US Stroller Case Study

1616 Words4 Pages

Evaluating the current situation facing U.S. Stroller, poor customer service, multiple suppliers located in varying geographic locations, dislocated warehousing, high inventories of multiple parts, high costs, lower margins, limited selection of strollers compared to domestic, and foreign market competitors, poor marketing, and operational processes, are primary issues U.S. Stroller is experiencing. As we are aware, since 1934 U.S. Stroller began manufacturing the regular model at $49.00. Over the years the product quality has been minimally updated. 1955 the second, and in 1974 the third stroller was introduced to the market, a Deluxe model retailing at $99.00 for consumers who desired an upscale stroller. The third stroller is a heavy-duty …show more content…

Stroller has made minimal changes to their strollers, nor introdued entended lines of the strollers available, nor added new products, such as jogging strollers to compete in additional markets. Moreover,the company’s excess materials and parts inventories are spread out in three remote geographic warehousing locations, the main manufacturing plant’s floor layout appears to be inefficient. Costs have increased while profit margins are reducing. Nevertheless, Clem and Judy Hawkins understand to maintain sustainability and competitive market share, business decisions, promoting change throughout the company, updating technology and equipment, implementing Just-In-Time (JIT) and Kanbans systems, reviewing warehousine and a complete revision of the material requirements planning, …show more content…

Based on future supplier contracts, shortening lead time for delivery of parts and materials establishing leaner processes, namely addressing wastes identified through implementing a Just-In-Time (JIT) system. A centralized wharehouse system, co-located near the manufacturing plant will reduce shipping and transportation costs or look for larger space with warehousing capacity. Savings, significant enough will be a factor if space with warehousing falls within the

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