SCHM 3310
Current processing time

[2] and [4]: The appointment scheduling process could take up to 5 days from the time that Aino initially contacted EI until the time when EI would confirm a delivery time and date. Sometimes the inventories have to be shipped from Producer of Aino to EI. [1] to [4].
[2] to [3]: Based on the previous data, 99.6 percent of Totalline is on-time delivery. Thus, we assume the Totalline will pick up the inventories in [2]/ [1] immediately.
[3] and [4]: Totalline was given a 15-minute grace period. But the detention will be varied.
[4]: The time of offloading will be between 10 minutes to five hours.

2.
Based on the article, Totalline delivered almost 20 percent of Electronics International’s electronic products, which is a large percentage. The best way for Totalline is to negotiate with Electronics International warehouse for dedicated doors so that Totalline can simply unload the inventories as soon as they arrived to the warehouse. In addition to reduce the appointment and detention fee for Electronics International, the parking spaces will also be less tension. For the Electronics International, it will have a bigger inventory cycle, so the inventories will be replaced more quickly and enables them to earn more revenue. The early arrival of inventories can be benefit for both parties, therefore, Electronics International will think about it. Comparing with other two alternatives, the negotiation doesn’t generate extra cost for Totalline in terms of extra administrative person, asking for extra dedicated doors will be the best way.

The second option is to request Electronics International for pick packaging stickers so that Totalline staff can apply the sticker on their inventories at Totalline consolidation point. By doing this, the time of unloading will be reduced. However, this will need more employees on the carrier side to apply the stickers. On the other hand, the Electronics International may not trust Totalline enough to give them the stickers.

The third option is to deliver directly to Electronics International stores. Because 60 percent of Totalline’s shipments will be delivered to Ontario stores in the end, it will be a good idea for Totalline just delivering them to the stores so that the waiting time in front of the EI’s warehouse can be eliminated. Also, Totalline can consolidate EI’s products with other products and deliver in Ontario area. Based on the article, two days are expected to be cut off in the transit. However, this will need one extra administrative person, and the relative costs.

Next step:
No matter what kind of method Totalline will choose, they have to develop a good relationship with Electronics International. According to the article, EI has strong communications with its suppliers but not too much correspondence with Totalline. Developing a closer relationship with EI will also help Totalline to gain more customers if EI suggest it to other companies. Once a good relationship established, the reasonable advise with sufficient research data brought up by Totalline will mostly be accepted by EI. Then, since both of them should focus more on the current issue rather than the past issues. For example, they need to get inventories on the shelves as soon as possible, not wasting time on charging other trucks late fees. The sequence of these two things should be re-managed. For Electronic International distribution center, they need to expand both facility and parking lot.
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[2] Aino’s warehouse

[3] Carrier--Totalline

[4] Electronic Intl. warehouse

[5] Retailer/ End customer

[1] Producer of Aino