Their mission, here in Guatemala's wild north: Blow up dozens of clandestine airstrips used by planes laden with Colombian cocaine.
Modern Book Distribution, Inc. MBD scanned the "Executive Summary" of the consulting report he had just received.
Guy saw the report was filled with the latest buzzwords and hot concepts: Establish cross docking facilities for high-volume deliveries to large customers Guy was familiar with all of these phases and concepts at a superficial level, of course - anybody who occasionally picked up The Wall Street Journal or Business Week would be.
He was less sure, however, if the consultants were trying to dazzle him with fads or if the kind of radical operating changes that were being proposed in the report would help to position MBD for the future.
Founded 80 years ago, MBD had been for many years one of the largest book distributors in the country. From its seven regional warehouses, MBD services major bookstore chains and smaller independent booksellers throughout the country.
The company had continuously strived to improve its service levels and operating efficiency, and it was considered the most efficient book distributor in the industry. Using advanced forecasting techniques to control inventory levels and technologically advanced warehouses to control operating expenses.
MBD shipped virtually all of the orders it received within two days from its stock of nearlybooks, the largest in the industry. The bookselling industry, however, had been changing dramatically, and Guy realized that MBD would have to make changes to remain a book distribution powerhouse.
In particular, two relatively new types of retailers were becoming more and more dominant in the industry: Both of these categories of retailers presented new and unique challenges to their distributors.
In the past MBD had interacted primarily with the superstores through large regional distribution centers DCs that the superstores maintained. In general MBD had shipped to the DCs consolidated orders of many different titles bound ultimately for many different stores.
As these superstores learned from the experiences of large retailers in other industries, they started to demand new kinds of services from their distributors.
For example, some retailers had started to strongly encourage MBD to ship directly to stores, bypassing the DCs. In addition, as the industry consolidated, these huge superstores were developing more leverage with their distributors.
They used this leverage to force the distributors to accept lower and lower margins. On-line booksellers presented an entirely different set of challenges to Guy and the managers at MBD. Initially, these retailers kept no inventory at hand. Instead, they took orders and relayed them to distributors like MBD, who delivered the books to the retailers for repacking and shipment.
Recently, the large on-line retailers had started moving toward a new business model: Guy realized that these industry changes could provide opportunities and challenges for his company. Based on the case, answer the following questions: Should MBD implement a push strategy?
What would it require to implement the strategy? What is the impact? What questions should MBD management ask when assessing these strategies?
How can MBD benefit from changes in the book distribution strategy? What are the advantages to MBD in having fewer warehouses and a more centralized operation? More warehouses and a more decentralized operation? Consider a manager developing a logistics strategy.
Discuss specific situations for which the best approach would be to: Employ internal logistics expertise. Acquire a company with this expertise. Develop a strategy, and then employ the specific suppliers to carry out well-defined portions of the strategy.
Develop the strategy with a third-party logistics provider.Discuss how supply chain management decisions impact the ability to excel in certain dimensions. Specifically, consider. a. Conformance to requirements. b. Product selection. c. Price and brand. d. Value-added services.
e. Relationships and experiences. How Supply Chain Management Decisions Impact Customer Values Supply Chain Management decisions have rendered significant concern in recent years for a number of reasons. Directors in many manufactures now realize that activities taken by one member of the supply chain can determine the profitability of all others in the chain.
May 28, · Infrastructure decisions within operations strategy include the selection of the appropriate technology, the role of inventory and the location of facilities.
The likelihood of a disruption that would impact the ability of a company to continuously supply products or services. Chapter 2 Operations and Supply Chain Management.
operations management chapter 2. A competitive priority placed on cost usually treats certain dimensions of quality and timeliness as givens and focuses on reducing cost. example of a company that has developed a strong value proposition by changing the organizational relationships in the supply chain that affect how its products are.
Question: Discuss how supply chain management decisions impact the ability to excel in certain dimensions. Discuss how supply chain management decisions impact the ability to excel in certain dimensions.
1. Modern Book Distribution, Inc. Case Study Evaluation. Richard Guy, CEO of Modern Book Distribution, Inc. (MBD) scanned the "Executive Summary" of the consulting report he had just received.