Assessment Task
Vital Cargo is a long-established courier company with its headquarters in Coventry. The principal activities of the company concern the operation of a small package delivery service.
The company’s operations are presently concentrated in the West Midlands.
The company has been approached by Courier Exchange with a proposal to participate in an Eco-friendly Logistic Network for the wider UK courier market. Vital Cargo’s Coventry base is unlikely to be
able to accommodate all the additional traffic; a new logistics solution is required.
You are to prepare a report outlining the potential impact of Courier Exchange’s proposal on the distribution footprint of the company.
Deliverables and Assessment Breakdown
You have been provided with a set of sales data identifying the geographical distribution of Courier Exchange’s forecast sales of. You are to analyse the data, identifying the concentration of
likely customers, and propose a distribution network to serve them.
(a) Develop a Problem Statement and state your Solution Design Principles     (10%)
(b) Use a Territory Design tool (Open Door Logistics is recommended) to identify the suitable depot locations to serve the anticipated market.
Consider a centralised solution (2-3 depots) and a decentralised solution (4-6 depots). What are the advantages and disadvantages of each?     (40%)
(c) Explore the practical options for siting warehouses/depots in the locations identified by the modelling exercise. Present your final site selection, explaining the reasons for any changes from
your initial result.   (20%)
(d) In your view, what strategies should Vital Cargo follow to ensure that the supply chain solution is improving their efficiency, gain new clients and forge long-lasting business relationships?
(30%)