The objective of this study is to analyse Sam’s club and their current inefficiencies and provide suggestions to Mr.Jim who heads the reengineering team that can help his team formulate appropriate supply chain strategies in order to achieve lowest possible cost and attain greater competitive advantage. The paper provides a background of the current situation faced by club where the current inefficiencies are discussed and possible recommendations are then suggested.
Traditional water harvesting in Thar region of India.The presentation shows various methods employed for water conservation and recharging in Rajasthan and Gujarat in Western India.
Traditional water harvesting in Thar region of India.The presentation shows various methods employed for water conservation and recharging in Rajasthan and Gujarat in Western India.
Home Work Chapter 1 to 12: Book Reference: Simchi-Levi, D., Kaminsky, P., and...Shaheen Sardar
Home Work Chapter 1 to 12:
Book Reference: Simchi-Levi, D., Kaminsky, P., and Simchi-Levi, E., & (2008). Designing and managing the supply chain: Concepts, strategies, and cases (3rd edition). United-States: McGraw-Hill.
Optimization of Physical Distribution of Consumer Goods in Nigeria: A Case St...IOSR Journals
The study is aimedat procuring optimalsolutions to challenges faced in the physical distribution system of consumer goods in Nigeria context also the need to minimize cost especially in Physical distribution is inevitable as increased cost of transport and poor transport infrastructure imposes strain on the physical distribution system. The researcher applied network optimization models to develop optimal solutions to real life problems in physical distribution system. Using questionnaires the researcher was able to explain how various service variables influence the service level.The researcher identified trends in warehousing operations, the nature of the relationship between physical flow and distribution cost and how various service variables influenced the service level. Afterwards, he recommended ways to benefit from these opportunitiesand steps to take to cub the impact of its challenges of the physical distribution system.
Multi-commodity ETRM’s are becoming too expensive to implement, and maintain ...CTRM Center
Since ETRM software was first introduced around 20-years ago, developers have continually sought to move from developing solutions designed to support specific commodities such as crude oil, natural gas, and electric power, to building solutions that catered for multiple energy commodities. In part, their objective was to reduce costs – specifically integration costs, but without a doubt, part of the objective was self-serving, as this also allowed them to broaden the appeal of their software to a larger and more lucrative market.
Running head COMBINE PRIVATE AND PUBLIC WAREHOUSES1Combine .docxjoellemurphey
Running head: COMBINE PRIVATE AND PUBLIC WAREHOUSES
1
Combine Private and Public Warehouses
11
Combing Warehouses
Group A Assignment
TLMT312, American Public University
Professor Rodolfo Santamaria
08 June 2014
Introduction
A company may choose to combine public and private warehousing through a contract process. In San Antonio, Texas there are a series of public warehouses that are actually owned by the city and they are located in Port San Antonio. Many of the businesses contract the warehouses for a specified period of time. Often this is based on a contract that the company has to manage materials for another company or as a temporary expansion option for a growing company. In this situation a company may or may not have its own transportation assets. In a contracted warehouse situation a company may or may not, depending on the contract, be responsible for maintaining the facility. The arrangement exists for the duration of the contract and any other responsibilities agreed upon by the two parties will be delineated in the contract. Public warehousing is a very good option for a company that does not have the money to hire full time staff to manage its product or manage its transportation costs. The cost of operating and maintaining the facility falls on the company that owns the building but only manages the inventory. A private warehouse it typically owned by a company with sufficient monetary assets to afford to hire a staff, maintain insurance, maintain a fleet of vehicles and takes to care of any facility maintenance that may be necessary. This keeps the whole supply chain within the bounds of one company. Combining public and private warehousing may be an attractive and economical option for any company.
A company will choose to combine public warehousing with private warehousing when, financially, it makes sense for the company to lease a facility instead of build or purchase and staff it with their own personnel.
Business Example
There are several instances when private and public warehousing teaming up together makes good business sense. International Finance Corporation (2012) describes a public-private partnership (PPP) in agricultural storage in various locations around the world. The need for modernized storage facilities in developing countries and upgraded logistical systems is imperative for growth of the industry. The governments in the Middle East, Sub-Saharan Africa, South, and East Asia have recognized the short falls of public warehousing and are opening up the agriculture business to more privatization of warehousing and logistics. The introduction of privatization has allowed the governments to improve operational efficiencies, reduce waste/damage, and introduce the latest technology and international best practices, and finally allow better quality control. This allows for more growth and investment in the industry that previously was not being allowed when the storage facilities were owned primarily by ...
