Essay About Upgrade Enschede Dc And Central Distribution Center

Short Case Report Example
ProblemsPolaroid has 10 warehouse and 1 central distribution center in Europe.Many disparate supply chain systems/metrics exist in European subsidiaries.Tom Carroll, Director of International Distribution and Customer Service, had repeatedly tried to convince the company to centralize inventory stocks in Europe.This plan was strongly opposed by a number of managers in Europe, although it has been agreed and supported by corporate management. No detailed plan has been established yet about the sequence in which warehouse should be eliminated and inventories consolidated.RecommendationsUse computerized over all distribution center.Build a direct distribution center and upgrade Enschede DC (central DC) facilities, eliminate subsidy regional warehouse.Enhance utilization of new systems, such as new communication system and computerized order management system, in order to realize the standardization across each subsidiary.Supporting rationaleTotal cost and investment of build a new direct DC and enlarge current central DC are not very high.Use direct DC could:  Decrease in stock-outs and back ordersIncrease in delivery reliabilityDecrease in packaging costsPackaging standardizationIncrease in customer service levelDecrease in transportation costsROI in use direct DC is high.ToolsCost and ROI analysisService level analysisRisk management analysisSWOT analysis