Essays /

North West Case Essay

Essay preview

Executive Summary

North West Company will move towards a “pull strategy” within its supply chain. Pull production is based on actual or consumed demand and individual store managers will monitor this. The benefit of localization for North West will be a higher inventory turnover rate. The benefit for customers will be a more customized shopping experience based on their community. The potential risks are there are high costs involved in implementing a new database system and procurement decisions will be divided between category managers and store managers. We will implement a new database system and train store managers to purchase inventory based on local and regional needs. This system will allow stores to be a part of their community and customer needs can be better met.

Issue Identification

These are the following issues that must be addressed:

Forecasting and Procurement – Low Inventory Turnover Rate
Product Receiving and Shipping – Reducing Cycle Time
Merchandising and Selling – Interorganizational Information Systems Store Managers – Preference Implications

Environment and Root Cause Analysis


North West Company has a lower inventory turnover rate than most of its competitors and that is due to the use of a “push strategy” within the supply chain. Customer demands are not taken into consideration and they often have to shop at competitors to meet their needs.

Issue Identification

Forecasting and Procurement – Low Inventory Turnover Rate

Forecasting and procurement use a “push strategy” where production decisions are based on long term historical forecasting. Category managers look at past trends and base their buy...

Read more


10 147 4 abil abl access actual address adopt ahead allow alreadi altern although analysi appoint approxim arriv assort away back base batch benefit better bias buy calcul cannot case categor categori cater caus center certain chain chang check choic clearanc combat communiti compani competitor con consid consider consist consum continu control cost creat current custom cycl data databas date decis demand determin develop display distribut divid dollar done due easi easili end entir environ eventu examin excess execut experi facil fair feasibl first floor flow follow forecast frame fresh gather general given go gone guidelin hand high higher histor hold hous howev identif identifi immedi implement implic includ incom individu inform intend interorganiz inventori invest involv issu item kept lack larg later lead lead-tim least left less limit local locat long longer look low lower made maintain make manag mark markdown measur meet merchandis met might million monitor month move must need new next north often one opportun oppos optim option order otb overstock part particular past perform period place plan point popular potenti prefer prior pro problem process procur product project proper pull purchas push put quick rate rather receiv recommend reduc reduct region regular relationship requir respond respons result right risk root run rural sale say schedul seasonal/customized section see sell separ ship shipment shop show similar simpl sit six smooth space specif split step stock storag store store/region strategi streamlin submit substitut success summari suppli supplier survey system take taken temporari term throughout tight time toward train trend turnov two unnecessari use view warehous way well west whether whole within