Complexity in business arises from the diversity of markets, customers, products, processes, components (parts or materials) and suppliers that a company chooses to deal with. Most managers recognise that complexity
comes at a cost - both in activities and overhead. But to be competitive, it is important to understand where and how the market rewards differentiation, and to root out all complexity that cannot be justified.
Complexity can hinder the performance of supply chains and the proliferation of products can lead to excessive set-ups and costs during manufacture.
Errors in forecasting can be magnified which may increase the chance of stock-outs and drive up the costs of distribution. But the answer is not to simply cull products indiscriminately from the range. Companies need to
balance the costs of complexity with how the market values variety.
Many low-volume products lose money after the associated costs of complexity are accounted for. And some products thought to be adding complexity are
quite profitable, because they generate high margins. It may appear tempting just to eliminate ‘the tail’ of the portfolio of products. But the answer lies in understanding the inter-dependencies within the portfolio and pinpointing the trade-offs between the requirements of the market, revenues, costs, and stakeholders' ambitions for growth. People from Marketing, Sales, Development, Supply Chain and Manufacturing have different perspectives on
what needs to be done. Only by collaborating can complexity be reduced and contained.
1. Write one paragraph to answer one of these questions. Please inBenitoSumpter862
1. Write one paragraph to answer one of these questions. Please include the Option # in your answer. Reflect on your answer and then include at least 3 sentences in your answer.
· Option # 1. How can a firm design and develop a more resilient supply chain?
Responses:
1. A quality comment on class member's discussion postings begins with 2 sentences that enhance, support, or debate appropriately your peer’s answer.
Discussion 6
Top of Form
Supply chain resilience is a company’s ability to react to issues and recover from them with a big impact to the company’s operations. I believe for a firm to design and develop a more resilient supply chain is focusing on the three core enables which are, the people, the process, and technology.
For companies to complete work, they need employees. People to help run the company, so they hire people with the skill set and knowledge to run departments and to use machinery etc. the next step is process. It has been proven that employees perform at their best when they are empowered by an effective process. To manage shortages and to increase supply chain resilience company’s need to be that they have an effective process in place that employees can follow for the flow to run smoothly.
Technology can help company’s complete processes more easily and accurately. Real time analytics and decision support tools, including enterprise resource planning also known as ERP and electronic data interchange platforms, can help provide data needed to help run the company.
Bottom of Form
Discussion #6
Top of Form
What is -procurement?
E-procurement is the process of buying and selling supplies and services over the Internet. E-procurement opens the lines of communication between a company and a supplier by creating a direct link and facilitating interactions such as bids, purchase orders, and emails.
What are the benefits of E-procurement?
E-procurement offers substantial benefits to the function of procurement management within a purchasing organization, including: Cost Savings, Built-in monitoring tools help control costs and maximize performance, reducing overhead and paperwork. Fully automated systems streamline processes and can result in a faster cycle from creating an order to fulfillment. The shorter purchasing cycles centralized transaction tracking simplifies: reporting on orders, payments, and requisitions, as well as ensuring contract compliance, all of which can reduce delivery time. Buyers have electronic access to available products, services, and prices.
Improved Inventory Control-Procurement professionals can quickly locate products from preferred supplies and are limited to the purchases they can make, so inventory is better controlled.
Transparency- All information is centralized and can be made available to management, stakeholders, shareholders, or the public, as appropriate.
Davila, A., Gupta, M., & Palmer, R. J. (2010). Mo ...
1. Write one paragraph to answer one of these questions. Please inSantosConleyha
1. Write one paragraph to answer one of these questions. Please include the Option # in your answer. Reflect on your answer and then include at least 3 sentences in your answer.
· Option # 1. How can a firm design and develop a more resilient supply chain?
Responses:
1. A quality comment on class member's discussion postings begins with 2 sentences that enhance, support, or debate appropriately your peer’s answer.
Discussion 6
Top of Form
Supply chain resilience is a company’s ability to react to issues and recover from them with a big impact to the company’s operations. I believe for a firm to design and develop a more resilient supply chain is focusing on the three core enables which are, the people, the process, and technology.
For companies to complete work, they need employees. People to help run the company, so they hire people with the skill set and knowledge to run departments and to use machinery etc. the next step is process. It has been proven that employees perform at their best when they are empowered by an effective process. To manage shortages and to increase supply chain resilience company’s need to be that they have an effective process in place that employees can follow for the flow to run smoothly.
