Question: The case below is a decision making procurement course in supply chain management for MBA program. Analyze and give detailed analysis using the template provided
The case below is a decision making procurement course in supply chain management for MBA program. Analyze and give detailed analysis using the template provided below which is divided into 6 sections
ShoeFetish"
"I can't believe that we are not able to figure out market trends andstay on top of them and added to that we need footwear designersand master leather seamstresses who can actually fit fashion tothe human foot form of our target customers. We need to get ouract together soon ladies and gentlemen or we risk losing ourbusiness and our biggest account ever to our competitors. "saidan exasperated Ralph Lawrentian from the Sales and Marketingteam at Shoe Fetish Ltd."Our team has been working very hard toland the Amazon and Wal*Mart accounts and it is contingent ondemonstrating we are trend with superior quality. Right now, ourbad reputation as a frumpy and poor-quality fitness footwearprovider is preceding us.Major league players like Amazon andWal*Mart won't do business with a partner who continuallyexperiencesfashion trendandfit issues.They need tosell
products not take them back because they don't fit, or they fallapart"
Donna Karen Development and Design immediately chimed in"Ralph, those problems don't lie with the Development andDesign team but our Supply Management team, and their VP,Daniel Craig.I can tell you our office has been annoyedwith the situation as much as you have been complaining aboutit. You can't believe how disorganized they are and how muchextra time and money we spend because of that crew. Wecalculated that we spent an extra 50% in customer defects &return penalty fees and we had to spend an extra $ 500,000.00 instaff overtime remanufacturing new clothing to replace thosereturned last month. Their horrid quality leather and syntheticfabricandform3rdpartysuppliersare a contributingfactor
folks. It has been so challenging for us because we arecontinually trying to manage our product development and design reputation and when we send our footwear designs andspecifications to their 3rd party artisan shops the products neverfit and they are ugly or fall apart. There have been someoccasions where we had to go to the 3rd party suppliers toactually show them how to cut the leathers and sew them. Wecan no longer deal with this especially if we plan to expand ourbusiness with Amazon and Wal*Mart. Our staff can't hold thesuppliershandseachtimeontheselargeorders"
"Yeah,Iconcur",saidOscardelaRenata,PrincipalDesigner and Product Development Coordinator."Supply has reallyhampered us in Design and Development because they have limitedoursupplier andmanufacturingpartneroptions.These3rd party artisan shops are so slow and ineffective at everything.It is so embarrassing when colleagues in the industry tease usabout how our goods are not literally not fit for feet. Theseartisan shops are not focused on us, because they look afterthemselves first. They assign their top staff to their own brandsand designate their new apprentices to our designs andmanufacturing, and therefore we have ill fitted and poor-qualityresults. Big accounts like Wal*Mart and Amazon won't stand forthis and they won't. They expect superior quality designs andperfect fit. I can also tell you that we are missing out in some keyopportunities from these artisan houses because I know theyhave quality guarantees and throw in free freight and customsclearance for their preferred clientele and this equates to, atminimum20%lessthanwhatwepayourselves andguaranteesa quicker delivery. Right now, we are paying to ship our leathersto the artisan and milliner houses and then we are paying to shipthem to our distributors. When customers return the products,we are also paying freight to pick them up and send back to theartisan shops. Our freight costs and timelines for defects is $ 2millionperyear.Whentheshopsrepairtheirapprenticeworkthequalityisstillpoorandwemissedthekeyfashionseason, so the stuff often gets returned as damaged or unusable. Theshops often lose our expensive quality leathers and they cannevertrackthemdown.Wecanfactorina40%lossonmaterials,atminimumthisequatesto$500k,whichwestillhave
to pay for and still pay inventory and waste disposal costs of $50kon."
"Ok, I hear you all, but I can speak to some facts and come to the defense of Daniel and the Supply staff", retorted BillGatesworth Acting VP of Technology Systems andManufacturing.
"Those people don't come to work each day trying to cost the company more money and limit our supplier partner options.They have challenges which none of you take into account.Ionly know this because our office has been working with Danieland the Supply team and other folks in our company to try and make some improvements for them. You all know that they donot have the proper tools, right?They are trying to work withthe Finance team to best negotiate contract and payment termsand there have been some silos in our organization which hasimpaired coordination. It is no wonder we can't land the top tierartisan craft shops when Finance have been a fortress toapprove higher value contracts with better artisan footwearhouses.We worked with them to calculate the internal costs totheir department and they also are paying more, 20% extra, inovertime for their staff in trying to deal with all the defects andexpediting freight.
After hearing all this negative and critical dialogue company CEO,Tommy Hillfingers scheduled a meeting with the ExecutiveLeadership team on May 30th, and invited Daniel to present a caseand what proposed recommendation should be done to ensure ShoeFetish would be Fit for Feet with Amazon and Wal*Mart. Tommyasked to receive Daniel's case analysis by May 21st to review andapprovebeforethe May30thmeeting.
Use the template to give detailed analysis to the case as divided into sections. All sections must be covered with information as provided.
| SECTION I - IMMEDIATE ISSuE(s) or PROBLEM(s) | |||||||||||||||
| This section must be written in sentence form. The sentences and sequencing should flow into the section paragraph.
WHO- Identify who, list the name of the person, Identify their role/ position/ job title WHERE - Identify where they work, company, department, business unit WHAT - Summarize the immediate problem(s) or identify the most pressing decision(s) that need to be made in the case WHY - Outline the key reason(s) contributing the problem(s) or decision(s) WHEN -Identify the timeframe or deadline date or how long the WHO has to make a decision or provide a solution to the WHAT/ problems
This section must be in short list form
This section must be in summary format identifying key information from the case Identify facts Identify opinions and assumptions. Assumptions must be clearly stated Financial Analysis - provide an analysis of any pertinent financial or quantitative information from the case. Conclusions - Specify conclusions based on the Financial Analysis Identify any long term issues
This section must be identified in table format below: SECTION IV - ALTERNATIVES or OPTIONS TABLE There should be at minimum three favorable options in the case :
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| SECTION V - RECOMMENDATION(S) and IMPLEMENTATION | |||||||||||||||
| SECTION V - RECOMMENDATION(S) and IMPLEMENTATION TABLE Based on the options analysis table in Section IV complete the table below outlining your top recommendation and how you are proposing to implement it in step by step format with a chronological timeframe and target dates to successful completion. :
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| SECTION VI - MONITOR and CONTROL | |||||||||||||||
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