Westminster Company

1127 Words Oct 11th, 2014 5 Pages
Introduction of the Case This case presents a company, known as Westminster and currently considered as one of the biggest manufacturer of health products. It consist of three separate companies, in which each of them manufactures their own and unique products, with a decentralized management that allows for an overall outside view of what is for best the future of this enterprise. Top managerial personnel is currently re-evaluating and assessing the company’s supply chain and how they could develop a strategies that would facilitate revamping such system.

Main Discussion Points
The new three alternatives being evaluated by Westminster’s CEO Wilson Mckee and his staff would reduce the cost on transfers and freight cost. By utilizing
…show more content…
The customer could possibly experience longer wait times to receive their products. If this is the strategy assumed by the company, they must be able to handle larger quantities of products to fulfill the same amount of requirements abled to handle prior to the consolidation of warehouses. The personnel on the facilities that remain open must have the adequate training to support larger orders as well. The order fill rate will have a positive impact because since products will be ordered more frequently the warehouses will maintain those products readily available based on POS and customer consumption.
When deciding whether or not to use a private warehouse there are several factors to consider. First of all the cost could be affected by the ability to that particular facility to be able to handle the amount products that will be store at that location. If is not adequate for that, then the company needs to start thinking about the money required to make that facility suitable to handle larger quantities or specific product, like for example storage shelving, temperature control storage, receiving docks, or any construction deficiency found after the purchase of that facility. “Some of the major benefits of private warehouses are the flexibility, control, cost, and other intangibles” (Bowersox, Closs, Cooper, Bowersox, 2013, p.235). Private warehouses compared with public or