Excel Logistics
rP os t
KEL019
SUNIL CHOPRA
Excel Logistics Services
Background
op yo “The quality of our performance has improved significantly, but stores continue to complain about our deliveries,” said John Margolis, general manager of the Springfield Warehousing and
Distribution Center (WDC) run by Excel Logistics Services. Margolis looked at the customer satisfaction survey for the fourth quarter of the previous year. “At this point, it is becoming increasingly difficult for us to make further improvements. We need a detailed plan of action regarding what to do next. Robin, I would like to see an initial plan from you in the next couple of months. Why don’t you begin by looking at the receiving function?” Robin Stalk, quality manager at the WDC, nodded her head.
tC
Founded in 1989, Excel Logistics Services (ELS) was a wholly owned subsidiary of Excel and
Co., a large national retail chain. Prior to 1989, Excel handled its own logistics functions, including warehousing and transportation. In 1989, ELS was spun off as a separate company with the sole objective of providing logistics services. Initially, all of ELS’s business came from Excel. At present, only 85 percent of ELS’s business came from the parent company, and ELS was actively seeking business outside of Excel. Although ELS had plans for growth, it wanted to stay in the business of providing logistics services to retail chains.
No
ELS operated a network of seven warehousing and distribution centers for Excel and Co. Each
WDC was assigned a region in which it served all Excel stores. Each WDC typically stocked all items needed by stores in the region it served. Company buyers at Excel placed orders for merchandise with suppliers. These orders were based on forecasted demand at retail stores and were delivered to the WDCs where they were received and held in storage. When stores ran out of a product, store managers placed replenishment orders for merchandise at the WDC.
KEL019
SUNIL CHOPRA
Excel Logistics Services
Background
op yo “The quality of our performance has improved significantly, but stores continue to complain about our deliveries,” said John Margolis, general manager of the Springfield Warehousing and
Distribution Center (WDC) run by Excel Logistics Services. Margolis looked at the customer satisfaction survey for the fourth quarter of the previous year. “At this point, it is becoming increasingly difficult for us to make further improvements. We need a detailed plan of action regarding what to do next. Robin, I would like to see an initial plan from you in the next couple of months. Why don’t you begin by looking at the receiving function?” Robin Stalk, quality manager at the WDC, nodded her head.
tC
Founded in 1989, Excel Logistics Services (ELS) was a wholly owned subsidiary of Excel and
Co., a large national retail chain. Prior to 1989, Excel handled its own logistics functions, including warehousing and transportation. In 1989, ELS was spun off as a separate company with the sole objective of providing logistics services. Initially, all of ELS’s business came from Excel. At present, only 85 percent of ELS’s business came from the parent company, and ELS was actively seeking business outside of Excel. Although ELS had plans for growth, it wanted to stay in the business of providing logistics services to retail chains.
No
ELS operated a network of seven warehousing and distribution centers for Excel and Co. Each
WDC was assigned a region in which it served all Excel stores. Each WDC typically stocked all items needed by stores in the region it served. Company buyers at Excel placed orders for merchandise with suppliers. These orders were based on forecasted demand at retail stores and were delivered to the WDCs where they were received and held in storage. When stores ran out of a product, store managers placed replenishment orders for merchandise at the WDC.