Technology can help company’s complete processes more easily and accurately. Real time analytics and decision support tools, including enterprise resource planning also known as ERP and electronic data interchange platforms, can help provide data needed to help run the company.
Bottom of Form
Discussion #6
Top of Form
What is -procurement?
E-procurement is the process of buying and selling supplies and services over the Internet. E-procurement opens the lines of communication between a company and a supplier by creating a direct link and facilitating interactions such as bids, purchase orders, and emails.
What are the benefits of E-procurement?
E-procurement offers substantial benefits to the function of procurement management within a purchasing organization, including: Cost Savings, Built-in monitoring tools help control costs and maximize performance, reducing overhead and paperwork. Fully automated systems streamline processes and can result in a faster cycle from creating an order to fulfillment. The shorter purchasing cycles centralized transaction tracking simplifies: reporting on orders, payments, and requisitions, as well as ensuring contract compliance, all of which can reduce delivery time. Buyers have electronic access to available products, services, and prices.
Improved Inventory Control-Procurement professionals can quickly locate products from preferred supplies and are limited to the purchases they can make, so inventory is better controlled.
Transparency- All information is centralized and can be made available to management, stakeholders, shareholders, or the public, as appropriate.
Davila, A., Gupta, M., & Palmer, R. J. (2010). Mo ...
Designing a hybrid global sourcing strategy for triton labs case study reportSachin Mathews
Objective of the case is to analyse Triton’s current purchasing mechanisms and provide alternatives to Mrs. Donna Rock, who heads the Global Sourcing Task force in formulating a suitable hybrid sourcing policy. This includes providing suggestions both on the sourcing procedures as well as structuring the performance evaluation framework of such a policy.
Home Work Chapter 1 to 12: Book Reference: Simchi-Levi, D., Kaminsky, P., and...Shaheen Sardar
Home Work Chapter 1 to 12:
Book Reference: Simchi-Levi, D., Kaminsky, P., and Simchi-Levi, E., & (2008). Designing and managing the supply chain: Concepts, strategies, and cases (3rd edition). United-States: McGraw-Hill.
Optimization of Physical Distribution of Consumer Goods in Nigeria: A Case St...IOSR Journals
The study is aimedat procuring optimalsolutions to challenges faced in the physical distribution system of consumer goods in Nigeria context also the need to minimize cost especially in Physical distribution is inevitable as increased cost of transport and poor transport infrastructure imposes strain on the physical distribution system. The researcher applied network optimization models to develop optimal solutions to real life problems in physical distribution system. Using questionnaires the researcher was able to explain how various service variables influence the service level.The researcher identified trends in warehousing operations, the nature of the relationship between physical flow and distribution cost and how various service variables influenced the service level. Afterwards, he recommended ways to benefit from these opportunitiesand steps to take to cub the impact of its challenges of the physical distribution system.
Multi-commodity ETRM’s are becoming too expensive to implement, and maintain ...CTRM Center
Since ETRM software was first introduced around 20-years ago, developers have continually sought to move from developing solutions designed to support specific commodities such as crude oil, natural gas, and electric power, to building solutions that catered for multiple energy commodities. In part, their objective was to reduce costs – specifically integration costs, but without a doubt, part of the objective was self-serving, as this also allowed them to broaden the appeal of their software to a larger and more lucrative market.
Running head COMBINE PRIVATE AND PUBLIC WAREHOUSES1Combine .docxjoellemurphey
Running head: COMBINE PRIVATE AND PUBLIC WAREHOUSES
1
Combine Private and Public Warehouses
11
Combing Warehouses
Group A Assignment
TLMT312, American Public University
Professor Rodolfo Santamaria
08 June 2014
Introduction
A company may choose to combine public and private warehousing through a contract process. In San Antonio, Texas there are a series of public warehouses that are actually owned by the city and they are located in Port San Antonio. Many of the businesses contract the warehouses for a specified period of time. Often this is based on a contract that the company has to manage materials for another company or as a temporary expansion option for a growing company. In this situation a company may or may not have its own transportation assets. In a contracted warehouse situation a company may or may not, depending on the contract, be responsible for maintaining the facility. The arrangement exists for the duration of the contract and any other responsibilities agreed upon by the two parties will be delineated in the contract. Public warehousing is a very good option for a company that does not have the money to hire full time staff to manage its product or manage its transportation costs. The cost of operating and maintaining the facility falls on the company that owns the building but only manages the inventory. A private warehouse it typically owned by a company with sufficient monetary assets to afford to hire a staff, maintain insurance, maintain a fleet of vehicles and takes to care of any facility maintenance that may be necessary. This keeps the whole supply chain within the bounds of one company. Combining public and private warehousing may be an attractive and economical option for any company.
