L_a Essay

714 WordsMar 5, 20093 Pages
Laura Ashley, based in the United Kingdom, is a global clothing and furnishings retailer. They have grown at a very rapid rate operating from 231 retail stores in 1986 to 481 stores in 1990. While it had always maintained excellence in product design and development, Laura Ashley suffered sinking profits because of its complex, costly, and inefficient logistics system. There was an over dependence on in-house manufacturing, SBU’s operated as stand-alone businesses with independent inventory and systems which are not integrated, and outdated inventory ordering methods and inefficient movement of goods along the supply chain. Laura Ashley found that too many carriers and too many systems were resulting in an overall loss of managerial control. To regain control, Laura Ashley had to restructure its logistical operations. Based on these problems, Jim Maxmin decided to form an alliance with Federal Express BLS, to let them handle the Implementation of Laura Ashley's new logistics structure began with the transfer of all in-house logistics operations to Business Logistics Services, a division of Federal Express. BSL' task was to restructure, improve, and manage every aspect of the flow of goods and information within the Laura Ashley supply chain. The initiative’s focus on distribution was aimed at fixing warehousing, replacement as well as delivery operations. The transformation that the firm’s new CEO was targeting was ultimately intended to form a logistics system capable of providing 99% availability and 24-48 hour delivery. As a requirement of this strategic alliance, Laura Ashley formed a firm called Laura Ashley distribution Ltd and sold this to FedEx. Further, the plan BLS developed for Laura Ashley included shutting down two of its warehouses and appointing Newton warehouse a central processing center. BSL planned to convert rest of warehouses into the

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