Haus Mart Case Study

Harrison Kansol

T TR 9:30-10:45

Supply Chain Management at Haus Mart

Case Background:

• Exel is the largest producer of freight management and contract logistics in the word
• 44% of the company’s sales comes from freight management while 53% come from contract logistics, while the other 3% come from environmental services
•  In Exel’s first assigned contract with Haus Mart in 1980 there was regional transportation of goods from Haus Marts DC in Hamburg to its stores.
• The goal of the company is to provide useful logistics services with high quality products and services to achieve the customer’s satisfaction in the long run and to increase profits.

Problem Statement:

        Exel wants to go into the SC planning with SC execution and add more value to the supply chain. Exel is prepared in the companies execution strategy but needs work on the on the supply chain planning. They lack core competencies to manage SC planning. The companies supply chain planning at Haus mart has been done by people who lack the skills to make the right decisions for the supply chain. The goal here is to minimize the costs and maximize the value added logistics services. Exel needs to decide whether joint planning with HM will benefit them in the long run. If they fail it could lead to high costs that could ultimately ruin their company.

Recommendations:

        In this case study, all of the risk depends on the performance of only Exel. The 3rd party logistics running the sixth Distribution center is constantly underperforming in comparison to Exel. So even though the company has great freight management, they have no control over the contract logistics and no control over brand name products.  To handle  these situations Exel should assume SC planning for private label products going through the 5 distribution centers it controls. Secondly, Haus Mart should look into their  supplier performance and look to lower the 650 brand name product suppliers. HM can then move to concentrate its suppliers. However the company must not get rid of any partners that add value to the company.