Discussion Board – Module 6

Course No: SCM 870-1

Course Title: Supply Chain Management 1
Case Study: Woodmere Products Company

Companies Involved
Woodmere:-

Type of Business:- Manufacture & Distributors for Window Fashion.

Business Reputation:- Positive, value leader – good quality at a low-price.

Technology Adaptation:- beginning to invest in information technology.

Organization tied with Woodmere:- Happy Home & Living.

HomeHelp :-

Type of Business:- A major design and home decorating retail chain.

Business Reputation: - Positive, entrepreneurial company that encourages product teams to try new

products and channel relations. And work with a set of rules.

Organization tied with HomeHelp:- professional decorators, pro partners, Retail Stores

Technology Adaptation:- enabled online ordering.

Happy Home & Living

Type of Business:- - home decorating retail chain Retailer

Business Reputation: - Negative, Having issues with sales decline (25% of Woodmere business ) Also, erratic

purchases were creating disruption in manufacturing facilities.

Technology Adaptation:- No clarity

Organization tied with HomeHelp:- Woodmere

Event :- Council of Supply Chain Management Professionals attended by Homehelp Purchase officer

triggering the thought /need to have time-based logistics strategies which have the potential for

significant competitive advantage in their industry & HomeHelp plan to implement in the organization.

Questions

1. What are the major business propositions for Woodmere and HomeHelp to consider in evaluating this
proposal?

The important point that needs to be noted Woodmere current leading retail partner Happy Home & Living
accounting for 25 % of Woodmere’s sales is not performing well in recent times and is facing financial troubles.
Also, this retailer’s unplanned purchases are creating an issue in the forecast set in manufacturing units of
Woodmere. Under this circumstance, Woodmere certainly needs to look out for alternate ways to expand its
business and take its pie in the expanding business of the retail home decorating market forecasted to reach
$100 billion in a couple of years. Woodmere has 2 factories & 6 distribution centers, with well-defined
production forecasts and stock-keeping planning & capacity.

Woodmere can evaluate any retail chain for home decoration that already has a presence with sufficient retail
stores to expand its market reach. As HomeHelp has approached Woodmere it is a good opportunity for
business expansion for Woodmere as Home help is estimated to double its business from 10% market share to
20%. The current percentage of HomeHelp window fashions is just 5% which they feel has a good opportunity to
grow. Additionally, HomeHelp is dedicated to services that are available in-house with the majority of retail
stores with a fee attached to it of course.

HomeHelp is aware that Woodmere is a manufacturing leader in window fashions with good quality at a low
price covering 3 major products which they are currently offering at their 400 retail outlets

A) cellular shades in various designed, pleated fabrics

B) wood blinds in a variety of colors and finishes

C) fashion verticals made in fabrics or PVC

The above points should be considered by Woodmere and HomeHelp for evaluating business propositions.

2. Is time-based logistics the right strategy for each company?

Every product has a different type of logistics strategy, such as Procurement Logistics, Production Logistics, Sales
Logistics etc. In the case of the window fashions business time-based logistics is the right strategy. This business
would majorly fall under instant fulfillment unless there is customization needed due to variation from standard
dimensions. However, Woodmere has to look at ways to liquefy its current inventory at 6 distribution centers if
the product is not in high demand with customers.
3. What are the benefits and barriers (short- and long-term) to this proposal for both Woodmere

and HomeHelp? What other factors need to be considered?

A)Benefits for Woodmere

 Increased market base.

 Work with a retailer having 400 stores across 38 states.
 Work with a retailer having an online presence.
 Work with a retailer who has professional decorators onboard with them.
 Work with a retailer who has a DIY consumer base
 Work with a retailer who has services available at a fee.
 Work with a retailer who has a high demand for window décor products which will reduce production
costs.

B)Benefits for HomeHelp

 Work with a Manufacture leader.

 Work with a manufacturer having 2 units dedicated to different products.
 Work with a manufacturer having 6 distribution centers spread across the United States.
 Works with a manufacturer that is providing 3 products from their retail portfolio in window fashions.
 Work with a manufacturer that has a production schedule with a regular forecast.
 Work with a manufacturer who has started to invest in information technology.
 Investment in IT is a good start for implementing time-based logistics
 Working with this manufacturer HomeHelp would be able to fulfill Propartner’s buys.
 Work with a manufacturer who has a carrier already working with food and clothing customers that
operate on a time-based logistics system(Back Bone is ready).
 Work with the manufacturer who has the capacity to fulfill production orders.

A) Barriers to Woodmere

 The only time frame given to share a proposal is 3 weeks

 Exclusive distribution only with HomeHelp
 In-stock inventory liquidation may be a challenge once time-based logistics is implemented.

B) Barriers to HomeHelp

 Standard aluminum mini blinds are not manufactured by Woodmere.

 Woodmere is not working closely with home decorators & Propartner who have a live feel of customer
requirements.
  Backorder to place on manufacturing plant takes eight to twelve more days and increases the order
cycle.
 HomeHelp is in 38 states with 400 retail outlets against only 6 Distribution centers in Woodmere.

PS :- Other most important factors that need to be considered for both parties to implement time-based
logistics are correct IT setup & solution. This needs to be implemented on 3 Pillars:- People, Process, and Policy.

Technology is an enabler and can be executed & implement only with the right Mindset, Top to Bottom
Approach & upskill as required.

4. If you were Woodmere’s top management, what suggestions would you make to improve the

The current proposal for long-run viability?

Increase distribution centers across the country to implement time-based logistics. Also, implement IT solutions
for order fulfillment.

HomeHelp has warehouse-style stores, space sharing agreements should be put across for storing high demand
inventory.

5. If you were HomeHelp, would you accept or reject the proposal? Why?

Would accept with conditions below

The proposal if Woodmere gives exclusive rights to HomeHelp.

Also, increase distribution centers based on their retail outlet location in 38 states.