Supply Chain and Brunswick Distribution

Topics: Inventory, Supply chain, Supply chain management Pages: 6 (1483 words) Published: June 4, 2013
OPERATIONS AND PRODUCTIONS MANAGEMENT – GEMA 5400|
Brunswick Distribution Inc|
Case Analysis|
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Table of Contents

Introduction ………………………………………………………………..1

Executive Summary ……………………………………………………2

Application and Analysis ……………………………………………..3

Literature Review………………………………………………………….4

Conclusion……………………………………………………………………..5

Bibliography…………………………………………………………………..6

Appendix…………………………………………………………………………7

INTRODUCTION
Brunswick Distribution started as a small distribution company 10 years ago when Alex Brunswick stated using his grandmothers shed. The company further grew and moved into a 20,000 square-feet leased facility. Ten years ago, the company entered into an agreement with Kitchen Helper Corp, as their high-end appliance representative and distributor in Moline Illinois. The operations have expanded from the radius of 35 miles to representing them over a 200 mile radius. Given the company’s rapid growth, Brunswick Distribution Inc purchased the leased facility and made additions to bring its capacity to 30,000 square-feet.

EXECUTIVE SUMMARY
After reviewing the company’s financial performance, CEO Alex Brunswick noticed information within the report that indicated uncertainty for the company. Brunswick Distribution Inc. had experienced a robust growth over the past 4 years and were expecting to further decline the following year. Despite the consistent increase over the past four years, there was still some doubt in the company’s future. Alex Brunswick recognises that this growth had largely to a few competitors going out of business, a situation that was unlikely to continue. Mr Brunswick enlisted the advice of his Vice President of Operations, Bradley Pulaski and Marianna Jackson, his Vice President of Logistics. Mr Pulaski has given the option of expanding to the Mid West by securing a new warehouse. The cost of the new warehouse was in the region of 15 million dollars, 2 million for the plant, 10 million for property, $955,000 for shipping expenses. Mr Pulaski also reasoned that with the additional infrastructure, Brunswick Distribution would be able to increase its annual sales by $4,426,000.000. In addition, delivery times to customers in the region would be reduced from 5 days to 2 days which would be very competitive. Marianna, Head of Logistics, suggested that the company capitalize on the void left by the fallen companies to enhance their operation and make it less costly. This option enlisted a new distribution system that was better handling for inventory and process. It also included a system that depended on information technology and saving the company money. With this option, a 16% saving in annual spending on shipping expenses, an increase in the assets of 5.8 million and the cost of 7.5 million total.

Alex Brunswick must now review the two options posed by Marianna and Bradley and determine how each option would affect the company’s operational and financial performance and secure the company’s future

LOOKING AT THE COMPANY
The financial remodeling of Alex Brunswick’ decision will have an impact on its supply chain management. The distribution company’s growth has not translated into solid financial return for the past three years which have seen a decline instead of a realized profit, the suggestions for improvement of the company’s financial position through either investing in a new infrastructure or streamlining the distribution system can bring the company into a new era of doing business. Brunswick Distribution operations strategy and competitive priorities guide its supply chain choices. Supply chain management is the synchronization of a firm’s processes with those of its suppliers and customers to match the flow of materials, services, and information. Measures of supply chain performance and sound supply chain design can assist the company in making the key decision that will affect their future. Brunswick Distribution inherited...
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