2. Nov.24, 2014
2
Table of Contents
I. Executive Summary
II. Industry Research
A. Local
B. Global
III. Porter’s Five Forces
IV. Company Research
V. Business Process Model
VI. Business Intelligence Systems
VII. Executive Dashboard
VIII. Database Design
IX. Enterprise Wide Systems
X. Social Media Strategy
XI. Mobile Strategy
XII. International Expansion
XIII. Team Member Contributions
XIV. Bibliography
3. Nov.24, 2014
3
Executive Summary
Background
Hawthorne Distribution was founded in 2009 in San Jose, California, and is quickly
earning a presence in the transportation and logistics industries. Hawthorne Distribution
focuses on the packaging and shipping of technology parts from manufacturers to their
customers. Hawthorne Distribution is working to expand on its business processes. The
main priority of the company is to maintain customer satisfaction, and Hawthorne
Distribution aims to achieve this as they transition into international markets. Hawthorne
Distribution plans to do this through the addition of improved information systems.
The transportation logistics industry is made up of several large and successful companies.
Entrance into this market is incredibly challenging, and companies must find ways to
differentiate themselves in order to be competitive. Nonetheless, Hawthorne Distribution
has set itself apart from its competition by specializing in the packaging and shipping of
technology parts. Current customers of Hawthorne Distribution appreciate the level of care
that is provided in ensuring their products reach their destination safely and in a timely
fashion. While Hawthorne Distribution has every intention of expanding internationally,
holding to this superior standard of customer service is the primary goal. This can be
achieved through creating detailed information systems toimprove productivity and
having a well-structured leadership team in the company’s transition to international
markets.
Recommendations
We recommend that Hawthorne Distribution attempts tobecome a bigger player in the
industry. The company is currently in its sixth year of operation, making Hawthorne
Distribution still relatively new to the local market. In order to continue on the path to
international expansion we recommend that social media applications be utilized to spread
awareness of the company’s services. Also, we believe Hawthorne Distribution should
begin to include new features to better servecustomers, such as the addition of a mobile
application to track package location. Due to Hawthorne Distribution’s small size, we
believe these actions will help to facilitate expansion. A brief outline of these new strategies
are listed below:
Develop a functional mobile application for customer use.
Increase the usage and modify the intentions of social media applications.
Revise the current business processes to prioritize new research
development.
Add a new Customer Relationship Management (CRM) System to
accommodate the growth and changing needs of Hawthorne Distribution.
Prepare Hawthorne Distribution to further expand internationally by gaining
a larger presence in the local market.
Below, Hawthorne Distribution provides a detailed analysis of the industry research and
recommendations for expansion into the international market. These improvements will
help growth by creating a greater awareness for the company that is needed for expansion
into foreign markets. As Hawthorne Distribution continues to grow, we look to adapt to its
4. Nov.24, 2014
4
changing needs, and we believe that these recommendations will allow for greater
revenues and the ability to serve a larger client base.
Industry Research
Local (U.S.) Industry Research
Key Performance Indicators
In the United States alone, logistics and transportation was a $950.6 billion industry in
2012 and generated revenues of about $2 trillion. This value accounts to an entire 8.5% of
the country’s annual Gross Domestic Product (GDP). There are several key performance
indicators in the highly competitive transportation logistics industry. Because the
transportation logistics industry is directly correlated with the U.S. economy, it is really no
surprise that the first key performance indicator is consumer spending. This tie to
consumer spending explains why the industry was severely damaged during the recession
from 2007 to 2009. During this time in the United States, purchasing and ordering of
goods decreased, inventory levels increased, and volumes shipped dropped dramatically.
According to Senior Business Analyst Rosalyn Wilson, new orders for durable goods
during 2008 and 2009 in the U.S. reached its lowest level since January 1948. She also
states, however, that positive trends in the industry returned in 2010 as GDP rose to 2.9%,
and have been mostly positive ever since. As shown by the graph below, consumer
spending has seen a tremendous recovery from the recession. Thanks to the falling
unemployment rate, more money is beginning to reach consumer wallets, and this increase
is likely to continue until 2019.
Another key performance indicator is corporate profit. Much like consumer spending,
corporate profit declined in 2007 at the start of the recession, and worsened until mid-
2009 with increasing unemployment. Fortunately, corporate profit increased later that
year. During this time, businesses looked to cut costs and maximize the productivity of
their workers. The increased efficiency from the limited number of workers caused a spike
5. Nov.24, 2014
5
in corporate profit of 25% in the year 2010. This growth has since leveled off at a modest
growth rate around 5%.
