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Maloni, Michael J. and Michael E. Brown. "Corporate Social Responsibility in the Supply Chain: An Application in the Food fectiveness: Does Organizational Culture Really Matter?" Journal of Supply Chain Management 42, no. 4 (2006): 1729. CASE CASE 4.1 Red Spot Markets Company The Red Spot Markets Company operates a chain of gro Robert Easter, Red Spot's distribution manager, is re- cery stores in New England. It has a grocery distribution sponsible for operations at the Newburgh and Providence center in Providence, Rhode Island, from which deliveries distribution centers. By industry standards, both centers are made to stores as far north as Lowell, Massachusetts, as were fairly efficient. However, of the two, the Providence far west as Waterbury, Connecticut, and as far northwest as center lgged in two important areas of control: worker Springfield, Massachusetts. No stores are located beyond productivity and shrinkage. Warehouse equipment and the two northernmost points in Massachusetts. Stores to work rules were the same for both the Newburgh and the west are supplied by a grocery warehouse located in Providence centers, yet the throughput per worker hour Newburgh, New York. The Providence grocery distribu- was 4 percent higher for the Newburgh facility. Shrinkage, tion center supplies 42 Red Spot retail stores. expressed as a percentage of the wholesale value of goods (continued) 983 23 O dtv SA W MacBook Air Weekly Folders - Introduction to Logistics Upload Assignment: Friday Micro Lesso... Chegg eReader Paymen a 74 Part I. Overview of Logistics handled annually, was 3.6 percent for the Newburgh cen In the warehouse, Bigelow was a natural leader. He ter and 5.9 percent for the Providence center. Jarvis Jason would have been a supervisor except for his inability to had been manager of the Providence distribution center count and his spotty attendance record on Monday morn- for the past three years and, at great effort, managed to ings. On Mondays, the day that the warchouse was the busi- narrow the gap between the performance rankings of the est because it had to replenish the stores' weekend sales, two Red Spot facilities. Last week he requested an immedi Bigelow was groggy, tired, and irritable. On Mondays, he ate reassignment, and Easter arranged for him to become would sometimes hide by loading a forklift with three pal- the marketing manager for the Boston arca, which would lets, backing into any empty bay, and lowering the pallets in involve supervising the operations of 11 Red Spot markets. position (which hid the lift truck from view), and he would The transfer involved no increase in pay. fall asleep. The rest of the week Bigelow was happy, en- Easter needed a new manager for the Providence thusiastic, and hardworking Indeed, it was he who set the distribution center, and he picked Fred Fosdick for the pace of work in the warehouse. When he felt good, things task. Fosdick graduated from a lesser Ivy League college, hummed; when he was not feeling well or was absent, work where he majored in business with a concentration in logis- dragged. tics. He had been with Red Spot for two years and had rear "What did Bigelow do to Jason?" Fosdick asked Easter ranged the entire delivery route structure so that two fewer "Well, as I understand it," responded Easter, "about trucks were needed. As part of this assignment, he also two weeks ago Jason decided that he had had it with Big- converted the entire system to one of unit loads, which clow and so he suspended him on a Monday morning af- meant everything loaded on, or unloaded from, a Red Spotter Bigelow showed up late, still badly hung over. It was truck was on a pallet. Fosdick was familiar with the opera- nearly noon, and he told Bigelow to stay off the premises tions of both the Providence and Newburgh centers. He and to file a grievance with his union shop steward. He has been in each facility at least 50 different times. In ad- also told Bigelow that he had been documenting Bigelow's dition, he spent two weeks at the Providence center when Monday performanceor nonperformance-for the past the loading docks were redesigned to accommodate pallet six months and that Red Spot had grounds enough to fire loading. Fosdick was surprised that Jason had requested his Bigelow if it so chose. He told Bigelow to go home, sober reassignment to a slot that did not involve an upward pro up, and come back on Tuesday when they would discuss motion. That was his first question to Easter after Easter the length of his suspension. Bigelow walked through the asked whether he was interested in the Providence assign- distribution center on his way out, and I'm sure Jason felt he had control of the matter." "I'm sorry you started with that question," said Eas. "However," continued Easter, "by