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9B12D002

Abstract for promotional use only. Full version available at www.iesep.com

WAREHOUSING STRATEGY AT VOLKSWAGEN GROUP CANADA
INC. (VGCA)

Adam Bortolussi wrote this case under the supervision of P. Fraser Johnson solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality.
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Copyright © 2012, Richard Ivey School of Business Foundation

Version: 2012-11-15

It was Tuesday, January 18, 2011, and Kym Meisner, director of warehousing and logistics at Volkswagen
Group Canada Inc. (VGCA), was reviewing a presentation by the sales and marketing team regarding the five-year growth plan for both the Volkswagen and Audi vehicle brands in Canada. In her 20 years working for VGCA, Kym had never seen such aggressive growth targets attributed to new car launches, product facelifts and expected increases in year-over-year vehicle sales volume. She had already heard concerns from Dave Cook, the warehouse manager of VGCA’s parts distribution centre in Toronto,
Ontario, regarding the limited space available in the warehouse. She wondered to herself how they could possibly make room for the inventory of additional