Proj 410 Case Study 10

 

PROJ410 – Case Study 3

5n advanta$e o# usin$ &ot' truc,in$ and are'ousin$ su""liers is t'at a com"any can convert a lar$eamount o# #i.ed costs to varia&le costs 'ic' reduces a com"any2s &rea,-even "oint ma,in$ it less li,elyto succum& to a dro" in &usiness) *'e su&stantial #i.ed costs in t'is area include are'ouse #acilitiesstora$e rac,s #or,li#ts tractors trailers and maintenance #acilities) 9y eliminatin$ t'ese #i.ed costs acom"any can also ac'ieve a su&stantial im"rovement in its return-on-assets measurement) One "ro&lemit' t'is scenario is t'at t'e amount o# #i.ed costs only dro"s 'en t'e com"any actually sells o## its#acilities and e!ui"ment) Ot'erise t'e com"any ill 'ave to maintain t'em 'ile still incurrin$de"reciation e."enses and "ayin$ a su""lier to "er#orm t'e truc,in$ and are'ousin$ services) *'ere#oreas lon$ as assets can &e ra"idly dis"osed o# a com"any can cut into its &rea,-even "oint &y sitc'in$ itsare'ousin$ and truc,in$ #unctions to su""liers)5 are'ouse su""lier is use#ul #or t'e com"any as it ants to use a lar$e num&er o# distri&ution "oints as#inal assem&ly areas) Com"any ill &e a&le to &uild t'e smallest num&er o# com"onents to stoc, andstorin$ t'ese com"onents at a ide ran$e o# distri&ution locations 'ic' are t'en assem&led accordin$ tocustomer s"eci#ications at t'ose locations) *'is results in t'ousands o# "ossi&le "roduct variations &ein$s'i""ed it' a minimum o# inventory) *'is ill allo t'e com"any to reduce its investment in inventory'ile $ettin$ #inis'ed "roducts to customers sooner it' no additional investment) Multi !ui"mentManu#acturin$ %td can s'i#t inventory amon$ a multitude o# locations as customer demand s'i#ts over timeso it can o##er t'e s'ortest "ossi&le delivery times) Maintainin$ a lon$-term relations'i" it' a t'ird-"artylo$istics "rovider ena&les com"anies to rea" si$ni#icant &ene#its #rom outsourcin$)

Cost savings report

-Savin$ o# o"eratin$ cost o# +00 truc,s #leet :Cost ran$es #rom 400 to +00;truc, "er mont'< =USD +00 > :5vera$e USD 4+0 "er truc,< > 1? = USD ?)@ million-Cas' 8enerated out o# sellin$ +00 truc,s to t'e su""lier;vendor or a t'ird "arty-6nsurance cost Saved = USD +00 > ?+000 = USD 1?)+ million-Savin$ Aare'ouse and 6nventory carry cost : +0000 S! #t o# are'ouse s"ace > USD B "er S! #t "er mont'< = USD 3)B million-Aor,ers em"loyed #or loadin$ and unloadin$ truc,s can &e em"loyed some'ere else in t'ecom"any and t'us resultin$ in cost savin$ o# : 100 or,ers > USD +0000< = USD + million-5dditional Cost savin$ o# ot'er e!ui"ments involved in t'e are'ousin$ and truc,in$ = USD 1million

 

PROJ410 – Case Study 2

Company Background:

ABC Maretin! Services is t"e com#any t"at #rovide t"eir c$ients a com#$ete suite o% maretin! and e&commerce so$utions t"at "e$# t"em to 'in ne' customers( retain t"eir c$iente$e and a$so "e$# t"em deve$o#t"eir maretin! services and strate!y) ABC Maretin! Services desi!ns and mana!es t"ousands o% c$ient e&commerce 'e*sites '"ic" "e$# im#$ement customer maretin! tar!etin! and se!mentation strate!ies toincrease and measure t"e revenue #otentia$ in every customer interaction+se!ment) ABC Maretin!Services, customer -nnovation so$utions are s#eci%ica$$y tai$ored to im#rove eac" customer,s end&to&ende.#erience( "e$#in! to *ui$d *rand $oya$ty and drive t"e "i!"est $eve$s o% satis%action across a$$ customers)/"e com#any "as 'ide ran!e o% customers s#read a$$ over t"e !$o*e and "as *een in t"e maretin! services *usiness %or 20 years no') /"e com#any "as anot"er division t"at s#ecia$ies in t"e ca$$ centre and re$atedcustomer interaction services) /"e com#any "as e.#anded its o#erations over t"e $ast %e' years and "assevera$ de#artments 'it"in t"e com#any to tae care o% various %unctions suc" as o#erations ecommerceso$utions deve$o#ment and mana!ement( sa$es 3 maretin!( administrations( -n%ormation tec"no$o!y(uman Resources( 5e!a$( Customer Services( Procurement and Purc"asin!( 6inance and accounts(Business Strate!y( distri*utions and $o!istics and ead O%%ice)

Business processes to outsource

ABC Maretin! Services is t"inin! o% %ocussin! on t"eir core *usiness and outsource t"eir ot"er non&core *usinesses) 6or t"is( it 'ent t"rou!" t"e due di$i!ence o% cate!oriin! t"e core and non&core %unctions'it"in t"e com#any) Core %unctions t"at 'ere identi%ied are7

O#erations

Sa$es and Maretin!

-n%ormation /ec"no$o!y

6inance and accounts

Business Strate!y

uman Resources

Procurement and Purc"asin!

ead O%%ice o#erations 8on&Core %unctions t"at 'ere identi%ied *y t"e mana!ement are7

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