Perkins Essay

326 Words2 Pages
THE PERKINS CASE (we did this a few weeks back) 1) Identify the problem and the opportunities 2) How did they approach the problem? 3) Key learning points summarize. 1) The problem was actually unplanned growth which was not aligned with the business’s dynamics. The facility locations were not optimal in terms of the market they were serving. Coupled with bottlenecks at key locations the result was a dent in both responsiveness (new product categories stymied) and efficiency (poor inventory management). 2) Perkins approached the problem in a scientific and structured manner. They took the bold step of having one large distribution centre and built their headquarters at the same location. Rather than being short-sighted and skimping on costs the company decided to hire specialists to design the facility. To adopt a practical approach the company personnel benchmarked by visiting best-in-class plants. Finally a logical approach was adopted to decide on the size and location of the facility and its systems and operating procedures. The approach was long term. Future expansion was not ignored, in fact given considerable importance. The facility design was also practical, catering for efficient yet flexible operations (different aisles/cross docking). Not content with just having a single purpose facility (storage) Perkins invested in an administrative/ training block, a test kitchen and auditorium – a novel approach and designed to improve future efficiencies and capex economization. 3) Companies need to realize early on when their infrastructure is not aligned with their market needs and dynamics. They then need to take bold yet planned decisions. A structured and planned approach to re-design and implemented optimal infrastructure requires meticulous planning, the avoidance of "penny pinching" , a long term approach and a

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