ipl-logo

Woodmere Products: Case Study: Time Based Logistics

1277 Words6 Pages

Woodmere Products Case Study
The case study is about time-based logistics. HomeHelp wants Woodmere to collaborate with it in an exclusive distribution using time-based logistics. Woodmere has to submit a proposal for implementing that. The following are the answers to questions about this collaboration.
Major Business propositions for Woodmere and HomeHelp
The business proposition for Woodmere in this case study is as follows. Woodmere would be able to secure an exclusive distribution with HomeHelp, which is a market leader in Home Decorating retail market, if it can implement time-based logistics. Woodmere’s prospective customer segment is heavily consolidated resulting in stiff competition. Since HomeHelp is a market leader in this segment, …show more content…

It maintains only 20% inventory at its stores and it customers would like to be able to have forty-eight hours to place orders and receive them on time. This can be achieved if it has an exclusive distribution arrangement with a partner who could cater to this need. HomeHelp would be able to get increase the number of professional decorators (Propartners) who are their customers. These Propartners are currently getting their requirements fulfilled through independent dealers due to their flexible delivery programs as it results in an increase in efficiency and improvement in cash flow position for them. To this effect, the exclusive distribution agreement with Woodmere would be the perfect for them resulting in reduction of channel costs for both and enable them to deliver a superior product to the end …show more content…

For HomeHelp, this would be a benefit, as it will be having more working capital available for it. In the short term, both the companies would have to spend money on the technology to implement the time-based logistics. In the long term, there would be costs associated with the time-based responsive logistics on an ongoing basis as it results in frequent smaller shipments rather than consolidated larger shipments. It also entails costs of regular upgradation of technology needed. This could result in an increase in costs in the short term and long term for both companies, which have to be balanced with the advantages gained (Donald J. Bowersox, 2002, p. 40).
Woodmere would benefit due to the exclusivity arrangement, as it would be able to manage capacity of its manufacturing plants better. It would also be able to highlight its success in this venture with HomeHelp to other customers and have similar arrangements with others. With the implementation, Woodmere would have a competitive advantage, which will not be easy for competitors to

Show More
Related
816 Words | 4 Pages

The potential consumption of Company X services will be dependent on various target markets. It is important for technology-enabled operations to be deployed to improve efficiency and limit consumption. Company X must develop a positioning strategy which is value-based. This strategy will implement the foundation of providing logistics solutions to consumers. Company X must provide customer solutions which are industry specific.

Read More
1139 Words | 5 Pages

When an organization is struggling to sell a product, the organization should reposition it so that it is a deal that

Read More
1050 Words | 5 Pages

Across the United States, Mexico, and Canada these two giants have industrialized characteristic strategic priorities, and brand images. Despite the strategic differences, Home Depot and Lowe’s both share one major objective. The fact of customer-based increasingly active online, both companies being committed to allowing their customers to move perfectly online and offline channels. For example, a customer may order online and have the item shipped to their nearest store, or may even identify the item in store and have it arranged so it could be shipped to their worksite. (Home Depot Vs.

Read More
220 Words | 1 Pages

Like REI, Cabela’s manages both consumer direct shipments and store replenishments in the same distribution centers. Cabela’s has three distribution centers as well as two returns processing centers. Each distribution and returns centers being 1 million square feet, can process an excess of 800,000 store, consumer and individual orders. Cabela’s only houses 30% of inventory in its distribution centers and the remaining 70% are stocked at its stores (Supply Chain Digest Home, 2008).

Read More
193 Words | 1 Pages

Simultaneous production and consumption 3. Proximity to customer Success

Read More
1380 Words | 6 Pages

Political Forces: The political stability is very important for the business to grow and last, according to that if the business has been operated in a politically unstable area, or in a country that is under a threat of wars that will lead to a loss for the business. Politics and governmental interferes is an important issue that is facing businesses and became a barrier in many situations. GAP Inc.

