The Totalline Company Harvard Case Solution & Analysis

Dedicated doors:

It is recommended to use dedicated doors for the electronic international, because the main issue is to resolve the bottle neck. The electronic international do not have any issue with late delivery in hours, but the delivery day is important. So, by arranging the two doors for E I will allow them to reduce stock in transit cost as well as it will resolve the bottle neck issue.

Further more if the 20 % of the goods taking more time due to long queues then it is better to separate them so that it will be available for the delivery of other goods as well.

Applying stickers at consolidating points:

It is recommended to apply the stickers to the product, as this will have small benefit in short term but larger benefits in the long term period. In the short term The Totalline Company will be able to save $ 15 of employee cost (see appendix). But in the long term period The Totalline Company will be able reduce inefficiencies in its operations i.e. handling of inventory, as The Totalline Company is considering to expand the area of ware house. This will further provide them competitive edge among its competitors and thus will enable them to compete easily with implementing differentiated strategy.

Delivering directly to E I Stores:

It is recommended not to continue with this decision, because delivering goods directly to the E I Stores will eliminate the bottle neck as 60 % of the truck will not come to ware house but it will increase the cost to the significant extent.

This decision will also change the structure or scope of The Totalline Company. The Totalline Company after taking this decision will bind itself in the niche market and thus, it will find other competitors covering that market and thus more focus players may throw The Totalline Company out of that niche market. This will happen because the existing focus players might have sound knowledge of the market with significant economies of scale. Entering into the new market is not what The Totalline Company is considering here. Its main issue is to consider the bottle neck problem.

So, Instead of delivering directly to the retail stores it could deliver directly to the distributors which then supply goods to the individual retailers.

Implementation: 

Dedicated doors:

  • Identify and separate the docks which can be used for delivering the goods without disturbing the queue.
  • Allocate the staff for those doors or use the existing ones.
  • Manage the change and allow the staff to accept the changes to be made in the ware house.

Applying stickers at consolidating points:

  • Bring the stickers to the site on arrival of the truck.
  • Assign the duty of specific staff / staffs to stick them on the products.
  • Assign the duty of the employees to put the goods at the right place.

Delivering directly to E I Stores:

  • Call Eacock and inform him the benefits and drawbacks that The Totalling Company will face if it will apply this alternative.
  • Inform the Eacock about the change of market if he will take this decision.

Monitor and Control:

Dedicated doors:

In order to monitor and control the effectiveness of the dedicated doors option The Totalline Company need to identify and notice the reduction in cost and elimination of bottle neck as expected by this decision. If there is any deviation then they need to find the problems and resolve it or make changes in the operating plan.

Applying stickers at consolidating points:

The supervisor in the field or ware house must continuously monitor the process identified (see Implementation section) and continuously report to the seniors. If he finds any problem in the process then he must be assigned the duty to report to the seniors so that it must be addressed.

Delivering directly to E I Stores:

The Eacock must consider the benefits and drawbacks by carrying out the market research in that niche market. The Eacock then monitor the benefits and drawbacks if he made the investment decision and compare them with what he was expecting to do.

Conclusion:

It is concluded that The Totalling Company should take necessary steps, such as dedicated doors, to resolve the bottle neck issues. The Totalling Company needs to apply stickers to add value in the organization which will not only increase efficiency but also provide benefit to the customers as they can also handle the goods properly...................................

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