Woodmere Products Case Study Solution

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Woodmere Products Case 1. What are the major business propositions for Woodmere and HomeHelp to consider in evaluating this proposal? Is time-based logistics the right strategy for each company? The major business proposition for Woodmere is Woodmere can benefit a lot from accepting the HomeHelp challenge. They can not only learn how to develop a totally new customized delivery system but also consolidate a good business relationship with HomeHelp which is a big customer. The major business proposition for HomeHelp is HomeHelp can create an innovative logistics application by allying with Woodmere in order to realize the goal of lower costs and less inventory. It is win-win game if the two companies join together to reduce overall channel…show more content…
Because implementing time-logistics was the sales decline that resulted from “deloading the channel” which could lead to false sense of expected sales and anticipatory inventory. Another defect of time-based logistics is the investment in technology. This investment was not a one-time deal which means the company needs to reinvest to upgrade technology has remained constant from the start. Especially locally owned stores and start-ups did not want it because of the initial investment. 2. What are the benefits and barriers (short- and long-term) to this proposal for both Woodmere and HomeHelp? What other factors need to be considered? The short-term benefit for Woodmere is that it can to achieve an exclusive distribution arrangement with HomeHelp. The long-term benefit is the unexpected opportunity the new customized delivery system might bring. The short-term barrier for Woodmere is the timing and the approval of management. The long barrier for Woodmere is that it need to change the current delivery system which involves a great deal of unknown risks. The benefits for HomeHelp is that it can improve product availability for in-store customers while reducing overall inventory. The barrier for HomeHelp is that Woodmere may or may not perform as well as they expected. Other factors which include the total cost and the total benefit of time-based
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