Elizabeth Arden: Executing Global Supply Chain Re-engineering Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Elizabeth Arden: Executing Global Supply Chain Re-engineering Case Study Solution

To achieve this, Elizabeth Arden has also incorporated technology into its operations. Aside from a customized software platform, the company has also built a web-based platform to manage the entire supply chain. The Smart Cube, a data analytics provider with offices in the United States and China, was hired to conduct this analysis. The system can gather and consolidate data from contract manufacturers, which will give the Elizabeth Arden team a complete view of the company's supply chain.

Unlike the traditional model, this new approach is also more effective than it used to be. Previously, the company relied on local manufacturers to deliver the products and services it needed. With this new technology, it can see and track the exact price of the products it makes and the quantity of raw materials it uses. It can also monitor the quality of the raw material and ensure that the product meets its specifications.

The Smart Cube's system helps a company manage its supply chain by analyzing the company's manufacturing and procurement data. The technology allows the organization to track and improve its quality control. By collaborating with a supplier, it can also improve efficiency and reduce costs. The Smart Cube's software can help the Elizabeth Arden team monitor their suppliers' costs. In addition to implementing a Turnkey strategy, the firm is evaluating its suppliers' ability to meet its quality and service standards.

Employees and their Roles in Change

The Elizabeth Arden 2014 Turnkey Strategy involved the consolidation of all its suppliers and the assignment of additional responsibilities to these providers. The current supply chain was divided into two parts, the initial supply chain and the Turnkey strategy. The former included the management of the supply chain and the suppliers. The latter would be responsible for material procurement and product completion. The former relied on individual purchase orders from a large number of independent suppliers. The change sought to increase flexibility and reduce risk by establishing a more diversified independent supplier base.

Before the Turnkey Strategy, Elizabeth Arden handled the procurement of the bulk of its raw materials. The materials were shipped to third-party manufacturers under a tolling process, and the company used an outdated MRP system to manage the process. But after the implementation of the Turnkey Strategy in 2007, the company shifted to a "directed turnkey" approach, placing the point of control over materials flow on the manufacturer's end. As a result, Elizabeth had visibility of the components purchased by contract manufacturers in real time.

The Turnkey Strategy at Elizabeth Arden 2014 required employees to learn about all aspects of the company's manufacturing and distribution processes. It was a big undertaking, and the company was not able to make an informed decision without data. The data were so large that the company needed to dig deep into the data to make a good decision. Once the new system was set up, Elizabeth Arden had to build the trust of all its employees and supply chain team.

As a result, Elizabeth Arden implemented a directed turnkey supply chain in 2007. Although it gained efficiency, it lost visibility. As a result, contract manufacturers placed orders directly with the suppliers, resulting in inaccurate information. While the contract manufacturers did not have full visibility, the company could check on compliance after placing orders. Now, the supplier can see the purchasing patterns of all its vendors and manufacturers.

In the past, Elizabeth Arden's supply chain was managed internally and was unable to control the flow of raw materials. The company would send orders to external manufacturers in a tolling process. The contract manufacturers would then process the raw materials, while Elizabeth Arden would handle the actual manufacturing. In 2007, the company switched to a directed turnkey strategy, where the point of control was placed with the manufacturers. The manufacturer could now see the purchases made by contract manufacturers.

Before the Turnkey Strategy, the company handled the procurement of most raw materials. It sent materials to third-party manufacturers, who processed the raw materials. It used a legacy MRP system to manage this process. In 2007, Elizabeth Arden shifted to a "directed turnkey" strategy. The turnkey strategy gave the company the power to control the flow of materials and communicate with contract manufacturers.

Prior to the Turnkey Strategy, Elizabeth Arden had to manage the raw material supply chain. It had to deal with third-party manufacturers as well as its own manufacturing. It had to ensure that the contract manufacturers were delivering the right components to Elizabeth Arden. Once the manufacturer has completed the contract, the entire network will work together to ship out the raw materials. By creating a transparent process, the entire business will have a competitive edge.