A company will choose to combine public warehousing with private warehousing when, financially, it makes sense for the company to lease a facility instead of build or purchase and staff it with their own personnel.
Business Example
There are several instances when private and public warehousing teaming up together makes good business sense. International Finance Corporation (2012) describes a public-private partnership (PPP) in agricultural storage in various locations around the world. The need for modernized storage facilities in developing countries and upgraded logistical systems is imperative for growth of the industry. The governments in the Middle East, Sub-Saharan Africa, South, and East Asia have recognized the short falls of public warehousing and are opening up the agriculture business to more privatization of warehousing and logistics. The introduction of privatization has allowed the governments to improve operational efficiencies, reduce waste/damage, and introduce the latest technology and international best practices, and finally allow better quality control. This allows for more growth and investment in the industry that previously was not being allowed when the storage facilities were owned primarily by ...
Complexity in business arises from the diversity of markets, customers, products, processes, components (parts or materials) and suppliers that a company chooses to deal with. Most managers recognise that complexity
comes at a cost - both in activities and overhead. But to be competitive, it is important to understand where and how the market rewards differentiation, and to root out all complexity that cannot be justified.
Complexity can hinder the performance of supply chains and the proliferation of products can lead to excessive set-ups and costs during manufacture.
Errors in forecasting can be magnified which may increase the chance of stock-outs and drive up the costs of distribution. But the answer is not to simply cull products indiscriminately from the range. Companies need to
balance the costs of complexity with how the market values variety.
Many low-volume products lose money after the associated costs of complexity are accounted for. And some products thought to be adding complexity are
quite profitable, because they generate high margins. It may appear tempting just to eliminate ‘the tail’ of the portfolio of products. But the answer lies in understanding the inter-dependencies within the portfolio and pinpointing the trade-offs between the requirements of the market, revenues, costs, and stakeholders' ambitions for growth. People from Marketing, Sales, Development, Supply Chain and Manufacturing have different perspectives on
what needs to be done. Only by collaborating can complexity be reduced and contained.
1. Write one paragraph to answer one of these questions. Please inBenitoSumpter862
1. Write one paragraph to answer one of these questions. Please include the Option # in your answer. Reflect on your answer and then include at least 3 sentences in your answer.
· Option # 1. How can a firm design and develop a more resilient supply chain?
Responses:
1. A quality comment on class member's discussion postings begins with 2 sentences that enhance, support, or debate appropriately your peer’s answer.
Discussion 6
Top of Form
Supply chain resilience is a company’s ability to react to issues and recover from them with a big impact to the company’s operations. I believe for a firm to design and develop a more resilient supply chain is focusing on the three core enables which are, the people, the process, and technology.
For companies to complete work, they need employees. People to help run the company, so they hire people with the skill set and knowledge to run departments and to use machinery etc. the next step is process. It has been proven that employees perform at their best when they are empowered by an effective process. To manage shortages and to increase supply chain resilience company’s need to be that they have an effective process in place that employees can follow for the flow to run smoothly.
Technology can help company’s complete processes more easily and accurately. Real time analytics and decision support tools, including enterprise resource planning also known as ERP and electronic data interchange platforms, can help provide data needed to help run the company.
Bottom of Form
Discussion #6
Top of Form
What is -procurement?
E-procurement is the process of buying and selling supplies and services over the Internet. E-procurement opens the lines of communication between a company and a supplier by creating a direct link and facilitating interactions such as bids, purchase orders, and emails.
What are the benefits of E-procurement?
E-procurement offers substantial benefits to the function of procurement management within a purchasing organization, including: Cost Savings, Built-in monitoring tools help control costs and maximize performance, reducing overhead and paperwork. Fully automated systems streamline processes and can result in a faster cycle from creating an order to fulfillment. The shorter purchasing cycles centralized transaction tracking simplifies: reporting on orders, payments, and requisitions, as well as ensuring contract compliance, all of which can reduce delivery time. Buyers have electronic access to available products, services, and prices.
