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Case Study PM

The company was experiencing problems with its Direct-Store-Delivery operations including high costs, inventory issues, and low order fill rates due to over 100 small and isolated depots. The employees were consumed with daily operations, making successful project execution within the approved timeframe difficult. IPM developed a comprehensive plan to commission new master depots, close existing depots, and led an optimization process to reduce the 18 month schedule without compromising customer service. This resulted in annual savings of $16M, a capital investment reduction of $20M, over 99% order fill rate, and provided flexibility to expand distribution and improve customer satisfaction.

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Satish Kumar Karna
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37 views

Case Study PM

The company was experiencing problems with its Direct-Store-Delivery operations including high costs, inventory issues, and low order fill rates due to over 100 small and isolated depots. The employees were consumed with daily operations, making successful project execution within the approved timeframe difficult. IPM developed a comprehensive plan to commission new master depots, close existing depots, and led an optimization process to reduce the 18 month schedule without compromising customer service. This resulted in annual savings of $16M, a capital investment reduction of $20M, over 99% order fill rate, and provided flexibility to expand distribution and improve customer satisfaction.

Uploaded by

Satish Kumar Karna
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

What are the problems of the company?


Ans: A company was experiencing problems with its Direct-Store-Delivery
(DSD) operations. The distribution network consisted of more than 100
company-owned and/or operated DSD depots across the country. Many of the
depots were small and located in isolated markets, and consequently
experienced significant issues with inventory levels, order fill rates, and high
operating costs.

2. What were the problems of the employees to be involved in the project?


Ans: Actually the employees were already consumed by ongoing operating
responsibilities. Without effective planning to direct the implementation
activities, successful execution within the approved time frame would be
difficult, if not impossible.
3. How was the project executed by IPM?
Ans: IPM developed a comprehensive integrated project plan that included all

of the required tasks for commissioning the new master depots and for closing the
existing depots. Next, IPM led the team through an optimization process that
reduced the schedule to the desired 18 months without jeopardizing customer
service or production operations.IPM trained the clients newly hired project
manager to take over the responsibility for the remaining implementation
activities.
4. Illustrate the flow of the project.
Ans: Annual operating savings: $16M
Capital investment reduction: $20M
Order fill rate: greater than 99% (improved from 96%)
18 months, a 40% reduction from the original plan
In addition to realizing the above results, the modified DSD network gives the
company additional flexibility to expand their product distribution, therefore
improving customer satisfaction and their own revenue

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