Case Study Of UPS

Submitted By magicalunicorn
Words: 397
Pages: 2

After careful review of the case study Raj has submitted the following

recommendation.First of all there were three zones that we need to identify

for the following different areas of europe that was identified in the case


Zone 1 - (France, Spain, Netherlands) - £300 per store

Zone 2 - (Poland, Czech, Finland) - £450 per store

Zone 3 – (Greece, Turkey, Bulgaria) - £750 per store.

The predecessors plan would work if there were 10 stores openings per week,

at the same location and distance from elc. The process of opening a

franchise could take anywhere from a week to several months depending on

location and negotiations. It would take approximately 70 days to open the

cafe once a contract was signed according to the table in the case study. If

the franchisee didn’t have place for the cafe, eIc would help in finding a

location. Then the internet connection had to be installed by the local

telecom supplier which could take a few months.

I believe that if they created a centralized warehouse would benefit them

because it would significantly reduce the cost, the amount of staffing and

simplify the logistics and franchisee would have a better idea when they

would be receiving the orders. If you take lead time into affect it could cause

an increase in safety stock.

1. UPS would not provide billing services direct to the franchisee

2. eIc would need to buy the equipment and take ownership of the goods

3. eIc would need to pay a