Key Competitors
The transportation logistics industry is largely dominated by companies that operate well
not only in the local sector but the global sector as well. UPS and FedEx are strong
indicators of the current condition of the local industry because they have successfully
dominated much of the market for many years by holding nearly 65% of the industry’s
total revenue. UPS and FedEx are headquartered in the United States, however the
majority of their revenues come overseas from Europe. Nonetheless, both FedEx and UPS
are successful within the local sector. In the past 5 years, UPS has experienced a growth
rate of 4.9% annually, and they are expected togrow to 5% in the current year. FedEx is
also amidst a growth period with a projected 6.9% annual growth rate in the five-year
stretch ending in fiscal 2015. FedEx and UPS have been largely successful in the industry
because of their ability to serve more than 6 million customers and delivering upwards of
15 million packages worldwide on a daily basis.
Trends
The market crash in 2007 caused revenues in the transportation logistics industry to
plummet. Since then, however, revenues for many companies within the industry have
managed to steadily increase, but the charts below indicate that industry revenues have
begun to level off. Businesses must always be looking for new ways togain a competitive
edge in this industry, since the industry is dominated by big players. Some of the most
notable trends that this industry has recently seen are reduction of costs and addition of
new and unique services that stretch beyond what is expected of a delivery service
company.
6. Nov.24, 2014
6
Stage in Industry Life Cycle
The transportation and logistics industry is
in the mature stage of the life cycle.
According to the chart on the right, a
mature industry is one in which the
industry revenues grow at the same rate as
the economy, technology and processes are
well-established, and the market accepts
the services provided. The industry’s
primary services are the packaging and
delivering of goods, which has essentially
been done the same way for decades.
Increasing efficiency and adding unique,
new services has become the primary way
to remain competitive within the industry.
Most of this competition exists between
UPS and FedEx. These twolarge companies
have the financial assets needed to alter
their business processes and create new
ways of serving their customers. As a result, it is becoming increasingly challenging for
small businesses, which are not as financially equipped, to enter the industry and be
competitive.
Global Industry Research
Key Performance Indicators
There are many key performance indicators of the global logistics and transportation
industry. The first would be to point out how large the logistics industry is globally. The
total global logistics market reached a value of about $4 trillion in 2013, representing
almost 10% of global GDP. The global transportation services market, however, is the
fastest growing sector, growing 7% year after year since 2011. These statistics prove that
this is a growing industry, and will be for many years tocome. More key performance
indicators would be the analysis of global air, road, rail, and shipping industries. The
global air transportation services industry has experienced a decline in growth rate over
the past couple years since 2012. Although this industry is experiencing growth, it is not
growing at a healthy rate. The global rail freight industry will experience a growth rate of
more than 6% until 2015, and then an 8% growth the following year. A continued increase
in growth is expected to follow in the future, past projected growth percentages. Global
road freight industry is the leading segment of the global logistics industry. It represents
over 74% of the industry’s value. The global shipping industry, by 2017, is expected to
surpass 730 TEUs (Twenty-foot equivalent units). Shipping containers are a major player
in global trade. The global shipping industry is expected togrow for a long time due to
rising demands in oil and gas. Per unit, many experts consider shipping the “greenest” way
7. Nov.24, 2014
7
of transportation. Below is a graph that indicates oil prices are rising, so finding new green
ways to ship items around the world will be vital.
Key Competitors
There are many competitors in the global logistics and transportation industry. The focus
will be on analyzing FedEx, UPS, and DHL. All three of these competitors have been
experiencing growth in revenues and net worth over the past few years. A huge strength of
competitors such as UPS and FedEx are that they pioneered the industry and has still
maintained their positions as historical leaders in the market. They have generally
developed good reputations in more than 200 countries worldwide. These three companies
have been providing service globally and their brand identity is a competitive advantage
over those trying to enter the global logistics and transportation industry. FedEx has a very
diverse workforce, good customer service, powerful brand, and many delivery route
options. They are, however, slow to update their technology and their prices are high. UPS
is in a strong market position, provides a variety of services, and also has a strong delivery
route system. DHL, the world’s largest logistics company, is innovative in their green
technology and strong in customer satisfaction. Through an analysis, high operation costs
are DHL’s only main weakness.
Major Global Markets
By 2017, the International Air Transport Association (IATA) says, the five largest
international freight markets in the world will be the United States, China, Germany, Hong
Kong, and the UAE. The United States will continue to be the world’s largest air freight
market through the forecasted period. Africa seems to be the fastest growing region, with a
compound growth rate of 4% annually, but will not surpass any of the top five by 2017.
