Case Study LA
Yoshi Issod
Professor Lieb
SCHM 3301 T-F 9:50-11:35
Laura Ashley Fedex Case
The goal of the Laura Ashley and FedEx alliance was to alter the customer service levels of Laura Ashley by offering improved reliability, speed, and frequency. The alliance was a good strategic move for both parties, but more so for Laura Ashley. The agreement had its pros and cons, but overall benefits both companies. The agreement strengthens the competitiveness for both companies. This helps Laura Ashley focus on its product, by having FedEx focus on more efficient, lower cost distribution. This also affects the future retail capabilities for Laura Ashley, while adding onto FedEx’s business with LA. The BLS division of FedEx now has an opportunity to utilize its global assets and potentially open up new future markets. However the steps to achieve these goals have barriers to overcome as well. The major strength is transparency. Making all data available to all parties involved is crucial for success with this alliance. This improves the overall efficiency of the distribution process and saves money in the process. Inventory carrying costs are significantly lower now that all products can be recorded and seen. The two companies are also going to integrate their information technology systems. This will also enhance the distribution and logistics for Laura Ashley. There will be significantly less errors and confusion with the same technology. Logistics and distribution were a major problem because each market area would have different systems within the same company. However, consolidating systems can also be troublesome. Some of these projects can be expensive, counter-productive and overwhelming. The company could have built a common database that combines data from the old system. More importantly, there can be a high degree of disruption with the alliance. With already horrible customer service levels, enhanced disruption could be the “last straw” for some
Professor Lieb
SCHM 3301 T-F 9:50-11:35
Laura Ashley Fedex Case
The goal of the Laura Ashley and FedEx alliance was to alter the customer service levels of Laura Ashley by offering improved reliability, speed, and frequency. The alliance was a good strategic move for both parties, but more so for Laura Ashley. The agreement had its pros and cons, but overall benefits both companies. The agreement strengthens the competitiveness for both companies. This helps Laura Ashley focus on its product, by having FedEx focus on more efficient, lower cost distribution. This also affects the future retail capabilities for Laura Ashley, while adding onto FedEx’s business with LA. The BLS division of FedEx now has an opportunity to utilize its global assets and potentially open up new future markets. However the steps to achieve these goals have barriers to overcome as well. The major strength is transparency. Making all data available to all parties involved is crucial for success with this alliance. This improves the overall efficiency of the distribution process and saves money in the process. Inventory carrying costs are significantly lower now that all products can be recorded and seen. The two companies are also going to integrate their information technology systems. This will also enhance the distribution and logistics for Laura Ashley. There will be significantly less errors and confusion with the same technology. Logistics and distribution were a major problem because each market area would have different systems within the same company. However, consolidating systems can also be troublesome. Some of these projects can be expensive, counter-productive and overwhelming. The company could have built a common database that combines data from the old system. More importantly, there can be a high degree of disruption with the alliance. With already horrible customer service levels, enhanced disruption could be the “last straw” for some