Woodland case study Report

A. Executive Summary

This chapter covers the immensity of the background information and provides an overview of
Woodland and Home Decor, as well as the bullwhip effect and the concept's application.
Inventory replenishment incurs expenditures, and it was emphasized that occupational health and
safety standards, as well as standard procedures and processes, should be followed in the
warehouse to guarantee safety and reduce wasting of both space and inventory. By strictly
following this, the institution will be in a stronger position to improve inventory replenishment.
This chapter covers the majority of the background information and provides an overview of
Woodland and Home Decor, as well as the bullwhip effect and the concept's application.

Keywords: Woodland, Home Décor, Bullwhip, Supply Management etc

Table of Contents
A. Executive Summary................................................................................................................................2
B. Introduction............................................................................................................................................4
C. Case Discussion: 1.Supply Chain Overview...........................................................................................4
Pitfalls in the Supply chain of Woodland.................................................................................................5
Pitfall #1– Inventory:...........................................................................................................................5
Pitfall #2 –Insufficient Order Management:........................................................................................5
Pitfall #3 –Transparency:.....................................................................................................................5
Pitfall #4 -Inefficient Processes:..........................................................................................................5
Pitfall #5 – No Firm Policy:.................................................................................................................5
2. Supply Chain Relationship......................................................................................................................6
a) Relationship between Woodland and HomeDecor, and................................................................6
b) Relationship between Woodland and ‘Home and Living’............................................................6
3. Bullwhip effect........................................................................................................................................6
4. The proposal............................................................................................................................................8
a) Time-based logistics....................................................................................................................8
b) Benefit and Barrier to Home Décor and Woodland......................................................................9
5. Digital supply chain.................................................................................................................................9
6. Sustainability.........................................................................................................................................10
D. Conclusion / Recommendations...........................................................................................................11
Conclusion.............................................................................................................................................11
Recommendations.................................................................................................................................11
References.................................................................................................................................................13
B. Introduction
Supply chain management is a simple notion made practical by advances in science, technology,
and software. These technologies allow the integrated design and control of the many activities
involved in the transformation of raw materials into finished goods provided to the client at the
appropriate location and time. Without a doubt, regardless of the kind of business, a supply chain
management system is vital. The supply chain, as defined by J. Aitken (1998), is "a network of
linked and interdependent businesses that work collaboratively to regulate, manage, and enhance
the flow of goods and information from suppliers to end-users." It is always a critical and
required component of the business. A well-designed supply chain system may not only decrease
costs and resource waste in several ways but also provide value to the business in a variety of
ways. This chapter gives the majority of background material and a fundamental understanding
of Woodland and Home Decor, as well as the bullwhip effect and the concept's relevance (Sabri,
et al 2020).

C. Case Discussion: 1.Supply Chain Overview

The workflows or flow charts for supply chain management of Woodland and particular steps
necessary to bring an end to the delivery of the goods. Many measures are used to reach the
customer or consumer - materials management, manufacture of products, inventory management,
order fulfillment, product delivery, etc. In most companies, several improvements may be made
and workflow and flow charts may assist to discover such improvements. These improvements
can be identified. In addition to how it impacts the entire supply chain process and customer
experience, each action in the supply chain management process should be reviewed separately
(Erturgut 2012).
Pitfalls in the Supply chain of Woodland

Pitfall #1– Inventory: Woodland has too little inventory, It disrupting their entire schedule
waiting for delivery of even the smallest, least consequential item. They run the risk of losing
business for lack of product. There’s no easy formula here. It takes smart planning, attention to
detail, and careful monitoring of seasonal and historical trends.

Pitfall #2 –Insufficient Order Management:

Preventing overselling and running out of goods is one of Woodland's most prevalent difficulties
to good inventory management. Using historical and seasonal data patterns might help you
estimate consumer purchases more precisely.
Pitfall #3 –Transparency:Collaboration in the supply chain is driven by communication. In
Woodland, transparency is an important issue. High-volume shops are supplied with daily filling
up, while smaller volume shops are supplied. The time-based approach was adaptable and was
able to accept varied kinds of refilling according to the specific needs of the retail consumer.

Pitfall #4 -Inefficient Processes:When inventory is little and there are just a few warehouse
locations to monitor, low-tech, manual inventory management techniques may not seem to be a
frightening problem. However, when sales volume and inventory grow, inefficient, labor-
intensive, and low-tech standard operating procedures become difficult to scale. This is
Woodland's majorpitfall

Pitfall #5 – No Firm Policy: A big issue occurred in Woodland's inventory operation. No policy
is in place about when to ship and when to hold partial orders when manufacturer backorders are
necessary. Currently, Woodland is using a national carrier for outbound deliveries to consumers
and inter-distribution center transfers.

