• Hewlett-Packard: Performance Measurement in the Supply Chain

      Slagmulder, Regine; Grottoli, D.; Van Wassenhove, L. (2004)
      This is a condensed version. In a maturing market, Hewlett-Packard's (HP) attention moved from Return on Sales to Return on Net Assets. Mismatches between demand and supply, aggrevated by a long supply chain, were a burden on profit. HP realised that conventional logistics costs (warehousing, inventories, transport) were only the tip of the iceberg. Hidden underneath were large costs due to price protection, material devaluation, returns and obsoletes (Inventory Driven Costs). Uncovering all true demand/supply mismatch costs allowed HP to redress the situation and restore competitiveness. The case aims to illustrate the strategic impact of supply chain management and the increasing cost of supply/demand mismatches. To enable sound decision making (eg in prioritising supply chain improvement projects), a clear link needs to be established between supply chain performance indicators and bottom-line impact.
    • Royal Bank of Canada: Creating profitable relations with small business clients

      Slagmulder, Regine; Grottoli, D. (2005)
      Royal Bank of Canada or RBC, Canada's largest financial services group, is at the forefront of customer profitability analysis. The case illustrates how RBC uses customer profitability data to identify profit opportunities and make strategic decisions about its customer mix. In particular, it illustrates how the new customer-level information enabled RBC to recognise the untapped profit potential of its small business client portfolio. The purpose of this case is to illustrate how financial institutions like RBC can use customer profitability analysis to identify and enhance the profit potential of its various customer segments. The case describes the elements of RBC's customer value metric and how the bank reaped the benefits from targeted sales and marketing efforts informed by the customer-focused profitability analysis.
    • Sainsbury's (A): Transforming the supply chain

      Slagmulder, Regine; Grottoli, D.; Corsten, D. (2003)
      This is the first of a two-case series (603-020-1 and 103-057-1). In 2000, under increasing competitive pressure from other major UK retailers, J Sainsbury's Supermarkets embarked on a radical transformation of its supply chain. The case study describes the challenges involved in rejuvenating the firm's supply chain infrastructure, systems, processes, and skill sets as part of an 'all-or-nothing' strategy to regain a leadership position in the marketplace. The teaching objectives are: (1) to learn about recent developments in supply chain configuration and information systems in the retail industry, and (2) to assess the opportunities and risks associated with major investments in supply chain restructuring.
    • Sainsbury's (B): Supply Chain Performance Measurement

      Slagmulder, Regine; Grottoli, D.; Corsten, D. (2003)
      This is the second of a two-case series (603-020-1 and 103-057-1). The (B) case focuses on the performance measurement tools that Sainsbury's has implemented to improve the efficiency and effectiveness of its supplier relations. It describes the internal information system that provides up-to-date performance data on suppliers as well as an Internet- enabled system aimed at sharing daily supply chain information with suppliers. The case also demonstrates how a performance assessment tool called the Global Scorecard helps Sainsbury's and its suppliers identify opportunities for jointly improving their interface. The teaching objectives are: (1) to illustrate state-of-the-art information systems aimed at measuring and managing supplier performance in a retail context, and (2) to discuss how retailers and suppliers can work together to improve the efficiency of their interface and strengthen their relationship.