Introduction: Catnap Pet Products and Its Policy
Changing the existing company policies in logistics is not an easy task. Presupposing that a number of processes and strategies are to me shaped and tailored to the new approach, the alterations in logistics must be the hardest to get used to.
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However, for many companies, these changes are a minor ditch in the altogether improved relationships with the suppliers, customers and/or partners, as well as in the emerging opportunities or further expansion into the world market, which the Catnap Pet Products case is a striking example of.
The Strengths of the Chosen Method: Expanding Business
The basic strength of the chosen logistical approach for the CPP is in retaining the old logistics strategy, i.e., “Nampa (Idaho) – Calgary (Alberta) – Tuijuana (Mexico) – Regina (Saskatchewan)” (Langley, Gibson, Novack, & Bardi, 2008, 221), when it comes to shipping the products to its current customers.
Indeed, it would have been irrational to consider a complete change of the shipping procedures for the current clientele, since, due to the inevitable changes, the process of delivery would take too much time.
It is also very impressive that the chosen method allows for not only using both strategies simultaneously, but also for expanding the company further into the world market.
Despite the fact that the company has been doing rather well in Canada, mostly due to the lack of competition, it goes without saying that CPP had grown large enough by that time to try the perquisites of international partnership. Therefore, the choice of PETCO and Target as the company’s partners in international trade is very reasonable, seeing how CPP needs integration into the U.S. market. In that sense, working with PETCO is bound to be a great experience (O’Reilly, 2011, March).
Concerning the Weaknesses: Transportation Costs and the Related Issues
The weaknesses, however, are also quite tangible and, which is even more disheartening, much more numerous than the positive aspects. To start with, the company will have to reconsider its logistics and, therefore, the costs for shipping, as well as the costs for the transportation of the raw materials, details, etc. is going to peak – not to mention the fact that the additional payment for the services provided by PETCO and Target must be taken into consideration.
Another crucial issue concerns the deadlines. While previously, CPP could be relatively certain of the deadlines, with all the production processes being under the company’s supervision, with the introduction of new partners, the CPP Company is going to be highly dependable on the latter. As a result, such logistics issue as the time for transportation is going to become a major concern. As soon as PETCO and Target fail at delivering the supplies at the right time, CPP will suffer considerable losses.
What Can Be Improved: Concerning the Possible Avenues
The Catnap Pet Products has made a very wise decision when changing its logistics policy. According to the case study, the company did not dare risk losing such a promising partnership as the one with the PETCO and Target; however, the Catnap Pet Products still made an agreement on its terms.
As the case study show, only the products supplied to PETCO and Target are produced in China and, therefore, shipped across the ocean.
Conclusion: Further Prospects and Opportunities
It must be admitted, though, that CPP is at the brink of a complete change, there is no reason for sounding the alarm – on the contrary, it is quite refreshing to see a company planted so well in its home business trying its best in the international market. Although the chosen logistics strategy presupposes taking some losses, it is clear that it opens a pool of opportunities for CPP.
Langley, J., Gibson, B. J., Novack, R. A. & Bardi, E. J. (2008). Supply chain management: A logistics perspective. Stamford, CT: Cengage Learning.
O’Reilly, J. (2011, March). PETCO’s Pet Project. Inbound Logistics. Retrieved from https://www.inboundlogistics.com/cms/article/petcos-pet-project/