Distribution Sales Resources (DSR) is a global player in marketing and distributing office equipment. It is the market l
Posted: Thu Apr 28, 2022 2:42 pm
Distribution Sales Resources (DSR) is a global player in
marketing and distributing office equipment. It is the market
leader in terms of sales in Europe. DSR distributes its products
through computer specialty stores and warehouse clubs, as well as
directly to homes and businesses through e-commerce sales.
DSR's main suppliers are located in the U.S. The bulk of the
products are manufactured at supplier locations in Asia. To best
serve its European customers, DSR ships all of its finished product
from U.S. manufacturing locations to a company-owned cross-dock
operation near Rotterdam, Netherlands. This involves moving them by
truck to the port of Charleston, by ship to Rotterdam, and by truck
to its company-owned Rotterdam cross-dock facility. The cargo is
containerized so that it is properly mixed for specific European
DCs, which are also company- owned. This makes the process of
unloading and transshipment easy and fast.
Management is currently considering an increase in the number of
its European DCs. The goal in expanding its operation in Europe is
to stage inventory closer to the customer. Rivals had raised
customer service expectations, so DSR feels that it needs to do
this to remain competitive. Indeed, rivals had begun promising
shorter delivery cycles and achieving higher levels of customer
service. As a result, many of DSR's most important customers had
recently begun complaining about DSR's delivery lead times. They
argued that DSR's DCs were unacceptably distant. Further,
e-commerce was growing and DSR wanted to build an omni-channel
capability. The company has estimated that three to five more
distribution centers in Europe would be ideal.
However, senior leaders were concerned about the current
financial markets, Euro fluctuations, and slowing growth in Europe.
Even though DSR has always owned and operated its own distribution
network, top management has concerns about whether to commit to
such growth and investment in times when EU austerity may be
increasing.
Question:
1. Continuing with the prior question, what type of relationship
should it seek with the 3PL, and why? What types of services and
benefits do you think that DSR is seeking?
marketing and distributing office equipment. It is the market
leader in terms of sales in Europe. DSR distributes its products
through computer specialty stores and warehouse clubs, as well as
directly to homes and businesses through e-commerce sales.
DSR's main suppliers are located in the U.S. The bulk of the
products are manufactured at supplier locations in Asia. To best
serve its European customers, DSR ships all of its finished product
from U.S. manufacturing locations to a company-owned cross-dock
operation near Rotterdam, Netherlands. This involves moving them by
truck to the port of Charleston, by ship to Rotterdam, and by truck
to its company-owned Rotterdam cross-dock facility. The cargo is
containerized so that it is properly mixed for specific European
DCs, which are also company- owned. This makes the process of
unloading and transshipment easy and fast.
Management is currently considering an increase in the number of
its European DCs. The goal in expanding its operation in Europe is
to stage inventory closer to the customer. Rivals had raised
customer service expectations, so DSR feels that it needs to do
this to remain competitive. Indeed, rivals had begun promising
shorter delivery cycles and achieving higher levels of customer
service. As a result, many of DSR's most important customers had
recently begun complaining about DSR's delivery lead times. They
argued that DSR's DCs were unacceptably distant. Further,
e-commerce was growing and DSR wanted to build an omni-channel
capability. The company has estimated that three to five more
distribution centers in Europe would be ideal.
However, senior leaders were concerned about the current
financial markets, Euro fluctuations, and slowing growth in Europe.
Even though DSR has always owned and operated its own distribution
network, top management has concerns about whether to commit to
such growth and investment in times when EU austerity may be
increasing.
Question:
1. Continuing with the prior question, what type of relationship
should it seek with the 3PL, and why? What types of services and
benefits do you think that DSR is seeking?