about one o'clock, ter to Fosdick. "Now we'll have to talk about the trouble- Jason realized he had a work slowdown on his hands. Pallet some aspects of the assignment first, rather than the posi- loads of bottled goods were being dropped, two forklifts tive ones. To be frank, Fred, one of the union employees collided, and one lift truck pulled over the corner of a tu- ment. 23 20 etv SA W MacBook Air ew History Bookmarks A chegg.com Payment Gatew Chegg eReader Weekly Folders - Introduction to Logistics Upload Assignment: Friday Micro Lesso C meant everything acca on, or uniacca rrum,anca Spor ter DigCow snow up at Dady nung Over It was truck was on a pallet. Fosdick was familiar with the opera nearly noon, and he told Bigelow to stay off the premises tions of both the Providence and Newburgh centers. He and to file a grievance with his union shop steward. He has been in cach facility at least 50 different times. In ad also told Bigelow that he had been documenting Bigelow's dition, he spent two weeks at the Providence center when Monday performance-or nonperformance-for the past the loading docks were redesigned to accommodate pallet six months and that Red Spot had grounds enough to fire loading, Fosdick was surprised that Jason had requested his Bigelow if it so chose. He told Bigelow to go home, sober reassignment to a slot that did not involve an upward pro up, and come back on Tuesday when they would discuss motion. That was his first question to Easter after Easter the length of his suspension. Bigelow walked through the asked whether he was interested in the Providence assign distribution center on his way out, and I'm sure Jason felt ment. he had control of the matter." "I'm sorry you started with that question," said Eas "However,"continued Easter, "by about one o'clock, ter to Fosdick. "Now we'll have to talk about the trouble Jason realized he had a work slowdown on his hands. Pallet some aspects of the assignment first, rather than the posi loads of bottled goods were being dropped, two forklifts tive ones. To be frank, Fred, one of the union employees collided, and one lift truck pulled over the corner of a tu there made so much trouble for Jason, he couldn't stand it." bular steel rack. At 4:00 PM. quitting time, there were still "Who's the troublemaker?" asked Fosdick. three trucks to be loaded, usually they would have departed "Tom Bigelow," was Easter's answer. by 3:30. Rather than pay overtime, Jason let the workforce Fosdick remembered Bigelow from the times he go home, and he and the supervisor loaded the last three had been at the Providence center. Thomas D. Bigelow trucks." was nicknamed T. D. since his days as a local Providence "On Tuesday, Bigelow did not show up, and the high school football star. Fosdick recalled that during work slowdown got worse. In addition, retail stores were phon- breaks on the loading dock, Bigelow and some of the other ing with complaints about all the errors in their orders. To workers would toss around melons as though they were top it off, at the Roxbury store, when the trailer door was footballs. Only once did they drop a melon. Fosdick te opened, the trailer contained nothing but empty pallets. called hearing the story that Bigelow had received several Tuesday night somebody turned off the switches on the offers of athletic scholarships when he graduated from battery chargers for all the lift trucks, so on Wednesday, high school. His best offer was from a southern school, and the lift-truck batteries were dying all day. I got involved be he accepted it. Despite the fact that the college provided a cause of all the complaints from the stores. On Wednesday, special tutor for each class, Bigelow flunked out at the end Jason got my permission to pay overtime, and the last out- of his first semester and came back to Providence, where going truck did not leave until 7:00 P.M. In addition we had he got a job in the Red Spot warchouse. to pay overtime at some of our retail stores because the 23 (de tv W 75 Chapter 4 . Organizational and Managerial Issues in Logistics workers there were waiting for the trucks to arrive. While He was in bad shape and the distribution center was in bad I was talking to Jason that afternoon, he indicated that he shape, so I had the opening in the Boston area and I let him had fired Bigelow." have it. Actually, right now he and his family are vacationing Easter lit his cigar and continued, "On Wednesday, somewhere in Eastern Canada. He needs the rest." I decided to go to Providence myself, mainly to talk to Ja Fosdick was beginning to feel sorry that he knew all son and to determine whether we should close down the the details, but he persisted. "Then what?" he asked Easter. Providence center and try to serve all our stores out of "Well, I took over running the distribution center. I Newburgh. This