In mid-2008, the senior vice president of Global Supply Chain at Elizabeth Arden in New York City was facing several challenges. Having been hired to make sweeping changes to the company’s management of its supply chain, he already had significantly impacted forecasting, inventory control, and service performance. His next move would require a radical consolidation of suppliers, make dramatic changes to inventory management, have a far-reaching impact on product development, and require major lead time reductions. Given such a disruptive move, would current suppliers be able to meet expectations? Could the company’s current employees keep up with the pace of change expected? How many would have to be let go, and what would this do to the morale of the workforce? Were significant results to shareholders achievable? How much money would be saved, and where would the savings come from, and when would they be realized? The senior vice president was determined to execute the re-engineering in a manner that would best address all these concerns.
Length should include a title page plus no more than 3 pages of text, single-spaced, with a space between paragraphs.
Please address the questions below in the order in which they appear.
The detailed questions and information are attached.
- Analyze the differences between the current supply chain operating design and the proposed turnkey strategy. (An illustrative model is best.) What will the changes mean for the suppliers? What will the changes mean for the various supply chain functions of Elizabeth Arden? Consider the roles and responsibilities of each as you discuss the “as is” and “to be” operating design.
- What challenges do you foresee in the turnkey strategy? Consider likely impacts on processes, information flow, cash, and organization that may occur as Elizabeth Arden executes these radical changes to its supply chain. What steps would you put in place to ensure success?
- Assess the financial impact that Elizabeth Arden will realize through the re-engineering effort. Please use the SC Diamond framework to illustrate the financial implications and list your assumptions.
Assignment Questions
Please address the questions attached.
