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JNB 738 Assignment 3
University of Tasmania ©
-The Case-
Mr. Smith owns a medium scale Logistics Business named REX Logistics based in Australia. The business mainly serves (B2B) corporate customers and recently started providing delivery services to
individual consumers (B2C). Due to the reliability of the delivery services, many white goods suppliers
including online retailers of various products such as electronics, appliances, apparel, and stationery
got onboard with the logistics business. Currently, the business only operates in Tasmania and Mr. Smith has plans to expand the business into other states, however he has been doubtful of such expansion due to the intense competition for logistics businesses in the other states.
REX Logistics faces competition from the other logistics businesses in Tasmania. On the positive side,
more and more customers prefer online sales of goods after the COVID-19 pandemic situation and consequently, the market has been growing steadily. However, Mr. Smith noticed that the costs in the
business have been escalating and the customer complaints regarding deliveries are multiplying over
the past few months. After a couple of meetings with the senior management team of the business the following have been discovered.
▪ The procurement cost has been escalating over the past few months.
▪ Inventory holding costs have been rising exponentially since launching of the business.
▪ The central warehouse of the business has reached its capacity and operates inefficiently.
▪ Pilferage of goods in the central warehouse and missing of some delivery consignment was
reported in the past couple of months.
▪ There have been frequent breakdowns of delivery vehicles in the fleet, affecting the reliability
of delivery services.
Mr. Smith has realised that most of these problems in the business can be addressed by implementing
an effective E-commerce strategy for his logistics business with sound processes and systems in place.
Imagine you are an independent e-commerce consultant and submit a report to REX Logistics highlighting the following:
a. Identify and discuss the potential issues and root causes that may have resulted in the problems revealed in REX Logistics. You may use an appropriate method such as a fishbone diagram to highlight the root causes for each of the five problems discovered.
b. Explain what e-commerce technologies can be used and how they can be deployed to addressing the problems and issues identified (Question a). Out of all the discussed technologies which three should the company prioritise in implementing and why?
JNB 738 Assignment 3
University of Tasmania ©
c. Discuss the importance of having an e-commerce strategy and the factors to be considered when integrating the e-commerce strategy with the other key strategies in the business including the information technology (IT) strategy, logistics strategy, marketing strategy and the overall business strategy of the company.
Prepare a report to address these questions. The report may contain an Executive Summary and a section for Conclusion/Recommendation.
If necessary, you are free to make any reasonable assumptions regarding the business, and if you have
made any assumptions, they must be stated in the Appendix section of your report (Appendix and Reference List are not included in the word count).
[ 5 +10 + 10 Marks
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