Aramex Operations Management

| | | | | | | | College of Business Administration MGT 308: Operations Management Title of Project: Aramex Operations Management (Logistics) Done by: Student ID | Name| Section: 51 Submitted to: Matloub Hussain Due Date: December eleventh, 2011 College of Business Administration MGT 308: Operations Management Title of Project: Aramex Operations Management (Logistics) Done by: Student ID | Name| Section: 51 Submitted to: Matloub Hussain Due Date: December eleventh, 2011 Table of Contents: 1. 0 Abstract…………………………………………………………………………2 2. 0 Introduction…………………………………………………………… ……. …. 3 2. Company Choice………………………………………………………. three 2. 2 Problem Statement…………………………………………… ………… three 2. three Literature Review……………………………………………………… four three. 0 Brief History……………………………………………………………………5 four. zero Results/Discussions…………………………………………………………….. 6 5. 0 Conclusion……………………………………………………………………… 9 6. zero References…………………………………………………………………….. 10 1. 0 Abstract This project discusses the operations strategy of Aramex and talks about its supply processes.

The purpose of this paper is to highlight the operations at Aramex and relate what we’ve learned in school to what the company is doing at its enterprise.

The project will focus on a number of key concepts that relate to the logistics business and supply chain administration. The define of the project shall be as follows; first, an introduction to what the project is about, then description about the issue Aramex faces in its providers and some literature evaluate to demonstrate a number of the administration concepts that will be mentioned.

Second, a quick historical past concerning the firm is introduced along with some facts and figures relating to the company.

Third, outcomes section will elaborate extra on the strategy and operations method utilized in the firm along with some graphical representation for higher understanding. Finally, the conclusion shall be mentioned summarizing what was accomplished in the project, the primary findings, and advice for future improvements for the corporate if any exist. 2. 0 Introduction The firm that is chosen is Aramex, a Middle Eastern supply company that provides a number of companies and has been rising quickly among the rival business of logistics.

It is important to study extra about this firm and explore its operations strategy. . 1Company Choice We have chosen this company basically for the explanation that Aramex has been expanding globally, it presents a quantity of excellent services on a high scale compared to its rivals. It is the biggest dominant logistics firm in the Middle East that has established a successful picture about logistics and transportation options. It has maintained its monetary and aggressive place available in the market in opposition to all different issues which were emerging the past few years, and it has continued to grow to achieve different components of the world.

Throughout the operations of Aramex in UAE and globally we shall be able perceive the real world utility of the operation administration key ideas. 2. 2 Problem Statement Aramex provides transportation solutions and international logistics. However, Aramex’s efficiency within the UAE means customer satisfaction just isn’t as prevalent in the UAE as it is in other nations. Various on-line discussion forums show that many shoppers usually are not satisfied with the supply time of inbound and outbound packages, which is an issue that have to be corrected to guarantee that Aramex to stay aggressive.

The lead time between a bundle being sent and it arriving at its vacation spot differs between nations. More specifically, a package delivered within the UAE takes lots longer to reach than one coming from the UK or US, due to this fact these needs to be rectified. 2. three Literature Review Logistics is the method of remodeling and properly storing the products (and typically services) from the group to the ultimate buyer (IWLA, 2009). Smooth and effective logistics enhance customer’s loyalty and satisfaction, providing it the mistaken method can price the group to lose customers, cash and reputation.

Increasing variety of problems and requirements are going through the logistics normally, adding to the growing demands and needs of customers and organizations, which makes it impossible for the creating departments on the logistics to be glad, that makes them at all times totally occupied (IWLA, 2009). Nowadays logistics development is specializing in the integration with customers and customer’s need, so that they used the concept of market orientation to reach the purpose of customer’s satisfaction and trust (Heines, 2000).

Logistic cycle may be noticed in all huge organizations, and never only in logistics companies. It emphasize in the relationship between the varied activities within the group and integrating them collectively, for instance: the selection process of the products is said to and based mostly on the customer’s wants, and administration selections about this; then again, will affect the storage, handling, and procurement, that are the 2nd and third activities within the cycle. The logistic cycle consists of: 1- Logistic Management info system LMIS”, crucial element of the cycle. It helps managers and administrators to collect information about all of the activities within the transportation system and analyze them to have the power to coordinate future techniques and actions (USAID, 2009). 2- Quality monitoring, which assist in delivering the goods and products to the ultimate buyer at one of the best condition, preventing any harm from occurring, this can minimize the additional costs of preparing or altering the damages merchandise (USAID, 2009). – Policies and adaptabilities, this should exist within the logistics surroundings and tradition. The transportation method ought to apply to the policies and rules of all of the nation, authorized liabilities are very costly and will bring so many pointless troubles for the organizations. Beside the transportation strategies should be adaptable to the environmental adjustments to forestall the huge costs of adjusting the techniques and machines (USAID, 2009). Those activities on the cycle the place put to extend and excellence the customer’s service and overall satisfaction. three. Brief History Aramex was established in 1982 as a enterprise operator in express work. It became the primary Middle Eastern firm to offer its shares on NASDAQ inventory trade market in January 1997 (Aramex, 2011). Since June 2005 Aramex has traded its shares on Dubai Financial Market (DFM) as an Arab International Logistics firm (Aramex) under the name of ARMX. Aramex is working now in 310 international locations all around the world with 8600 employees who work onerous to provide people glorious quality work and who at all times look forward to satisfy prospects (Aramex, 2011).

