This case introduces the concepts of information and material flow analysis, operational improvement procedure and the steps to be taken for successful change management in the context of warehouse consolidation at Manipal Hospitals Bangalore (MHB). The case describes the warehouse consolidation project which was expected to lower operational costs and improve service levels by leveraging economies of scale through aggregation of demand. It discusses the benefits of aggregation of demand and the procedure to design a supply network based on the demand pattern and criticality of products. However the desired outcomes were not achieved initially and the service levels plummeted rather than increasing. The second case then describes the steps taken to manage the change and meet the desired goals. This case goes beyond process improvement, to its implementation, the challenges faced, and related change management techniques needed for ensuring success of the process improvement initiatives. The case challenges the students to think about the various stakeholders involved when change initiatives are implemented on an organization level and to recommend solutions based on the voices of various internal customers. The case also encourages the students to think about the various aspects of organizational behavior that are involved at the time of changes in management processes. The Part B case showcases the changes that were implemented by the protagonist to improve and deliver the necessary service levels.

This case introduces the concepts of information and material flow analysis, operational improvement procedure and the steps to be taken for successful change management in the context of warehouse consolidation at Manipal Hospitals Bangalore (MHB). The case describes the warehouse consolidation project which was expected to lower operational costs and improve service levels by leveraging economies of scale through aggregation of demand. It discusses the benefits of aggregation of demand and the procedure to design a supply network based on the demand pattern and criticality of products. However the desired outcomes were not achieved initially and the service levels plummeted rather than increasing. The second case then describes the steps taken to manage the change and meet the desired goals. This case goes beyond process improvement, to its implementation, the challenges faced, and related change management techniques needed for ensuring success of the process improvement initiatives. The case challenges the students to think about the various stakeholders involved when change initiatives are implemented on an organization level and to recommend solutions based on the voices of various internal customers. The case also encourages the students to think about the various aspects of organizational behavior that are involved at the time of changes in management processes. The Part B case showcases the changes that were implemented by the protagonist to improve and deliver the necessary service levels.