Essay about Case Study 4
Case 4 Westminster Company
Case Summary Westminster Company is a family-owned pharmaceutical supply business established in 1923. The company has being among the largest producers of consumers health products and brand recognition all the over the world. Westminster has regional offices in the Pacific Rim, Latin America, and Europe which operated under decentralized management, maintaining unique and independent companies. In today’s world, Westminster Company has greatly expand; the growth of key customers into large account has forced the company to reevaluate its traditional supply chain, which were creating a new series of issues. As a result, costumer composition and customer requirements …show more content…
These changes will generate an increase on transportation. Now, the company will have more deliveries and the necessity of utilizing third party services to delivery and to ensure customer responsiveness. By combing the products from the three different companies, one single truck may contain cargo from the three companies to be delivery to a single customer. Instead on sending three different trucks, this particular one can stocks different customers according to their response based sales information. The Distribution network without the changes had been creating a series of backorders, late deliveries and fewer orders; which has create a gap between supply and demand from the company’s products, and it has allowed other companies to get their products on the company’s customers. Once these changes have been established the company will meet a more timely, efficient and accurate inventory delivery.
According to the changes, it is expected that every time a product is sold this information will go throughout the system supporting sales, inventory and orders. Once inventory reach minimum levels, it will generate an order which will let manufacturing know what the customers’ needs are. The cost impact on