Trends
8. Nov.24, 2014
8
More and more companies, due to the globalization of business, are outsourcing their
business related activities to logistics and transportation companies. A major trend is the
increased costs for operation. This brings higher energy costs and carbon dioxide taxes. As
a result, a main focus for most logistics companies today, is to determine how to reduce
operational costs, improve delivery performance, and increase customer satisfaction.
Green technology will be an integral part of the industry moving forward due to the
climate-change policies. Cloud databases have been an increased trend in the industry
because companies who expand globally need to access the same information around the
world.
Porter’s 5 Forces
Buyer Power
Buyer power in the logistics industry is medium. The reason for this is because the
customers can always find other service providers if the buyer sees what the supplier asks
for as unreasonable. Notice that both Buyer power and Supplier power are said to be at a
medium power level. This is because it is easy for either person in the supplier/ buyer
relationship to get up and find another company to deal with, making their level of power
equal to one another.
Supplier Power
Supplier power in the logistics industry is medium. The reason for this is because the
suppliers can always find another buyer for their services if the original buyer is too picky
or not able to find a deal with the supplier. Notice that both Buyer power and Supplier
power are said to be at a medium power level. This is because it is easy for either person in
the supplier/ buyer relationship to get up and find another company to deal with, making
their level of power equal to one another.
Threat of Substitute Products or Services
The threat of substitute products or services is low. While there are many competitors in
our industry, the good news is that there is little to no actual substitute services that can be
provided in lieu of traditional transportation of goods.
Threat of New Entrants
The threat of new entrants into our specific area of expertise is low, but the threat of new
entrants into the overall industry is on the higher side. Because of our specialization into
technology parts and hardware, there is a much lower threat of other competitors
emerging into our specific market.
Rivalry among Existing Competitors
The rivalry among existing competitors is pretty high. Many of our competitors have been
in the industry for a significant amount of time and most of them have been global
companies for some time now. Ultimately, some of the big players in this industry may be
9. Nov.24, 2014
9
looking to buy out a company like us if they see we are successful in gaining an edge by
having something that makes our business truly unique and is a resource they could use to
improve their own company as new and creative ideas within this industry are in high
demand.
Company Research
Background
Originally based in San Jose CA in 2009, Hawthorne Distribution has expanded to the
DFW (TX) and Charlotte (NC) regions within the last five years. Their recent success in the
logistics service area has granted them vast room for improvements and expansion in
order for their services to include all 48 continental states. Hawthorne Distribution offers a
wide array of transportation services, mainly focused around technology transport. The
vehicles that they employ, both ground and air vehicles, use a padded interior design to the
truck beds as well as a system of tie downs and safety checks in order to ensure that the
quality of the products that are entering their vehicles is the same as the quality of the
products that are exiting them.
Hawthorne Distributions’ Mission Statement
Toprovide our customers with superior product transportation related services. We will do
this by anticipating the needs of our customers and delivering their products in order to
make their businesses thrive. Hawthorne Distribution will become synonymous with
quality customer service by keeping customer satisfaction and innovation as our number
one priorities and by offering convenience that they never imagined was possible.
Current Strategy
Hawthorne Distribution focuses on a differentiated product strategy, which is based on
targeting a narrow market through providing a differentiated product (ie: extremely safe
and efficient tech product transportation). They dothis so that they are able to enter the
market swiftly and without much competition. Once in the market, a differentiated
product strategy is used to show that they can do something better than their competitors,
and that they can be successful on a larger scale. This ties into Hawthorne Distribution’s
“niche” target audience because there are a lot of competitors in the logistics industry, and
it is proven that these strategies are the best way toenter the market and stay successful.
The main goal of these strategies is to maintain a positive cash flow, because the most
reliable way tokeep a business running is through keeping a positive cash flow. Hawthorne
Distribution has a target market consisting of mainly manufacturers and wholesalers of
technology parts.
Business Process Model
Hawthorne Distribution has created this Business Process Model in order to outline the
steps that it goes through when receiving, processing, and shipping orders for customers.
The process begins with customers contacting Hawthorne Distribution for logistical
services. The next set of steps is for Hawthorne Distribution to receive the order and
analyze it to figure out if it is a new or recurring order. If it is a new order a new contract is
10. Nov.24, 2014
10
created, but if it is recurring the order is immediately processed and Hawthorne
Distribution proceeds to pick up and deliver the product. As the product is picked up, the
customer pays Hawthorne Distribution for its services. Once the order arrives at its
destination, it is checked for correctness and damages. If the order is incorrect or there are
unacceptable damages, the order is rescinded back to Hawthorne Distribution, but if it
correct and acceptable, the buyer will accept the order and the whole transaction is logged
for research and analysis in order to make the company more efficient.
