West Marine, a large boating and fishing retailer with over 300 stores in North America with more than 50,000 products is planning the acquisition of BoatU.S. and the subsequent integration of the two supply chains. Although the management of West Marine has made significant progress in the implementation of CPFRprinciples over the six years since the E&B Marine acquisition, there are still qualms about how well the current Supply Chain and planning process can incorporate BoatU.S.'s product line. Each company maintains 750 suppliers with only 100 in common (or ~13%), with only 20% of products in common.BoatU.S. does not provide forecasts to suppliers or participate in any other CPFR activities as does West Marine. Therefore, to integrate the two companies' supply chains within 60 days, and ensure minimal disruption to peak season sales, and to make the acquisition profitable within one year, our team proposes plan _____ discussed below. In short, this plan includes:......
Before the implementation of any plan into the combining the two supply chains, a decision must be made on maintaining the BoatU.S. brand. BoatU.S. has approximately 63 stores, an internet/catalog operation, and a wholesale business. In addition, BoatU.S. has a large loyalty and marketing program catering to a different customer base than West Marine, although both have some customer overlap. For our analysis, we will assume West Marine will keep the BoatU.S. brand and focus on what management needs to accomplish to fully combine the supply chain on BoatU.S. and the supply chain of West Marine.
CPFR (Collaborative Planning, Forecasting and Replenishment) is a cross-industry initiative designed to improve the supplier, manufacturer, retailer relationship through planning processes and shared information. It is an integrated supply chain method to improve efficiency through direct collaboration between all trading partners with the ultimate... [continues]
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