Case Holt Renfrew
Executive Summary
To: Andrew Jennings, President, Holt Renfrew
From: Tony Kelly, Director of Logistics, Holt Renfrew
Subject: Solutions to
Issue: As you know,…………. I have analyzed the work done thus and would like to propose the following as our new Problem Statement for this requirement.
We considered various other options to conclude this assignment, as follows:
Although these were viable, we feel that ……….will provide the best strategic solution for Holt Renfrew, while also achieving a much better long-term solution.
I look forward to receiving your approval of this recommendation, so that it can proceed immediately.
Respectfully,
Tony Kelly Size-up:
Item
So What?
Inactive suppliers: HR had approximately 3000 different suppliers, only about 1000 suppliers were used.
Suppliers’ management was inefficient. The inactive resulted in waste of resources including human resources, files management, Information system overload, etc.
Inactive SKUs: HR had approximately 500,000 SKUs, only about 50 per cent were active at any given time.
Huge inventory carrying costs happened when almost 50% inactive SKUs stayed in the DC or warehouse.
Dull and Repeating Work for Employees: staff spent a lot of time on the phone expediting shipments to stores, and confirming and adjusting previous orders with suppliers.
Employees’ career development would be retarded by the dull job. It would made the high turnover rate and it would be costly to hire and train the new employees.
Suppliers’ Mismanagement: Suppliers just delivered the products to the DC without prior notification. We were not able to anticipate what to expect daily.
It would cost time and human resources to confirm and adjust the orders with the suppliers.
Lack of Communication with Merchandiser: staff did not get any information from merchandiser. They were constantly pushed by stores to follow up on orders delivery and transportation service providers.
The unsmooth communication and
To: Andrew Jennings, President, Holt Renfrew
From: Tony Kelly, Director of Logistics, Holt Renfrew
Subject: Solutions to
Issue: As you know,…………. I have analyzed the work done thus and would like to propose the following as our new Problem Statement for this requirement.
We considered various other options to conclude this assignment, as follows:
Although these were viable, we feel that ……….will provide the best strategic solution for Holt Renfrew, while also achieving a much better long-term solution.
I look forward to receiving your approval of this recommendation, so that it can proceed immediately.
Respectfully,
Tony Kelly Size-up:
Item
So What?
Inactive suppliers: HR had approximately 3000 different suppliers, only about 1000 suppliers were used.
Suppliers’ management was inefficient. The inactive resulted in waste of resources including human resources, files management, Information system overload, etc.
Inactive SKUs: HR had approximately 500,000 SKUs, only about 50 per cent were active at any given time.
Huge inventory carrying costs happened when almost 50% inactive SKUs stayed in the DC or warehouse.
Dull and Repeating Work for Employees: staff spent a lot of time on the phone expediting shipments to stores, and confirming and adjusting previous orders with suppliers.
Employees’ career development would be retarded by the dull job. It would made the high turnover rate and it would be costly to hire and train the new employees.
Suppliers’ Mismanagement: Suppliers just delivered the products to the DC without prior notification. We were not able to anticipate what to expect daily.
It would cost time and human resources to confirm and adjust the orders with the suppliers.
Lack of Communication with Merchandiser: staff did not get any information from merchandiser. They were constantly pushed by stores to follow up on orders delivery and transportation service providers.
The unsmooth communication and