Fremont Jams And Jellies

1200 Words5 Pages
Background: Three Jays Corporation, a wholly owned subsidiary of Fremont Jams and Jellies (FJ&J), was started by Jana Fremont, but founded by her grandfather Alex Fremont in 1954. The firm was a producer of jam and jellies under a private label for sizeable U.S. supermarket chains. Upon returning home from war, Alex Fremont visualized the potential to start a business utilizing the locally grown fruits that could be produced into jam and jellies. Production began under the name Fremont Preserves, but in 1971, Alex decided to produce privately due to a large supermarket chain approaching him. Advancing to 1980, Alex’s son Andrew joined the company focusing on overall efficiency of FJ&J’s manufacturing processes. He later became the president…show more content…
Not only will it allow the company to continue growth as it has been, but it was estimated that they will see a 20% return from the initial campaign investment. To obtain the required funds for this to work, reducing the current excessive inventory levels of finished goods seems to be the simplest way to go about this approach. Speaking of inventory levels, as previously stated, their finished goods levels are much higher than they need to be. While a surplus of inventory is good in case of stock outs / fluctuating demand, in this case it costs the company more money to hold all this extra inventory, which could be used to allocate other resources such as the marketing campaign. Lastly, Brodie dealt with the data processing issue with EOQ, which caused them inaccurate forecasts of future productions. Josh and Jake, who were in charge of production setups, disregarded the report they receive concerning production and inventory, and decided to submit their own…show more content…
Within this specific case study, JITD was the focusing approach the firm was taking, which can additionally be categorized as VMI, etc. Using these types of strategies, Barilla was able to send and receive data from their retail stores in real time, which provided them with the opportunity to fill the shelves of their stores with the proper amount of inventory, avoiding supplementary costs such as excess inventory or stock outs. As this process happened again and again over time, Barilla was able to spot the specific trends and spikes in demand, allowing them time to prepare and avoid errors in planning. Before this JITD tactic was implemented, the firm’s production forecasts were not aligning with their store’s inventory position, thus resulting in lost revenue and excess product. By modernizing those operations, Barilla was able to take advantage of better lead-times and cost savings throughout this part of the business. Applying these approaches and maneuvers can possibly put Three Jays Corporation in the position for more success and drastic cost savings. With the inventory and production issues similar to Barilla, Three Jays have a very high chance of these new strategies, performing excessively well throughout their production and inventory operations, thus saving large amounts of money that can be used in different aspects of the business, such as the marketing
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