11. Nov.24, 2014
11
Business Intelligence Systems
Reporting System
We have two different systems when trying to analyze sales data. First, we use our Access
database to keep track of client information such as: sales contracts, the size of their
company, and where they're based. Also, since we are a logistics company it is important to
see how well the company is doing relative to each region. Therefore, we use InstantAtlas
as a tool to visualize the statistics of each region we are shipping to.
Data Mining System
We have two kinds of systems while trying to extract big data. We use Angoss to extract
data from social media sites so that we can have a better idea of the behavior of our
customers. Lastly, we use Oracle Data Mining to analyze the strategies of our competitors
when obtaining sales data.
Knowledge Management System
There are various knowledge management systems we use throughout the company in
order to increase the company’s performance. All of our departments use Lotus Notes.
Therefore, all of the company’s discussions, emails, and documents are accessed at one
location. We use videoconferencing in order to cut down on meeting costs; this allows
individuals from different locations to still conduct a meeting. Lastly, we have eLearning
software to help new employees be integrated with our business processes.
Expert System
We have two different kinds of systems when trying to analyze either financial or supply
chain scenarios. The financial branch uses this system toevaluate if the customer or
vendor has the ability to be entitled to credit or not. Lastly, our supply chain sector uses
this system toshow delay in the transportation, and then it can give a diagnosis as to why
there is a delay in the supply chain.
Executive Dashboard
Applicability
Hawthorne Distribution is constantly striving to add more distribution centers throughout
the United States and the international community. Our executives need tobe able to
evaluate our company in order to reduce our expenses and stay ahead of our competitors.
Therefore, our IT specialists modeled our executive dashboard after DHL’s executive
dashboard because they are the leaders in the logistics industry. The executive dashboard
uses data from our Access database and updates the information in real time. We are able
to use this dashboard to assess various departments of our company. The executives use
these graphs to determine key areas that our company needs to improve. First, we look at
our company and decide how to cut down on costs. Second, we assess each region’s sales
specifications. Lastly, we want to be able to see the performance of our competitors and
12. Nov.24, 2014
12
determine what region to focus our attention on and determine what delivery method is
most efficient. Hawthorne Distribution and our executive team is able to make decisions
based on the various graphs to allow our company to excel beyond our competition.
Chart Summary
The dashboard focuses on three departments of the company and this data comes from our
Access database, which is updated in real time. We include a chart for sales so we are able
to track the performance of our services and competitors’ services. We include finance
because we want our company to be cost efficient. Finally, we have supply chain because
we’re a logistics company and evaluate the efficiency and effectiveness of our shipping
service. The wide variety of graphs and charts allows our company to assess the
performance of each branch.
We use the sales by service graph as a tool for demonstrating the strength of a particular
product within a particular region. Hawthorne Distribution is able to select between
international regions and local regions; therefore, our business is able to analyze our
success globally and locally. This particular graph gives us current information about
which region is doing well in terms of sales. Also, it shows our sales team which services
are successful in each region. Since we plan on expanding globally, we find it necessary for
our sales force to be able to use their local currency for ease of interpretation.
The bulk count bubble graph can interpret two aspects of the company. We mainly use this
graph because we examine our clients based on how many orders we receive and the cost
each customer is willing to pay. Also, this gives us information for each region: how much
revenue they’re bringing in, the typical amount paid for service, and it shows us how well
they are managing costs. Lastly, our sales executives are able to see what service is typically
selling the most and cater to that region’s needs. Our executives use a cost distribution
radar chart in order to determine where a majority of the company’s cost are being
allocated. This chart allows our business to find which areas of the company we need to
improve so we decrease our expenses. Lastly, we compare our allocated budget and our
actual budget. Therefore, we have an idea of how cost productively we are managing the
various subsidiaries of the company. The financial sector uses the gross profit bar graph to
demonstrate the overall profitability of our company. We then research various ways we
can cut down on costs for the services that have low profitability. Also, this graph gives us a
key indicator of how our profitability is doing in terms of other companies.
Hawthorne Distribution uses the distribution and headquarter map because our company
is based on the logistics industry. Therefore, our supply chain management is able to make
a decision within a moment’s notice if there is a problem within our supply chain. Lastly,
they are able to see how effectively we are able deliver goods from customer to vendor.
13. Nov.24, 2014
13
In addition to our various charts, we have a helpful links section on the dashboard for our
executives todetermine other cost saving opportunities and performance indicators. The
news application keeps Hawthorne Distributions up to date on various contract
information with other countries. The weather site is used to keep our supply chain up to
date for the conditions on the road; therefore, we are able to plan ahead so our customers
get their shipment in a timely fashion. We use the Gasbuddy site to cut down on
transportation costs and find the most productive route. All departments use the email
application to keep customers and employers up to date. Lastly, the executives use the
stock price as another financial indicator for our company.
