Goodwill Industries Oklahoma
The first Goodwill was founded in 1902 by Rev Edgar Helms. He trained and employed individuals who were underprivileged and immigrants to repair used goods from the wealth family. The three sources of revenue were the retails stores, secondary sales and contract services. In 2009, two out of the OGI’s twelve Goodwill retail shops had been closed down, they were replace by three donation centers. This caused reduction of OGI’s market place from 20% in 2007 to 15%. OGI also had made some significant investment in capital, spread among only ten retail stores. They designed a five year plan to increase the revenue and donations.
The main issues for OGI were supply and demand planning, getting logistics management under control, forecasting inventory volumes and sales across product categories is very difficult. Some options to improve low visibility of donations, OGI can put seasonal stands in supermarkets that receive donations. They can put convenient donation boxes at several locations. Also invest in marketing campaigns. Second issue, the trucks owned by OGI are running only at 73% of their capacity. Some opportunities for this issue are that they sell the truck A (which is the only one that is running at low capacity) and allocate the home pick-ups between trucks B and C. In high seasons when their capacity is overpassed they can outsource the transport during those periods of time. For Supply uncertainty, OGI should purchase a bar coding system with the revenues of the selling of the truck A, with this system they can make some forecasts by product according to historical information. They would also need a strong marketing department, so they can distinguish between products that are most in need can be more incentivized through marketing campaigns in order to motivate and inform people to donate these products. As a non – profit organization that relies on donations for its running it is almost impossible to have a full control over the forecasts of the
The main issues for OGI were supply and demand planning, getting logistics management under control, forecasting inventory volumes and sales across product categories is very difficult. Some options to improve low visibility of donations, OGI can put seasonal stands in supermarkets that receive donations. They can put convenient donation boxes at several locations. Also invest in marketing campaigns. Second issue, the trucks owned by OGI are running only at 73% of their capacity. Some opportunities for this issue are that they sell the truck A (which is the only one that is running at low capacity) and allocate the home pick-ups between trucks B and C. In high seasons when their capacity is overpassed they can outsource the transport during those periods of time. For Supply uncertainty, OGI should purchase a bar coding system with the revenues of the selling of the truck A, with this system they can make some forecasts by product according to historical information. They would also need a strong marketing department, so they can distinguish between products that are most in need can be more incentivized through marketing campaigns in order to motivate and inform people to donate these products. As a non – profit organization that relies on donations for its running it is almost impossible to have a full control over the forecasts of the