Improved Inventory Control-Procurement professionals can quickly locate products from preferred supplies and are limited to the purchases they can make, so inventory is better controlled.
Transparency- All information is centralized and can be made available to management, stakeholders, shareholders, or the public, as appropriate.
Davila, A., Gupta, M., & Palmer, R. J. (2010). Mo ...
1. Write one paragraph to answer one of these questions. Please inSantosConleyha
1. Write one paragraph to answer one of these questions. Please include the Option # in your answer. Reflect on your answer and then include at least 3 sentences in your answer.
· Option # 1. How can a firm design and develop a more resilient supply chain?
Responses:
1. A quality comment on class member's discussion postings begins with 2 sentences that enhance, support, or debate appropriately your peer’s answer.
Discussion 6
Top of Form
Supply chain resilience is a company’s ability to react to issues and recover from them with a big impact to the company’s operations. I believe for a firm to design and develop a more resilient supply chain is focusing on the three core enables which are, the people, the process, and technology.
For companies to complete work, they need employees. People to help run the company, so they hire people with the skill set and knowledge to run departments and to use machinery etc. the next step is process. It has been proven that employees perform at their best when they are empowered by an effective process. To manage shortages and to increase supply chain resilience company’s need to be that they have an effective process in place that employees can follow for the flow to run smoothly.
Technology can help company’s complete processes more easily and accurately. Real time analytics and decision support tools, including enterprise resource planning also known as ERP and electronic data interchange platforms, can help provide data needed to help run the company.
Bottom of Form
Discussion #6
Top of Form
What is -procurement?
E-procurement is the process of buying and selling supplies and services over the Internet. E-procurement opens the lines of communication between a company and a supplier by creating a direct link and facilitating interactions such as bids, purchase orders, and emails.
What are the benefits of E-procurement?
E-procurement offers substantial benefits to the function of procurement management within a purchasing organization, including: Cost Savings, Built-in monitoring tools help control costs and maximize performance, reducing overhead and paperwork. Fully automated systems streamline processes and can result in a faster cycle from creating an order to fulfillment. The shorter purchasing cycles centralized transaction tracking simplifies: reporting on orders, payments, and requisitions, as well as ensuring contract compliance, all of which can reduce delivery time. Buyers have electronic access to available products, services, and prices.
Improved Inventory Control-Procurement professionals can quickly locate products from preferred supplies and are limited to the purchases they can make, so inventory is better controlled.
Transparency- All information is centralized and can be made available to management, stakeholders, shareholders, or the public, as appropriate.
Davila, A., Gupta, M., & Palmer, R. J. (2010). Mo ...
Designing a hybrid global sourcing strategy for triton labs case study reportSachin Mathews
Objective of the case is to analyse Triton’s current purchasing mechanisms and provide alternatives to Mrs. Donna Rock, who heads the Global Sourcing Task force in formulating a suitable hybrid sourcing policy. This includes providing suggestions both on the sourcing procedures as well as structuring the performance evaluation framework of such a policy.
Employment PracticesRegulation and Multinational CorporationsRoopaTemkar
Employment PracticesRegulation and Multinational Corporations
Strategic decision making within MNCs constrained or determined by the implementation of laws and codes of practice and by pressure from political actors. Managers in MNCs have to make choices that are shaped by gvmt. intervention and the local economy.
The case study discusses the potential of drone delivery and the challenges that need to be addressed before it becomes widespread.
Key takeaways:
Drone delivery is in its early stages: Amazon's trial in the UK demonstrates the potential for faster deliveries, but it's still limited by regulations and technology.
Regulations are a major hurdle: Safety concerns around drone collisions with airplanes and people have led to restrictions on flight height and location.
Other challenges exist: Who will use drone delivery the most? Is it cost-effective compared to traditional delivery trucks?
Discussion questions:
Managerial challenges: Integrating drones requires planning for new infrastructure, training staff, and navigating regulations. There are also marketing and recruitment considerations specific to this technology.
External forces vary by country: Regulations, consumer acceptance, and infrastructure all differ between countries.
Demographics matter: Younger generations might be more receptive to drone delivery, while older populations might have concerns.
Stakeholders for Amazon: Customers, regulators, aviation authorities, and competitors are all stakeholders. Regulators likely hold the greatest influence as they determine the feasibility of drone delivery.
Specific ServPoints should be tailored for restaurants in all food service segments. Your ServPoints should be the centerpiece of brand delivery training (guest service) and align with your brand position and marketing initiatives, especially in high-labor-cost conditions.
