Please complete the following “Distribution Strategy” scenario.
Effective distribution Strategies Foreign integration= Supplier=manufacturing=customer=logistics management
You are the new Warehouse Manager for wonderful widgets. The company produces one product, widgets, but has several customers located domestically and internationally.
The Problem: Corporate has informed you over the last 12 months, the company has incurred increased costs, increased variability, and decreased customer satisfaction (lost sales).
Additional Information: Due to this new information, you are responsible for making all decisions pertaining to product distribution. You are the person accountable for the increase in costs, variability, and customer satisfaction. The company has warehouses satisfaction. The company has warehouses located across the United States.
Your task is to determine which distribution strategy is optimum for the company to reduce costs, variability, and increase customer satisfaction. You must decide which strategy is best for the company based on the information given:
Centralized: After feeling a bit overwhelmed, you leave your office to take a quick break to think about your conversation with Mr. Smith. In the hallway, you run into a colleague that has been with the company for several years and in fact, was the Warehouse Manager at one time. You tell her about the conversation and with Mr. Smith. She says… back in the day we didn’t have that many warehouse. This would be the optimal decision based on the current information. Centralized systems allow for integration of information flow between all facilities( single point contact) and decisions are made across the company network by utilizing partnerships and alliances. Correct answer wonderful widgets would be best served if they were to use a centralized management strategy. The have one product that is shipped from various locations domestically. The placement of their warehouses (distribution center) allows them to share information across their network to coordinate activities which serves their customers, reduce costs and variability.
Cross-Docking: carriers didn’t always come on time. Cross docking is an option but they can be difficult to manage because of the number of companies involved, planning, scheduling, information sharing, and less than responsive transportation services and networks.
Transshipping: This option exposes wonderful widgets and their current inventory. Transshipping also adds to potential time and delays due to consolidating products in order to get them to the end customer. Wonderful widgets need to reduce their variability and this is not the best way to do this.
Go through the scenario.
Your task is to determine which distribution strategy is best for the company.
Choose a solution and in one paragraphs make a clear and specific recommendation based on the readings in the class so far. In a second paragraph, describe how the company can implement your recommendation. Write your recommendation/implementation in third person. Include a cover page.
At the end, discuss the questions that are presented below.
Answer the following questions:
What did you find challenging in completing the scenario (i.e., information network layout, etc.)?
How does this additional information factor into effective distribution strategies?
Recommendation for Distribution Strategy