15 hacks 15:46 64% 4 b. Using information presented in the case study, recommends a design for the supply chain 15 marks About Us - Kenyon Haulags Graham Darnell, managing director of Kenyon warehousing Ltd, based in Blackburn Lancashire, is unsure what could have gone wrong at the company. He had just finished reviewing the company's recent financial performance and noticed something that worried him. Cookson and Clegg had experienced a period of robust growth over the last 4 years. "What could be going wrong?" "Our sales have been growing at an average rate of 10 percent over the last 4 years but we still appear to be worse off than before. Sales had risen consistently over the past 4 years but the future was uncertain. Graham Darnell is aware that part of the past growth had largely been the result of a few competitors in the region going out of business, a situation that was unlikely to continue. Net carnings, however, had been declining for the last 3 years and were expected to decline next year. Graham Damell is determined to turn the company around within the next 3 years . 1 Background The distribution business, in its simplest form, involves the purchase of inventory from a variety of manufacturers and its resale to retailers. Over the last 3 to 5 years, demands on inventory changed considerably; neither manufacturers nor retailers want to handle inventory, leaving distributors to pick up the slack. In addition, an increased tendency of retailers to order directly from manufacturers placed further strain on the profitability of distributorships in general. After humble beginnings in 1993, the company moved to a 30,000-square-foot leased facility. Ten years ago, Kenyon Warehouse Limited began distributing high-end products to supplement its low-margin products. Kenyon Warehouse Limited I wil