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Westminster Company

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Submitted By rafito74
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Introduction of the Case This case presents a company, known as Westminster and currently considered as one of the biggest manufacturer of health products. It consist of three separate companies, in which each of them manufactures their own and unique products, with a decentralized management that allows for an overall outside view of what is for best the future of this enterprise. Top managerial personnel is currently re-evaluating and assessing the company’s supply chain and how they could develop a strategies that would facilitate revamping such system.

Main Discussion Points
The new three alternatives being evaluated by Westminster’s CEO Wilson Mckee and his staff would reduce the cost on transfers and freight cost. By utilizing POS data transfer based on customer’s consumption the company will not have the need to forecast what are the products most commonly purchased, therefore eliminating the need to maintain big inventories. They will also have the opportunity to concentrate their efforts in manufacturing the right products to replenish inventories based on numbers and not so much forecasting what will be needed. These strategies will allow Westminster to eliminate the unnecessary production of goods and it will enable them to consolidate the cost of systems since there will be the need for less facilities to be maintained.
The consolidation of warehouses will eliminate the need for multiple transfers before a product could be delivered to its customers. It will cut down the amount of money spent to maintain additional facilities. For example I noticed how company C and company B both have distribution centers in Los Angeles. In this case I would eliminate one of the two facilities and maintain one for the use of both companies based on the products distributed per their assigned location. “Distribution Centers locations are based on market and

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