based in Beijing, China. Being a multinational corporation Best Lady has its mode of operation similar to its parent company, most of logistics functions are controlled from the head office in Beijing. Multinational corporations are known to target areas with low labor charges and therefore the choice of Los Angeles was ideal as it has a large population of “undocumented” immigrants from Latin America, Asia, and Africa who are willing to do any available work to earn a living since they can not secure nice jobs due their “undocumented” status. Though the company utilizes local labor force for majority of its logistical functions work, the top brass personnel who run the company are Chinese nationals.
The company specializes in the manufacture of all types of leather and synthetic women jackets, which in most cases are exported to African countries and some developing countries of Latin America. The raw materials for the jackets i.e. leather, cloth fabrics, buttons (plastic, metallic, wood, and glass), threads, and other decorative materials are imported from various developing countries around the globe. Hides and skins are imported from china where they undergo cutting with their original origin being Argentina, the cloth fabrics are made from cotton grown in Sudan but processed in Egypt, metallic buttons are made from gold mined in various African countries and manufactured in India, the threads are imported from Pakistan where they are made from locally made synthetic materials, other materials are imported from other countries.
Multinational corporations are normally profit driven, this they always achieve through economies of scale, incentives and tax waivers given by host countries due to their perceived large scale creation of job opportunities to locals and boosting of the economy, and also the fact they underpay their workers and subject them to long working hours without over time pay. My company’s policy is to try and remain relevant in the market by producing quality goods and availing them in the nearest point to the potential customers. With all the other logistical functions such as manufacturing, information system, import/ export, or even purchasing taken care of, the core company policy of availing the finished goods to the customers at convenient times takes the prime attention and therefore in the form of putting in place valid and reliable transportation measures. [What is logistics: n.d]
Transportation therefore is the most important logistic function of my apparel company. As indicated above the company’s biggest market is developing countries in continental Africa and some developing countries in Latin America. To be able to choose a suitable transportation mode, my company has to consider a number of factors such as distance short distances are better covered by road rather than rail or sea; urgency, some orders have short duration and hence demand a transportation means that is faster e.g. aero planes; cost incurred, transporting by air is usually expensive unless of urgency; weight of the clothes, if a consignment is bulky it is better shipped by sea or rail; the political stability of the destination as most African counties are known to be politically unstable; volume of clothes to be transported since transporting a small consignment by rail or sea will not be economical. [Logistics function, 2007]
Due to the long distance covered in order to reach the companies core market i.e. Africa and Latin America, the most appropriate transport mode that will be costly friendly and at the same time convenient in terms of accommodating the bulky nature of apparels will be sea transport. Again, this mode of transport is convenient since many of African and Latin American countries have got access to the ocean directly or indirectly, African is surrounded by Atlantic, Indian and Mediterranean waters, while Latin America is surrounded by Atlantic Ocean. Due to the companies multinational presence the distribution of the apparel to the interiors of the countries of destination from the sea ports will be done by heavy commercial haulers carrying containers directly offloaded from ships. The trucks then will supply the apparels to big shopping malls also operated by multinational corporations.
Other minor domestic supplies in US are done using railway method since there is a sufficient network of the railroad system all over the country, it can carry a large amount of the apparel at the same time, and again it is pocket friendly. Other shorter distances can be covered using containers carried by trucks. Road transport comprised of containers on trucks and other small trucks will be handy in the final delivery of the apparels to the final distributions stores and big shopping malls.
The company’s main objective of delivering the apparel to final ends in convenient times, the cheap labor force offered by the “undocumented” immigrants from Latin America, Asia, and Africa, and the multinational presence of the company serves to cushion the expenses that are incurred in the logistical transportation function. Again, the idea of undertaking various logistical functions is to help a company to remain relevant in a competitive business world by maximizing its profits while reducing the expenses, transporting and placing of goods and services near the customer in the convenient time helps to increase the sales volume and value and hence maximizing the profits. [Apparel search logistics, 2007]
What is logistics: available at;
http://www.lscmcourse.com/whatislogistics.html, accessed on December 3, 2008
Logistics function, 2007, available at;
http://www.analyzemath.com/function/logistics_function.html, accessed on December 3, 2008
Apparel search logistics, 2007, available at;
http://www.apparelsearch.com/logistics.htm, accessed on December 3, 2008