Financial Impact of Re-engineering Effort

The financial impact of re-engineering is difficult to measure. Studies show that 50% to 75% of re-engineering projects fail within five years. Typically, the failure rate is due to faulty new designs and lack of support from management. Regardless of the reasons for failure, it's essential to consider the financial impact. Here are some key steps to calculate the financial impact of re-engineering.

The first step in any re-engineering effort is assessing the company's current state. Employees must be informed of the changes, which can be a huge challenge. If the change is not a success, the company will need to invest in the new processes, which could have a lasting impact on morale. It may also cost the company money, so the senior vice-president must make sure all concerns are addressed.

Once the re-engineering process is complete, the new business model can be implemented. The new company will no longer need to deal with the same problems that a legacy system can create. Instead, it can focus on the growth enablers that will lead to improved profitability. A key step in re-engineering is to define what these benefits are and how they will be translated into the bottom line.

A successful re-engineering initiative will improve morale and increase shareholder value. The financial impact of re-engineering initiatives will depend on the level of innovation and improvements made to the company. Companies can't effectively communicate the benefits of re-engineering to their customers and shareholders unless the changes are accompanied by a substantial change in their current processes. It is crucial to identify a clear vision of where you are going in the process and what the financial impact will be.

The financial impact of re-engineering efforts will be difficult to measure unless companies provide incentives to motivate employees. Without financial incentives, it's impossible for a company to sustain its re-engineering effort, which means the implementation of the changes is vital to its success. If a re-engineering initiative is not implemented correctly, the results can't be transferred to the bottom line.

Investing in a re-engineering effort can have a significant and positive impact on the company's overall health. For example, the process re-engineering efforts can improve the efficiency and profitability of a company. However, re-engineering efforts should focus on growth-enabling strategies that will generate financial benefits. It's also important to understand the long-term economic impact of the re-engineering effort.

Re-engineering can deliver revolutionary improvements in a company's operations. But if the results of a re-engineering project don't translate to a measurable and meaningful financial benefit for the company, the process has failed. It can't translate into a competitive advantage, which is what companies really want. If it's not effective, the process won't be very effective, and the business will be at a competitive disadvantage.

Re-engineering efforts can also help companies improve the way they do business. They can increase their profitability by identifying and eliminating bottlenecks in the supply chain. By removing barriers in the supply chain, companies can improve their growth path. They can also reduce costs by implementing new technologies. With the right tools, a re-engineering project can help a company grow.

Successful re-engineering projects are able to deliver revolutionary process improvements. But if these improvements are not measurable, it's hard to make a direct connection between them and their bottom line. If re-engineering efforts aren't able to translate into financial benefits, the results won't be sustainable in the long term. The results of a re-engineering project may have minimal financial impact, but they can transform a company's strategy.

Re-engineering projects must be focused on the most important aspects of the business. The results of a re-engineering project are long-term and will impact all aspects of the organization. It is crucial to identify the processes that will impact the financial performance of the company and its customers. It's also important to determine the benefits of a re-engineering effort.

Conclusion

In the End of all discussion with the help the Evaluation and analysis of Global supply chain and Tunkeysupply chain Re engineering, it has to be said that current supply chain performed sub-optimally compared to industry benchmarks. This system was manual and inefficient.

Pirard has proposed turnkey strategy which would consolidate suppliers and reduce lead times. It would also improve product development and production planning, using a more accurate forecast. The proposed turnkey strategy would impact all these aspects and more. It would improve the customer experience and increase the company's profitability and it would improve the efficiency of the supply chain and reduce the fixed costs. The new turnkey strategy was going to consolidate its suppliers and cut lead times. This approach would also affect product development and sales forecasting. Ultimately, a new turnkey strategy would improve the company's competitiveness and profitability. It would also allow Elizabeth Arden to improve its operations, as it will be able to do so by utilizing a more accurate forecast.

As a result, the organization can better anticipate the future by making use of predictive analytics and re-engineering projects must be focused on the most important aspects of the business. It's also important to determine the benefits of a re-engineering effort and the results of a re-engineering project are long-term and will impact all aspects of the organization. It is crucial to identify the processes that will impact the financial performance of the company and its customers.................

Elizabeth Arden Executing Global Supply Chain Re-engineering Case Study Solution

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