would have been expensive, but Provi. phoned Meyers again, and he and I had lunch. He thought dence was becoming too unreliable. In addition, we had that Jason had blown the case against Bigelow and that we a big weekend coming up. When I showed up in Provi: should take him back. So on Friday, Meyers, Bigelow, the dence, Jason and I had breakfast together in my hotel room union attorney, the shop steward, Bigelow's supervisor, Thursday morning, and he told me pretty much the same and I met. Jason, of course, was not there. It was a pleasant thing I've been telling you. He said he knew Bigelow was meeting Everything got blamed on poor Jason. I did tell behind all the disruption and that today, Thursday, would Bigelow that we would be documenting his performance be crucial. I've never seen Jason looking so nervous. Then and wanted him to know that Jason's successor, meaning we drove to the distribution center. Even from a distance, you, was under my instructions to tolerate no nonsense. I could tell things were moving slowly. The first echelon Bigelow was so pleasant that day that I could not imagine of outgoing trucks, which should have been on the road, him in the role of a troublemaker. The amazing thing was was still there. Another 20 of our trucks were waiting to that, when he went out into the center to resume work, a be loaded. On the other end of the building, you could loud cheer went up and all the drivers started blowing their see a long line of arriving trucks waiting to be unloaded: lift-truck horns. For a moment, I was afraid all the batteries usually there was no line at all. I knew that our suppliers would run down again. But I was wrong. They were plain would start complaining because we had established sched- happy to see Bigelow back. You know, the slowdown was uled unloading times. However, I decided not to ask Jason still in effect when Bigelow walked onto the floor. I'd say it whether he had begun receiving phone calls from them." was 10:00 A.M. and they were an hour behind. Well, let me "Inside the center, the slowdown was in effect. Lift tell you what happened. They went to work! By noon we truck operators who usually zipped by each other would were back on schedule, and by the end of the shift we were now stop, turn off their engines, dismount, and carefully a half-hour ahead of schedule. In fact, the last half-hour walk around each other's trucks to ensure there was proper was spent straightening up many of the bins that had been clearance. Satisfied of this, they would then mount, start deliberately disarranged during the slowdown. I tell you, their engines, and spend an inordinate amount of time mo Tom Bigelow does set the work pace in that warehouse!" tioning to each other to pass. This was only one example, "So what do you suggest I do at the center?" asked When we got to Jason's office, he had a message to phone Fosdick. 6 23 tv W Chegg eReader Payment Gat Weekly Folders - Introduction to Logistics Upload Assignment: Friday Micro Lesso... was still there. Another 20 of our trucks were waiting to that, when he went out into the center to resume work, a be loaded. On the other end of the building, you could loud cheer went up and all the drivers started blowing their see a long line of arriving trucks waiting to be unloaded; lift-truck horns. For a moment, I was afraid all the batteries usually there was no line at all. I knew that our suppliers would run down again. But I was wrong They were plain would start complaining because we had established sched- happy to see Bigelow back. You know, the slowdown was uled unloading times. However, I decided not to ask Jason still in effect when Bigelow walked onto the floor. I'd say it whether he had begun receiving phone calls from them." was 10:00 A.M. and they were an hour behind. Well, let me "Inside the center, the slowdown was in effect. Lift tell you what happened. They went to work! By noon we truck operators who usually zipped by each other would were back on schedule, and by the end of the shift we were now stop, turn off their engines, dismount, and carefully a half-hour ahead of schedule. In fact, the last half-hour walk around each other's trucks to ensure there was proper was spent straightening up many of the bins that had been clearance. Satisfied of this, they would then mount, start deliberately disarranged during the slowdown. I tell you, their engines, and spend an inordinate amount of time mo Tom Bigelow does set the work pace in that warehouse!" tioning to each other to pass. This was only one example, "So what do you suggest I do at the center?" asked When we got to Jason's office, he had a message to phone Fosdick. Ed Meyers, our local attorney in Providence, who handles "Well, the key is getting along with Bigelow Talk to much of our labor relations work there. He called Meyers Meyers