Woodmere Products Essay

547 Words3 Pages
Woodmere Products 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? One of the major business propositions for Woodmere and HomeHelp to consider is investing in the time-based logistics technology. This technology can help both firms reduce inventory expense, improve stock out performance, and respond more quickly to the customer’s demand. The system is very flexible and able to handle a variety of replenishment styles. In my opinion, this strategy benefits both companies; however, there are some major concerns. Besides the large investment on technology, it will take time to set up and familiarize with the system. Therefore, it requires a close relationship between two companies. They need to collaborate to overcome the difficulties at the beginning of the process. In addition, both companies need to trust their partners since they can access the information of each other. Leaking these information to competitors will cause serious problems to both companies. In addition, the management needs to take into account the tradeoff between inventory carrying cost and transportation cost. For example, in this case, JeanJean reduced inventory by 20 percent by using Time-based Logistics; conversely, the transportation cost doubled. 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? Benefits: Woodmere and HomeHelp can earn many benefits from this proposal. As I mentioned above, both companies are more likely to respond faster to customer’s demand, and reduce inventory carrying cost. HomeHelp will have the ability to expand their business and reach more customers. In short term, HomeHelp can immediately meet the demand of Propartners by reducing delay

More about Woodmere Products Essay

Open Document