Short Case Report Example
Autor: wht19930710 • May 4, 2016 • Coursework • 259 Words (2 Pages) • 972 Views
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- Problems
- Polaroid has 10 warehouse and 1 central distribution center in Europe.
- Many disparate supply chain systems/metrics exist in European subsidiaries.
- Tom Carroll, Director of International Distribution and Customer Service, had repeatedly tried to convince the company to centralize inventory stocks in Europe.
- This plan was strongly opposed by a number of managers in Europe, although it has been agreed and supported by corporate management.
- No detailed plan has been established yet about the sequence in which warehouse should be eliminated and inventories consolidated.
- Recommendations
- Use computerized over all distribution center.
- Build a direct distribution center and upgrade Enschede DC (central DC) facilities, eliminate subsidy regional warehouse.
- Enhance utilization of new systems, such as new communication system and computerized order management system, in order to realize the standardization across each subsidiary.
- Supporting rationale
- Total cost and investment of build a new direct DC and enlarge current central DC are not very high.
- Use direct DC could:
- Decrease in stock-outs and back orders
- Increase in delivery reliability
- Decrease in packaging costs
- Packaging standardization
- Increase in customer service level
- Decrease in transportation costs
- ROI in use direct DC is high.
- Tools
- Cost and ROI analysis
- Service level analysis
- Risk management analysis
- SWOT analysis
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