14. Nov.24, 2014
14
Database Design
E-R Diagram
This is a Diagram outlining the relationships in the Database system design we have
recommended for Hawthorne Distributions.
Database Users
Above is the relationship web for Hawthorne Distribution’s Database. Here is where all of
our tables connect to one another. Each line is a branch connecting one table or query to
another table or query. Sometimes the effects of these relationships are minor and go
almost unnoticed, but sometimes a single line relationship can deliver a very important
function. A lot of these relationships are created so that the tables are connected in the way
that there is a dropdown menu on the primary key that allows the user to see how these
tables are directly related. For instance, on the Vehicles table, if you were to click on the
drop down menu of a vehicle that's in use, it would show the order that the vehicle is
currently delivering and all of that order’s information. This information is pulled from the
Orders Table, yet the Orders Table doesn’t even need to be opened. Another useful
function of these relationships is that in some cases, information is pulled from one table
and is directly inputted into another table. This is the case with the pickup locations on the
Orders Table. When trying to update the pickup location on a record of the Orders Table,
15. Nov.24, 2014
15
the possible options that the database will give you are part of a dropdown menu that
consist of Physical Addresses from the Current Customers Table. This makes finding these
Addresses extremely easy and as painless as possible.
Enterprise Wide Systems
Strategy: We recommend that Hawthorne Distribution implement, both an ERP and CRM
system.
ERP
Options: There are twoERP systems that have been recommended for Hawthorne
Distribution. The first is ERP Integrated Solutions. ERP Integrated Solutions has three
main ERP products, but only use the ShipERP. The ShipERP is an SAP certified ERP, and
uses a multi-carrier shipping solution with rate quoting, tracking proof of delivery and
label printing capabilities. The other recommendation is NetSuite. NetSuite has a growth
rate of 41.6%, which is four times its closest competitor. It is mainly cloud based with lower
IT costs.
Recommended: We recommend NetSuite for the ERP system because it has almost all of
the same capabilities as ShipERP, but with more usage and emphasis on the cloud and low
costs. NetSuite’s cloud delivery can eliminate high IT costs. They have created real-time
dashboards that will eliminate all of Hawthorne Distribution’s excess spreadsheets.
NetSuite will allow you to access the information from anywhere due to their innovative
cloud technology. Their systems are customized and Hawthorne Distribution can use it for
Financial Management, Supply Chain and Inventory Management, Order and Billing
Management, and Shipping and Fulfillment.
Advantages: NetSuite has advantages over the other suggested ERP system. NetSuite
provides a seamless quote-to-order, processing-to-fulfillment solution with complete
centralization of customer, order, invoice and shipping information. NetSuite also has
access to UPS and FedEx rates, so Hawthorne Distribution needs to be included in their
database as well. Their cloud capabilities provide endless opportunity if Hawthorne
Distribution choose to go with them.
16. Nov.24, 2014
16
Challenges: There are a few challenges for any transition into using an ERP system.
Currently, Hawthorne Distribution is too small, so we will have to wait a few years before
implementing the ERP systems. Also, they take some time to set up, so this is a long-term
commitment. ERP systems are constantly changing and becoming more innovative. The
more complex they get, the longer it will take to see results for the company.
CRM
Options: There are a couple CRM systems that would be good for Hawthorne Distribution.
The first is Streak. Streak is a very user friendly CRM backed by Google and the
GoogleApp. It allows for users to quickly learn the interface without much training and can
easily save a company lots of money. The low training costs could be very cost effective, if
that is a main concern. The other option is Salesforce. Salesforce, operating through the
cloud, is good for growing and expanding business because it not only limits costs, but it
allows for the company using it to let Salesforce worry about all data security and storage.
Recommended: We recommend Salesforce as our CRM system of choice because it focuses
heavily on cloud computing and storage while also having an emphasis on helping grow
businesses. It is also the number one CRM system, so it has been proved to work for many
corporations.
Advantages: The system is very customizable and a one-on-one overview of the product is
available. The high customization leads to very satisfied customers and would be more
effective for a company like Hawthorne Distribution. Also, it is easy to upgrade the system
as the company grows globally and just to fix ordinary changes. Additionally, the learning
curve is shorter than most systems. Another plus is that Salesforce contains Marketing
Automation Software, not typical of a CRM. Lastly, the entire CRM is based under one
cloud and is easy to maintain.
