LEGO: Consolidating Distribution (B) Harvard Case Solution & Analysis

IMD-6-0316 © 2009
Carlos; Cordon, Ralf W.; Seifert, Edwin, Wellian

By the finish of the year 2006, LEGO had to make a key decision: find an alternative option, or continue with the closing of the remaining regional transfer and logistics businesses responsibility to DHL in the Czech Republic. None of the solutions would not be complex to implement, but did LEGO and DHL actually have any other option? This is a follow-up on the A-instance and describes the activities taken by LEGO and DHL to ultimately create an efficient and flexible logistics process, more advanced than any of its closest competitors and one which will particularly demonstrate its strength and authentic worth during turbulent times. Learning objectives: Both partners were looking at the whole procedure from their own standpoint, creating a circumstance that, at first sight, appear irresolvable. It took them a year earlier than they comprehended that a sound partnership can only be developed on some common ground. After that, both parties became more open-minded and consented to make concessions.

LEGO Consolidating Distribution (B) Case Study Solution

Often, a straightforward event between two parties, like great heart-toheart or a dinner chat can make a breakthrough. In this instance it was a secret hotel meeting that did the trick. With the pieces of the puzzle now readily falling into place, the partnership grew stronger and LEGO and DHL share the same aims and goals. Not satisfied with merely creating a standard centered logistics process, LEGO driven hard for inventive and new logistics solutions and services. The results, by the end of 2008, was that they had assembled a world-class process with a gain/pain sharing application, real-time performance measurement information, lean workshops, regular customer feedback surveys and additional value added customer logistics services. This case was the 2009 EFMD prize winner in the class “Supply Chain Management” and the 2011 ECCH award winner (Production and Operations Management).

Subjects: Distribution & logistics consolidation & transformation; Outsourcing; Costs of complexity; Turnaround burning platform; Change management; Partnership; Shared values
Settings: Europe; Asia; Toys; 2008 turnover €1.2 billion; 6,000 employees; 2003-2008

 

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