• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

North West Case - North West management was considering giving store managers more control over their inventory ordering by moving to a pull merchandise replenishment strategy

Extracts from this document...


North West Company B Introduction The North West Company is a leading retailer of food and everyday needs to rural and urban neighborhoods across Canada, Alaska, the South Pacific islands and the Caribbean. In early 2003, North West had negotiated a master franchiser agreement with Giant Tiger Stores Limited (Giant Tiger) with the objective of opening stores west of Winnipeg. In contrast with North West's ""push"" system of product replenishment, Giant Tiger had developed a successful ""pull"" system that gave individual store managers tremendous leeway in ordering decisions. Inspired by Giant Tiger?s example of a ?pull? system in action, North West management was considering giving store managers more control over their inventory ordering by moving to a ?pull? merchandise replenishment strategy ? also known as localization. ...read more.


The shift towards localization promised to tap into the local knowledge that resided with store managers, allowing them to better tailor product quantities to preferences in their communities. Under localization, product assortment decisions, which had been previously made at the category manager?s level at Winnipeg headquarters, would become the responsibility of North West?s 147 store managers. Costs and Benefits Localization seemed like a great way to enable store managers to take advantage of their knowledge of the community in which they lived. Store managers would become the local market experts, determining which stock-keeping units (SKUs) to carry and in what quantities, and incentive plans would be changed to reflect these new responsibilities. ...read more.


to support the ?open-to-buy? (OTB) process. The OTB process would spur store managers to clear out aging inventory in order to free up dollars to purchase new inventory. The upside potential of localization may include higher sales and reduced inventory levels as merchandise is tailored for each community. Currently, the North West Company has not been able to increase their inventory turns over 2.2 times. They expect that with localization, they could achieve inventory turns in the 3.0 or 3.5 range. Risks However, there are risks involved. Current supply chain processes will have to change. North West will have to invest in information systems and technology. There will be 147 different store managers making decisions on the quantity of product shipped to store. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Business Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Business Studies essays

  1. Project Management - planning an all inclusive carnival concert in the North Western end ...

    (Appendix A and Appendix B) Through the process of research and the internet I was able to get information project management. Project Life Cycle Stages "Project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements" (Ibid, p.16.).

  2. Analysing Job sectors in Canada. Identify trends in employment and occupational demand patterns for ...

    With the facts shown above, dentistry is a field you can really sink your teeth into, whether you've got the stamina to stick it out through three years of undergrad university studies plus four to five years of dentistry school or want to get working in this field sooner by becoming a dental hygienist.

  1. Business Project

    This will allow British school to manage costs and spend less on Add-ons. * Virtually Immune to Pc viruses and malware. * Will work with any network or directory Service * Mac will fit right in wit your existing infrastructure.

  2. Business Leaders on Managing Organizational Change: the case of British Airways

    This announcement resulted in the angry reactions from the employees. The Business Efficiency Programs aimed at outsourcing as a cost cutting measure aggravated the situation (2003). In order to appease the trade union, British Airways agreed to meet with them half-way.

  1. Marketing. In my project, I am going to be looking at how Nestls Smarties ...

    White chocolate Smarties iv. ? Other Please state__________________ Explanation of questionnaire Question 1 was asked to find out whether there were any links between their gender and their answers. Question 2 was asked to find out whether there were links between the age of the person and their answers.

  2. The Business Strategy of Pizza Hut

    We are accountable for profitability in everything we do, providing our shareholders with value growth. In order to achieve these missions the company must create value for all the constraints they serve. Certainly, as well as any successful business, company is aimed at persistent growth and development.

  1. Business plan for Laundry Toaster laundry dryer.

    We will try out our promotion on a small portion of our target audience before we roll out the promotion to the rest of the target market. Our tests will include variation on our basic offer, on the text or composition of our message, and on our presentation.

  2. Introduction to e-commerce. Benefits, risks and legislation.

    ________________ Benefits of e commerce system 1. Ecommerce allows people to carry out businesses without any problem of time or distance. If someone wants to shop, they can log on to the Internet at any point of time, and purchase or sell anything one desire at a single click of the mouse.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work