Challenges: CRM systems pose many of the same challenges as the ERP systems. We do
think that Hawthorne Distribution is ready to start implementing a CRM system. It will
take some time as well, but the systems we will need it for will not be as complex as the
ERP system. If we try to implement the CRM system too quickly, we can really hurt our
business and could be the downfall. The biggest challenge is not to rush it, once the
implementation process begins.
17. Nov.24, 2014
17
Social Media Strategy
In order to create an improved social media implementation strategy, we analyzed several
social media resources to determine what would be best for our business. After reviewing
information from various sources, we compiled a list of possible social media strategies
that would ultimately aid the relationship we have with our customers as well as
communicate to potential customers the benefits of using our services.
Although Hawthorne Distribution already utilizes social media through Facebook and
Twitter accounts, we believe that our social media presence can be improved by
incorporating some new elements. We have found that our current social media strategy
has been helpful in maintaining positive relationships with our current customers.
However, as a growing company anticipating global expansion, we would like to use social
media to enhance the recognition of our services topotential customers.
Facebook
The current Facebook strategy for Hawthorne Distribution is to communicate
with our most loyal customers, and we believe that the feedback from these
companies is extremely useful. Long-term customers rely on Hawthorne
Distribution’s unique, specialized services and are always eager to provide input
as to how Hawthorne Distribution can better serve their business. We suggest
that Hawthorne Distribution continue to focus on acquiring this much-needed feedback,
and use Facebook as a primary social media tool. We can also use Facebook on a more
regular basis for marketing purposes. While we appreciate hearing from our current
customers, we need to also look to acquire new customers to introduce ourselves into being
able to handle larger volumes of orders. In addition, the Facebook page can be used to
promote some of Hawthorne Distribution’s other social media sites, such as Twitter and
LinkedIn.
Twitter
Hawthorne Distribution’s current Twitter account is used to update users on
how the company lives by its mission statement through all stages of operation.
Hawthorne Distribution prides itself on superior service regarding care of
products, and Twitter is a way to report how Hawthorne Distribution achieves
this standard. We also suggest that this Twitter account be used to promote
YouTube clips to visually demonstrate the level of care that goes into business processes.
18. Nov.24, 2014
18
YouTube
Hawthorne Distribution currently does not use YouTube as a method of
promoting the company’s services. However, we do believe it would be beneficial
for Hawthorne Distribution to begin uploading videos to YouTube, given the
popularity of this video-sharing website. Uploaded videos should be used to
visually demonstrate the benefit of using the unique and exceptional services
provided by Hawthorne Distribution in a way that backs up the company’s mission
statement.
Blogs
Hawthorne Distribution does not use major blog sites at this time. While many
companies with a blog presence only occasionally update their content, we
believe Hawthorne Distribution should not only create a blog, but should also
post multiple times a week with updates on the company’s growth in the
industry and current economic conditions. We feel it is important for
Hawthorne Distribution to utilize this tool in order to gain attention regarding
presence within the industry, and believe blog posts are a way to attract a wide audience to
the company’s services. Blogs are also a great way to promote our other social media sites
that may provide users with better insight towards Hawthorne Distribution.
LinkedIn
We recognize the tremendous importance of using the resources provided
through LinkedIn. Hawthorne Distribution’s current LinkedIn page is used as a
marketing tool to spread awareness of the company. The company page is not
currently used to search for potential employees, but it will surely be used as a
recruiting tool as Hawthorne Distribution approaches its time to expand
globally. Hawthorne Distribution will definitely be in need of an increased number of
employees, since the European market the company will serve is much larger than the local
market in the United States.
Instagram
Instagram is easily one of the most used social media sites today. Hawthorne
Distribution currently does not have an Instagram account, and we do not
anticipate the need for one at this time. While this resource may be useful for
many companies out there for updating users on company happenings, we do not
believe using this tool will benefit Hawthorne Distribution in the long run. Thus,
after doing sufficient research on this topic, we suggest that Hawthorne Distribution focus
its attention on its other social media accounts that are more likely to appeal to our target
audience.
19. Nov.24, 2014
19
Mobile Strategy
Usage Appropriateness
We feel it is necessary for our customers to be actively involved with our processes. As a
result, our customers remain informed about our business and the important details
regarding their products. Employees can use it too so they can stay connected with
customers.
Ideas
The mobile application could be used for a variety of functions for the customer, including
scheduling times to have an order picked up, knowing when the order has been received,
having Hawthorne Distribution’s customer service at all times, and providing feedback to
better Hawthorne Distribution services. The employees can use it to know when an order
needs to be picked up, receive feedback from customers, and have the ability to contact
customers about an order.
