Written Case Study 1 EasyInternetcafe
Table of Contents
Executive Summary 2
Issue Identification 3
Environmental and Root Cause Analysis 4
Alternatives and Options 6
UPS Global Logistics 6
Exel 6
Globalserve 6
Ingram Micro 7
Recommendations and Implementation 8
Monitor and Control 10
Executive Summary
EasyInternetcafe was started by the easyGroup in the midst of the Internet boom in the United Kingdom. The mission of this company is to provide customers with access to the internet at the lowest possible cost. After the Internet Investment bubble burst, easyInternetcafe is experiencing a loss in profits and is struggling to survive.
The original business concept was to have large, stand-alone cafes with 250-800 PCs per store. After the initial internet boom phased out, a decrease in profits and loss of business was happening. A re-structure of the company is required in order to keep the company operating. The company decided to downsize and are operating smaller franchised stores, consisting of only 20-30 PCs, and no staff on-site except for regular maintenance. With less involvement in store operations, easyInternetcafe is able to concentrate on activities of outsourcing all non-core management activities.
EasyInternetecafe is finding that their current locations operate with too many PCs for the amount of business they receive, and they have no real strategic operating plan in place for new franchises that are opening, especially when it comes to their logistics system. The company has to determine whether they should outsource their logistics activities for store openings. Four alternatives are taken into consideration to help reduce overall logistics costs and to help the business become successful, 2 of which are considered pure logistics service providers, and the other 2 are categorized as integrated supply chain solution providers. Upon analyzing these options, it is recommended that easyInternetcafe should hire Ingram Micro to help them manage their supply chain activities and help
Executive Summary 2
Issue Identification 3
Environmental and Root Cause Analysis 4
Alternatives and Options 6
UPS Global Logistics 6
Exel 6
Globalserve 6
Ingram Micro 7
Recommendations and Implementation 8
Monitor and Control 10
Executive Summary
EasyInternetcafe was started by the easyGroup in the midst of the Internet boom in the United Kingdom. The mission of this company is to provide customers with access to the internet at the lowest possible cost. After the Internet Investment bubble burst, easyInternetcafe is experiencing a loss in profits and is struggling to survive.
The original business concept was to have large, stand-alone cafes with 250-800 PCs per store. After the initial internet boom phased out, a decrease in profits and loss of business was happening. A re-structure of the company is required in order to keep the company operating. The company decided to downsize and are operating smaller franchised stores, consisting of only 20-30 PCs, and no staff on-site except for regular maintenance. With less involvement in store operations, easyInternetcafe is able to concentrate on activities of outsourcing all non-core management activities.
EasyInternetecafe is finding that their current locations operate with too many PCs for the amount of business they receive, and they have no real strategic operating plan in place for new franchises that are opening, especially when it comes to their logistics system. The company has to determine whether they should outsource their logistics activities for store openings. Four alternatives are taken into consideration to help reduce overall logistics costs and to help the business become successful, 2 of which are considered pure logistics service providers, and the other 2 are categorized as integrated supply chain solution providers. Upon analyzing these options, it is recommended that easyInternetcafe should hire Ingram Micro to help them manage their supply chain activities and help