Case

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Council of Supply Chain
Monogernen’rProfessionols

The World"'1: Leading Sourcefor the .'5uppIy (flziiiii Professioii

Chabot Wallpaper Company
An Academic Learning Case Study written for the
Council ofSapply Chain Management Professionals

Rodney Thomas, Ph.D. (University of Tennessee)
Assistant Professor
Georgia Southern University
And

Stephanie Thomas
Doctoral Student
Georgia Southern University

Council of Supply Chain Management Professionals
333 East Butterfield Road, Suite 140
Lombard, Illinois 60148 USA
+ 1 630.574.0985 education@cscmp.org cscmp.org

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Therefore, Mr. Miller has hired a consulting company to review the Chabot supply chain and recommend appropriate actions. lndustgg Overview
The retail wallpaper industry includes about 8,000 stores with combined annual revenue of $400M.
The industry is concentrated with the top 10 retailers accounting for about 90 percent of sales. Retail outlets for consumers include home centers, hardware stores, mass merchandisers, and direct online sellers. Companies like Lowe's, Home Depot, Shenivin Williams, Sears, and 1-800-Wallpaper have substantial market shares in the industry.
The number of wallpaper manufacturers has significantly decreased over the past decades. During the 70s when the popularity of wallpaper peaked, there were dozens of manufacturers. Today there are less than 10 manufacturers. Competition is intense as the manufacturers fight for the remaining market share, and consumer preferences and purchasing patterns are impacted by other types of wall coverings such as paint, stucco, and other textured surfaces.
Home construction, remodeling trends, and interior decorating preferences drive demand in this industry. The profitability of individual manufacturers depends on effectively merchandising and developing fashionable new items at reasonable costs. The average retail price for a single roll of wallpaper is $16, according to the Paint and

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