Case 8-3 Isol -Global Value Chain Logistics Case Analysis
Global Value Chain Logistics Case Analysis
University of Phoenix
Global Value Chain Management
ISCOM/383
June 25, 2012
Global Value Chain Logistics Case Analysis ISOL + Group produces and sells a variety of products within France, Spain, and Italy. The general manager Mr. Dupont has initiated a thorough rethinking of logistics matter for the group. Based on his recommendations, the management team must identify, analyzed, discuss, and recommend the most appropriated solutions for the recommendations made by Mr. Dupont. Identify Based on the global value chain strategies, it would be best for ISOL to “build a new manufacturing facility with one production line in France close to the firm’s southern European markets” (Dornier, Ernst, and Fender, 1998). The reason ISOL should consider this, is because of the large percentage of sales increase that will take place among Spain (270%), and Italy (250%). However, both Spain, and Italy are close to ISOL’s southern European market, which makes it the best location to serve both countries. With the increase in both markets, the French current production line can only handle 3,000,000 cubic m a year, and it will not be able to handle the increase of demand for both countries according to Mr. Lenoir. To meet Spain and Italy’s future demand, the new manufacturing can set up a new production line. This will lead to an increase of 1,000,000 cubic m a year, and if the new manufacturing facility cannot handle the demand, then this plant can be used to set up another production line to meet the demand. Analyze, discuss, and recommend solutions in the ISOL case Mr. Dupont has proposed two logistic set up changes. The changes recommend by Mr. Dupont was to decrease the delivery time to 48 hours, and to cut the minimum order possible to the equivalent of four pallets for a given customers (Dornier, Ernst, and Fender, 1998). However, both of Mr. Dupont’s proposals will lead to
University of Phoenix
Global Value Chain Management
ISCOM/383
June 25, 2012
Global Value Chain Logistics Case Analysis ISOL + Group produces and sells a variety of products within France, Spain, and Italy. The general manager Mr. Dupont has initiated a thorough rethinking of logistics matter for the group. Based on his recommendations, the management team must identify, analyzed, discuss, and recommend the most appropriated solutions for the recommendations made by Mr. Dupont. Identify Based on the global value chain strategies, it would be best for ISOL to “build a new manufacturing facility with one production line in France close to the firm’s southern European markets” (Dornier, Ernst, and Fender, 1998). The reason ISOL should consider this, is because of the large percentage of sales increase that will take place among Spain (270%), and Italy (250%). However, both Spain, and Italy are close to ISOL’s southern European market, which makes it the best location to serve both countries. With the increase in both markets, the French current production line can only handle 3,000,000 cubic m a year, and it will not be able to handle the increase of demand for both countries according to Mr. Lenoir. To meet Spain and Italy’s future demand, the new manufacturing can set up a new production line. This will lead to an increase of 1,000,000 cubic m a year, and if the new manufacturing facility cannot handle the demand, then this plant can be used to set up another production line to meet the demand. Analyze, discuss, and recommend solutions in the ISOL case Mr. Dupont has proposed two logistic set up changes. The changes recommend by Mr. Dupont was to decrease the delivery time to 48 hours, and to cut the minimum order possible to the equivalent of four pallets for a given customers (Dornier, Ernst, and Fender, 1998). However, both of Mr. Dupont’s proposals will lead to
References: Dornier, P., Ernst, R., Fender, M., & Kouvelis, P. (1998). Global operations and logistics: Text and cases (1sted.). New York, NY: John Wiley & Sons.