Write a 2 page essay. Need to be logical

Provide a thorough discussion of this case and the following case
questions (at the bottom). Use good business communication style. The case will, in part, be
graded according to the COB writing rubric.

Spanner Supplies, Inc. is an up-and-coming retailer of restaurant supplies
and equipment. They handle cooking utensils, ovens, dish washers, tables, and
other necessary restaurant items from around the world. SSI’s 36 stores are
located in six cities— Kissimmee, (4), Orlando (6), Atlanta (6), San Diego (6),
Los Angeles (10), and Las Vegas (4).

Initially, SSI focused on building stores, and very little attention was
given to supply chain management until a Vice President of Logistics was hired
to improve global product flows. Emily, the new VP, began her tenure by hosting
a conference call with Ernesto, SSI’s transport manager, and Juan, the
company’s senior-most buyer.

Emily: Thanks for meeting on such short notice. The CEO has instructed me to
reduce our transportation spend without hurting service quality. The attitude
of“let’s get it to the store, no matter what” has got to go.

Juan: Ok, but I don’t understand why I’m called upon. Delivery issues are
not my responsibility. I don’t see where my organization could cause your
headaches.

Emily: Some of your decisions impact transportation, and you could give us
some insights.

Juan: Ok, I’ll try.

Emily: Ernesto, how do you make decisions on international routes and
carriers?

Ernesto: Juan’s team tell me the product vendor, location, shipment size,
and how soon they want it. I go to carriers that I know well and cut the best
deals that I can.

Emily: What’s your split between ocean and air?

Ernesto: It’s about 50/50. We use air to expedite hot orders and anything
smaller than a TEU. For FCL, I route it through the Port of Los Angeles, break
the container, and send out smaller amounts as LTL.

Juan: No wonder our margins are terrible. You’re using premium air service
half the time!

Ernesto: It’s not my fault that your people finish most of their deals at
the last minute. Plus, if you would find me suppliers in strategically-located
spots, buy larger quantities, and give me more warning, I could move 90% of our
cargo on ocean carriers.

Emily: Wait, this is not the time to be assigning blame. We need strategies
and solutions.

Juan: Maybe we’ve gotten too big to manage this cargo on our own. Can’t we
look for some outside assistance?

Ernesto: That’s a possibility, but I’m good at what I do. With a more stable
cargo volume, we could create some ocean contracts and maybe even a charter
movement. For air cargo, Juan has to get our suppliers to pack in
efficiently-sized boxes. They use huge boxes that weigh almost nothing and are
filled with packing peanuts.

Emily: Now, we’re making some progress. Let’s investigate the feasibility of
these ideas and also think of some new ideas for improving transportation and
report at our next meeting.

CASE QUESTIONS

1. Based on what you know, what are some causes of SSI’s transportation
problems?

2. Given their product lines, do you think SSI using the right mixture of
global transportation services? Explain your answer.

3. How can SSI use Juan’s idea about external assistance with
transportation?

4. What about Ernesto’s ideas? How could routing, contracting, or chartering
impact ocean service?

5. Is Ernesto’s complaint about product packing legitimate? What, if
anything, should be done?