1.What are the major business propositions for Woodmere and HomeHelp to consider in evaluating this proposal?
The major proposition for both of them to consider is would they both benefit from this challenge.
-For Woodmere it would be a unique opportunity for them to grow their business relationship with a company that is growing and evolving to gain a bigger % of the market with an exclusive distribution agreement. They only have a few rules to follow: keep costs low and service high, low overhead and EDLP strategy.
-For HomeHelp it is the opportunity to ally with Woodmere to create a time based logistics to improve product availability in stores while reducing overall inventory. ...view middle of the document...
With the long term barrier being the implementation of a whole new distribution operating system, not knowing exactly how long it will take. (Are we able to run the old system and make adjustments while we are setting up new one, and do we have the right personnel)
The short term for HomeHelp would be working with a company that has been highlighted for leading edge logistics technology to help us move into the future. The barrier would be that they are not positioned for a dual logistic system at this time. Relying on only Woodmere to take them to the next step.
The long term benefit for Home help would be reducing in store inventory costs, by using new integrated computer systems for clients. The long term barrier would be
Do either Company have the money to invest in this type of logistics system? Are they both willing to continually invest into the future? Are they both willing to depend on the other company for their future?
4. If you were Woodmere’s top management, what suggestions would you make to improve the current proposal? Why?
They should keep a small inventory at the store for the...