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Merloni Transit Point Analysis

Merloni Transit Point Analysis

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Published by Schwayb Javid

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Published by: Schwayb Javid on Jan 05, 2012
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03/30/2014

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Merloni ElettrodomesticiMerloni ElettrodomesticiSpa: TheSpa: TheTransit Point AnalysisTransit Point Analysis
 
C
ase Facts
C
ase Facts
1.1.
Merloni Elettrodomestici SpA is a major Italian manufacturer of Merloni Elettrodomestici SpA is a major Italian manufacturer of domestic appliances.domestic appliances.
2.2.
The company has four manufacturing subsidiaries asThe company has four manufacturing subsidiaries as
a)a)Merloni Elettrodomestici (domestic appliances): It manufactured bothMerloni Elettrodomestici (domestic appliances): It manufactured bothfreestanding and buildfreestanding and build--in appliances like washing machine etc. It hadin appliances like washing machine etc. It had five plants in Italy. This unit had highest (75%) sales revenue share infive plants in Italy. This unit had highest (75%) sales revenue share in1984.1984.b)b)Merloni Igienico Sanitari (Bath and heating products): It manufacturedMerloni Igienico Sanitari (Bath and heating products): It manufacturedwater heaters, bath tubs etc. This unit had 20% revenue share inwater heaters, bath tubs etc. This unit had 20% revenue share in1984 for overall group.1984 for overall group.c)c)Merloni Casa (BuildMerloni Casa (Build--in kitchen and furniture): It designed,in kitchen and furniture): It designed, manufactured and installed builtmanufactured and installed built--in kitchen and bath furniture.in kitchen and bath furniture. d)d)Merloni Progetti (industrial projects): This unit licensed MerloniMerloni Progetti (industrial projects): This unit licensed Merlonitechnology and oversaw the construction of plants to producetechnology and oversaw the construction of plants to produceproducts locally in other countries.products locally in other countries.Besides above four plants Merloni had a centralized warehouse andBesides above four plants Merloni had a centralized warehouse andseventeen warehouses across Italy.seventeen warehouses across Italy.
 
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1.1.
Company had dedicated single plant for one product. Company hadCompany had dedicated single plant for one product. Company hadreliable pool of semireliable pool of semi--skilled people near the plants. Company¶s response for demandskilled people near the plants. Company¶s response for demandfluctuation could be good.fluctuation could be good.
2.2.
Company emphasized on decentralized operations.Company emphasized on decentralized operations.
3.3.
Some retailers generally received 24Some retailers generally received 24--hours delivery of product that washours delivery of product that was in stock at nearestin stock at nearestwarehouse. Otherwise two to six days were required to replenishwarehouse. Otherwise two to six days were required to replenishthe stocks from centralthe stocks from centralwarehouse to regional warehouse to retailerswarehouse to regional warehouse to retailers
4.4.
Shipment delays occurred time to time for variety of uncontrollable andShipment delays occurred time to time for variety of uncontrollable andcontrollable reasons.controllable reasons.Under such conditions small retail customers with no or little stocksUnder such conditions small retail customers with no or little stockswere impacted mostwere impacted mostleading to unsatisfied consumers. It affected Merloni¶sleading to unsatisfied consumers. It affected Merloni¶sresponsiveness and efficiency both.responsiveness and efficiency both.
5.5.
No builtNo built--in appliances were distributed thru regional warehouses.in appliances were distributed thru regional warehouses.
6.6.
Each plant had its own warehouse area to store raw materials, finishedEach plant had its own warehouse area to store raw materials, finishedgoods etc. It was togoods etc. It was toincrease responsiveness at plant level.increase responsiveness at plant level.

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