CASE STUDY WESTMINSTER

Westminster is a worldwide manufacturer of brand health products worldwide recognized. As a company, they have three different businesses, each creating a different product line. The main strategies they are implementing and the main success for them are distributed management. As the company receives excessive pressure from major domestic and overseas customers, we are currently reviewing the traditional supply chain strategy. Now the company has to research ... display more content

Reduce the cost of shipping via the truck for loading and use to maximize the cube and also reduce the reduction in truck loading.

In addition, with all these options, the company can effectively deliver to customers on time, thereby increasing customer satisfaction.

With regard to implementing these changes, it may cause some problems and problems, and this is a time-consuming process.

When customers stay in old warehouses, we must face the problem of delays to customers.

Answer 1 - The first question shows two new options that affect the transfer and how the customer affects the cargo. Answers to this question are given in the first and second choices above.

Answer 2 - If all three companies are located in a single location, inventory holding costs will be lower as the product is placed in one location rather than three different locations. In addition, doing so will reduce the cost product's insurance and misplacedness, but the shipment of inventory will increase because the cargo is loaded by the truck and the distance between the customer and the distribution center is very far. In addition, because the service level has improved in this way, the order processing process has also improved. Other than that,

Public warehouse is the second option available for Westminster. The main advantage of this type of warehouse management is that there is no fixed investment. In this case, the performance quality is also very high. However, there are disadvantages in this system beginning with high variable costs (Westminster's case study). Furthermore, in the case of bulk products, high processing and storage costs are incurred. The costs associated with inventory items are called inventory retention costs and are expressed as a percentage of product value per unit of time. This represents the cost of opportunity cost, as well as capital cost, storage, material handling, obsolescence, taxes and insurance (Westminster's customer composition and customer service). By consolidating warehouses, inventory costs are reduced because fewer stocks are stored in the central warehouse with less stock in the region.

According to Bowers (2012), logistics is the work required to move inventory and locate. Placing inventory in the right place is important for the company's success. The focus of research on actors will be one of Westminster, the largest health product manufacturer in the United States. Westminster has three subsidiaries. Foodstuff manufacturing, pharmaceuticals, mass production. In a highly competitive market, Westminster needs to pay close attention to the supply chain and logistics process so that the supply chain is effective and synchronized with its competitors.

Westminster is one of the world's leading manufacturers of consumer health products. Domestic operations include three independent fully owned companies that manufacture their own product lines and distribute them to various retail and wholesale networks. In response to challenges that domestic and foreign competitors brought and striving to succeed in the marketplace, Westminster reconsider important supply chain activities primarily from the perspective of customer composition, warehouse location and customer service requirements It is. Management has proposed three ways to improvise the supply chain. First, to eliminate the forecasting process and to ensure timely replenishment of inventory, replace the expected business model with the responsive business model. Next, we integrate the products of each of the three companies and improve the cycle time and cost of the order.