Read More
879 Words | 4 Pages

According to Porter (2008), a strategy should create a long-term sustainable competitive advantage for a company. This can either be achieved by performing similar activities better than rivals meaning to have a higher operational effectiveness – or to have a unique and valuable position with a consistent fit among a company’s activities and some trade-offs. Bark & Co.’s strategic positioning can therefore be described as a highly needs-based one due to the fact that the company focuses on meeting the needs of a particular group of customers and therefore also creates a fit among all activities. Whether this strategy will lead to a sustainable competitive advantage and what Bark & Co. needs to consider in order to operate successfully in the Pet Product Industry will be evaluated in the following chapters of this

Read More
1482 Words | 6 Pages

Current businesses have the cost advantage of having local manufacturing

Read More
995 Words | 4 Pages

Through this they could see the real-time product demand, share past data, customer information, demographics, stock position. As a result, they could reduce inventory cost. Lead time was cut down from 21 to 11 days, sales grew by $8.5mn, on hand inventory reduced by two weeks.  Having a centralized system in place Walmart was also able to allow customers to pull merchandise to the store than having the company push its goods on the

Read More
1442 Words | 6 Pages

Largely, the entry of the company into the distribution channels has limited the threat of major or powerful suppliers. The company has created its own retail stores and online web marketing. This approach aims at capturing the consumers that would want to order the product directly from the manufacturer. In fact, the online marketing model does not only enable the firm to sell directly to the respective consumer, but also enables the firm to identify the unique needs of the consumers. The direct link between the consumers and the company is critical to continuous growth of the company.

Read More
1009 Words | 5 Pages

While many manufacturers rely on third party retailers to sell their products, it has become important for manufacturers to add a direct-to-consumer mix in their distribution supply chain strategy (Diorio, 2016). As a result, Dyson should sell the new product directly to consumers through its website. In addition, by selling the new vacuum directly to consumers at its existing brick-and-mortal stores Dyson will have the opportunity to demonstrate the technology in person and provide a world-class customer experience (Cuthbertson, 2016). However, until it becomes realistic for the firm to establish a wide network of physical stores, Dyson should market the new vacuum through retailers.

Read More
1080 Words | 5 Pages

Notwithstanding, the brother were able to assess the weakness of their competitors and did not believe the manager or the sales staff of their competitors were capable of offering expert assistance with the selection of the goods as they were. Finance: Finance is a big threat to the brothers because to commence their project they need money for their inventories, renovations, leasing and other expense, however the article states their low fund which can really be a huge deal breaker as, Collin doesn’t have a job and doesn’t intend on having one as he is unwilling to work for anyone. During the planning process, they estimated they would need to invest $10,000 in renovations and display racks and about $20,000 inventory (at cost). At present they only had $12,000 of the inventory and other assets that were not

Read More
2051 Words | 9 Pages

For the company, it gets the raw materials like wood and wood fiber from its internal suppliers and other raw materials like metal from its external suppliers. At this stage, parties like IKEA Industry and IKEA’s external suppliers are involved. Since IKEA has to purchase materials from numerous suppliers, the company has 31 trading service offices in 26 countries so that new idea testing, production monitoring, quality checks and price negotiations can be carried out efficiently. This ensures that the material costs are at its lowest and at the same time, material comes in good

Read More
1059 Words | 5 Pages

Ikeas supply chain is highly efficient in terms of the way its sells its goods. The stages of IKEA’s supply chain are the supplier, manufacturer, distribution centre, retailer and the customer. Ikea has over 1400 global suppliers with China and Poland being the largest market and 42 distribution centre. Despite the fact that Ikea has long lasting relationship with its supplier it has ownership of all their products which allows them to easily change a non performing supplier. IKEA retailers shops also serve as their warehouse for their products.

Read More
1141 Words | 5 Pages

Introduction At the start of this course, I had no idea what to expect. This is due to the fact that marketing is a field that offers a combination of so many different disciplines such as art, psychology, and statistics. I encounter marketing on a daily basis but have strangely enough not reflected too much about it. Nevertheless, it is a very interesting subject, which deals with promoting and selling services and products.

Read More

More about Woodmere Products: Case Study: Time Based Logistics

Related Topics

Open Document