The problems faced currently are: a. Information Systems at IW have developed into system with “niche” (exception to current standards) and “sunset” (outdated) technologies, leading to higher IT costs. b. Because of the lack of sustainable coordination, “Shadow IT groups” have been developed within the business units resulting in substantial IT resources that were neither being managed nor considered in the high costs under scrutiny within the IT function. c. Due to lack of standard data definitions, “several versions of truth” could be extracted from the IW depending on the way of extraction.
Also, the Barilla customers will face stockout due to the low fill rate of Barilla. ∙ ● High Inventory at distributors and No Space for new products: As Exhibit 13 shows, the distributors have huge inventory and stockouts rate, which indicates that new product keeps coming out while old products still keep their spaces due to which on one side there was increasing inventory holding cost while on the other side, there’s
There was also bad costing in terms of individual customers and also for the new services provided. 2. Activity Cost driver rates: * Process cartons in and out of facility * Rate = (90% of Warehouse personnel expense + Cost of items Purchased) / cartons processed * Rate = (90%*2,400,000+35,000,000)/80,000 = $464.50 per carton * New desktop delivery * Rate = (10% of Warehouse Personnel expense + Delivery Truck expenses)/ desktop deliveries * Rate = (10%*2,400,000 + 200,000)/2,000 = 220 per carton * Handling orders * Rate = (Warehouse expenses + freight)/ # of orders * Rate = (2,000,000+450,000)/(16,000+8,000) = 102.08 per order * Data entry * Rate = Order entry expenses/order lines * Rate = 800,000/150,000 = 5.3 orders per line 3. - Activity One: a. Customer A= 464.5*200 = 92,900 b.
By having rapid timing and synchronicity, Zara spends its money on things that can help increase the responsiveness and speed of the chain. Zara can reduce inventories and forecast error by postponement of the decisions after knowing the trends. The apparel industry cycle time has averaged more than six months. For five to six weeks cycle time has been achieved. By having this speed Zara can introduce new designs weekly and every three to four weeks 75% of their merchandise is displayed, which matches the customers preferences more than competitors.
With the economy in recession, high unemployment rates, and high interest rates proved very challenging for Welch to run GE. The challenges faced from inside the company were massive information and inefficient macro-business models. Amidst all the challenges, Welch took them on with a motto, which was to be “Better than the Best” (Bartlett & Wonzy, 2005). Welch took a stand to restructure the company and identified managers who would fit in areas that could assist to restructure the company, while other managers who did not bring value to the company were let go. By eliminating the sector level, about 123,450 jobs, and also eliminating addition of new jobs, Welch implemented lean and agile methodologies, as well as real-time-planning strategy.
However, to run an office is also very expensive and companies tend to economize much on offices, which could lead to undesired outcomes, that are sometimes directly related and obvious but most outcomes are hidden indirectly and people are not aware of it. Many outcomes are revealed thanks to the work of ergonomic scientists. The science of ergonomics tries to find out all the aspects that improve system performance and human wellbeing. ("Human factors and," 2013)The following essay will explain why ergonomic office solutions should be considered by companies, who want to improve office performance and save cost, in order to be more competitive. Ergonomic office solutions can decrease human resource costs and increase health of employees.
We absolutely must improve our service and support. In the next few pages I will propose a plan to improve the overall ratings of our customer service in stores and online. Proposal to Improve Customer Service When we talk about customer service we all remember that one instance that was either good or bad, most of the time, it was the bad service that we remember. Our society today is fast-pace and most people, especially those in the retail field, do not have enough time to spend with each individual customer. Most companies have cut the sales force because of the unstable economy.
This led to a 4% drop in share prices. Secondly, it has reaffirmed its commitment to market research, and generating more information about its customers. (Jones, 2001) Disappointing Growth of Flagship Brands: There are two major factors that are contributing to the poor financial outlook. Firstly, the disappointing growth of the company’s flagship brands and products resulted in meagre profit growth. P&G have always been a leader in customer research, and this has helped it make small amendments adding value to these existing products.
Besides facing tariff barriers, U.S. companies will find a complex customs system, and an overloaded legal system with a lengthy process for enforcing IPR and commercial law. Heavy taxes increase consumer prices up to 100%, while bureaucratic procedures and burdensome product licensing also raise costs. “Brazil also has an inadequate Internet infrastructure and comparatively, low levels of connectivity. Fast Internet connections are only found in the densely populated South East of the country. Broadband connections are relatively slow and expensive.
In Summit’s case, the integration of this information was done manually in batches. This wasted enormous amounts of time and dramatically effected the efficiency and organization of the company. * As the company grew and found out it could no longer process inventory and updates in the amount of time necessary, the system got to its breaking point. This process became extremely costly due to the manpower and amount of time