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
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For example there are refrigerated storage units, special commodity, household goods, furniture, etc. This gives the user an opportunity to pick and choose based on their needs. “Public warehouse have the potential to share economies since the combined requirements of users can be leverage. A public warehouse also leverage transportation by providing consolidation of multiple-client freight” (Bowersox, Closs, Cooper, Bowersox, 2013, p.236). An activity that could be incorporated whem dealing with warehouses is what is known as the Item Activity Profile. “The item activity profile is used in choosing and designing the storage system and housing for each item” (Frazelle, 2002, p.33)
The effect to the company’s cost and performance could be affected both ways, positive and negative as well. First with consolidated distribution centers shipping mixed products would provide greater opportunities based on the volume for the shipment per truckload. This will enable the company to ship greater quantities enabling for savings from the transportation point of view. There will also be fewer requirements for outbound shipments. A down side to this strategy could possibly be a cost increase to the company and customers, since the distance travel by carriers will be longer.
Eight Supply Chain Process Classifications