Callahans’ General Store: Researched, analyzed, and developed a Supply Chain System. We communicated with General Manager of Callahan’s General Store to discuss current issues (i.e. high cost, problems, overstock issues, and customer service improvements). Developed a strategy for implementation to aggregate orders and reduce transportation as well as overall cost.

1. Callahan’s
General Store
AACE-
ABRIA ANDERSON, ADAM NALL,
CODY BOX, ETHAN JONES

2. Overview
• BACKGROUND
• CURRENT LOGISTICS SYSTEM
• FORECASTING AND IT
• PROPOSAL

3. Background
• GENERAL STORE IN SOUTH AUSTIN
• OPENED IN 1978
• KNOWN AS A STORE FOR ALL “TEXAN
NEEDS”
• SMALL BUSINESS WITH 4 DEPARTMENTS
• GROWN THROUGH WORD OF MOUTH
• ATTRACTS MANY CUSTOMERS FROM F1
TRACK
• COMPETES WITH CAVENDER’S, LOCAL FEED
STORES, LOCAL HARDWARE STORES, AS
WELL AS ONLINE STORES SUCH AS
AMAZON

4. Current Logistics
• SMALL LOCAL SUPPLIERS AS WELL AS LARGE
SUPPLIERS
• DEPARTMENT MANAGERS EVALUATE
INVENTORY
• PRIMARILY IN-STORE SALES
• INSTANCES WHERE ITEMS ARE SHIPPED TO
CUSTOMERS
• WORKS CLOSELY WITH SUPPLIERS TO MAINTAIN
INVENTORY

5. Forecasting
• PREFORMED BY DEPARTMENT MANAGERS
• SALES PATTERNS DETERMINED FROM
PREVIOUS DAYS SALES
• REPORTED TO MANAGERS THROUGH AS400
• ORDERS ARE DETERMINED BY DEPARTMENTS
MANAGERS THEN APPROVED BY THE STORE
MANAGER
• ORDER SIZE IS PRIMARILY DETERMINED
THROUGH WHAT THE SUPPLIER SAYS IS A
HIGHLY DEMANDED PRODUCT IN OTHER
AREAS

6. Information Technology
• AS400
• PRINTS REPORTS BASED ON PREVIOUS
CYCLE SALES
• MAINTAINS POS SYSTEM TO TRACK
INVENTORY
• PROVIDES SUPPLIER INFORMATION TO
DETERMINE EASE OF ORDER
• CONTROLLED BY MANAGERS
• REDUCES THE NEED FOR A LARGER STAFF
• REDUCED THE NEED FOR HAND RECORDED
TRANSACTIONS AND INVENTORY COUNTS

7. Proposal
• FORECAST BASED ON PRIOR YEARS
TRENDS
• NARROW DOWN THE NUMBER OF
SUPPLIERS
• SHARE DEMAND WITH SUPPLIERS
• MARKET AT LARGE EVENTS

8. Proposal
• FORECAST BASED ON PRIOR YEARS TRENDS
• MORE PRELIMINARY WORK
• MAKES GROWTH COMPARABLE OVER THE YEARS
• EASIER TO FORECAST DEMAND BASED ON
HISTORICAL DATA
• MAINTAINS A COST EFFICIENT INVENTORY
• ORDERS CAN BE SET TO BE PLACED WITH LESS MAN
HOURS BEING REQUIRED

9. Proposal
• NARROW DOWN THE NUMBER OF SUPPLIERS
• MAY NOT HAVE AS BROAD OF A PRODUCT RANGE
• NOT AS MANY SKU’S
• EASIER TO MANAGE SUPPLIES COMING IN
• POSSIBLE BULK ORDER DISCOUNTS FROM FILLING PREVIOUS
SUPPLIERS SHELVES
• CREATES A BETTER RELATIONSHIP WITH REMAINING
SUPPLIERS

10. Proposal
• SHARE DEMAND WITH SUPPLIERS
• DIFFICULT TO IMPLEMENT
• MAKES IT EASIER TO HAVE QUICK RESPONSE TO LOW
INVENTORY
• UTILIZES RESOURCES MORE EFFICIENTLY
• POSSIBLE TO KEEP MORE EFFECTIVE INVENTORY LEVELS

11. Proposal
• MARKET AT LARGE EVENTS
• EXPENSIVE UPFRONT COST
• CREATES MORE NEW BUSINESS
• GIVES ANOTHER ASPECT TO ADVERTISING
• TAKE ADVANTAGE OF FOREIGN AND DOMESTIC
CUSTOMERS
• INCREASE THE RANGE OF THOSE AFFECTED BY
WORD OF MOUTH

12. Summary
• BACKGROUND
• CURRENT LOGISTICS SYSTEM
• FORECASTING AND IT
• PROPOSAL