Logistics has been one of the most important activities of easyInternetcafé (eIc) in the opening of new locations. It has become one of the few non-core activities that are in direct control of the company. It means supplying eIc locations across Europe with initial assets, furniture and PC’s. It also means managing all the activities in relation to opening all new stores. However under the new business model of franchises, eIc is now to only deliver proprietary equipment to the franchises, and all the other activities involved with opening new locations are the responsibility of the franchisees. There are many steps involved with launching a new location and eIc has a strong interest in its success. Due to high costs and inefficiencies that have occurred in the present logistics program I have researched options in finding a solution to working towards success in logistic for both eIc and each new franchise owner.
My proposed strategy for logistics is working with a third party provider or 3PL. 3PL providers offer services in the forms of shipping to complete supply chain solutions. If eIc is to be successful in the next phase of the internet café market, utilizing a 3PL provider is the best solution to moving forward in a constantly changing industry. The new 3PL provider will work with us in getting the proprietary equipment to the franchise as well as helping the stores set up including ordering internet services through to the first day of operation.
To achieve the goal of five-fold growth and a level of multiple stores opening per week the logistic program must be effective, efficient and flexible. After each location is up and running the new franchise owners will have the opportunity to supply feedback to eIc with critical information about working with the 3PL provider. This feedback will help identify what aspects of the program is working well and where improvement is required for growth and success.
Issue Identification: