International
Marketing
[HBR Case Laura Ashley- FEDEX]
Paloma Zamarrón, Miguel Jiménez, Andrea Padres, Mariana Coppel
1. Compare the actual supply chain of Laura Ashley and the one
proposed. Draw a revised logistics (supply chain) network for Laura
Ashley to streamline existing operations.
Well, comparing the before and after the alliance we can obviously see a huge
difference, first of all given the fact that in the diagram that came after the alliance
many “routes” were unified, others changed and there’s a much more organized
ambiance, as we read in the case BLS provided competitive advantages in
transportation, trough the FEDEX network, warehousing, and information systems.
As we know now LA had a terrible service on logistics and track record, also the
biggest problem was that they were constantly breaking promises to the customers
in
delivery
timing,
etc.
The new system of distribution and logistics would enable to resupply its shops
throughout the world within 24 to 48 hours. Each shop would be on-line to the
global inventory control system so it would be noticed at the moment when a
certain article was out of stock or not available at the time.
We actually think that the proposed one was a very good idea, but given the fact
that is a huge net of distribution problems and eventualities will come to the table.
2. State and discuss why your revised network will perform better than the
current LA network?
We think that the network that came with the FEDEX/BLS alliance is a very good
chance to decrease the complaints and higher the rates of customers satisfaction,
also it would be reflected in the improvements on the levels of customers service.
There were huge risks in this alliance but as soon as it started things begun to
change for LA distribution process and customer service, things actually started to
go a little bit better and it was a breath in of fresh air for the logistics and
distribution channels of LA-
3. Set new goals for Laura Ashley's agreement with Federal Express
Business Logistics Services indicating responsibilities and recourse actions
if goals are not met. In this agreement focus on the following:
• Inventory levels: WMS storage inventory , inventory levels should be always
according to what is stated on the “presupuesto de ventas” and merchandise
should be on time. The same amount at any point of LA’S, created a new system
to
deliver
faster.
• Operating costs: Operating costs must be low in order to operate adequately, if
not it is not a profitable alliance or business idea., financial management to have
lower prices, make agreements with the suppliers to have low direct cost.
• Out-of-stock lines: the time between going out of stock and supplying must be
short in order to assure that we are giving a proper service to our customers.
Increase
sales,
expend
product
lines.
• Global mail order system: routes must be predetermined and charges
according to the points of distribution, this kind of system can be a nightmare when
not
planning
it
properly.
• Improvement of service levels: merchandise must be delivered on time and we
must be sure that the product is delivered with no damages or problems, the
service must be standardized throughout the world, decentralized decisions,
branding, get loyalty by the advertising.