North West Case

1294 Words6 Pages
Executive Summary North West Company will move towards a “pull strategy” within its supply chain. Pull production is based on actual or consumed demand and individual store managers will monitor this. The benefit of localization for North West will be a higher inventory turnover rate. The benefit for customers will be a more customized shopping experience based on their community. The potential risks are there are high costs involved in implementing a new database system and procurement decisions will be divided between category managers and store managers. We will implement a new database system and train store managers to purchase inventory based on local and regional needs. This system will allow stores to be a part of…show more content…
Seasonal/Customized inventory will adopt a “pull strategy” where store managers will have the opportunity to make decisions based on their immediate environment. Product Receiving and Shipping – Reducing Cycle Time Pro: The distribution center is already divided into two floors – one for immediate shipping and the other for storage. This makes for easy access to what needs to be shipped right away and what does not. Con: Two months is a long time to be housing inventory that is projected for a specific period. Demands can change in this time frame and the distribution center is left with no choice other than to “push” inventory to store warehouses. This is what leads to unnecessary markdowns. Alternative: Placing orders with suppliers at a later date will reduce the time inventory sits at the distribution center. The center already runs smoothly and on schedule so pushing back shipments should not be a problem. This will allow orders to go in at a later date where inventory demands might change. Merchandising and Selling – Interorganizational Information Systems Pro: Merchandise is immediately put on display so stores do not have to stock inventory. Con: If a store runs out of certain products they cannot meet demand. Similarly, if a product does not sell it will eventually go into clearance. Alternative: Creating a database between stores that shows inventory of each store will allow inventory to move easily from one location to the next. Stores should
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