Holt Renfrew Essay

Executive SummaryHolt Renfrew, is high-end sell chain for designer fashions and cosmetics that imports their products from Europe, Asia and USA. They are facing some challenges regarding the size of their veritable store and inventory levels. The warehouse is not big enough to stick all their inventory and as such goods are always scatter everywhere. They are also finding it difficult to subdue their orders, due to the incident that they do not take away an updated Enterprise Resource Planning (ERP) remains to help them track these orders. They succeed up over the phone which is never accurate. For this reason, they hardly how much goods are coming in and what to expect at a particular m. This has also created an issue of stock outs. These issues need to be addressed to ensure customer order fulfillment. Different elections have been do available to help Holt Renfrew address these issues which are improving the physical building of the warehouse by installing mezzanines, outsourcing warehousing to a third troupe or building/leasing a virgin warehouse, modernizing their distri furtherion put to work and man resource reallocation.Upon review of the different options, the most favourable one for the participation would be to install mezzanines. By installing mezzanines, the physical layout of the warehouse allow be increased and it leave alone create more means for inventory. The sore available space lead accommodate the particular products, normally separate on the ground as well as the ones that are usually sent to the secondary warehouse where unsold goods are kept. This depart modify the fellowship shut down the secondary warehouse and carry on that extra hail of leasing, since the newly installed mezzanine for overtake now owned by the comp either. This give save the company a total court of $540,000 per form that is apply to lease the secondary warehouse in Mississauga. A appropriate and updated ERP system leave also need to be installed for the company to clutches track of their inventory personalitys.The human brain is never as potent as machines when it comes to record keeping. This will produce accurate records so that the company knows exactly what to expect, how much to expect at any given time and will be able to provide equal storage bins for the products. This will solve the issue of clustered merchandizes scattered everywhere, causing health and preventive hazards. formerly these strategies are implemented, Holt Renfrew will enjoy continued substantial evolution and business sustainability because they will now be able keep track of their inventory and memory them accordingly. There will no longer be the issue of stock outs and customer fulfillment will be at the highest level. They will also be able to increase profit, while maintaining and change magnitude their market share.Situational AnalysisHolt Renfrew is a high-end Canadian retail chain base in Toronto, Ontario. It was foun ded in 1837 as a hat and fur disclose and is owned by The Wittington Group, headed by Canadian business leader Galen Weston. Tony is a new employee and will have to prepare a detailed architectural plan that will identify the major steps he intended to realise in his new position. He will do this well because new employees are more likely to introduce radical change into an boldness than old employees. Peak sales for the company are in abut/April, July/August, and November/December but used publicity campaigns for promotion. This meant more advertising greet and less sales for Holt Renfrew for half of a year. There is need for selling and sales improvement.The company has approximately 3,000 suppliers but only 1,000 are used in a typical year. Secondary warehouse was used to store items that were not sold in the store which is a huge elope of a whole 60,000 sq. ft. installment. There is no need for that additional facility since it increases direct and overhead costs. It sho uld be eliminated. The DC is cluttered with merchandise everywhere, infra conveyors and scattered across aisles. Tony considered three strategies improving the physical structure and process flow in the distribution center, the modernization of distribution systems and business processes, and to reapportion human resources. He had to obtain goods from the companies international suppliers and quickly distribute them to their stores indoors Canada to gain competitive edge.It will be dangerous not to do anything about the issues the company is facing. Even though the company will save a little cost by doing nothing now, it will have long term effects because if they keep dissatisfying their consumers by not delivering their orders on time because of the issue of stock outs, and no space to put inventory, they will have a reduced market share, which is not good for any company.RecommendationIt is my recommendation that mezzanines be installed in the current warehouse. This is the bes t option because it is the most cost effective, least expensive and less time consuming. Tony estimated that the cost of installing a 20,000 sq. ft. mezzanine to accommodate the inventory is $1 trillion dollars, which is much less than the cost of leasing/building or outsourcing. The current activities of the warehouse will not be disrupted and the geographical location will not shift. There will be no additional cost of marketing any new location and the mezzanines will be engineered to Holt Renfrews specs. Another important consideration is ownership, it will be owned and operated stringently by Holt Renfrew. Once there is a mezzanine installed and more room to store inventory, health and safety concerns will be reduced because the products will be stored perfectly. Tactical ImprovementsA project team should be lot up that will oversee the installation of the mezzanines over the period of installation. Mezzanines should be bought from ArcForce Mezzanines. They are manufacturers of this product which makes their own price cheaper than most other dealers. Their apt staff will assist the project team from the project humor through completion with insight, experience and engineering integrity. The design engineers will tailor-make any steel mezzanine storage system to meet Holt Renfrews warehouse requirements. Once purchased, work should begin immediately and installation should get started. After the installation is complete, management will need to constantly follow up and inspect the mezzanines regularly to ensure it is utilized effectively, and maintained.ConclusionHolt Renfrew has set about several issues regarding their stock keeping unit. This has led to stock outs, delivery inconsistences and privation of space in the current warehouse due to bad record keeping. However, from the recommendation given above, this issue will be resolved but not completely, giving the warehouse enough room to store their inventory. Once the mezzanine has been instal led, the next action plan should be to get an up to date ERP system that will enable the staff keep veracious record and track of their inventory. If the mezzanines are built and there is still no proper track kept, the issues will not be solved completely. They will still be unsure of their inventory supplies. The complete solution will be to install the mezzanines and then immediately after, update the ERP system.BibliographyIvey Case Study- Holt Renfrew. (2012) StudyMode.com. Retrieved from http//www.studymode.com/essays/Ivey-Case-Study-Holt-Renfrew-937118.htmlHi-Cube intercommunicate (2013). All about Structural Mezzanine. Retrieved from http//blog.hicube.com/blog/bid/280503/All-about-Structural-MezzanineArcForce Mezzanines (n.d). Custom marque Industrial Mezzanines -Direct from the Manufacturer Retrieved from http//www.arcforce.com/default.htm