Aramex has established a world community by joining the Global Distribution Alliance (GDA) that is an organization that groups all the logistics corporations all over the world that are providing services of express supply and logistics as Aramex. Aramex provides a chain of different transportation methods such as; express delivery, freight forwarding, logistics, warehousing, information management techniques, e-business options, and on-line buying services (Aramax, 2011). One of their well-known and profitable on-line shopping companies is shop and ship. om this characteristic has enhanced the presence of the Aramex domestically and globally, further data will be elaborated by way of the approaching parts. Its mission is to be one of the most recognized logistics firm around the globe whereas for its objective is to ease the communication around the globe on worldwide and international basis (Aramex, 2011). four. 0 Results/Discussions This section of the project mainly elaborates extra on how Aramex is operating within the country, what methods does it actually use, and the way does it apply it on actual world.

Since our primary problem was that Aramex is not performing glorious work or service to its prospects within the UAE because it performs overseas. Further, this half will demonstrate how Aramex really operate. First, the JIT technique is not utilized a lot inside the UAE by Aramex however it does apply in relation to packages being shipped toward UAE or forward internationally. Just in time (JIT) is an operations management technique where organizations apply to minimize waste by getting items solely when they are processed by way of an order (Jacobs, Chase, & Aqilano, 2009).

Nowadays, lots of companies are adopting this strategy and have been gaining since lots of advantages with low proportion of waste which enhanced their business. One service Aramex offers as talked about above is the “Shop and Ship”, it’s a service that is provided by Aramex to have the ability to ease the transportation of worldwide packages. It is a facility that is primarily about receiving shipments primarily based on the customer’s online purchasing course of that this cargo will be delivered via Aramex. It is a really profitable tactic to capture customer’s consideration; Aramex is the only logistics firm throughout the UAE who actually present this service.

It is a bonus to the people who discover themselves interested in online buying and are living in UAE; where Aramex has excelled on this service all through the previous few years. This service send out gadgets from USA and UK, and lately objects from China has additionally been organized to be acquired to customers worldwide. The position of JIT technique is depicted when the client actually locations his order on the website, Aramex operations officers will be knowledgeable of the process and will arrange the shipment to the UAE.

A diagram beneath will describe the method of “Shop & Ship” service to make it clearer. Retrieved from http://www. shopandship. com/ship/how-does-it-work. aspx First, you want to create an account on the shopandship. com to have the ability to receive your packages. Customer first must approve the agreement cargo form posted as a the 1st step within the course of to make clear all the terms and the situations imposed by Aramex. Second, filling up an online form is done where Aramex will need to hold in records all customers’ private data including credit card details.

Third, because the system processes your submitted knowledge, the system will contact the client to substantiate a quote; which is type of a code that customer should know all the time. Fourth, a buyer companies representative will contact the client to confirm all the process accomplished on-line and to agree on the rate of shipment in addition to the delivery information and delivery date. The buyer can verify the standing of his delivery on Aramex web site portal service that is supplied on its website by entering the order quantity into the required fields.

Fifth, as the order is already placed in the customer purchasing website account automatically information about the supply points or hubs both in USA, UK, or China will appear to confirm supply location of the package deal abroad. That is when Aramex receives the package there and will afterwards begin processing its cargo in course of the UAE. Furthermore, a affirmation e mail shall be sent to the client as Aramex receives the package from overseas to inform clients in regards to the cargo next destination to the UAE.

Sixth, and finally the cargo shall be touchdown in UAE and Aramex shall be arranging its supply as to the customer’s location as part of door-to-door service it supplies, hopefully to obtain the package on the required date which is generally the case. This was the JIT software of Aramex service in regards to its famous on-line service. 5. 0 Conclusion In conclusion, Aramex is a profitable worldwide logistics firm. Operations management is crucial to the success of this company, particularly contemplating the character of the enterprise.

It grew to become evident that Aramex’s efficiency within the UAE was having an antagonistic effect on buyer satisfaction. To counteract this downside, numerous strategies could probably be employed. Firstly, the Just-in-time technique utilized to shop and ship ought to be used when coping with shipments being delivered to the UAE, or from the UAE internationally. The lead time of deliveries differs between packages coming from worldwide international locations, and people delivered within the UAE, therefore, JIT must be extra stringently enforced within the UAE ranches of Aramex, as it’s in international branches. The use of JIT in Aramex’s “Shop and Ship” service makes the net service very successful. In order to improve its efficiency, we might make a selection of suggestions to Aramex; firstly, staff ought to be trained in order to improve the customer support stage. Many complaints centered on the reality that customer service representatives have been unhelpful or unknowledgeable, so this ought to be rectified by providing workers with coaching on the method to cope with prospects.

Secondly, as talked about earlier than, JIT must be applied to reduce supply occasions of packages within the UAE. 6. 0 References Aramex. (2011). About Aramex. Retrieved December 5, 2011, from Aramex: http://www. aramex. com/aboutus/default. aspx Ghiani, G. & Musmanno, L. R. (2004). Introduction to Logistics Systems Planning & Control. Retrieved December eight, 2011, from http://media. wiley. com/product_data/excerpt/77/04708491/0470849177. pdf Heines, R. A. (2000). Market Orientation: Toward an Integrated Framework. Retrieved from University of South Carolina Aiken, on December 9, 2011 fromwww. msreview. org/articles/heiens01-2000. pdf IWLA. (2009). Industry Background. Retrieved December 9, 2011, from International Warehhouse Logistics Association: http://www. iwla. com/why/industry. aspx USAID, Deliver Project. Task Order 1. (2009). Logistics System Assessment Tool (LSAT). Arlington, Virginia: Author. Retrieved from http://deliver. jsi. com/dlvr_content/resources/allpubs/guidelines/LSAT. doc Jacobs, F. R. , Chase, R. B. , & Aquilano, N. J. (2009). Operations And Supply Management (12th edition). NY: McGraw-Hill Irwin.