Transportation Management of JC Penney Company

Transportation management and organization has proved to be a great challenge in most businesses where goods are to be transported from manufacturing points to final destination, the market. JC Penney Company has suffered greatly over the past decade concerning their general management system used in the company from goods shipment to storage in the warehouses before they are delivered to the final consumers. A very vibrant system to save time and enable efficient management need to be incorporated in JC Penney Company.

Takt time for JC Penney transportation

Approximate number of targeted customers

150,000

Average volume of goods being transported

16,748,424

Efficiency of transportation (%)

94

Takt time(days)

3

Number of warehouses and sub warehouses

850

Value stream mapping

A value stream mapping system is used to analyze the general operations involved in the company. This mapping sequence is a method of comparing the present and future processes involved from the production of a good through to its customers(M.E Ketzenberg).Key factors like takt time, line balancing, and work sequence are adhered to be keenly comprehended to ensure transportation process from the initial stage of production to the market is efficiently achieved.

                                        Weekly order                                                           Weekly forecast

                                                           Select transport portion

The company deals in a huge amount of goods that require over three days completing their shipment. A mechanism is to be initiated to reduce this time wastage. Prior to transportation, these goods should be packed in huge boxes and containers to reduce their bulk. These containers are then marked depending on the types of goods in them using a mark pen or paint. They are then sorted and put according to ownership, durability, quality and time of need. Goods that are to be dropped in the first warehouse need to be put closer to the container opening so that during offloading time wastage should is minimized. Inappropriate mishandling of other goods is also reduced in such a situation.

Perishable goods and goods highly in demand should be transported using a different means of transport. This is due to the slow nature of sea transport. Electric railway transport can be preferred as an alternative. This would ensure that goods arrive at the market in time of need.

Sorting of goods in different containers depending on the type and nature of goods also ensure that the correct and desired types of goods are offloaded at the marked warehouses (Parlakturk). Uniformity in storage is also enhanced and good storage is improved.

For efficient distribution of these goods from the warehouse, a work sequence of distribution is to be organized. This sequence is to be based on the urgency of need and the durability of goods stored in the warehouse. Goods urgently needed as well as highly perishable should be the first to be distributed to the market (Swinney). Truck carrying these goods from the warehouse to the market should be marked according to the type of goods being transported are route of transportation. Those going a longer route should be allowed to leave the warehouse ahead of those to be transported to shorter distance.

This system of operation would reduce truck jam at the loading points in the warehouse and ensure efficiency in goods delivery to the market. The work sequence should be made in from of charts that contain steps to be involved in various processes of sorting, packing transportation and storage. These processes used during the transportation process are documented are used for routine transportation management. These documented steps and processes are to be revised until a more efficient approach is developed.

 Works Cited

M.E Ketzenberg, E.A. Van der Laan. “Value of information in closed loop supply chains.” Production and operation management. (2006): 393-406.

Parlakturk, A.K. ”The value of product variety when selling to strategic consumers.” Manufacturing and Service Operations Management (2012): 371.

Swinney, G. P Cachon and R. ”Purchasing,pricing and quick response in the presence of strategic consumers.” Management science (2009): 497-511.