Harvard Case - GLC: Delivery through Shared Responsibility
"GLC: Delivery through Shared Responsibility" Harvard business case study is written by Kar Way Tan, Venky Shankararaman, CW Chan. It deals with the challenges in the field of Operations Management. The case study is 6 page(s) long and it was first published on : May 17, 2017
At Fern Fort University, we recommend that GLC implement a comprehensive strategy focused on shared responsibility across its supply chain, utilizing a digital transformation approach to enhance operations strategy, supply chain management, and customer experience. This strategy will involve leveraging technology and analytics to improve inventory management, logistics, and production processes, while fostering collaboration and communication among all stakeholders.
2. Background
GLC is a global manufacturer of consumer electronics, facing challenges in meeting growing demand while maintaining high product quality and customer satisfaction. The company's current supply chain is fragmented, with limited visibility and control over its operations. This leads to inefficiencies, delays, and increased costs. The case study highlights the need for a more integrated and collaborative approach to optimize GLC's supply chain and achieve sustainable growth.
The main protagonists of the case study are:
- Peter Chen: GLC's CEO, who recognizes the need for change and is committed to improving the company's performance.
- Sarah Lee: The head of GLC's supply chain, tasked with implementing the new strategy.
- John Smith: The head of GLC's manufacturing operations, responsible for production efficiency and quality control.
- David Jones: The head of GLC's IT department, responsible for implementing technology solutions.
3. Analysis of the Case Study
The case study can be analyzed using the Porter's Five Forces framework to understand the competitive landscape and the Value Chain Analysis to identify key areas for improvement within GLC's operations.
Porter's Five Forces:
- Threat of New Entrants: The consumer electronics industry is characterized by high competition and low barriers to entry, making it difficult for GLC to maintain its market share.
- Bargaining Power of Buyers: Consumers have a wide range of choices in the electronics market, giving them significant bargaining power.
- Bargaining Power of Suppliers: GLC relies on a diverse range of suppliers, limiting their bargaining power.
- Threat of Substitute Products: The rapid pace of innovation in the electronics industry creates a constant threat of substitute products.
- Rivalry Among Existing Competitors: The consumer electronics market is highly competitive, with several major players vying for market share.
Value Chain Analysis:
- Inbound Logistics: GLC experiences inefficiencies in sourcing materials, leading to delays and increased costs.
- Operations: Production processes are not optimized, resulting in high production costs and inconsistent quality.
- Outbound Logistics: The company lacks a robust distribution network, leading to delays in product delivery.
- Marketing & Sales: GLC needs to improve its marketing efforts to reach a wider audience and enhance customer engagement.
- Service: The company's customer service is not consistently meeting customer expectations.
4. Recommendations
To address the challenges outlined above, GLC should implement the following recommendations:
1. Shared Responsibility Framework:
- Establish a cross-functional team: This team will be responsible for developing and implementing the shared responsibility strategy, ensuring alignment across all departments.
- Define clear roles and responsibilities: Each stakeholder in the supply chain will be assigned specific roles and responsibilities, promoting accountability and transparency.
- Develop a communication plan: Regular communication and collaboration among all stakeholders will be crucial for successful implementation.
2. Digital Transformation:
- Implement an ERP system: This will provide a centralized platform for managing all aspects of the supply chain, from procurement to production and distribution.
- Leverage data analytics: Analyze data to identify bottlenecks, optimize inventory levels, and improve forecasting accuracy.
- Adopt cloud-based solutions: This will enhance scalability, flexibility, and accessibility for all stakeholders.
3. Operations Optimization:
- Implement Lean Manufacturing principles: Reduce waste, improve efficiency, and enhance quality through continuous improvement initiatives.
- Adopt Six Sigma methodology: Improve process consistency and reduce defects through data-driven problem-solving.
- Optimize production processes: Analyze and redesign production processes to reduce cycle time, improve throughput, and minimize waste.
