There are situations in activity of every successfully functioning company that require solutions. It is a risky and responsible action to make strategic decisions or ones that involve a large structural part of activity. A mistake made can affect further activity of the company. Similarly, inability to take decisions or their postponing may be an irreversible damage. Several real situations that were implemented by us and our customers (due to understandable reasons we cannot reveal names of the companies or their countries) are presented below.
Structural Changes
The Joint Stock Company “Company” provides goods to retail sales network. The Joint Stock Company “Company” uses small private company’s services of delivering and selecting goods. Owners of the company have bought another Joint Stock Company “Company2” which also uses the services of the same logistics company. Since the agreements were signed at different moments and at different prices, none of the companies had a possibility to change provisions and prices. The owners realized that changing the logistics provider of only one company would cause damage to the other company. The solution was a strategic one: to choose LEX SYSTEM, a new partner of logistic services, and to negotiate general conditions – new prices and service quality.
Finances – Concentration on Business
The Joint Stock Company “Almo” sells cosmetics. The company solved logistics problems by its own resources. The company had its own warehouses, 25 drivers and a transportation fleet. The Joint Stock Company “Almo” made a schedule for delivering goods in various regions. Customer service knew that, for example, the driver – manager drives to Utena every Wednesday and on that day orders for that region were accepted. Additional functions of drivers—managers are deploying goods on the racks and accepting new orders from sales points for another week or maintaining relationships. The Joint Stock Company “Almo” encountered a sales volume decrease and it was about time to change the transportation fleet. The Joint Stock Company “Almo” approached LEX SYSTEM for a mutual solution. LEX SYSTEM proposed to switch the service level from weekly delivery (order acceptance was closely related to delivery, thus the Joint Stock Company “Almo” was valued for 24-hour delivery) to a real 24-hour delivery and shift the services of deploying goods to LEX SYSTEM. LEX SYSTEM also proposed to centralize order acceptance and to employ qualified regional sales managers that would maintain close relationships with retail sales points. LEX SYSTEM took over the whole old Joint Stock Company “Almo” transportation fleet.
Changes in Management
The Joint Stock Company “Paper” has greatly strengthened in Lithuania and is a market leader in stationery segment. Having believed in luck, the owners of the company decided to expand their business and founded a company in Estonia. The proceedings were successful for some time, until the business occurred in dangerous situation due to internal disagreements between stockholders and the company management. The stockholders approached LEX SYSTEM for a possibility to provide full logistics services in Estonia. The main argument was – “we do not want and we cannot come to an agreement with the company management., and we want things just as they are in Lithuania, we want liabilities and communication to pass through Lithuanian customer service sections according to our already existing service and quality system”.
Centralized Provision
The Joint Stock Company “Textile”, Latvian textile producer, was selling its products in Germany through wholesale partners. The production was performed in weekly cycles: orders were gathered on Mondays, the production was performed during the week, goods were stored until Friday and every Friday sent by trucks to Germany. Having entered European Union, the Joint Stock Company “Textile” made agreements with EU retail sale networks (Aldi, Penny, Plus and Lidl) for whom it had to provide goods every day and to every shop separately. The Joint Stock Company “Textile” had to reorganize not only production and processes, but logistics too. The Joint Stock Company “Textile” approached LEX SYSTEM with a request to deliver goods to more than 800 European sales points every day. The matter of returning waste materials or rejects was solved too.
Order Management
The Joint Stock Company “Bank” ordered delivery materials (paper, stationery, advertising material, cards, PIN envelopes, agreement forms) for its branches in the Baltic States every day. The company had three managers for this job who received orders from their subdivisions every day, formed orders for the warehouse in which after selection necessary materials were packed up, marked and sent to the branches. The Joint Stock Company “Bank” approached LEX SYSTEM for a possibility to optimize the processes. Since main material providers could perform selecting, packaging and marking services, the Joint Stock Company “Bank” had only to manage orders and organize transportation. Having made use of free E@syship program, today workers of the branches tabulate orders themselves (using created templates), and you perform the work with the help of the program: fill in the template with the address of a constant provider as a sender and your office or branch in any country as a recipient. Then you save the name of the template (paper, printer toner, a film for a storehouse, etc.) or the group (warehouse, office, etc.). Next, if it is necessary to send goods or order delivery materials (paper, printer toner, a film for a storehouse, etc.) for the office, warehouse or branch, you simply press to execute the order, and indicate the quantity and what goods you order in the remarks line. Then, the whole work will be done for you, i.e., the order is sent to the courier to go to sender’s address, whereas “pdf” files with package markings and bills are sent to the sender, and you are able to track the whole order history. You only have to have constant providers of goods. Centralized supply order for delivery is warranted free of charge.
