C&S Wholesale Grocers is facing several problems as a result of a new collaboration that increased sales. These include rising operational costs and shrinking margins due to hiring more employees who received inadequate training. Coordination and quality control became major issues due to the increased workload and workforce. Congested warehouses led to inefficiencies in filling orders and increased accidents among exhausted employees working long hours. The key problem is reducing costs without compromising quality to remain competitive.
C&S Wholesale Grocers is facing several problems as a result of a new collaboration that increased sales. These include rising operational costs and shrinking margins due to hiring more employees who received inadequate training. Coordination and quality control became major issues due to the increased workload and workforce. Congested warehouses led to inefficiencies in filling orders and increased accidents among exhausted employees working long hours. The key problem is reducing costs without compromising quality to remain competitive.
C&S Wholesale Grocers is facing several problems as a result of a new collaboration that increased sales. These include rising operational costs and shrinking margins due to hiring more employees who received inadequate training. Coordination and quality control became major issues due to the increased workload and workforce. Congested warehouses led to inefficiencies in filling orders and increased accidents among exhausted employees working long hours. The key problem is reducing costs without compromising quality to remain competitive.
1.What are the problems C & S is currently facing?
C & S Wholesale Grocers a 70 years old warehousing and distribution
company saw a humongous rise in sales when it agreed to act as principal wholesaler to A & P stores throughout New England. But every good thing comes with some tough challenges and so does this collaboration brought in challenges for Rick Cohen. The major problems faced by C & S were: Rise in operational costs, shrinking margins, quality control, and customer relationship management Hiring of more employees to satisfy the increased throughput led to inadequate training provided to them and thus making them inefficient at their work Coordination became a major issue and that led to hiring of more supervisors to oversee the process Lot of time and effort was going into verifying the accuracy of the orders before they were placed on trucks to be shipped to individual retail outlets Increased workforce led to an overcrowded workspace scrambling to fill orders, congested aisles made it difficult forklift operations as operators did not have time to hoist the product onto shelves Congested aisles led to increased number of employee accidents, increased work hours made employees physically exhausted and prone to injuries The real problem as per Harris was cost and quality problem and to remain competitive it needed to cut costs instead, without compromising quality