Officemax Inventory and Supply Chain

2 OfficeMax Gets a Handle on Its Inventory

1. It is important to analyze the business model before the supply chain because you may have other areas that are causing your business to lose its advantage. If you go directly to the supply chain to solve your problems you could very likely overlook some other factor that is causing you issues. Since the business model consists of the supply chain, analyzing the business model first will find that it is the problem, if it really is.

2. OfficeMax had several problems using the direct-to-store method. Each of their individual stores was allowed to order their merchandise. This caused multiple orders going into the supplier. They were unable to take advantage of lower prices by buying larger quantities. They used up a lot of floor space with shipments that had come in. They had to stock a lot of inventory. Customers complained because of the "clutter" in the store that made it difficult. Due to so many different shipments coming into the store, the employees spent a lot of time handling these inbound shipments instead of helping the customers.

3. OfficeMax's new supply chain model helped them decrease the amount of inventory that they kept in the store. It improved the amount of time that it took to replenish their floor stock. It reduced the number of shipments that arrived at each store. Even though it is not stated in the article, I would assume that it improved sales. The employees are now able to focus on true customer service, instead of shipments.

Closing Case: Anheuser-Busch Integrates "Green" Thinking into the Supply Chain

1. Cost Savings is not the most important factor that influences the supply chain decisions. You may be able to save money by changing your supply chain; however it could negatively affect something else in your business. It could reduce