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Case 4: Westminster Company Pressure from domestic and global competitors, as well as large domestic Westminster customers has recently forced the firm to reevaluate its
Case 4: Westminster Company Pressure from domestic and global competitors, as well as large domestic Westminster customers has recently forced the firm to reevaluate its traditional supply chain practices. In particular, attention has focused on the changes that customers are demanding as well as other operational modifications in current practice that management feels are required to effectively compete in the 21st-century marketplace. Westminster just completed several months of extensive study focusing on its customers' current and future supply chain requirements. The findings addressed a variety of issues, but two key topics were identified: (1) customer composition and (2) customer service requirements. Questions What impact would the three new alternatives have on transfer and customer freight costs? Why? What impact would warehouse consolidation have on inventory carrying costs, customer service levels, and order fill rate? How are warehousing costs affected by the decision to use third party or private warehouse facilities? What effect would this have on handling, storage, and fixed facility costs? What effect would shipping mixed shipments from consolidated distribution centers have on individual company cost and performance? Evaluate the eight supply chain processes in terms of customer classification and degree of centralization/decentralization of required functionality (use the matrix below). Given all available information briefly describe the logistical system design you would recommend for Westminster's integrated consumer products. Evaluate the eight supply chain processes in terms of customer classification and degree of centralization/decentralization of required functionality (use the matrix below). Given all available information briefly describe the logistical system design you would recommend for Westminster's integrated consumer products
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