Polaroid Case Analysis

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IIM Indore | Polaroid Corporation: European Distribution system | Logistics Management system | | Submitted to | Prof. S. Venkatramanaiah | | Group 2 | AludaiyaarasuAsvin VMohan M S Prabu PRajasekar VijayaraghavanSrinivasan DK.M.Venkatraj | Synopsis: Polaroid Corporation, headquartered in Cambridge, Massachusetts, was a company marketed a wide variety of instant photographic products for consumers and industries. After the deregulation of US motor industry consolidation of the warehouses in US took place, which resulted in an improved service level and reduced costs. Overwhelmed by the consolidation results, the management wanted to consolidate the subsidiaries’ warehouses in the Europe to a direct distribution.…show more content…
Opposition from Unions in different subsidiaries against the layoff could cause serious problems like high severance package and possible strikes Benefits Of Centralized Warehouse system: By implementing Centralized warehouse system, Polaroid would achieve a net annual savings of $5.7 Million. Savings through reduction of workforce will be $2.5 Million and Warehouse rental savings will be $1 Million Factors supporting Central Warehousing: 1. Successful implementation in US and savings derived 2. Forthcoming liberalization of cross-border transportation 3. Efforts by Logistic providers for pan-European service capabilities 4. Post liberalization transportation in Europe would reduce by 5-25% Analyzing Service Demand pattern: Country | Photographic Dealers | Hypermarkets/Retailers Warehouse | Wholesalers | Special Markets | Direct service | Nature of Service Demand (Remarks) | France | 70% | 20% | 10% | - | - | 1) Shipment of products directly to individual 2) Direct delivery to retail outlets &retail establishments | Germany | 0% | 85% - 90% | 10%-15% | - | - | 1) Highly demanding compared to other European subsidiary 2) Strongly opposed late or incomplete orders | Italy | 45% | 10% | 40% | 5% | | Characterized most flexible | UK | - | 20% | 45% | 20% | 35% | Some of Accounts considered extremely demanding | From above table we could infer that Germany and France are seeking high
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