about the kind of records you should keep in case and was upset by the discussion. After he hung up, he told you decide to move against Bigelow. Be sure to consult me that Meyers had been served papers by the union's at with Meyers before you do anything irreversible. Frankly, I torney, charging that Wednesday's firing of Bigelow was un don't know whether Bigelow will be a problem. We never justified, mainly because no provable grounds existed that had trouble with him that I knew about before Jason was Bigelow was behind the slowdown. Meyers was angry be there. According to Bigelow and the union attorney, Jason cause, in firing Bigelow on Wednesday, Jason may have also had it in for Bigelow. If I were you, I'd take it easy with blown the suspension of Bigelow on Monday, Jason and I Bigelow and other labor problems. See what you can do started talking, even arguing I talked so much that my cigar instead about the inventory shrinkage." went out," said Easter, "so I asked Jason, who was sitting On the next Monday morning, Fosdick showed up at behind his desk, for a match. He didn't carry matches but the Providence distribution center. After gingerly looking in looked inside his center desk drawer for one. He gasped, all his desk drawers, he had a brief meeting with his supervi- and I didn't know what was the matter. He got up, looking sors and then walked out to meet the entire workforce on a sick, and walked away from his desk. He said that a dead rat one-to-one basis. Many remembered Fosdick from his ear- had been left in his desk drawer, and he wanted a transfer.lier visits to the facility. Because it was a Monday morning, (continued) 76 Part I. Overview of Logistics he had not expected to encounter Bigelow, who was pres Bigelow was making himself a large sandwich when ent, clear-eyed, alert, and enthusiastic. Bigelow was happy he saw Fosdick approach. Don't get uptight," he said to to see Fosdick and shook his hand warmly. Bigelow then Fosdick. "You've just come across one of the noncontract excused himself, saying he had to return to work. The truck fringe benefits of working at the Red Spot Providence dis- dispatcher said that the workforce was ahead of schedule tribution center. May I make you a sandwich?" again: It was 11:00 A.m., and they were about 15 minutes ahead. Fosdick returned to his office, and there was a phone QUESTIONS message from Ed Meyers. Meyers asked to postpone their luncheon for that day until Tuesday noon. Then Robert 1. How should Fosdick respond to the immediate situation? Easter called to ask how things were going on Fosdick's first 2. What controls, of the types discussed in this chapter, might have been used by Red Spot Markets to reduce or eliminate day. Easter was pleased that things were going smoothly. It was lunchtime. Fosdick decided to walk to a small the problems discussed in the case? 3. What longer-range steps should Fosdick take to control the *cafe where he had eaten at other times. It was two blocks operations of the Providence distribution center? from the distribution center and on the side away from the 4. What longer-range steps should Fosdick take to improve the office. So he walked through the center, which was quiet Providence distribution center's productivity? since it was closed down for lunch. He walked by the em 5. What longer-range steps can Fosdick take to reduce the ployees' lunchroom and heard the normal sounds of 50 distribution center's high rate of shrinkage? people eating and talking Just outside the lunchroom was 6. Assume that Fosdick decides that the practice of free one lift truck with an empty wooden pallet on it. As Fosdick lunches from the opened cases of goods must be stopped. watched, one of the stock clerks came out of the lunch- Develop and present the arguments he should give in a room with an opened case of sweet pickles from which meeting with the union shop steward. three jars had been taken. Next came another stock clerk 7. (This is a continuation of Question 6.) Assume, instead, that you are the union shop steward. Develop and present with an opened carton of mustard from which two bottles your argument that the free lunches represent a long-stand- had been removed. One of the clerks suddenly saw Fosdick and said weakly, "We take these opened cases to the dam ing employee benefit enjoyed by the distribution center's employees and that management's attempt to stop them is a aged merchandise room." Fosdick went into the lunchroom. breach of an unwritten contract and will be resisted. There, on the center table were cases of cold meat, cheese, 8. Much of the situation described in the case seems to evolve soft drinks, mayonnaise, and bread. All had been opened around the personality of T. D. Bigelow. How should he be and partially emptied to provide the workers' lunches. treated? Why? 23 tv W MacBook Air