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Time-Based Logistics Case Study

Essay by   •  December 17, 2016  •  Case Study  •  973 Words (4 Pages)  •  619 Views

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Time-Based Logistics Case Study


Known Information

This case study is to render attention to the proposed partnership with HomeHelp. The engine behind this new partnership is the implementation of a time-based logistics system to communicate between both companies for a solid supply chain concept under a new sales program. HomeHelp is already a main reseller of standard and procurer of custom window treatments. Under current marketing conditions custom window furnishings are 25 percent of all orders. HomeHelp has a network with targeted customer base, Propartners to push the product as well. It is known that shipments can be to the end customer in up to 6 days currently.

Possible Problems Under Proposal

The two largest problems being faced with this scenario is the future with HomeHelp and the cost of the project. HomeHelp will pursue this concept whether this proposal is actualized or not; even at the loss of the current partnership. HomeHelp will find another partner for this project. Under the proposed partnership with HomeHelp an entire restructure of the supply chain is needed to cooperate with the demand of the time-based logistics strategy. Currently the cost is unknown on the re-structure. Reutilization of the current manufacturing plants will need to be addressed as the change in logistics strategy will yield a change in sales and product output.

Possible Solutions

There are a few viable solutions to this proposed partnership deal. First, in order to maintain a business partnership with HomeHelp, the initiation of this time-based strategy is required. Per George & Thomas (1990) Time is the equivalent of money, time based strategy is the way to lead companies manage time in production, sales and distribution. Adopting this method will require both companies purchasing hardware and software that will work in sync. Production and shipping will tied in with Point of Sale (POS) to minimize over production and stagnant stocks. Although the price of the transition is unknown currently, the reduction of over production will offset some of the initial cost. Another solution for cost savings would be to eliminate the dwindling market of miniblinds. Cutting out the production of this product will offer more availability to produce the products on demand that are selling. Once the system is in place it can be tied into other major retailers as well. The option for direct online orders from customers is extremely viable and is a safety net should HomeHelp suffer problems in the future.

        The second solution is keep the current production system. HomeHelp would continue with another company for window furnishings, ending the current partnership. The digital age is here and customers will buy directly from the factory with a proper online storefront. This would eliminate the cost of moving product to a physical store. The volume alone would drive down transportation costs with the parcel company. The window furnishings are already known for the build quality and value. Under a new marketing campaign, it could change the way business is done at this company. This is a risky path as it would rely strictly on company driven marketing without the help of retailers.

        The last option is to keep the current production and shipping model with no other major shifts in direction. The next step would be to create new opportunities with other big box stores and pursue those relationships. This would save money upfront.

Recommendation

        Given the situation, it seems the best course of action is to transition over to the time-based system. This will ensure that the current partnership with HomeHelp is maintained and grows. This new partnership in this system will flush out other competitors within the HomeHelper store creating more revenue for both parties. With the aluminum miniblinds becoming a poor seller, the move to stop production on this model will yield less expenditures and provide the necessary production potential to eliminate any shortfalls in the on-demand service.

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