Tsc Stores

1037 Words5 Pages
TSC is planning for large corporate growth over the next couple of years, and there are concerns of whether or not, in its current state, the supply chain strategy is adequate to meet the growing demands.Brad Twiddy, the director of distribution, recently produced a forecast model of future inventory volumes, and examined the affect the inventory had on the supply chain. The model predicts the company will experience capacity issues as soon as next spring. With larger volumes of inventory looming over a static inventory space, it would be prudent to examine alternatives of how to adapt the supply chain to the corporate expansion goals.
Before considering the forecast model as gospel, it is important to understand some of the
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After weighing the different options to improving the inadequacies of the TSC supply chain, we feel that a combination of both reducing the number of SKUs and reorganizing the direct shipments would help soften the demands of future growth the most. Before reducing the number of SKUs, It is important that TSC take into consideration which items offer the better gross margin return on investment (GMROI). In conjunction with knowing which items are more profitable and which items require the most inventory space in both the stores and the DC, TSC could start to eliminate inefficient SKUs. This does not mean eliminate a product offering altogether, if the company currently offers four different types of a single product, it would mean reducing the selection offered to customers. Increasing the number of products shipped directly to the stores would decrease the stress on the DC; however, TSC must take into consideration the stress of additional stores on the vendor shipping the product. TSC does not want the added stress to cause an increase in lead times, which could lead to more hole counts. That is why it would be important to systematically isolate the SKUs that require the most space in the DC, and focus on working with the vendors to reliably ship those products directly to the stores.Brad’s model predicts that the yard will reach max capacity as soon as next spring.
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