Woodmere Products: Case Study: Time Based Logistics

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Woodmere Products Case Study The case study is about time-based logistics. HomeHelp wants Woodmere to collaborate with it in an exclusive distribution using time-based logistics. Woodmere has to submit a proposal for implementing that. The following are the answers to questions about this collaboration. Major Business propositions for Woodmere and HomeHelp The business proposition for Woodmere in this case study is as follows. Woodmere would be able to secure an exclusive distribution with HomeHelp, which is a market leader in Home Decorating retail market, if it can implement time-based logistics. Woodmere’s prospective customer segment is heavily consolidated resulting in stiff competition. Since HomeHelp is a market leader in this segment,…show more content…
It maintains only 20% inventory at its stores and it customers would like to be able to have forty-eight hours to place orders and receive them on time. This can be achieved if it has an exclusive distribution arrangement with a partner who could cater to this need. HomeHelp would be able to get increase the number of professional decorators (Propartners) who are their customers. These Propartners are currently getting their requirements fulfilled through independent dealers due to their flexible delivery programs as it results in an increase in efficiency and improvement in cash flow position for them. To this effect, the exclusive distribution agreement with Woodmere would be the perfect for them resulting in reduction of channel costs for both and enable them to deliver a superior product to the end…show more content…
For HomeHelp, this would be a benefit, as it will be having more working capital available for it. In the short term, both the companies would have to spend money on the technology to implement the time-based logistics. In the long term, there would be costs associated with the time-based responsive logistics on an ongoing basis as it results in frequent smaller shipments rather than consolidated larger shipments. It also entails costs of regular upgradation of technology needed. This could result in an increase in costs in the short term and long term for both companies, which have to be balanced with the advantages gained (Donald J. Bowersox, 2002, p. 40). Woodmere would benefit due to the exclusivity arrangement, as it would be able to manage capacity of its manufacturing plants better. It would also be able to highlight its success in this venture with HomeHelp to other customers and have similar arrangements with others. With the implementation, Woodmere would have a competitive advantage, which will not be easy for competitors to

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