West Visayas State University

(Formerly Iloilo Normal School)

COLLEGE OF BUSINESS & MANAGEMENT
Luna St., La Paz, Iloilo City 5000
Iloilo, Philippines
* Trunkline: (063) (033) 320-0870 loc 1817 * Telefax No.: (033) 320-0879
* Website: www.wvsu.edu.ph * Email Address: cbm@wvsu.edu.ph

CASE STUDY

The Distribution Challenge!

Call it the American dilemma: a company with long-range ideals that is required to show short-term
results.
To satisfy the demanding financial community, a client of consultant Ben & Ben must demonstrate ever-
improving earning on a quarterly basis. At the same time, it must boost profitability by rapidly
introducing new products. Virtually no lag is permitted, according to Dani and Kath Brown, senior
managers of Ben & Ben. Yet this relentless pressure is having a serious impact on the company’s
supply chain performance.
One of this company’s business units experiences a demand spike in sales during the last few days of
each month. Up to half its monthly business might be transacted in that brief period. But the irregular
pattern of supply and demand isn’t the result of any oddities in the industry. It’s purely an artificial
situation, caused by the sales force scrambling for business at the end of each reporting period. Often
that means artificially pulling demand forward to make sales targets. What’s more, the erratic pace of
sales leads to periods during which the company might not have enough inventory to fulfill demand.
Two problems result. One is that retailers are conditioned to order product only when promotions are
provided, so they wait until then in hope of securing deep discounts. The other is that the seller’s
warehouse is overwhelmed by orders as it struggles to cope with a 150% utilization factor during a 24-
hour period. Naturally the warehouse is viewed by sales “as the bad guy, because it can’t deliver” says
Brown.
The challenge: In a situation that is driven by the financial community – the demand for short-term
profits- where is this company’s leverage? What can it do to smooth out the flow of product without
seriously compromising its profitability?
 West Visayas State University
(Formerly Iloilo Normal School)
COLLEGE OF BUSINESS & MANAGEMENT
Luna St., La Paz, Iloilo City 5000
Iloilo, Philippines
* Trunkline: (063) (033) 320-0870 loc 1817 * Telefax No.: (033) 320-0879
* Website: www.wvsu.edu.ph * Email Address: cbm@wvsu.edu.ph

Groupings

1. Group 1
1. SOTEO, SHAMNEL FRANCINE ERPELUA
2. PUIG, GABRIEL RAY CATEDRAL
3. PEREZ, DIANNE DEFENSOR
4. SORIANO, NOVIE LARRINE OMAR
5. VILA, ELLA MAE SACRAMENTO
2. Group 2
1. GARCIA, JENNIFER DELA CRUZ
2. VILLAREAL, ANNE JOVEL GOME
3. TUPINO, ALYSSA KLAIRE IGNACIO
4. MATERNAL, AIRA JEAN ALBA
5. HUGO, TRISHA JOANNE RUFO
3. Group 3
1. MADICLUM, SHEEN ANN FAITH BUHAYAN
2. LO-OC, MELANIE ARMADA
3. TINASAS, JANELLE SHAYNE GAIN
4. NAGNAL, CLARISS CORDOVA
5. SUPERAL, JUSTINE KHYLE NAVALES
4. Group 4
1. SOLIS, DENSY ANN AREVALO
2. NACION, CATHERINE DAWN SICORSICON
3. TUMALIUAN, ANGELICA GREGORIO
4. SUARNABA, DANICA GRACE MISAJON
5. SUSTIGUER, DEVY MARIE DOMINGO
5. Group 5
1. PEREZ, DANICA PASAPORTE
2. LAGOS, ELLA MARIE RAMIREZ
3. OSELA, HARLENE JOY EBLACAS
4. MARPAGA, REGINE LOPE