Haus Mart Case
To:
From:
Date:
Subject: Exel plc – Supply Chain Management at Haus Mart Dilemma
Word Count: 1200
This report evaluates whether Exel should move into supply chain planning with Haus Mart at this time or pursue some other strategy for advancing Exel’s current role. Economic and strategic arguments will be provided to convince Exel leadership of the best course of action. The following bullet points will identify the key issues in the case followed by an analysis of those issues.
Haus Mart is reliant on over 650 supply chains worldwide to control the freight management responsibilities for all of its brand name products, representing 70% of the company’s revenue, which creates substantial risk in terms of receiving orders on time and of the right quantity and quality.
Exel does not control the sixth DC, so though Exel conducts exceptional freight management of all private label products (30% of company revenue), the logistics company has no control over the process for those products delivered to the sixth DC.
Exel has a proven track record of keeping and extending the scope with its customers. Exel has extensive experience and well-established global networks for freight management (675 locations in 112 countries) and contract logistics (1,600 facilities in 120 countries) and is well qualified to assume a supply chain planning role with Haus Mart. However, the purpose of moving beyond simple coordination to supply chain planning under the new Lead Logistics Partner (LLP) model is to allow Exel to help its customers match supply with demand, identify drivers of risk, and reduce the risk to both companies. The issues presented above are fair warning that a sudden transition into a business-wide supply chain planning role would not be a wise next step for Exel at this time. However, Exel can assume a limited supply chain planning role which will be discussed in the action plan later
From:
Date:
Subject: Exel plc – Supply Chain Management at Haus Mart Dilemma
Word Count: 1200
This report evaluates whether Exel should move into supply chain planning with Haus Mart at this time or pursue some other strategy for advancing Exel’s current role. Economic and strategic arguments will be provided to convince Exel leadership of the best course of action. The following bullet points will identify the key issues in the case followed by an analysis of those issues.
Haus Mart is reliant on over 650 supply chains worldwide to control the freight management responsibilities for all of its brand name products, representing 70% of the company’s revenue, which creates substantial risk in terms of receiving orders on time and of the right quantity and quality.
Exel does not control the sixth DC, so though Exel conducts exceptional freight management of all private label products (30% of company revenue), the logistics company has no control over the process for those products delivered to the sixth DC.
Exel has a proven track record of keeping and extending the scope with its customers. Exel has extensive experience and well-established global networks for freight management (675 locations in 112 countries) and contract logistics (1,600 facilities in 120 countries) and is well qualified to assume a supply chain planning role with Haus Mart. However, the purpose of moving beyond simple coordination to supply chain planning under the new Lead Logistics Partner (LLP) model is to allow Exel to help its customers match supply with demand, identify drivers of risk, and reduce the risk to both companies. The issues presented above are fair warning that a sudden transition into a business-wide supply chain planning role would not be a wise next step for Exel at this time. However, Exel can assume a limited supply chain planning role which will be discussed in the action plan later