2. Supply Chain Relationship

a) Relationship between Woodland and HomeDecor, and

HomeDecor is committed to providing excellent service. HomeDecor offers installation services

as well as professional decorating services. Both services are provided on a fee-for-service basis.
Woodland has the potential to obtain an exclusive distribution agreement with HomeDecor if the
two firms were able to develop time-based logistical capabilities together. Woodland was picked
because of headlines about the company's new organizational strategy, which centered on lines of
distribution and cutting-edge logistics tactics. Woodland and HomeDecor were both investing in
information technology at the time.Woodland acknowledged that the timing and unexpected
opportunity were a significant challenge, but she noted that HomeDecor is committed to being
on the cutting edge. Furthermore, HomeDecor wishes to enhance yearly growth to 20 percent
and believes that window fashions provide the finest prospects for this to happen. As a result, this
possible commercial arrangement has captured the attention of senior management (Ewout et al
2021).

b) Relationship between Woodland and ‘Home and Living’

Woodland's long-standing connection with Home & Living, which had flourished for more than
50 years, had become a source of concern for the company. Woodland had developed a false
feeling of security as a result of its reliance on Home & Living, and when Home & Living
struggled financially throughout the recessions, Woodland suffered as well. On top of that, Home
& Living's image as a high-quality shop was starting to tarnish. On the contrary, it has begun to
earn a reputation for selling low-quality, outmoded goods, and services. Woodland's top
management was apprehensive about establishing another intimate partnership that might bind
the company's success to the success of another. The primary cause for this expansion was the
company's advertising approach, which persuaded customers who couldn't afford to buy a new
house that they could afford to rebuild or refurbish their existing one. Another source of worry
was the need for a change in conventional operations to support a personalized delivery system.
While there was no firm proof of the specific needs for customized delivery, it was clear that the
service being desired was unusual and non-traditional, and that it would need significant
organizational and financial commitment. In addition, some board members questioned how
conventional clients, who were not interested in time-based logistics, would profit from the
initiative (Melynk et al 2013).

3. Bullwhip effect
Home Decor and Woodland make an effort to avoid stock-out problems and missed client orders
by maintaining excess inventory to account for supply chain fluctuation. As a result, enormous
stocks of up to six months' worth of raw materials might exist between the end consumer and the
raw material provider. This bullwhip effect eventually leads to greater uncertainty among
upstream manufacturers, which leads to reduced forecast accuracies and greater inventories
(Wang et al 2016).

These are the causes of the Bullwhip:

1. Demand forecasting updates: Supply chain members update their demand predictions.

2. Order batching: Supply chain participants round up or down the number of orders.

3. Price fluctuations: Typically caused by discounting, this results in more purchasing

4. Rationing and gaming: Buyers and sellers providing over or insufficient quantity to fulfill
their orders.

These strategies Home Décor can use are:

The bullwhip effect may be mitigated in the supply chain by collaborating with suppliers and
consumers. If supply chain participants can ascertain what information is driving the
overreactions, this issue may be remedied. Modern technologies may help increase
communication and reaction times.

Control, visibility, and efficiency — from beginning to end:

Supply networks may be rather complex. That is why we have built our Supply Chain
Management (SCM) services to assist you in managing the intricacies of your logistics. Our local
experience, combined with our worldwide infrastructure, creates a robust supply chain
foundation that will enable HomeDecor to expand itscompany and surpass consumer
expectations.The vast variety of value-added capabilities offered by SCM services may assist
Home Decor in achieving business goals with greater dependability, speed, agility, resilience,
cost efficiency, and sustainability. Their supply chain experts can manage the logistics process,
freeing everyone to focus on their main business (Hosoda et al 2015).

Redesigning a customer's supply chain strategy to get rapid outcomes

HomeDecor is having supply chain management challenges. They are spending a growing
amount of time managing their logistical operations and coordinating suppliers. Working
together with the client, HomeDecor's logistics specialists will review the client's logistics
process to identify significant areas of concern and implement necessary improvements quickly
(Su and Geunus 2012).

4. The proposal
a) Time-based logistics
Concentrating on the manufacturing production process in a manufacturing setting is simple.
However, this is just a minor component of the whole process. Direct or indirect input is needed
at each step in the manufacturing process. Adding value in manufacturing occurs around five
percent of the time. It's observed that adding value time in the whole supply chain process might
be as low as tenths of one percent. As an example, it takes up to four weeks to schedule orders
into production in Woodland, as well as the time it takes to refill stockpiles. These places have
also become key focal points for Time Compression (Liu et al 2018). Providing more focus on
the flow of information in the supply chain has the benefit of decreasing inventory, working
capital, and hence costs (Miltenburg and Sparling 2012).

b) Benefit and Barrier to Home Décor and Woodland

HomeDecor is going to submit daily POS data on furniture purchases. HomeDecor will only
have a limited number of furniture and display items available in each of its regional warehouses.
The POS transmission will comprise inventory-sold furniture and furniture, not on order. A
centralized service will get the POS transmission. The POS data will be sorted and matched to
inventories throughout the Woodland distribution centers

Orders for several goods are kept until out-of-stock goods are ready to ship, so consumers obtain
all needs in one delivery. In all cases, orders are processed by a distribution center before being
dispatched to the consumer. Woodland's clients are dealers that manage their inventory of
Woodland's items. When client inventory is low, they place replenishment orders. This is sent to
Woodland's authorized distribution hub. Distribution centers conduct nightly review rounds to
group truckloads and arrange effective delivery routes

Loss in HomeDecor will result in the loss of Woodland’s Revenue.

