CASE STUDY 6: EXEL PLC - SUPPLY CHAIN

MANAGEMENT AT HAUS MART

BY: M NEHA REDDY
MBA 1ST YEAR
SECTION-B

1. Was Exel ready to move into supply chain planning?

Ans. Exel intends to enter into supply chain planning and execution,
according to the case, and offer additional value to the supply chain. The
company's execution approach is sound, but more attention to preparation
is required. Furthermore, while the organization has stronger capabilities
for controlling the execution process, it lacks key capabilities for
managing supply chain planning.

Furthermore, Exel's supply chain planning at HM was done by merchants

and planners who lacked supply chain knowledge, experience, skills,
talents, and confidence. The company's expertise is required to reduce
costs while maximizing the value added logistics services supplied by
Exel, which boost HM performance.

The organization will be able to improve supply chain planning with a

better grasp of supply chain execution. Before executing the strategy, the
firm must choose whether entering into joint planning with Haus Mart
would benefit the company in the long run and provide a better interest
for Exel PLC or whether it is preferable to pass up this chance. If the
corporation fails to meet its shared planning goals, it will incur significant
expenditures. As a result, the company should devise a sound strategy for
dealing with the risks that come with starting a new business while still
increasing revenue and earnings in the future.

2. Did they have the capabilities and skills to manage an entire supply
chain, from planning to execution?

Ans. Exel has strong capabilities and talents in controlling the execution
process, and they were able to reduce the cost of moving and storing
goods. They were also able to speed up the delivery procedures, but only
a tiny percentage of their customer's supply chain costs, improvements,
and possibilities were represented. Haus Mart (HM), on the other side,
was strong at supply chain planning since they had some capable planners
and merchants who were generating supply chain plans. HM's execution
was lacking. The merger of HM and Exel would enhance their operations
since they would have all of the talents and expertise necessary to manage
a whole supply chain, from planning to execution.

3. Did they have the necessary management bandwidth for HM project

and the other customers who could well request the same service?

Ans. Exel and HM possessed some of the required management

bandwidth since, before to entering the process, they had planned to build
a well-defined, proven management plan for their staff, similar to the one
they had built for their distribution facilities. They had precisely defined
each employee's tasks and functions so that they could perform
efficiently. At DC, Exel had a talent matrix chart that showed all of the
duties done in the DC as well as the activities that each employee was
responsible for. Employees at Exel were given training in operating
management and methodology. Exel has a simple and precise system in
place for assessing each site's productivity in each function, comparing
figures, noting improvements, and exchanging recommendations. Exel
also put in place a well-defined and well-proven management system.
They had a team of twelve trainers who assessed employees' abilities on a
regular basis by asking them to do specified tasks.

4. Was HM the right setting for a test of this new strategy?

Ans. Exel officials anticipated that if Haus Mart and exel worked together
on planning and execution, HM planners would benefit from exel's
extensive supply chain experience. This would result in immediate and
substantial cost reductions for HM. Exel also discovered that HM
planners failed to take advantage of some efficiencies due to their lack of
awareness about their supplier chain.