Best Usage Idea and Functionality Description
All of the proposed ideas can be implemented into a mobile app. Customers will want to
know when their order will be picked up and dropped off. They will also know where their
order is at all times, because each order will have a tracking number on it attached to a
location indicator on the mobile app’s map. Customers will want to have instant and
constant contact with employees of Hawthorne Distribution because they may have
questions regarding their order or concern about their shipment. Hawthorne Distribution
has loyal customers and they have always been good about providing feedback to ensure
better services. They can now immediately send recommendations through the app so that
their voice will be heard.
With the app, employees will be able to know exactly where orders need to be picked up
and dropped off. The app has all the addresses and orders updated so that there will never
be any confusion about a certain pick up date or location. All the customers’ information
will be on the app, so if the employee needs to speak with a customer about their order and
verify the units being shipped, they will have access to that information at the tip of their
finger. Once an order is picked up or dropped off, the customer will leave some feedback
and the employees will know what they need to do better for the next shipment.
Benefits
The mobile app will only help everyone involved in Hawthorne Distribution’s transactions.
Customers will feel safe in knowing when their orders are picked up and dropped off. They
will also have comfort in knowing where their order is at all times. Customers will be
happy to know that they can also contact any employee at any time they have any concerns.
Employees will feel more organized in knowing exactly where togo and when to be there.
They will also like having the customers contact information and know what to do to better
themselves as employees.
20. Nov.24, 2014
20
Design
Here is a brief overview of the mobile app design we recommend for Hawthorne
Distribution. This app was designed via
www.como.com
Scan here to try
International Expansion
Location Recommendations
We recommend that Hawthorne Distribution’s first facility into globally expanding should
be in Germany. We recommend this because Europe is a world leader in international
logistical transportations. There are many countries close together that constantly trade
with one another. Also, after some research, we have found that there are many other
reasons that we think that Germany would make a great place to expand to, such as it
being central and close to many other countries allowing for short, cost efficient travel.
21. Nov.24, 2014
21
Germany has relatively relaxed laws on international travel and transportation and is
currently, and projected to be, in the top 3 countries to have the largest international air
freight market.
China is good choice as well, but there is a lot of red tape and restrictions that come with a
communist government that would not be a problem if we base ourselves in Europe. Also,
it does not allow for easy access to Europe, which is the world leader in logistical
transportation.
The United Kingdom is another great place to be in logistical transportation, but if you are
based there, you are limiting yourself to air transportation if you are delivering
internationally. For any sort of realistic international travel from the United Kingdom, we
would have to travel over the English Channel, which means we would be limited to boat
or air travel.
Information System Challenges of the Expansion
Expanding Information Technology means that we will need to hire more Information
Technology and Information Systems specialists to keep track of the new information and
systems. When going global, language barriers are always a possible challenge, so we will
need to make sure that these specialists are from the countries that we are expanding to so
that they will speak the native language and language barriers will not be nearly as big of a
problem. Immediately after expanding, new routes will have tobe found/created, resulting
in a longer supply chain, especially if the original products are from customers near our
existing facilities. Finally, one of the more obvious problems with expanding is that we will
have larger inventories and more orders to process, which will create a bigger workload.
Information system Implementation Recommendations
In order to succeed in a new global environment, we recommend hiring logistics specialists
from the country that we are operating in. This will fix any language barriers that arise and
help with melding into the country’s culture. They will also be familiar with routes in the
area. Also, it is important to focus on keeping lead times shorter in order to manage larger
inventories and keep supply chain shorter.
22. Nov.24, 2014
22
Team Member Contributions
Tanner Stuewe:
Our team split up as little of the project as possible, forcing us to work together on as many
aspects of our company so that every angle of an idea could be covered. This caused our
company to be very well rounded and thought out. When we did split up work, everyone
took his or her fair share. I assigned myself the parts of the project that were more hands
on, mainly the access database. As the “team leader” I tried to let our team be more than a
group led by a person, but more of a team full of leaders that each took initiative and gave
their full opinion. When it comes to the Global Written Report, I wrote the Porter’s five
forces section, Database Design section, and the International Expansion section, along
with helping with other sections and overall formatting. I very much enjoyed this team’s
work ethic and attitude toward this project, and am glad that I was able to work with this
caliber of a team.
_______________________
Ryan Spetnagel:
The majority of the work completed by our team was done collectively. We attempted to
collaborate on details as much as possible and completed much of the rough drafts of our
information in our team’s weekly meetings. Nonetheless, we did divide certain tasks in
order to maximize efficiency. My main contributions were assisting Tanner in building the
company database and researching the industry both locally and globally, but mainly
completing the local industry report. I also wrote our company’s social media strategy,
executive summary, and located many graphics that supported our research. Overall, I am
very pleased with the work of our team, and I can say with confidence that this was a
meaningful experience in which I learned a great deal about an industry I may not have
been exposed to otherwise.
