Holt Renfrew
Holt Renfrew Case Analysis:Nausherwan Saleem (11020035)Rukunuddin Aslam (11020163)
Case Summary:1) Company Profile:
a.
High-end retailer in Canada with ten stores in seven Canadian citiesb. Sells top quality, branded and private-label designer fashions as well as cosmeticsc. Owned by the Wittington Group headed by Galen Westond. Peak sales occurred in March/April, July/August and November/Decembere. Publicity campaigns used throughout the year for promotional purposesf. 21,500 orders a year at the company
’
s flagship store on Bloor Street, Torontog. 1000 suppliers approximately used in a year out of a total of 3000h. 500,000 SKUs out of which 50% were active at any given timei. New introductions accounted for 40 to 50% of SKUs ordered
2)
The Logistics Function at Holt Renfrew:
a.
Primary Distribution Center (DC)i. A primary 80,000 square-foot Distribution Center (DC) in Mississauga,Ontario where all merchandise ordered by Holt Renfrew
’
s buyers wasshipped.ii. The DC was designed as a flow-through warehouse. All merchandise comingin has to be processed immediately and subsequently, shipped to thestores.iii. Primary activities in the DC were lot picking, ticketing and taggingmerchandise.iv. 55 hourly, full-time staff worked at the DC over two shifts.v. DC received on average about 40$ million of inventory every month(136,000 cartons and 32,000 sets of hanging merchandise every year).vi. 3.3 million units of merchandise shipped from DC to stores every year.b. Secondary Warehousei. A secondary 60,000 square-foot facility was also located in Mississaugaii. This held inventory that was not sold in the stores and which wassubsequently sent to the Last Call, the stores located in Winnipeg andToronto where they were sold at a substantial discount. iii. If the merchandise was not sold at the Last Call, it was returned by thestores to this secondary warehouse and kept
Case Summary:1) Company Profile:
a.
High-end retailer in Canada with ten stores in seven Canadian citiesb. Sells top quality, branded and private-label designer fashions as well as cosmeticsc. Owned by the Wittington Group headed by Galen Westond. Peak sales occurred in March/April, July/August and November/Decembere. Publicity campaigns used throughout the year for promotional purposesf. 21,500 orders a year at the company
’
s flagship store on Bloor Street, Torontog. 1000 suppliers approximately used in a year out of a total of 3000h. 500,000 SKUs out of which 50% were active at any given timei. New introductions accounted for 40 to 50% of SKUs ordered
2)
The Logistics Function at Holt Renfrew:
a.
Primary Distribution Center (DC)i. A primary 80,000 square-foot Distribution Center (DC) in Mississauga,Ontario where all merchandise ordered by Holt Renfrew
’
s buyers wasshipped.ii. The DC was designed as a flow-through warehouse. All merchandise comingin has to be processed immediately and subsequently, shipped to thestores.iii. Primary activities in the DC were lot picking, ticketing and taggingmerchandise.iv. 55 hourly, full-time staff worked at the DC over two shifts.v. DC received on average about 40$ million of inventory every month(136,000 cartons and 32,000 sets of hanging merchandise every year).vi. 3.3 million units of merchandise shipped from DC to stores every year.b. Secondary Warehousei. A secondary 60,000 square-foot facility was also located in Mississaugaii. This held inventory that was not sold in the stores and which wassubsequently sent to the Last Call, the stores located in Winnipeg andToronto where they were sold at a substantial discount. iii. If the merchandise was not sold at the Last Call, it was returned by thestores to this secondary warehouse and kept