Académique Documents
Professionnel Documents
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Rupali
Saurabh Patle
Nishkarsh Tomar
Anjali Lakra
Anshul Singh
CASE FACTS
18 % sales through Internet and catalogue orders, which had 50,000 SKUs
Market share of 7.3 % with 440 million in sales in the boating industry
It had lower sales per square foot and fewer inventory turns as compared to
other competitors
Pitfalls of executing an acquisition when the company
does not have a solid supply chain foundation
West Marine and E&B customers were frustrated by not being able to find
what they needed , when they needed.
Out of Stocks reached 25%
They created a lot of damage to both the chains by pulling down E&B signs
and converting to West Marine Brand
DC workers overworked
Warehouse cost mushroomed
Departments became Silos, sense of protectionism and secrecy within and
across departments increased
Sales dropped by 8%
EPS dropped to $0.06
Net income dropped from $15.2 million in 1997 to $ 1.1 Million in 1998
Supply chain activities became more chaos
Supply chain improvements for West Marine to
turnaround its supply chain performance
In late 1998, John Edmondson was brought to lead as the CEO of the company.
To improve the turnaround of the company he focussed on the following four areas-
People Systems
Leadership Strategy and and
Culture Processes
Supply Chain Improvements(cont..)
Leadership:
All the areas where the business was falling, key players were changed by veterans
More experienced people in respective area in management team
People who has worked in multibillion dollar companies.
Strategy:
Developed five year plan which would be updated on an annual basis
Each executive was given the general mandate to turn around his respective function
West Marines vision of being the best boating products company everyday
Financial goals (company wide performance indicators), that include ROE, cash flow, comp
sales, EPS, productive service levels, market share, customer satisfaction and associate
satisfaction.
SWOT analysis for itself and grabbed the opportunities in coming years.
Supply Chain Improvements(cont..)
On time
shipments also
improved
If going for Dual-Branding Strategy and decides to maintain the BoatU.S. brand,
the company has to develop a more diverse product base and more unique
assortments.
The experience gained from the CPFR needs to be used and applied for the
successful integration of two companies.
Recommendations for Acquiring BOATU.S.
Seek long-term, holistic solutions, not quick or myopic fixes and reconcile
conflicting goals and metrics
Pursue inclusive problem-solving; do not depend upon experts who dont have
accountability for the business
Use a disciplined and iterative set of methodologies such as CPFR, SCOR, or Six
Sigma to help teams define issues, root causes, and solutions
Create clear accountabilities and assign authority with a focus on core business
processes rather than on traditional organizational silos or loyalties