Hewlett Packard
Supply Chain Management Professional
The North West Company
Case Analysis
Instructor: Robert Greene
Written By:
Connie Gong
Date: June 23, 2014
Table of Contents
Executive Summary 3
Issue Identification 4
Environmental and Root Cause Analysis 6
Alternatives and Options 10
Recommendations 12
Implementation 13
Monitor and Control 15
Exhibit 1 16
Exhibit 2 17
Exhibit 3 18
Executive Summary
The North West Company is a leading retailer of food and everyday needs. They are currently using a “push” strategy with the category managers at headquarters analyzing trends, placing orders and allocating products to stores.
Inspired by Giant Tiger’s pull system, North West management was considering giving store managers more control over their inventory ordering by moving to a “pull” replenishment strategy. Barry McLeod, Director of Procurement and Marketing, has been assigned with determining if this “Pull” strategy would be a better fit. "Pull" system is a good idea but it need invest a large amount to support IT system and training all the store manager.
In order to reduce the risk and capitalize on the benefits, North West should localize in the hands of Regional Retail Managers. This strategic change will be beneficial for North West as they would gain the required regional/store level knowledge while avoiding giving all the responsibility to local store managers and investing a large amount of dollars to support the pull system. and also it can improve forecasting and customer satisfaction.
Issue Identification
1. Forecasting, Lead Time & Inventory
2. Shipping & Production
3. Costs
Forecasting, Lead Time & Inventory
Forecasting, Lead Time and Inventory are tightly intertwined. Forecasting ability and long lead-times have a significant impact on inventory levels. Currently HP is required to provide order specifications fourteen weeks in advance to
The North West Company
Case Analysis
Instructor: Robert Greene
Written By:
Connie Gong
Date: June 23, 2014
Table of Contents
Executive Summary 3
Issue Identification 4
Environmental and Root Cause Analysis 6
Alternatives and Options 10
Recommendations 12
Implementation 13
Monitor and Control 15
Exhibit 1 16
Exhibit 2 17
Exhibit 3 18
Executive Summary
The North West Company is a leading retailer of food and everyday needs. They are currently using a “push” strategy with the category managers at headquarters analyzing trends, placing orders and allocating products to stores.
Inspired by Giant Tiger’s pull system, North West management was considering giving store managers more control over their inventory ordering by moving to a “pull” replenishment strategy. Barry McLeod, Director of Procurement and Marketing, has been assigned with determining if this “Pull” strategy would be a better fit. "Pull" system is a good idea but it need invest a large amount to support IT system and training all the store manager.
In order to reduce the risk and capitalize on the benefits, North West should localize in the hands of Regional Retail Managers. This strategic change will be beneficial for North West as they would gain the required regional/store level knowledge while avoiding giving all the responsibility to local store managers and investing a large amount of dollars to support the pull system. and also it can improve forecasting and customer satisfaction.
Issue Identification
1. Forecasting, Lead Time & Inventory
2. Shipping & Production
3. Costs
Forecasting, Lead Time & Inventory
Forecasting, Lead Time and Inventory are tightly intertwined. Forecasting ability and long lead-times have a significant impact on inventory levels. Currently HP is required to provide order specifications fourteen weeks in advance to