CASE BACKGROUND MGMT Bakehouse Inc (MBI), supplies bread, cakes and other specialty products, to a large percentage of the country; to the following customer types. Retailers e.g. supermarkets, who sell baked goods to the public, and MGMT Bakehouse Inc delivers to the retailers. Wholesalers also sell to the public, but come to MGMT Bakehouse Inc directly to collect their baked goods. Finally institutions like hotels and hospitals, to whom MGMT Bakehouse Inc delivers directly, buy baked goods to incorporate into offering for their clients e.g. guests menus and patient meal plans. From the ordering of flour and other ingredients to the processing of cash, receivables and payables, the company uses an integrated ERP with a common database for all of its business processes. Internally MGMT Bakehouse Inc is organized into the following departments: Production which bakes the bread; Distribution that delivers the bread; Sales Department where customer orders and wholesale pickups are managed; Marketing that promotes and manage the company’s branded products; Finance and Accounting that manages the customer accounts; and HR which manages staffing and other related matters. Returns management is all about the details. In a market where the customer can return stale bread for up to a 100% refund, having ‘Returns’ is like burning paper money. Supermarkets and wholesalers can return bread but not institutions like hotels and hospitals. All baked goods have a shelf life of one week. That is, bread that is sold on Monday is returned the following Monday. Most customers place orders in advance but wholesalers and hotels are sometimes ad-hoc and the company has to project/predict their orders. From time to time, these ad-hoc orders can become a burden, especially when the demand for bake goods is high. In such times, management at MBI has to be extremely vigilant and maintain a high level of security both to its data and information. 3. “Most customers place orders in advance but wholesalers and hotels are sometimes ad-hoc and the company has to project/predict their orders.” Discuss two workable solutions MBI can incorporate, in order to manage/prevent ad-hoc orders. Which level of management would provide these solutions and why.
CASE BACKGROUND
MGMT Bakehouse Inc (MBI), supplies bread, cakes and other specialty products, to a large percentage of the country; to the following customer types. Retailers e.g. supermarkets, who sell baked goods to the public, and MGMT Bakehouse Inc delivers to the retailers. Wholesalers also sell to the public, but come to MGMT Bakehouse Inc directly to collect their baked goods. Finally institutions like hotels and hospitals, to whom MGMT Bakehouse Inc delivers directly, buy baked goods to incorporate into
offering for their clients e.g. guests menus and patient meal plans. From the ordering of flour and other ingredients to the processing of cash, receivables and payables, the company uses an integrated ERP with a common database for all of its business processes. Internally MGMT Bakehouse Inc is organized into the following departments: Production which bakes the bread; Distribution that delivers the bread; Sales Department where customer orders and wholesale pickups are managed; Marketing that promotes and manage the company’s branded products; Finance and Accounting that manages the customer accounts; and HR which manages staffing and other related matters. Returns management is all about the details. In a market where the customer can return stale bread for up to a 100% refund, having ‘Returns’ is like burning paper money. Supermarkets and wholesalers can return bread but not institutions like hotels and hospitals. All baked goods have a shelf life of one week.
That is, bread that is sold on Monday is returned the following Monday. Most customers place orders in advance but wholesalers and hotels are sometimes ad-hoc and the company has to project/predict their
orders. From time to time, these ad-hoc orders can become a burden, especially when the demand for bake goods is high. In such times, management at MBI has to be extremely vigilant and maintain a high level
of security both to its data and information.
3. “Most customers place orders in advance but wholesalers and hotels are sometimes ad-hoc and the company has to project/predict their orders.” Discuss two workable solutions MBI can incorporate, in order to manage/prevent ad-hoc orders. Which level of management would
provide these solutions and why.
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