Case Study On Blanchard Case

One of the major reasons which Blanchard’s production chains encounter significant numbers of interruptions is the ultimate lack of communication across its various departments. For example, most of the financial information within the balance sheets is kept away from the customer orders as well as online sales which are separately tracked from the rest of the purchases. Even as it remains critical important to ensure that the right channels are utilized by the customers, the silo-approach Blanchard only increases the due difficulty of having to maintain balanced inventories as well as meeting demands. The centralized warehouse management systems are essential in giving Blanchard the ability of integrating its multiple resource centers. The information from Blanchard’s regional distribution centers is combined within the store data for purposes of providing comprehensive inventory views.
On the other hand, advanced systems at can also break down information by service channel and store location, and will facilitate the tracking of customer purchase trends and this helps in improving their respective marketing strategies. A solution for this is to have Hank develop a simple return policy which will help more merchants increase their e-commerce transactions with the organization. As with many of other companies, there is need to make it possible for the customers to return goods bought to various brick-and-mortar branches. This means that a successful inventory management system requires a detailed reverse logistics policy. On the other hand, merchants require the ability of clearing any outdated products from storage and return defective goods.
There are a number of shortcomings associated with Blanchard’s use of the EOQ model. One of them is the complexity of the math calculations involved. This way, the EOQ model also solicits for good background of algebra which has proven a disadvantage to the operations departments. Additionally, effective EOQ models require comprehensive data to accurately calculate several figures. For instance, the model’s major formula calculates the 2DS/H square root, in which D forms the units’ number purchased each year while S implies the fixed ordering charge. H is tallied as each unit’s holding cost. Mortgage or rent payments, property taxes and utility costs are then required to adjust to the calculation of H.
Notably, maintaining warehouses uncertain stocks of the necessary merchandise has played a critical role in hindering Blanchard fulfilling orders faster. By all means, customer satisfaction remains an increasingly tied concept to logistics which also makes it a comprehensive bid towards developing the parts of brand loyalty raised by the revenues driven. On the other hand, Blanchard keeps failing to continually provide forms of experience which endear them towards their respective target audiences. Close to 26 percent of the finished products in Blanchard are in the process of being returned soon after they are purchased. The data management tools for production processes in Blanchard are turning to be undermined to a great extent.