Happy Home And Living Case Study

3754 Words 16 Pages
Register to read the introduction… Frank and John weren’t scheduled to present until near the end and they hoped it wouldn’t run overtime, forcing them to be rescheduled. Finally, it was their turn. Frank started the presentation and discussed how long and hard a struggle it had been to develop a relationship with HomeHelp. Then John spoke of the benefits. He built on the need to develop new business relationships because Woodmere was involved in an alliance with a retailer in financial trouble. This retailer, Happy Home & Living, had historically accounted for 25 percent of Woodmere’s sales, but this figure was dropping dramatically. Happy Home & Living’s erratic purchases were creating undercapacity in Woodmere’s manufacturing facilities. Furthermore, HomeHelp had a relationship with decorators, a customer group that Woodmere had been targeting under its reorganization plan. Woodmere’s image was as a value leader—good quality furniture at a low price. Attracting professional decorators to its products would definitely enhance Woodmere’s image. Furthermore, Woodmere hoped to have some direct contact with professional decorators to get firsthand information on upcoming fashion …show more content…
While many were excited about the potential, they were also cautious. The long-term relationship with Happy Home & Living that had prospered for 50 years was clearly becoming a potential problem for Woodmere. Relying on Happy Home & Living had created a false sense of security, and when Happy Home & Living suffered financially during the recessions of the eighties, Woodmere also suffered. Furthermore, Happy Home & Living’s reputation as a quality retailer was beginning to decline. In fact, it was getting the reputation for providing low-quality, outdated products. Top management was afraid to launch another close relationship that tied Woodmere’s success to another company. Frank responded that HomeHelp had achieved at least 10 percent growth each year for the last 15 years, even through the recessions. The main reason for this growth was its advertising strategy, which convinced consumers who couldn’t afford a new home that they could afford to …show more content…
Forecasts are locked in 6 weeks prior to assembly. Three of the distribution centers carry a full line of product inventory and seek to maintain a minimum on-hand quantity for each product. When inventory hits the predetermined minimum, a restock order is sent to the appropriate manufacturing facility. The other distribution centers stock only the fast-moving products. When a customer order is received it is assigned to the distribution center closest to the customer. If the product ordered is not available, the required item is transferred from the closest distribution center that has the required stock. If multiple products are ordered, the original order is held until the out-of-stock item is available to ship so customers receive all requirements in one delivery. No shipments are sent directly from the manufacturing plant to the customer; all orders are processed through a distribution

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