Case: Woodmere Products
Q: What are the major business propositions for Woodmere and HomeHelp to consider in evaluating this proposal? Is time-based logistics the right strategy for each company?
An empowerment in both businesses is one of the main points in the proposal in other to expand the incentives and benefits. According to the proposal, both businesses will enable to reduce the total costs as well as providing to the customers the high quality of product accessibility. Within approving the proposal, the Woodmere will achieve the better profit by withdrawing the business with the retailer into other situation. Beside that, the business’s image could be better. The limitation that the Woodmere may face to when participant the new process is to understand deeply the time-based logistic which may take time to work out.
The execution of time-based logistic system that would enquire the new approaches to practice and operations which would bring the better profits to the businesses by remaining the annual growth at 20%. The system can support the businesses to practice the term of “everyday low price” as: reducing the inventory costs, improving the selling performance and matching the needs of consumers as quickly as possible.
Besides bringing the huge benefits to the business, that system also bring other concerns which require the business keep clear consideration as: the huge investment for support the new technologies may involve which include the investment for staffing, soft or hardware, the time for training process to employees to be familiar with the new system and highly encourage the collaboration between those businesses.
To be step forward the difficult cases at the first start that require both businesses have strong and clear collaboration and information for clearly understanding each task and no surprise points may occur during the collaborating period in other to achieve the high competitive advantages. Leaking the internal information is unaccepted especially in the industrial competition because that can be the key advantage for other competitors to take advantage on both businesses. Moreover, the management level requires taking the account on the trade-off between the inventory expenses and delivering costs. Turing to this case study, JeanJean had reduced 20% of inventory by practicing the time-based logistic system by the cost for transportation increased.
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