Westminister Case study

2677 Words Dec 9th, 2014 11 Pages


Before SSI can determine whether the alternative distribution concept should be initiated, it must analyze the information gathered and project the potential sales and profits. Profits must be determined for SSI as well as for the retail customers. If retailers do not make sufficient incremental profit, it is unlikely they will continue participating in the plan. A team has been assigned to perform the data analysis. Andy Joslin has identified five questions he feels are critical for the team to analyze. These questions are provided below.

1. Determine the total number of retailers in the program initially as well as after the trial period. 2. Determine what the average retailer will sell on a daily basis as
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Westminster Today
Pressure from domestic and global competitors, as well as large domestic Westminster customers has recently forced the company to reevaluate their traditional supply chain practices. In particular, attention has focused on the changes that customers are demanding as well as other operational modifications in current practice that management feels are required to effectively compete in the 21st century marketplace.
Westminster just completed several months of extensive study focusing on their customers' current and future supply chain requirements. The findings addressed a variety of issues, but two key topics were identified: (I) customer composition and, (2) customer service requirements.
The most significant trend with regard to customer composition over the past decade has been the growth of key customers into very large accounts. Mass merchants now account for 35 percent of total corporate sales volume and have become the fastest growing category of trade. All three companies sell to this category of trade. This trend is expected to continue into the foreseeable future. The major shift in the mix of accounts is not expected, however, to dramatically alter the historical composition of product sales. Approximately 70 percent of domestic consumer sales volume is concentrated with
10 percent of Westminster's customers. What may affect the composition of product sales to large retail accounts, however, is the rapid

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