Cases synergy 3 and 4 tasks

Case-task 3

Company A is engaged in the production of a wide range of chemicals for personal consumption and companies. Production facilities include four factories geographically distributed throughout the Russian Federation, each company has its own product range. This is explained by different production technologies and a different fleet of equipment. At the same time, the products of each enterprise are in demand throughout the country, the distribution network of the company is represented in all regions of the Russian Federation.
With the growth in volumes and the increase in the number of customers, the company was faced with the need to expand storage capacity. At the moment, each enterprise has its own warehouse of finished products, the volume of which is equal to the monthly production.
The technological feature of the production of chemicals is that within one month the company can produce no more than 30% of the existing range. And, accordingly, distributors want to take the entire range from the manufacturer´s warehouses.
The production unit proposes to create a single warehouse with an area of 20 thousand square meters in the central part of the Russian Federation. where to accumulate products from all production sites, and from this warehouse to carry out shipments to all customers. The cost of such a warehouse is significant, in addition, there are costs for the internal transportation of products from production sites to the central warehouse. To compensate for these costs will have to raise prices by 5%.
The management is looking for alternative options, for example, to create several smaller warehouses in the most logistically accessible regions. With this decision, prices will also have to increase by 5%. At the same time, logistical accessibility for customers will be better, but the company´s internal processes for moving products between production and warehouses will become significantly more complicated. We will have to transport products from each production to each warehouse.
1. Evaluate each of the proposed options according to the criteria of current economic feasibility and prospects for further business growth.
2. Suggest your own solution to this problem. What factors have you identified as important when choosing a logistics model
3. What, in your opinion, is the most typical solution for manufacturing companies with a wide range of products and several production sites. Why is it effective?
Case-task 4
The Lemark company specializes in the production of decorative goods, has Italian "roots", but the management is exclusively Russian. It has been on the market for 10 years now.
In March 2020, a newly appointed purchasing department manager at Volgograd-based Lemark wondered how to improve the efficiency of his department. It took him some time to understand his department´s working relationship with other internal departments and with external vendors. During his research, he found sources of conflict between the purchasing department and other functional departments, including marketing, production, logistics and finance, as well as with the company´s suppliers. The manager presented his findings to the chairman of the company and said that the poor performance of the purchasing department was due to the company´s lack of synergy between departments. The chairman acknowledged the problem and agreed that some reform of the company was needed. However, he also noted that it would be a complex, costly and difficult task. The purchasing manager was adamant that the company would have to address this systemic problem at some point and decided to prepare a proposal for his next meeting with the chairman. The proposal should be presented in 2 scenarios - short-term changes and in the longer term
1. Describe an example of a proposal that could be presented by a purchasing manager?
2. Describe what difficulties may arise in the implementation of the proposal of the purchasing manager?