CASE STUDY WESTMINSTER

1019 Words Apr 8th, 2015 5 Pages
WESTMINSTER CASE STUDY

SUBMITTED TO- MR. ANGELO CRUPI

SUBMITTED BY- INDER RAJ SINGH OBIORAH AZUATALAM

CURRENT STATEMENT-
Westminster Company is a giant Global manufacturer of health products whose brand has been recognized by the world. As the company they have three different operations which produce and distribute different product lines. Their main strategy on which they are working and which is a major success for them is decentralized management. Now they are re-evaluating their traditional supply chain strategy because the company is getting too much pressure from their large domestic’s customers and global customers. Now the company has to study on
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Advantages-

Freight cost will reduce by Truck load and by using maximize the cube and also less than truck load shipment will reduce.
Information sharing will help them for forecasting accurate and controlling inventory.
Moreover, by all this alternatives the company will get efficient and on time delivery to customers which increase the customer satisfaction too.

Disadvantages-
As for implementing these changes can cause some problems and issues, moreover this is time consuming process.
If clients will remain at old place of warehouse they have to face issues with the delay in delivery to their customers.
Some clients don’t want to be part of a long term relationship.
Other Questions-
Answer 1- The first question which shows the two new options how impact transfer and customer might freight cost and the answer for this question is given in first alternative and second alternative which is elaborated above.
Answer 2- If there should be a single location for all three companies the inventory holding cost will reduce because the product is placing at one location instead of different three locations. Moreover, by doing this the insurance and misplacing of product of cost reduce but in transit of inventory will increase because the shipments are truck load and the distance between customers and distribution centre is far. Furthermore, with this the service level improved which means order fulfilment process improved too. In addition to this, the
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