Westminster Company Essay

3902 Words Apr 26th, 2012 16 Pages
Westminster Company:

Jim Smith
TLMT312
Public University
Professor Williams
February 19, 2012
Abstract
The results of this paper center on the supply chain and logistical functions of an elite pharmaceutical organization in the United States. Westminster Company retains three separate companies, which produce and distribute individualized or differentiated commodities independently. This paper will discuss the changes being considered within their supply chain structure, which are, the establishing of a solidified warehousing structure, possessing combined shipments to conserve on costs, the incorporation of information technology (IT) to keep up the companies’ inventory using software like enterprise resource planning (ERP), and
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Since the delivery of these goods is based off customer orders, refusals and returns could be conceivably eliminated. This will aid to prevent waste, which in the long run could become a considerable cost (Bowersox, Closs, & Cooper, 2010). Two-If Westminster were to use three weekly trailer deliveries from one warehouse instead of one weekly trailer delivery from three separate warehouses, transportation cost would definitely increase, but if these three deliveries could include mixed products from all three locations in one trailer, it will bring the increased cost more into balance. Economies of scale can be achieved by having only one trailer moving daily which reduces costs (Bowersox, Closs, & Cooper, 2010).
The implementing of DSD will give Westminster an edge competitively, and when considering the main retailers, this service would be ultimately desired. DSD will dramatically decrease freight cost to customers, and not affect transportation costs of Westminster a great deal. DSD would allow customers to eliminate the transfer of product from their warehouse facilities to their individual stores (Bowersox, Closs, & Cooper, 2010). Three-Westminster is considering warehouse consolidation, so the correct management of inventory is crucial to guarantee proficient operations. To aid in this the implementing of bar-coding, SKU, and RFID systems need to be implemented. Bar-coding provides manageable stock pulling and