SCM for Profitable Growth
Problem Statement
The comments by Greg Hicks, COO, in the first paragraph really sums it up: the problem is doing the analysis to identify alternatives and recommend a decision to the board to make sure that the TSC supply chain supports the plan to double the number of stores in the next three years and look ahead to long-term growth goals. Key point: do the analysis. You should take the role of Brad Twiddy, director of distribution.
Situation Analysis
Clearly, there is a lot of data here. Use your quantitative information wisely. It is not expected that you should do an optimization model. Rather, there is very good information about volume of space needed in the sections of the warehouse. Use this data to evaluate space needs of the company to meet its growth goals. The manager that ignores evaluating the data is overlooking a substantial opportunity to add credibility to their analysis and decision.
A worksheet of the case data is provided on Blackboard. Also included are some notes and explanations. What I have discovered in doing the analysis for this case is that, like actual business situations, data is helpful to understand the situation more clearly. That said, it is only part of the case analysis. In particular, the "SKU Segmentation" data will "paint a picture" of the situation to provide insights but not lead to a single answer for the case so do not spend an extraordinary amount of time on it. Similarly, the "DC Capacity Analysis" is a good forecast of the space needed in the London DC, but this will result in only one part of your plan. Therefore, do some evaluation of the data and use the insights to confirm strategies you would plan to implement.
The key in this situation is to evaluate the increase in volume and translate that into warehouse requirements to meet the planned growth. But that is only the start. This analysis will provide the basis for Brad Twiddy's contribution to the strategic growth plan of the company. Importantly, a comprehensive supply chain strategy must be developed to support the success of the company. Your situation analysis must outline the issues facing the company, identify where problems and opportunities exist, and develop a comprehensive list of options and timeframes for a supply chain strategy to meet the company immediate and long-term goals.
Key elements of your analysis should be the integration of any principles of the course that fits the needs of this business and contributes to the development of this strategy. This case could utilize principles from any part of the course. From this perspective, it is important to take this situation and select strategies and practices that have proven successful for leading practitioners, and apply it to lead the improvement of SCM at TSC.
Alternatives
As always, pull alternatives from your analysis. As you analyze the situation, creatively consider possible solutions to the challenges facing TSC. This case presents major alternatives in SC capabilities and capacities that deserve careful explanation. Do a thorough job explaining the strengths and weaknesses of each alternative. There are also several good practices that should be implemented, regardless of the specific expansion alternative(s) that you choose.
Decision and Action Plan
In addition to choosing among your alternatives, also outline the basic action plan for implementation. This should include enough information to demonstrate you could directly lead such an implementation. Given that you have data to support it; identify what should be done to expand facilities, implement strategies, and meet the company's immediate goals for 2010 and consider their long-term goals. This means outlining the alternatives and implementation with timeframes. Avoid putting off the decision by recommending further analysis or hiring experts - do the analysis, you are the expert!