Help me write the formal report -- 2

Formal Report Topic – Tango Supreme Company (TSP) You have been hired as a consultant for a well established firm that packages paint into spray canisters for the retail market. The company is seeking recommendations on how to improve their cost and service associated with moving the product to major distribution centres (DC) across Canada. Today, 85% of TSC’s product is sold to major retailers and home improvement stores. They have been packaging and selling this product for over 15 years and recent cost escalations have significantly impacted their profitability. The DCs that TSC primarily ships to are located in Brandon MB, Airdrie AB, Vancouver BC, Mississauga ON, Laval QC, and Saint John NB. The DCs then deconsolidate the paint for storage and shipment to their retail locations in their respective regions. A growing part of TSCs business is now becoming low volume sales to independent paint stores. The paint is purchased in bulk from a large paint and chemical corporation located in the Pittsburgh PA. The paint is trucked in bulk tankers to TSC’s facility in Winnipeg MB where it is modified only with proprietary additives and pigments before being packaged in 340 g aerosol canisters. All of the additives and pigments used in the manufacturing process at TSC are considered dangerous goods by both Canada and the United States. TSC has a unique method of packaging the paint that allows the paint to remain colour and texture consistent for up to six months in storage. This advantage is marketed to the consumer as ‘worry free’ spray paint that provides flawless application. The paint is marketed in the premium category for most retailers and typically represents only a small portion of the retailers overall aerosol paint sales. Being a water based product, the final product must be kept at temperatures between 5 degrees Celsius and 29 degrees Celsius. Paint exposed to temperatures beyond these ranges will result in degraded quality. When properly applied and cured, the paint can be exposed to temperature ranges between -25 degrees Celsius and 65 degrees Celsius. TSC has also created a new environmentally friendly propellant that reduces the company’s carbon footprint. As a safety feature, TSC patented a new actuator valve that is child-resistant that virtually eliminates the possibility of tampering by children. The finished aerosol cans are packaged with 12 units in each master carton. Each can has 340 g of paint contained within it. The overall weight per filled can with cap and spray nozzle is 500 g. The exterior dimensions of the master carton are 12 inches wide by 18 inches long and 12 inches high. The carton itself weighs one pound. If properly stacked, the cartons can be stacked a maximum of ten high in storage. Master cartons are packaged on reusable plastic pallets that are owned by TSC. The pallets are standard 48 inches long, 40 inches wide and 6 inches tall. Each pallet weighs 52 lbs. Pallets are accumulated by each distribution centre. When a full load of pallets is ready to be returned, TSC contracts for the return freight of the pallets back to their Winnipeg facility. On average, each customer returns one truckload of pallets twice per year. Currently, TSC pays for the freight expense when customers order at least ten pallets of product. Customers that order less than ten pallets are required to pay the actual cost of freight. TSC contracts exclusively for hire road carriers to deliver its product. If a customer is required to pay the freight expense, TSC passes on the exact freight expenses charged to them (without markup). TSC has had a relationship with a local Load Broker that manages all of their outbound freight purchasing. The Load Broker charges a flat fee of 12% of total freight charges (including all accessorial charges) to TSC for the procurement and administration associated with managing the outbound freight. The load broker uses state of the art technology to procure, track and process payment with its carrier base. They operate a 24 hour, seven day per week dispatch and monitor their carriers for performance. The performance metrics are made available to the shippers that use the load broker’s services. Your Challenge TSC has generally used the services of a Load Broker. The President would like you to consider the impact of TSC taking on this responsibility themselves without the use of the intermediary. Provide details on the role and function of this intermediary and a recommendation on whether or not the intermediary should or should not be used. The President was approached by CN Rail with an opportunity to use 48 foot containers that need to be repositioned to Vancouver BC and Saint John NB. The complete freight charges would be 25% less than the rates that TSC pays for shipment using 53 foot trailers. However CN Rail would need a commitment to all outbound freight on just those two laneways and would not work through the existing Load Broker. What are the modal characteristics of this option and how do those modal characteristics impact your decision? What recommendation would you make regarding this opportunity? The President understands that there are organizational responsibilities in the movement of their product, pertaining to TDG regulations. The President wants to confirm that they are operating in a compliant manner. You have been asked to prepare a TDG plan that addresses how they will be compliant with TDG regulations specific to identification, packaging, documentation and spills reporting. Part of your challenge(s) has involved modal selection, based on costs and modal opportunities. In many real world applications, you can be asked to base your findings on the opinion or agendas of others in the firm, or from other stakeholders. Read the Critical Thinking challenge in Chapter One. How would you respond to a report that the President puts on your desk from a third party logistics firm indicating that driver shortages are going to increase road transportation costs by 25% next year. How would you evaluate the data, and what factors you would need to consider in developing the response to the President? Your final solution or reply cannot include the statement “more research required”. You may include research outside of that offered here. Any outside work must be supported with references.