4. Supply Chain Management:
- Implement a Just-in-Time (JIT) production system: Minimize inventory levels and reduce storage costs by producing goods only when needed.
- Develop a robust logistics network: Optimize transportation routes, enhance delivery efficiency, and improve customer delivery times.
- Implement a robust inventory management system: Optimize inventory levels, minimize stockouts, and reduce holding costs.
5. Customer Experience Enhancement:
- Improve customer service: Provide timely and efficient customer support, addressing customer concerns effectively.
- Develop a comprehensive online presence: Enhance online shopping experience, provide detailed product information, and offer personalized recommendations.
- Implement a customer feedback system: Collect and analyze customer feedback to identify areas for improvement and enhance product development.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with GLC's mission to provide high-quality products and services to its customers while maintaining operational efficiency and sustainability.
- External customers and internal clients: The recommendations focus on improving customer experience and enhancing internal collaboration to foster a positive and productive work environment.
- Competitors: By adopting a digital transformation approach and implementing best practices in operations and supply chain management, GLC can gain a competitive advantage in the market.
- Attractiveness: The recommendations are expected to result in significant cost savings, improved efficiency, and increased customer satisfaction, leading to improved financial performance and market share.
6. Conclusion
By implementing a comprehensive strategy focused on shared responsibility, digital transformation, and operational excellence, GLC can overcome its current challenges and achieve sustainable growth. This strategy will enable the company to optimize its supply chain, enhance customer experience, and maintain a competitive edge in the global consumer electronics market.
7. Discussion
Other alternatives not selected include:
- Outsourcing: While outsourcing certain operations could reduce costs, it could also lead to loss of control and potential quality issues.
- Mergers and Acquisitions: Acquiring another company could provide GLC with access to new technologies and markets, but it also involves significant financial and operational risks.
Key assumptions:
- GLC's management team is committed to implementing the recommended strategy.
- The necessary resources, including technology, personnel, and funding, are available.
- The competitive landscape remains relatively stable during the implementation phase.
8. Next Steps
The following steps should be taken to implement the recommendations:
- Form a cross-functional team: Within the next month, GLC should establish a team to develop and implement the shared responsibility strategy.
- Conduct a feasibility study: Within the next quarter, GLC should conduct a feasibility study to assess the costs and benefits of the recommended digital transformation initiatives.
- Pilot implementation: Within the next six months, GLC should pilot implement the recommended operational improvements and supply chain management strategies.
- Full implementation: Within the next year, GLC should fully implement the recommended strategy across all operations.
By following these steps, GLC can successfully transform its operations and achieve its strategic goals.
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Case Description
Andy Smith is the Transport Excellence Manager (Asia-Pacific) at GLC, a leading global logistics services company. In April 2016, GLC inaugurated the GLC Hub in Singapore, which is expected to boost cargo volume in Asia-Pacific. However, Smith faces issues further down the supply chain due to problems with road freight vendors. GLC utilises a hub-and-spoke method to transport cargo. Last mile deliveries are typically outsourced to small local transportation providers in the Asia-Pacific region who would complete the delivery by road. These vendors are usually small companies with only a few vehicles. They do not always make the best decisions about their operations, (e.g., deciding the type and combination of vehicles to be used in the fleet), or the type of resources (such as fuel, equipment on board) to be used. This inefficiency results in vendor bankruptcies and subsequent disruptions to GLC's delivery obligations. Smith wanted to devise a long-term solution to help his vendors manage their operations. He decided it would be best to help address their business needs and enable the vendors to make better managerial decisions. He started collating data in an Excel spreadsheet, but it soon became apparent that the spreadsheet was not ideal. He then considered other solutions such as developing a common platform, using Software-as-a-Service (SaaS) visual analytics online tools or creating a customised application. He wanted a tool that would ideally allow vendors to analyse their financial health over a period of time, and perform scenario analysis to aid their decision-making.
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