408-784-7371
Foodservice Consulting + Design
Integrity in leadership builds trust by ensuring consistency between words an...Ram V Chary
Integrity in leadership builds trust by ensuring consistency between words and actions, making leaders reliable and credible. It also ensures ethical decision-making, which fosters a positive organizational culture and promotes long-term success. #RamVChary
Senior Project and Engineering Leader Jim Smith.pdfJim Smith
I am a Project and Engineering Leader with extensive experience as a Business Operations Leader, Technical Project Manager, Engineering Manager and Operations Experience for Domestic and International companies such as Electrolux, Carrier, and Deutz. I have developed new products using Stage Gate development/MS Project/JIRA, for the pro-duction of Medical Equipment, Large Commercial Refrigeration Systems, Appliances, HVAC, and Diesel engines.
My experience includes:
Managed customized engineered refrigeration system projects with high voltage power panels from quote to ship, coordinating actions between electrical engineering, mechanical design and application engineering, purchasing, production, test, quality assurance and field installation. Managed projects $25k to $1M per project; 4-8 per month. (Hussmann refrigeration)
Successfully developed the $15-20M yearly corporate capital strategy for manufacturing, with the Executive Team and key stakeholders. Created project scope and specifications, business case, ROI, managed project plans with key personnel for nine consumer product manufacturing and distribution sites; to support the company’s strategic sales plan.
Over 15 years of experience managing and developing cost improvement projects with key Stakeholders, site Manufacturing Engineers, Mechanical Engineers, Maintenance, and facility support personnel to optimize pro-duction operations, safety, EHS, and new product development. (BioLab, Deutz, Caire)
Experience working as a Technical Manager developing new products with chemical engineers and packaging engineers to enhance and reduce the cost of retail products. I have led the activities of multiple engineering groups with diverse backgrounds.
Great experience managing the product development of products which utilize complex electrical controls, high voltage power panels, product testing, and commissioning.
Created project scope, business case, ROI for multiple capital projects to support electrotechnical assembly and CPG goods. Identified project cost, risk, success criteria, and performed equipment qualifications. (Carrier, Electrolux, Biolab, Price, Hussmann)
Created detailed projects plans using MS Project, Gant charts in excel, and updated new product development in Jira for stakeholders and project team members including critical path.
Great knowledge of ISO9001, NFPA, OSHA regulations.
User level knowledge of MRP/SAP, MS Project, Powerpoint, Visio, Mastercontrol, JIRA, Power BI and Tableau.
I appreciate your consideration, and look forward to discussing this role with you, and how I can lead your company’s growth and profitability. I can be contacted via LinkedIn via phone or E Mail.
Jim Smith
678-993-7195
jimsmith30024@gmail.com
Public Speaking Tips to Help You Be A Strong Leader.pdfPinta Partners
In the realm of effective leadership, a multitude of skills come into play, but one stands out as both crucial and challenging: public speaking.
Public speaking transcends mere eloquence; it serves as the medium through which leaders articulate their vision, inspire action, and foster engagement. For leaders, refining public speaking skills is essential, elevating their ability to influence, persuade, and lead with resolute conviction. Here are some key tips to consider: https://joellandau.com/the-public-speaking-tips-to-help-you-be-a-stronger-leader/
Comparing Stability and Sustainability in Agile SystemsRob Healy
Copy of the presentation given at XP2024 based on a research paper.
In this paper we explain wat overwork is and the physical and mental health risks associated with it.
We then explore how overwork relates to system stability and inventory.
Finally there is a call to action for Team Leads / Scrum Masters / Managers to measure and monitor excess work for individual teams.
The Team Member and Guest Experience - Lead and Take Care of your restaurant team. They are the people closest to and delivering Hospitality to your paying Guests!
Make the call, and we can assist you.
