Question
Newell Brands Rapid AnalysisNewell Brands (NB) is a global company consisting of dozens of well-known consumer brands organized across seven operating divisions. A few of
Newell Brands Rapid AnalysisNewell Brands (NB) is a global company consisting of dozens of well-known consumer brands organized across seven operating divisions. A few of the brands you may be familiar with include: Sharpie (writing implements), Calphalon (cookware), Coleman (camping accessories), Graco (baby and childrens products), Yankee Candle (home fragrance), FoodSaver (kitchen appliances), and First Alert (home security). In fiscal 2017 the company generated $14.7 billion in revenue.You will produce a summary analysis for the Writing division based on information provided for the US market. In addition to Sharpie, the Writing division consists of several brands including:Key Assumptions:1. All products are manufactured in Asia and transported to the US via ocean carrier.2. All products are fully processed and packaged for retail sale when they leave the Asian manufacturing facilities. No postponed assembly is performed by NB in the US.3. NB sells these products though thousands of retailers of all sizes at retail stores across the US (for example, you can find these products on the shelves at J&M Bookstores two locations in Auburn and at Office Depots 1,400 of stores nationwide). NB does not do any direct-to-consumer sales of its products.4. NB operates a single import distribution facility in Los Angeles where all overseas inbound shipments are received. This facility unloads containers and re-ships to five regional distribution centers serving the NW, SW, MW, SE, and NE regions of the US. These shipments move by rail and typically take between 3-17 days to arrive at the regional DCs depending on railcar availability and traffic volume.5. The regional DCs take shipments from the import DC into inventory (storage) and replenish 1,000s of retail stores based upon orders received at the DCs each day. These shipments are of three varieties: (a) truckload quantities (to a Wal-Mart DC, for example), or (b) single pallet quantities sent to some retailers stores using an LTL carrier, or (c) single carton quantities shipped via overnight carrier directly to retail stores when emergency replenishment is needed because of an out-of-stock condition. 6. Assume a shipments represent 6% of order volume and 61% of dollar volume, b shipments represent 51% of order volume and 35% of dollar volume, and c shipments represent 43% of order volume and 4% of dollar volume. 7. The company processes 350,000 total orders annually.8. Assume NB has sales of $1.5 billion from the US business for Writing products and makes a 20% gross margin (Sales less COGS) on the sale of these products. 9. Considering all logistics costs (warehousing, transportation, packaging, etc.) it costs NR $1,500 for each truckload order, $350 for each LTL order, and $100 for each overnight package order.Your task:1. Provide a complete analysis of NR order characteristics. Use the template on the following page. Be sure to categorize and report your statistics by type of order.2. Interpret the order statistics and describe any potential problems arising from the analysis.6. Assume a shipments represent 6% of order volume and 61% of dollar volume, b shipments represent 51% of order volume and 35% of dollar volume, and c shipments represent 43% of order volume and 4% of dollar volume. 7. The company processes 350,000 total orders annually.8. Assume NB has sales of $1.5 billion from the US business for Writing products and makes a 20% gross margin (Sales less COGS) on the sale of these products. 9. Considering all logistics costs (warehousing, transportation, packaging, etc.) it costs NR $1,500 for each truckload order, $350 for each LTL order, and $100 for each overnight package order.Your task:1. Provide a complete analysis of NR order characteristics. Use the template on the following page. Be sure to categorize and report your statistics by type of order.2. Interpret the order statistics and describe any potential problems arising from the analysis. Newell Brands Rapid Analysis
ANALYSIS: Orders Dollars Orders Average Order # Per Month Per Week Size Per Day $1500 A-Truckload 6% 61% 35% $350 B-LTL 51% $100 C-Package 4% 43% 100% 100% Total Gross Margin $ Cost/Order Profit/Order Logistics Cost Net Profit A-Truckload B-LTL C-Package Interpretation of Analysis / Problems / What should be done? ANALYSIS: Orders Dollars Orders Average Order # Per Month Per Week Size Per Day $1500 A-Truckload 6% 61% 35% $350 B-LTL 51% $100 C-Package 4% 43% 100% 100% Total Gross Margin $ Cost/Order Profit/Order Logistics Cost Net Profit A-Truckload B-LTL C-Package Interpretation of Analysis / Problems / What should be done
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