Logistics

Richard Guy, CEO of Modem Book Distribution, Inc. (MBD), scanned the Executive Summary of the consulting report he had just received. Guy saw the report was filled with the latest buzzwords and hot concepts: Establish cross-docking facilities for high-volume deliveries to large customers ... centralize storage operations to decrease safety stock levels….leverage point-of-sale data to relocation toward a pull distribution strategy... Guy was familiar with each(prenominal) of these phrases and concepts at a superficial level, of course - anybody who occasion tout ensembley picked up The Wall Street Journal or Business hebdomad would be. He was less sure, however, if the consultants were trying to dazzle him with fads or if the flesh of radical operating changes that were being proposed in the report would help oneself to position MBD for the future. Founded 80 years ago, MBD had been for galore(postnominal) years one of the largest book distributors in the country. From its seven regional warehouses, MBD serve wells major bookstore chains and littler independent booksellers throughout the country. The company had continuously strived to improve its service levels and operating efficiency, and it was considered the most efficient book distributor in the industry.

Using advanced forecasting techniques to control inventory levels and technologically advanced warehouses to control operating expenses, MBD shipped virtually all of the orders it received within twain days from its stock of to the highest degree 500,000 books, the largest in the industry. The bookselling industry, however, had been changing dramatically, and Guy realized that MBD would experience to make changes to remain a book distributing powerhouse. In particular, two relatively new types of retailers were becoming more and more overabundant in the industry: large superstores and online booksellers. Both of these categories of retailers presented new and funny challenges to their distributors. In the past MBD had interacted primarily with the superstores through large... If you fatality to get a full essay, order it on our website: Orderessay

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