408-784-7371
Foodservice Consulting + Design
Enriching engagement with ethical review processesstrikingabalance
New ethics review processes at the University of Bath. Presented at the 8th World Conference on Research Integrity by Filipa Vance, Head of Research Governance and Compliance at the University of Bath. June 2024, Athens
2. The Club War – Case Study
1
Table of Contents
Sl No. Title Page No
1. Introduction 2
2. Objective 2
3. Background 2
4. Current Inefficiencies 3
5. Recommendations 4
6. Conclusion 6
7. References 7
3. The Club War – Case Study
2
1. Introduction
The given case “The Club War” is about a company called Sam’s club which is “price club” a
retail phenomenon that began in 1976 where the club operates stores and warehouses and offers
distinctive advantages to its members by selling their merchandise lowest possible price and
giving customers a better buying experience. Many clubs sprang up in the later part of the 20th
century leading to intense completion in this warehouse retailing market. The focus of these
companies were to achieve greater operational efficiency, at lowest possible overall supply
chain cost, and pass on these saving achieved to its valuable members in the form of low
warehouse prices, better deals on merchandise and improved customer experience.
2. Objective
The main objective of this study is to analyse Sam’s club and their current inefficiencies and
provide suggestions to Mr.Jim who heads the reengineering team that can help his team
formulate appropriate supply chain strategies in order to achieve lowest possible cost and attain
greater competitive advantage. The paper provides a background of the current situation faced
by club where the current inefficiencies are discussed and possible recommendations are then
suggested.
3. Background
Sam’s club is one of the leading price clubs in the US but faces stiff competition from Costco
another price club based in US who share the similar philosophy of cutting down costs by an
efficient supply chain and passing on savings to their esteemed members. But as presented in
the case they achieve tremendous buying power due to their large membership base. Sam’s
club notable differentiators mentioned are their low profit margins and offering bigger deals
on merchandise and services. The product line ranges from apparel, appliances, automotive,
books, consumer packaged goods, electronics, fresh and frozen foods, home furnishing and
office supplies. The firm recognizes that not all items needed to be available round the year
and have seasonal items, unique special buy items which are available only once that creates
an atmosphere of “impulse buying” for end customers. This is proven marketing strategy but
requires an efficient supply chain or else could lead to stock out, lost sales, inventory holding
4. The Club War – Case Study
3
costs and various other variable costs resulting in poor business performance and loss of
competitive advantage.
4. Current Inefficiencies
Jim’s re-engineering team on conducting an “as-is” analysis that aims at understanding the
current dynamics of supply chain its current strengths, weaknesses, opportunities and threats
found 10 sources of inefficiency which are discussed below.
There was significant amount of freight moving in LTL quantities," though freight cost analysis
revealed TL to be the low-cost option. LTL which aggregates freight from several customer
from numerous touch points requires dock-personal, material handling equipment etc., that
increase the material-handling cost (Coyle 2011). There also runs the risk of loss/damage if
proper tracking and safety mechanisms are not in place. This is evident in the case as they
incurred huge loss and damage bills and high material handling cost. The firm used cross
docking facilities where shipments from suppliers or inbound trucks arrive at a transit point
and sent directly to buyer locations without storing them. Though they were able to leverage
TL economies they felt there was opportunity for improvement. As pointed out by (Chopra &
Meindl, 2013) the complete benefits of cross-docking can be achieved only if economies of
scale can be attained both in their inbound as well as outbound shipments which needs effective
coordination and transport mechanisms. In the existing framework there was no way to
implement milk runs, and team felt they were missing an opportunity to reduce transportation
costs. The team found that despite efforts they were still running empty backhauls, which
means increase miles travelled without load that results in added cost and time consumed
(Coyle 2011). Also significant amount of quantities were moved through parcel and airfreight.
All this shows a lack of an optimized transportation network, poor trailer loading policies that
were leading to increased lead times, higher material handling & holding costs and
transportation costs. In addition their purchasing, sourcing and supplier delivery options were
not analysed and synchronised with their transportation and distribution mechanisms. Freight
from Asian suppliers was received on the west coast and then shipped by trucks to the
distribution centres and retail stores, increasing time of delivery and transportation cost.
5. The Club War – Case Study
4
5. Recommendations
In the given case the main inefficiency lies in management of physical flow of materials from
source to consumption. As identified by the re-engineering team there is a lack of efficient
transportation network which includes optimal use of all available modal transportation,
routing and distribution mechanisms. However warehouse retailing firms also face the risk of
capitulating to the temptation of adding new features or making too many changes, diluting the
original strategy, pointed out by (McLaughlin 1992) as the “wheel of retailing” due to which
much of the competitive advantage gained by the organization is compromised. Jim needs to
keep this in mind while formulating new strategies. As pointed out by (Harrington 2008) the
retail sector is known for its demanding service requirements and Jim will need to thoroughly
assess cost and service trade-offs before deciding on the way forward.
Information plays a crucial role in planning and execution phases of logistics activities.
