The Case Study of Holt Renfrew

For the past twenty years Hesselsons has been using the warehouse to store inventory. Fortunately, just a few weeks ago Hesselsons moved a majority of its stuff into a new warehouse closer to their business. "So a lot of the stuff had been moved out which is obviously good for us. If this had happened a month ago, who knows what would have happened. We had still had some hot tub and pool stuff over there, a lot of shelving and racking and hot tub parts over there and some generators," says

The major role of the procurement department is to get the products in the door, with little concern for price, to satisfy the needs of production and engineering. There are no basic systems in place to control materials once they arrive. The expediter often typed up purchase orders for rush items, and in other cases, picked up the items and told the supplier they would receive an order confirmation from the Blozis Company supply department. Once returning to Blozis, and distracted by other issues he would forget to ask supply for a confirming order. This caused distress for the supply department clerks, as they would need to process invoices for which it had no corresponding orders. Purchase orders were often made up to match invoices if the material had obviously been received from the supplier, after the fact.

If the operation have not reordered all the goods they need, this can lead to irritated customers and lower revenue for the operation.

| Which one was not one of the characteristics of the "early days" of logistics?Answer

D. Stocking of only one type of inventory in the warehouse for presentation and disclosure testing.

2 time was pressing. the lead time between contracts being signed and initial deliveries got increasingly

b) Where does the information come from? c) Why didn’t we have each store decide what to order from the warehouse?

The company should always try to maintain sufficient levels of the inventory in order to operate the business successfully. The company cannot afford to have stock outs or the overstock. As some of the inventory is brought from outside the United States, due to which they have to have that inventory in the stock. Some of those outside country vendors require long prior notice for the requirements in order to be able to supply that accordingly.

Ms. Smith was responsible for supervising and performing management or warehouse functions in order to maintain equipment records and parts. Ms. Smith managed over 26,000 lines of an authorized Stockage List of parts and equipment valued over 26 million dollars. She conducted Authorized Stockage List Review boards that improved customers fill rates by 37 percent. Ms. Smith reviewed and verified quantities received against a bill of landing, contracts, purchase request, and shipping documents. She developed and planned logistical operations and provided support in tracking supplies and materials and also planned, executed and monitored logistics activities for multiple departments. Ms. Smith also instructed warehouse personnel in loading, unloading,

4. Assume HQ is responsible for replenishing inventory at the stores. a) What information is needed and how is it used to decide what to send to each store? b) Where does the information come from? c) Why didn’t we have each store decide what to order from the warehouse?

Second, there is no check on inventory before the warehouse picking and shipping the goods. If the stock on hand is not enough for the sales, the customers should be notified.It is suggested to have inventory control.

The supply and management of a company have various difficulties in trying to manipulate the logistics of supply and making analysis of the whole performance of the supplying team. These issues apparently result from low surge and have had great inconveniences to stock and management. The reasons for these intensive difficulties are a result of malfunctioning of one group or department and thus disrupting the paths of supply. Prior to lack of frequency in stock-outs, poor customer response and high prices on the products of the supplying enterprise have the greatest impact then due customers. This

Additionally, the previous president would often put production on hold to focus on special orders from wholesale channels, causing out-of-stock problems in other areas of the business. The manufacturing process was also very labour-intensive with work being done during day shifts only. Also, outdated technology was being used and set up and cleaning was taking a lot of time away from actual production. Another issue involved the Chinese supplier for the art tins, which were used for chocolate assortments. The tins were not always produced in time and would cause out-of-stock products to be but on backorder that would throw off the schedule for the next product. These out-of-stocks also made production planning for the next year difficult which caused issues with production planning and inventory management to continue into subsequent

-Store management could not look up their inventory balances on any in-store computer so canvassing store only way to learn about stock levels.

Drilling down further, author identifies two main hidden costs of inventory namely, Poor staff productivity and blocked assets/equipment.