One strategy for increasing the organization's awareness of time is to mandate the reporting of
time-based performance indicators at the board level. Time-Based performance Measures It is
widely established that performance measurements should be aligned with strategy, which allows
Woodland to choose what to monitor
5. Digital supply chain
The primary source of worry for HomeDecor is that the window fashion business as a whole
looks to be falling behind other sectors in terms of sophisticated logistical operations and supply
chain technology utilization. For instance, the window fashions business has made little
investments in information technology and maintains substantial inventories throughout the
channel, even at the retail level. The results given by other organizations for their novel logistics
applications provided HomeDecor with a unique perspective on how partnering with a window
fashion maker may result in a best practice distribution system with reduced costs and less
inventory (Liu et al 2018).

Woodland technology enables Woodland enterprises to simplify typical activities, enhance

specific systems' capabilities, and refine their analytical approaches. Digital technology may help
Woodland supply chain management and satisfy customers (HomeDecor). This combination of
innovative technologies and updated methods will promote supply chain excellence. Data
analytics and interconnected devices give the opportunity to establish a predictive maintenance
approach.

DT in supply chains is an issue for Woodland (i.e. to be digital or not). DT should be led by a
bigger strategy and an attitude of change (Tabrizi et al., 2019). This is relevant to matching
development-stage DT with firm-specific strategic players (supplier tiers, customer tiers). In
order to construct new supply chain capabilities, you must define which supply chain capabilities
are necessary and choose the suitable DT technologies for each kind of supply chain.

This special issue recognises the need of DT research on supply chain strategy levels. For
instance, Woodland may look at how the firm's business strategy is changed, and how that
change affects performance (Galindo-Martín et al., 2019). Meanwhile, organisations are using
digital transformation technologies, such as big data and predictive analytics, to alter logistics
and supply chain processes in order to create new value (Preindl etal 2021).
6. Sustainability
A sustainable supply chain also helps to boost efficiency while saving money. By using
sustainable practices and resources, you may boost the efficiency of buildings, cars, and
machines while saving money. Economic activity in a sustainable supply chain must occur
within environmental and social thresholds or restrictions (Porter 1985).Adequate economic
performance is a critical component of a sustainable supply chain. However, once environmental
and social boundaries are established, they take precedence. Woodland's best tactic will be time-
based logistics. The first reason is the transfer of sales information, in which POS data conveys
the customer's need for the goods to the producer. The partnership between the two firms is a
long-term obstacle. Time-based systems that place a focus on shortening process times result in
shorter cumulative lead times. This leads to a lesser inventory and, as a consequence, a shorter
response time (Perera et al 2020).

D. Conclusion / Recommendations
Conclusion
HomeDecor is committed to customer service. In-store courses demonstrate design approaches,
as well as repair and installation processes for wallpaper, draperies, as well as lighting and
electrical fixtures. Woodland made no such investments. Woodland could also use time-based
logistics, such as those employed by JeanJean's manufacturing facilities to generate production
schedules in reaction to customer purchases. The rapid flow of information has supplanted the
necessity for forecasting. According to the Woodland team, it seemed as if data was being
exchanged for stuff. The time-based system is adaptable and capable of accommodating a range
of alternative replenishment techniques to meet the unique needs of specific retail customers.
This sort of technology shortens the time required to respond to an order and minimises
inventory. The use of technology has been more prevalent in the replenishment of inventory at
many Organizations around the nation, most notably private entities. Additionally, it is critical
technology has aided in ensuring that data regarding inventory replenishment is well analyzed
and materials retrieval in the warehouse is simple; on the other hand, it has aided in ensuring that
proper consultation is carried out due to effective communication, enabling the organization to
manage the exacting quality of demand forecasting in the organization. Woodland was spending
a growing amount of time managing their logistical efforts and arranging vendors. Woodland’
team of specialists must collaborate closely with the client to review the client's logistics process
to identify important areas of concern and implement necessary adjustments quickly.

Recommendations
There are several strategies for mitigating the bullwhip effect; it is difficult to eradicate it.
Whatever measures are implemented to address this issue, information exchange across supply
chain partners is always critical, but it is rather difficult to implement in practice.To begin,
coordinate the advantages of supply chain participants and establish confidence via
collaboration. Only in the presence of confidence can supply chain firms establish trustworthy
collaboration and relationships.

Secondly, the information-sharing strategies, the transmission of information is the foundation of

information sharing; the adoption of an EDI system, the internet, and eCommerce enable the
transmission of information to be more convenient.

Thirdly, Omni-channel: The establishment of a seamless customer experience via all accessible
channels for the customer is crucial to retail. The phenomena of the omnichannel have rooted the
related consumer. Today's customer is highly demanded. The consumer is linked to smartphones,
tablets, and computers shortly thereafter, traveling widely and juggling between work and home.
The more conscious and ambitious consumer's profile has generated an important need to solve
this issue. The technology has been established as an omnichannel retail binding element. The
advancement on many levels has made this feasible. The internet purchasing interface devices
are on one level.

Finally, but certainly not least, information technology, hardware, and innovation cannot be
omitted.
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