What are the problems faced by Great Grab during the holiday? Identify the cause. What is the impact of these problems on the company aside from the loss? You have just been hired as an Inventory Consultant, what recommendations can you make to improve their Inventory Management
Great Grab
Great Grab is a leading company in retailing business in Negros Occidental, Philippines. It has 52 stores all over Negros Occidental. 40% of its stores is located in Bacolod City and the remaining stores are in Sagay, Talisay, Isabela, and Escalante. Annually, it has an average of 70 million sales.
Great Grab is the number one choice since it is cheaper compared to other retailing stores in the province. Over the past five years, the company experienced stock-outs during the holiday season. In order to address the problem, the management implemented a solution – to be able to offer online reservation wherein the customer can do online grocery. As the Operation Manager, Ms. Inah Vidal, puts it, “we will be able to
During the Christmas shopping spree sale for 3 days, Great Grab encountered a catastrophe which resulted in long lines and angry customers. It turns out that the barcode for the new items (Tiktok Santas and Christmas wrapper) did not match in their current system. This lead to customers leaving the merchandise and the vicinity disappointed. The remaining inventory of the products cost 3.5 million after the holiday and they could not even sell them even if they offer them on markdown. They also found out that most of the customers who ordered online are just interested in some of the products and not really order them online. Some orders made have been cancelled during the holiday resulting to increase in the number of SKU. In addition, they entered into a new Logistics partner last August and the lead time took longer leaving their shelves empty for most of their SKU’s that are vital or needed during the holiday. As a result, they incurred a loss of 5 million for the holiday. The Board is not happy with the result and decided to hire an Inventory Consultant to remedy the issues.
Instruction:
Answer the following guide questions below. Use the space provided for your answers.
- What are the problems faced by Great Grab during the holiday? Identify the cause.
- What is the impact of these problems on the company aside from the loss?
- You have just been hired as an Inventory Consultant, what recommendations can you make to improve their Inventory Management.
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