Case Analysis: Voici Brand Centralizing the Supply Chain

Tug of War
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Case analysis: Voici Brand centralizing the supply chain
Voici Brand is a clothing company that runs a number of successful products. Started in the year 1970, the company started off with one line of clothing and has since established four more over the last 35 years of operations. Each of the businesses is complete with its own set of management and suppliers. Jack Emmons is the CEO at the company and is currently in dilemma about the company’s operations. To this effect, Jack visits Shanghai, Marquise, and is impressed by the level of operations smoothness an element that he would want to bring on board at the Voici productions. At the Chinese company Jack notices that the operations are highly streamlined, from the time that the designs are conceived to the time that they ready for market, the company has managed to reduce the time and made the system much more efficient to meet the market demand. In the past Voici, has been in a situation where, they developed a leather skirt that was to be sold to teenagers over the December holidays. However, due to the problem with the supply lines, with respect to the leather suppliers, the company did not meet the market demand. When the leather supply was finally cleared, the market has finally moved on to newer products and the company was forced to heavily discount the skirts. At the Chinese company, Jack realized that the Chinese company had centralized all of it operations dealing with all the stages of the apparel production. This meant that Marquise had managed to respond more quickly to the customers’ demands and market shifts. As such, Jack wanted to establish the same level of streamlined operations in the production lines as he had seen at the Marquise. However, there was challenge on the way that he was going to convince the unit managers to centralize, which would mean that they lost some of the powers in the process. This was a move that would likely lead to negative feedback and in some of the cases possibly lose some of the best managers in the process. Meeting up with the managers, results in an abrasive encounter and the CEO will have to try to introduce the changes in small bits, capitalizing on the small wins along the way.
Issues
Short Term
* The company is losing market share to the competition
* Due to many operation systems, the company is not as efficient
* The company needs to establish a centralized system of operations
* The unit managers are likely to oppose the move as they will some of their power
Long-term issues
* The company is likely to develop some significant backlash from the streamlined operations.
* The company may lose Margie and some of the other unit managers in the process.
* The company may develop some negative and insightful politics against the CEO for bring on board the changes.
* The company is likely to lose more market in the future if they don’t take action at the moment as the competition is gaining ground fast
Analysis
Using the five Why’s it is possible to analyze the root cause of the dilemma that the company CEO is facing in light of the changes to be implemented
The company is faced with the problem of...