個案總覽

Competition in the industrial marketplace is growing steadily more intense. Consequently, managers are beginning to take a close look at the logistics systems of their companies as a means of gaining competitive advantage. A well-designed system can help advance a company's strategic goals - and a poorly designed system can lead a company to disaster.

Two competitors in the Northeast steel service center industry have made very different choices with regards to logistics and operating strategy. One distributes from a large central location; the other operates seven widely scattered warehouses. Students can diagnose and discuss the significant impacts of these choices, especially in an economic downturn.

Ellis finds itself in a weakening competitive position largely due to the lack of rationalization in its plants. Driven by a strong traditionally decentralized sales organization, Ellis finds that all plants want control over all product lines. As a result, overall economics of scale are not achieved, and duplication of resources has weakened Ellis' cost position. Case gives enough data for students to make specific recommendations.