(Schoenthaler 2003) elucidates how accurate and timely information affects supply chain
performance. Jim could benefit from implementing CPFR (Collaborative Planning,
Forecasting and Replenishment) a technique that combines the advantages of EDI and VMI
(Prater 2013) that would provide greater supply chain visibility and achieve better co-ordination
while planning the front-haul and back-haul transportation network. This combined with TMS
(transport management system) and WMS (warehouse management system), ERP 2 and MRP2
tools can help Jim to design a better inbound and outbound transportation network that can be
synchronized with sourcing and distribution network. However as pointed out by (Fliedner
2003) and (White 2013), for CPFR to work successfully and to reap the complete benefits of
it, there needs to be strong supplier-buyer relationships where both parties work together to
mutually agreed goals.
(Christopher 2005) further elucidates on how firms can gain long-term supplier relationship
can create value to the supply network. Jim needs to improve these relationships and negotiate
better incoterms (International Commercial Terms) which relates to the rights and obligation
of parties in contract with relation to the delivery of sold goods (Coyle 2011), such as DAF
(Delivered at Frontier) where the exporter responsible for transportation and risk of damage or
DES (Delivered Ex Ship) / DDU (Delivered Duty Paid) where exporter takes additional
responsibilities. However Jim needs to examine the quality aspect and past history of the
6. The Club War – Case Study
5
service rendered by theses suppliers before deciding the incoterms. This would reduce the bill
of loss/damage that Sam’s Club is incurring. In addition, Jim needs make these purchasing
decisions in view of the current transportation inefficiencies.
In terms of their transportation and distribution network, Jim could use the option of a
“Tailored Network” that uses an effective combination of TL, LTL, cross-docking and Milk
runs which can further help in reducing cost and improve the responsiveness of Sam’s Club
supply chain. Depending on the demand of products, shipment can be sent directly (preferably
for high demand) or to and from a DC (for low-demand). Emphasis should be to use TL as it
is the low-cost option, and reduce the shipments through LTL which can be achieved using
TMS by optimizing the trailer capacity. As pointed out by (Irista 2005) through TMS, various
permutations and combinations of these arrangements can be analyzed and optimal solutions
that reduce the transit time and transportation cost can be arrived at. For smaller shipments
especially to the retail stores, that does not fill a truck, Jim should use Milk runs along with
cross-docking. This requires significant amount of coordination and can only be achieved by
improving the information and communication technology used by the firm. For larger
shipments, Jim must make use of “Economy of Scale" and "Economy of Distance" and use
direct shipping that would simplify operations and co-ordination and reduce the transportation
time. For shipment arriving from Asia, landing on the west-coast, Jim could use the option of
using mutli-modal transport such as rail-truck, while considering the type of product, degree of
spoilage or damage as it would increase amount of handling required. Jim must also evaluate
the option of near-sourcing some of these products and make necessary trade-offs between
transportation cost and price of these products from low-cost producing countries. These steps
would decrease the transportation cost significantly. As pointed out by (Harrington 2008)
through improved relationships and co-ordination with suppliers and their carriers, Jim could
also make use of overlapping networks and reduce the effect of empty backhauls.
7. The Club War – Case Study
6
6. Conclusion
As seen in this case study firms need to regularly revisit and re-evaluate their purchasing,
sourcing and logistics mechanisms and align them to their organizational strategy. In the price
club or warehouse retail market, the main differentiator is the efficiency of the supply chain at
lowest possible cost. Firms need look out for every possible opportunity to improve efficiency
and reduce cost in their current operating environment without losing track of their core
competency that will enable them to achieve greater competitive advantage.
8. The Club War – Case Study
7
7. References
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Operations. Pearson.
Christopher,Martin.,.2005. Logistics and Supply Chain Management - Creating Valueadded
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Fliedner,G.,.2003. “CPFR: an emergingsupplychaintool.” IndustrialManagement and Data
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Harrington,Lisa.,.2008. “Ground Tactics: OptimizingTransportationNetworks.” Inbound Logistics.
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Irista,P.,.2005. “TransportationOptimization:IsThisthe NextStep?” HK SystemsCompany.
McLaughlin,Edward.,Hawkes,Gerard.,Perosio,Debra.,.1992. “Wholesale ClubStores:The Emerging
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Schoenthaler,R. 2003. “Creatingreal-timesupplychainvisibility.”ElectronicBusiness 12-13.
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