Effective Distribution strategies

Scenario Description

You are the new Warehouse Manager for Wonderful Widgets. The company produces one product, widgets, but has several customers located domestically and internationally.

The Problem
Corporate has informed you over the last 12 months, the company has incurred increased costs, increased variability, and decreased customer satisfaction (lost sales).

Additional Information
Due to this new information, you are responsible for making all decisions pertaining to product distribution. You are the person accountable for the increase in costs, variability, and customer satisfaction. The company has warehouses located across the United States.

Decision Point

Your task is to determine which distribution strategy is optimum for the company to reduce costs, variability, and increase customer satisfaction. You must decide which strategy is best for the company based on the information given.

– Centralized Management
After feeling a bit overwhelmed, you leave your office to take a quick break to think about your conversation with Mr. Smith. In the hallway, you run into a colleague that has been with the company for several years and in fact, was the Warehouse Manager at one time. You tell her about the conversation  you had with Mr. Smith.  She says—This would be the optimal decision based on the current information. Centralized systems allow for integration of information flow between all facilities (single point contact) and decisions are made across the company’s network by utilizing partnerships and alliances.

Wonderful Widgets would be best served if they were to use a centralized management strategy. They have one product that is shipped from various locations domestically.  The placement of their warehouses (distribution centers) allows them to share information across their network to coordinate activities which serves their customers, reduce costs and variability.

Start your paper by giving a brief summary of the scenario. Then identify the problem at hand. Write a couple of paragraphs that critically evaluate the three possible solutions (describe advantages and disadvantages of each). Doing this will help you make the best recommendation. Choose a solution by making a clear and specific recommendation. Describe how the company can implement your recommendation. 700-800 words

**TIP:  Use headings in your paper for the area I have underlined.

 Do not forget to read and review the rubric.  Write in third person.  Use APA format.  You must use at least three sources with in-text citations for each.

At the end, discuss the questions that are presented below.

Answer the following questions:

 What did you find challenging in completing the scenario (i.e., information network layout, etc.)?

 How does this additional information factor into effective distribution strategies?

 Provide your response by uploading a Word document in APA style.

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