The merged of Office Depot and Office Max cause a massive chaos in operation and inventory. Volume in customer orders went from an average of 38,000 to a high volume of 55,000. There was a massive change that causes reengineering and the build of a new building to support store orders. Industrial engineers and mechanical engineers had to create conveyor lines and pick modules to support all of its customer orders. Systems and programs had to be upgraded to handle these new volumes and maintain its customer satisfactions. Not having customers means that there is no business. Not having the correct technology can cause the company to be non-competitive and causes customers to look elsewhere like Staples. Delivery only is making sure that …show more content…
In term, Office Depot and Office Max do compete internally on analytics within the warehouse as well as externally. The warehouse distribution does compete externally on analytics. The company will try at all cost to meet customer demands and their needs. With that being said, the company must maintain good relationships with it suppliers. Without the suppliers, the company cannot maintain it satisfaction to its customers. On the other hand, the company can seek out to other suppliers too. They have to make sure that both parties meet agreements. Agreements are between the company and suppliers which is beyond my knowledge. Analytic is heavily used in customers demand. We used data mainly statistical progrrams to help us predict what and how much to stock in inventory within the warehouse. We call this forecasting. Forecasting is greatly used during the back to school time frame. That is when we have the highest volume in sales. Marketing and advertisement plays a major role here too. A good example is stocking more Office Depot red top copy papers as compare to Hammermill copy papers. We know that the Office Depot brand is cheaper and sells much faster. The term here is optimizing our space within the warehouse. This saves us tons of money and allows us to stock different products. The goal is here to receive the material from the supplier and
The individual departments have their own checkouts for its products and warehouse space is shared by
Office Depot and Staples, had worked so hard on making mutual agreements and knew that the FTC wouldn't hold back on any "evidence" that they found and it would be used in a negative way. Office Depot and Staples wouldn't have their reputation put at risk, and had fought hard for the injustice. Both Office Depot and Staples had stated: "The FTC unfairly uses a narrow definition of our "product" as well as who our competitors are. Staples and Office Depot together sell only 5.5% percent of office-supply products in the nation. Merging the two firms would not substantially increase concentration or lessen competition." (Market Structures paper, page
The corporation is seeking data to determine the optimal course of action for distribution, referred to hereafter as the supply chain. This analyst has researched several supply-chain strategies. These strategies will be presented in this report. The analyst will also provide a concerted
In a recent change within Staples Inc. they have begun to shut down 140 of its 330 stores located across North America under scoring the pressure that big box retailers feel from rival e-commerce and discount players. With the end of the plan resulting in 225 stores being closed down as a choice of Staples trying to reduce their square footage. Due to this change within the company Staples Inc. must take in to account what this change will do to their company’s infrastructures, price, services, and its reputation. An effect from this down size that Staples Inc. many weaknesses have arose within the company itself that should be taken into consideration before they become a major threat to the company.
Office Depot, Inc. (“Office Depot”), a supplier of a broad assortment of office products and business services throughout the United States and worldwide, announced on February 20, 2013 a merger agreement with OfficeMax, Inc., which will better equip them to compete in the rapidly-changing industry. In fiscal year 2012 alone, Office Depot generated $10.7 billion of revenues from its products and services, yet industry reviews of this company seem unfavorable.
The office supply industry has a lot of potential to profit greatly. The American dream is to own your own business, and, in this market, it is much easy to open your own business. This is due to lowering barriers of entry due to technological advances. Office Depot would greatly profit from this if new technology such as computer with faster processors to run bigger office programs, faster printers with larger capacities of ink storage, or any other product that could help benefit small, medium, or large businesses. This can be done through changing research and development projects and changing strategies to focus on figuring out exactly what customers want with their technology products and how it can help their
Operations management is defined as the design, execution, and control of operations that convert resources into desired goods and services, while implementing an organizations business strategy (Business Dictionary, 2015). Office Depot Inc. is one such organization that truly understands that solid operations is the foundation to the success they have had in recent years. In this paper, I will give the history and background of Office Depot Inc. and explain why they have been able to keep such a competitive advantage in the consumer and small business supply industry. Additionally, I will
"Effective demand planning and sales forecasting across the supply chain can bring a host of benefits. Specifically, it can help improve labor productivity, reduce head count, cut inventories, and speed up production flows, and increase revenues and profits.
Office Depot. Office Depot is known as the second best in the office supplies industry right behind Staples and they also began in 1986 (Hurtibise, 2015). Their first store was in Lauderdale, Florida and there after continued to expand through the southern state. Also, just like Staples they started out by selling the bare office essentials and later as well move further in expanding their product line to draw the attention to gain new customers. In 1996, Staples attempted to purchase Office Depot, but the opportunity was turned down by the FTC and in 2015 both companies attempted to merge; but sadly that was also denied by the FTC stating that both combined as one would be too influential (Hurtibise, 2015). However, in 2013 an approved merger
Staples is the number one office supplies superstore. Tom Stemberg, Staples’ founder broke his typewriter one day and went out to buy a new one but, couldn 't find any. His struggle had struck an idea in his head, to create a superstore that sells office supplies. This idea became Staples, a retail store that sells all the needs for an office. Staples serves as a marketing intermediary, selling products from technology and furniture for the office to supplies like plain old notebooks and pencils. These products can also be bought online from their website. Not only this staples also provides copying and printing services. They are part of a monopolistic competition and their top three competitors are Office Depot,Inc., Essendant Inc., and Amazon.com,Inc. These companies also sell many of the same products as Staples which is why Staples considers them as competition. They have tried to buy Office Depot, however, were not able to. Their profits are also declining due to the recent shutdowns of 14 stores in North America. In the future, they are planning to shut down 50 more stores in the North American region due to their sales constantly slipping. Staples is trying to convince the government to let them buy office depot however the government isn’t too sure if they should let them which increases Staples’ spending and decreasing their sales. These 50 stores are also slowing their already declining sales which are the main reason why they are closing them
model for developing analytical enterprise and leaders. The analytics sets a new trend of establishing or
Organizations are competing on analytics not just because they can- business today is awash in data and data crunchers- but also because they should. At a time when firms in many industries offer similar products and services, and use comparable technologies, businesses are among the last remaining points of differentiation. And analytics competitors wring every last drop of value from those processes. So, like other companies, they know what products their customers want, the prices they are willing and ready to pay, and their spending patterns and other business parameters.
All manufacturing facilities are centralized to get the maximum benefit of capacity aggregation and also lower the inbound transportation cost from the manufacturer to the distribution center (DC). Seven-Eleven also requires all suppliers to deliver to the DC where products are sorted by temperature. This reduces the outbound transportation cost because of aggregation of deliveries across multiple suppliers. It also lowers the receiving cost. The information infrastructure is set up to allow store managers to place orders based on analysis of consumption data. The information infrastructure also facilitates the sorting of an order at the DC and receiving of the order at the store. The key point to emphasize here is that most decisions by Seven-Eleven are structured to aggregate transportation and receiving to make both cheaper.
For instance, Dell chose to distribute straight to the company with great success and cost savings and then later changed their plan to include selling through Wal-Mart when the time called for it. Gateway however, decided to open their own stores but didn’t sell their product from it. This led to the failure of Gateway. Poor distribution network designs can hurt customer satisfaction and increase costs hurting the profitability of the company.
Warehouses have bulk racking as well as break bulk for smaller orders for customers. ISA has constant sales volumes and demand can be forecasted.