1. Do you agree that PSC did a good job selecting, installing, and implementing the new system? If so, why? Or do you feel PSC could have done a better job? If so, what did it do wrong, and what should it have done differently?
2. How could PSC have avoided the missing features problem?
3. How could PSC have avoided conversion and reporting problems?
4. Evaluate Steve’s economic feasibility analysis. Do you agree with his numbers and his conclusions?
5. How could PSC’s customers use the new multibox shipping approach to defraud PSC?
6. How would you rate the service PSC received from DSM? What did it do well, and what did it do poorly?
Steve Cowan owns Professional Salon Concepts (PSC), a hair salon products distribution company. After working for his father, a barber and beauty salon products distributor, he started his own business selling Paul Mitchell products. Business was poor until Steve con- ducted a free seminar demonstrating how to successfully use his products. He left with a $1,000 order and a decision to sell to salons that allowed him to demonstrate his products.
Steve’s strategy paid off as PSC grew to 45 employees, 3,000 customers, and sales of $7 million. PSC carries 1,000 products, compared with 10,000 for most distributors. The smaller product line allows PSC to achieve a 24-hour order turnaround, compared to over two days for the competition. Steve occasionally has to work late packing orders and driving them to the UPS hub a few towns away so he can meet the 2:00 deadline.