Wonderful Widgets: Effective Distribution Strategies

Effective Distribution Strategies at Wonderful Widgets

Scenario Description
You are the new Warehpuse 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 cost,
increased variability, and decreased customer satisfaction(lost sales).
Decrease in 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 in fact, was the Warehouse4 Manager at one time. You tell her about
the conversation you had with Mr. Smith. She says…
Back in day didn’t have to worry have everyone on same computer system
Centralized Management

This would be the optimal decision based on the current information. Centralized systems allow
for integration of information flow between all facilities(single point contract) 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 warehouse(distribution centers) allows them to share information across their network to
coordinate activities which serves their customers, reduce costs and variability.
The solution is Centralized Management in one paragraphs make a clear and specific
recommendation based on the readings in the class so far. In a second paragraph, describe how
the company can implement your recommendation. Write your recommendation/implementation
in third person. Include a cover page, and reference page.
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?