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CASE STUDY 2: VIA CENDORHungary had a centrally planned economy for over 50 years, with most economic activity controlled by the government. By the 1990s commercial and industrial organisations were inefficient, outdated and falling further behind competitors from other countries. Political and economic reforms started in the 1990s with the aim oftransferring most organisations back to the private sector. Transport had been tightly controlled, but was substantially privatised and deregulated. Janos Cendor was keen to take advantage of new developments, and started a trucking company. He took over an existing depot with all its facilities, with plans for transforming this into a modern and competitive company. Initially, he had considerable problems. His facilities were decaying, his vehicles were falling apart, he was overstaffed, and working practices were outdated. In the past the depot had focused on trade with countries in the former Soviet bloc, and now had to look forother trading partners in the West.By 1997 Janus was making progress, and was profiting from the huge increase in trade between Hungary and countries within the European Union. He had modernised his depot, replaced vehicles and was making progress with staff. In early 2001 he was planning a new warehouse near to the Austrian border to import consumer goods, and export agricultural produce. However, competition from other transport companies was increasing, and European operators were introducing new ideas. So Janus planned his new warehouse to play a leading role in moving his company forward; it would be a flagship operation that would have a clear advantageover competitors. The problem facing Janus is that, like everyone else, he does not know exactly what the future will hold. He read reports5 which suggested that warehouses of the future would concentrate on:■ better service to give complete customer satisfaction■ concentration of operations in fewer logistics centres■ reducing stocks by improved materials flow■ paperless electronic transactions■ flexibility giving customised operations■ cross-docking■ third-party warehousing■ automation of material movements■ more skilled employees to manage new operations.Questions:1.     How do you think the changing economic conditions in Hungary changed logistics in the region?2.     If Janus asked for your advice on the facilities needed by his new warehouse, what kind of operations would you suggest? What are the benefits of the new operations? Would these give a sustainable competitive advantage? Engineering & Technology Industrial Engineering Supply Chain Management SCM 210 76