TSC Stores, Supply Chain Management for Profitable Growth
Brad is currently in a process of creating a long term supply chain strategy that will support the company’s corporate growth, cost objective and also the program of the Project 275. However, the rapidly growing volumes and complexities in the supply chain are causing concerns, and Brad is worried that the company may not be able to handle the planned growth. In addition to that the company is faced with several other challenges that threaten its plans, namely, stock-outs in stores and DC, low service level, too much inventory in enterprise, slow inventory turnover, and tied up working capital.
1. What does your analysis of the data in Exhibit 3 suggest that Brad Twiddy might want …show more content…
What TSC needs to address is the company’s poor cube utilization and replenishment processes, they have a lot of information from the forecast that they can use to create profitable business decisions. For instance, in exhibit 3 (which is very conveniently broken down into year round, seasonal, highly season) the company can pay more attention to the trends and identify ways to avoid tying up capital on slow moving inventory areas. Brad could also use this information to carefully plan how effectively and efficiently the replenishment process for what items to ship directly to the DC and the store in order to clear up some space. The alternatives he has in mind can work, but he first has to consider whether any of them will fit with the company’s corporate …show more content…
Is the company going to use the same inventory strategy or are they going to create a new one that will best fit the new goals. For instance, In exhibit 3 it is shown that Pick and Pack accounts for 57% of the total SKUs, it also has holds the highest percentage of SKU both year round at 59% and seasonal at 61%, will the new DC be used to hold most of its inventory to say avoid stock-outs?
Not forgetting High Cube’s capacity that is also increasing rapidly, maybe the company can use the new DC to hold both High Cube and Pick and Pack capacity. But there is an issue of how the customer orders are going to be fulfilled, how is the company going to go about it? Do they also have the ability and resources to manage multiple sites? Brad also to consider the size that the new DC will be, how close it will be to the store and the costs associated with it, does it fit the financial plan?
Setting a hybrid DC that would either handle Pick and Park or high cubes is good idea, mainly because these two are where most of the costs are allocated. Whatever the company chooses, it will remove some pressure from the company since they will have some space to accommodate the growing volumes. Brad should also consider using this method to take care of the trailer capacity at the yard since that’s where the biggest problem is.
2. What criteria would you use to evaluate the
Brad is currently in a process of creating a long term supply chain strategy that will support the company’s corporate growth, cost objective and also the program of the Project 275. However, the rapidly growing volumes and complexities in the supply chain are causing concerns, and Brad is worried that the company may not be able to handle the planned growth. In addition to that the company is faced with several other challenges that threaten its plans, namely, stock-outs in stores and DC, low service level, too much inventory in enterprise, slow inventory turnover, and tied up working capital.
1. What does your analysis of the data in Exhibit 3 suggest that Brad Twiddy might want …show more content…
What TSC needs to address is the company’s poor cube utilization and replenishment processes, they have a lot of information from the forecast that they can use to create profitable business decisions. For instance, in exhibit 3 (which is very conveniently broken down into year round, seasonal, highly season) the company can pay more attention to the trends and identify ways to avoid tying up capital on slow moving inventory areas. Brad could also use this information to carefully plan how effectively and efficiently the replenishment process for what items to ship directly to the DC and the store in order to clear up some space. The alternatives he has in mind can work, but he first has to consider whether any of them will fit with the company’s corporate …show more content…
Is the company going to use the same inventory strategy or are they going to create a new one that will best fit the new goals. For instance, In exhibit 3 it is shown that Pick and Pack accounts for 57% of the total SKUs, it also has holds the highest percentage of SKU both year round at 59% and seasonal at 61%, will the new DC be used to hold most of its inventory to say avoid stock-outs?
Not forgetting High Cube’s capacity that is also increasing rapidly, maybe the company can use the new DC to hold both High Cube and Pick and Pack capacity. But there is an issue of how the customer orders are going to be fulfilled, how is the company going to go about it? Do they also have the ability and resources to manage multiple sites? Brad also to consider the size that the new DC will be, how close it will be to the store and the costs associated with it, does it fit the financial plan?
Setting a hybrid DC that would either handle Pick and Park or high cubes is good idea, mainly because these two are where most of the costs are allocated. Whatever the company chooses, it will remove some pressure from the company since they will have some space to accommodate the growing volumes. Brad should also consider using this method to take care of the trailer capacity at the yard since that’s where the biggest problem is.
2. What criteria would you use to evaluate the