Brunswick Distribution Case Study Example | Topics and Well Written Essays - 250 words

Brunswick Distribution - Case Study ExampleFactors attributed to the current crisis vary. Brunswick Inc faces numerous challenges associated with marketing, finance, and operation. They allow in 1) retailers interests to buy directly from manufacturers 2) growing direct competition from other distributors 3) manufacturers rigid attitude to credits 4) retailers delayed payments and 5) issues related to giving and taking orders.Bradley Pulaski, the vice death chair of operations suggests expanding the service area across the Midwest because according to him, the company still gets service requests from potential customers of that region. However, it demands the construction of a new warehouse as distribution from the current facility will cause delayed deliveries. Bradleys proposal would cost a total $12 million for property, plant, and equipment.In contrast, Mariana Jackson, the bench vise president of logistic thinks that providing timely service is the vital part in order to reta in the existing customers. It involves empowering the distribution system with web-based technology like gripe center and integrated information backup. He envisages that the improved system would make distribution more cost effective as it loafer save up to 16% in shipping expenses and 16% in labor expenses annually. Finding both options inappropriate to the situation, Alex Brunswick determines to use a 12% cost of capital as discount rate when making financial decisions.Among the three options, Mariana Jacksons suggestion seems more relevant to the case. If the firms information system is enhanced, it can avoid unnecessary delays in customer service and deliveries. Pulaskis option flaws as it doubles companys financial burden. Since the company is unable to exit timely delivery, expanding its coverage to Midwest will cause more troubles.In the same way, Alexs decision is also not a sufficient strategy. two things are