Natun Corp's Supply Chain Transformation

An analysis in support of the BBA Concentration in Logistics and Supply Chain Management

Natun Linen Corp. Is a high-end manufacturer of linens and bedding accessories for retail stores around the country and world. Natun is headquartered in Providence, Rhode Island, and has been in business since 1956. Its' solo warehouse location is in Columbus, Ohio. The Columbus consolidation center is a1 million square-foot building with 24 dock doors. From that location, linens have been distributed to a retail customer base of approximately 500 Large retailers.

Natun had only had three chief executive officers in its history. In early 2018, the CEO was replaced with a new chief executive named Tim Major. Through 2017, the company experienced an average of 40% year-over-year growth. Itsmain growth engine has been its high-end luxury sheets and pillowcases.

Current situation:

Starting in mid-2020, the business growth stalled as the customer base of brick-and-mortar retail stores also saw slowing business thanks to the customer base ordering more and more online from competitors.

Major knew he had to do something. He hired a new head of marketing from a well-known e-commerce company. They understood that the business needed to be brought into a new e-commerce paradigm. The decision was made to focus in on 2 areas, drop shipping for the current customer base and competing with them directly by selling online to consumers.

It was understood that the entire supply chain needs to be overhauled as well. The old paradigm of one central warehouse and almost every aspect of their current supply chain simply would not accommodate the newdropship and direct-to-consumer requirements.

Requirements:

Develop a Supplier Relationship Management strategy, including the below items:

Overview of the current Strategy related to procurement:

Corporate Strategy

Business Unit Strategy

Supply Management Strategy

Commodity Strategy

Strategic overview of changes required to implement the new omni-channel operations

In the Procurement Process, address each stage with a summary, adding details as required:Stage 1: Market Research

SWOT Analysis of Demand

SWOT Analysis of Supply

Stage 2: Spend Analysis

Summary table/charts of historical spend (see data provided)

Stage 3: Portfolio Analysis (overview only)

Stage 4: Contract Negotiations

Detailed Supplier Selection Model using cost, quality and risk measures, based on the below template:

Supply Selection Model - template.xlsx

Stage 5: Supplier Relationship Management (overview only)