Easy Internet Café – Case Study
Table of Contents:
Executive Summary
Page 2
Issue Identification
Page 2
Environmental and Root Cause Analysis
Page 3
Alternatives and Options
Page 6
Recommendation and Implementation
Page 7
Monitor and control
Page 9
Executive Summary
It is a fact that the company didn’t achieved the best results in last years, reason way a radically revamp of our operations is required. In order to implement the new strategy regarding the franchise for easy internet cafe we qualified 4 offers from UPS, Excel Globalserve and Ingram for 3rd party logistics. My analysis took in consideration the following factors: total cost per store, ownership of goods, experience and expertise in supply chain for all 4 competitors, cost reduction and our core competency.
All the 4 offers are described in the next chapters in more details.
From all of them I will recommend option 1 from Ingram Micro, company that is able to provide an integrated solution: procurement, warehouse, transportation, configuration, billing & payment collection, returns management, with other words a complete solution that suit eIc needs.
Using current in-house method eIc spends approximately £1300 for all the logistics activities involved in opening a new store, not including the outbound transport to the franchisee, with a eIc labor costs of £602 per store. Alternate, the Ingram solution is £560 (£179 logistics cost + £381 eIc labor cost) in case the equipment are bought from them. Many other benefits are described in detail in my analysis.
Issue Identification
Because of continuing losses from 1999 to 2002 (£80- £100 million), we decided to radically revamp our operations, in order to eliminate the need for future investments in new stores.
It was decided to appoint franchisees for the new stores and also, if possible, for the existing legacy stores. According to the new strategy, the franchisee would be required to bear the costs of the
Executive Summary
Page 2
Issue Identification
Page 2
Environmental and Root Cause Analysis
Page 3
Alternatives and Options
Page 6
Recommendation and Implementation
Page 7
Monitor and control
Page 9
Executive Summary
It is a fact that the company didn’t achieved the best results in last years, reason way a radically revamp of our operations is required. In order to implement the new strategy regarding the franchise for easy internet cafe we qualified 4 offers from UPS, Excel Globalserve and Ingram for 3rd party logistics. My analysis took in consideration the following factors: total cost per store, ownership of goods, experience and expertise in supply chain for all 4 competitors, cost reduction and our core competency.
All the 4 offers are described in the next chapters in more details.
From all of them I will recommend option 1 from Ingram Micro, company that is able to provide an integrated solution: procurement, warehouse, transportation, configuration, billing & payment collection, returns management, with other words a complete solution that suit eIc needs.
Using current in-house method eIc spends approximately £1300 for all the logistics activities involved in opening a new store, not including the outbound transport to the franchisee, with a eIc labor costs of £602 per store. Alternate, the Ingram solution is £560 (£179 logistics cost + £381 eIc labor cost) in case the equipment are bought from them. Many other benefits are described in detail in my analysis.
Issue Identification
Because of continuing losses from 1999 to 2002 (£80- £100 million), we decided to radically revamp our operations, in order to eliminate the need for future investments in new stores.
It was decided to appoint franchisees for the new stores and also, if possible, for the existing legacy stores. According to the new strategy, the franchisee would be required to bear the costs of the