_______________________
Evan Hammer:
Most of the work that was done on the project was done together, the bulk being the actual
research. Therefore, most aspects of the project are a representation of a true group effort.
However, each of us did have our own contributions to the project. Specifically, I helped
research the local and global industry, but mainly focused on writing about the global
industry report. This was very interesting and I was able to learn much about the logistics
and transportation industry, particular the current trends. My other tasks were to write
about the ERP and CRM systems, and to also create and write about our mobile app. All in
all, it was a group effort and great learning experience.
_______________________
23. Nov.24, 2014
23
Dylan Hawthorne:
My team all worked together collaboratively. I made sure to keep edit the SharePoint site
and keep that site updated. I also assisted with the Global Research. Mainly, I added a
Strength Weakness Opportunities and Threats Analysis of our main competitors. This gave
us some insight to how and where we can compete with our leading competitors. Also, this
gave us some information on where we to base our company globally. Lastly, I found some
economic indicators to show our competitor’s performance. I am thrilled to have had the
opportunity to work with Hawthorne Distributions.
_______________________
24. Nov.24, 2014
24
Bibliography
· "SelectUSA." The Logistics and Transportation Industry in the United States. N.p.,
<http://selectusa.commerce.gov/industry-snapshots/logistics-
and-transportation-industry-united-states>
· "Sub Navigation." IATA. International Air Transportation Association, n.d.
· "Top Logistics & Transportation Companies on the 2012 Inc. 5000 BY
THE EDITORS OF INC." Top Logistics & Transportation Companies on the
Inc. 5000. N.p., n.d. Web. 28 Sept. 2014.
<http://www.inc.com/inc5000/list/2012/industry/logistics-
transportation>
· "Logistics and Shipping." BusinessVibes. N.p., n.d. Web. 10 Oct. 2014.
<http://www.businessvibes.com/content/logistics-and-shipping-
overview>
· "Plunkett Research®, Ltd."
Transportation-supply-chain-logistics-market-research. N.p., n.d. Web. 7
Oct. 2014.
<http://plunkettresearch.com/transportation-supply-chain-
logistics-market-research/industry-trends>
· Foster, Thomas A., and Richard Armstrong. "Top 25 Third-Party Logistics
Providers Extend Their Global Reach." Top 25 Third-Party Logistics
Providers Extend Their Global Reach. N.p., n.d. Web. 22 Oct. 2014.
<http://www.supplychainbrain.com/content/sponsored-
channels/kenco-logistic-services-third-party-logistics/single-
article-page/article/top-25-third-party-logistics-providers-extend-
their-global-reach/>
· "CRM and Cloud Computing ToGrow Your Business - Salesforce.com."
· "The #1 Cloud Business Software Suite." Business Software, Business
· "Enterprise Solutions." SAP Shipping Solutions : SAP ERP Solutions :
<http://www.erp-is.com/solutions/SAP_Shipping_Solution.aspx>
· Wilson, Rosalyn. U.S. State of Logistics Report (n.d.): n. pag. 20 May
25. Nov.24, 2014
25
<http://delcan.com/images/brochures/The_Best_in_Class_will_
Come_Out_Stronger.pdf>
· "Study on Life Cycle of Logistics Industry." (ASCE). N.p., n.d. Web. 3 Oct.
2014.
<http://ascelibrary.org/doi/abs/10.1061/41139%28387%29115>
<http://clients1.ibisworld.com/reports/us/industry/home.aspx>
· "U.S. Bureau of Labor Statistics." U.S. Bureau of Labor Statistics. U.S.
· "Customized Logistics and Delivery Association." Customized Logistics
<http://www.mcaa.com>
<http://www.census.gov>
n.d. Web. 27 Sept. 2014.
Web. 2 Oct. 2014. <http://www.iata.org/publications/Pages/prorate-
cargo.aspx>
Salesforce.com. N.p., n.d. Web. 23 Oct. 2014.
<http://www.salesforce.com/>
Management Software – NetSuite. N.p., n.d. Web. 23 Oct. 2014.
<http://www.netsuite.com/portal/home.shtml>
ERP Integrated Solutions, Inc. N.p., n.d. Web. 23 Oct. 2014.
2010. Web. 26 Oct. 2014.
· "US Industry Reports." N.p., n.d. Web. 15 Nov. 2014.
Bureau of Labor Statistics, n.d. Web. 15 Nov. 2014. <http://www.bls.gov>
and Delivery Association. N.p., n.d. Web. 16 Nov. 2014.
· "Census.gov." Census.gov. N.p., n.d. Web. 16 Nov. 2014.
