Instructions: In your case study paper, you will address the following questions: What was the major issue facing Emerson & GEODIS with respect to supply chain management issu

Better Together: A Solution to Level the Playing Field with Multinational Corporations (2016)

Steve Downey, Patrick Gibbons

GEODIS and Emerson Healthcare

Executive Summary

Summary of the Initiative

Through multiple innovative consolidation programs, Emerson and GEODIS (formerly OHL) have driven millions of dollars from Emerson’s clients’ supply chain costs, all while improving the experience for retailers. In the early stages of the relationship, GEODIS enabled Emerson Healthcare to achieve service levels of 99.97 percent in Inventory Accuracy and 99.97 percent in On-Time Shipping and exceed the required compliance rate with retailers and regulatory agencies while accommodating tremendous growth and change. While these numbers alone reflect operational excellence, the results are far more spectacular given all of the stakeholders involved. With the addition of an innovative multi-layered consolidation approach, GEODIS provided Emerson with a multifaceted solution when its clients and retailers demanded a less costly and more convenient model. GEODIS and Emerson worked together to develop a game-changing support structure to enable Emerson Healthcare to consolidate selling, ordering, and shipping for the benefit of its clients and retailers.

The Emerson Healthcare business model is logical, but most fail to understand the complexities behind the scenes that make it both possible and successful. With more than 75 clients serving multiple national and regional retailers, the data, visibility, and inventory must be incredibly precise and highly targeted. Emerson and GEODIS execute the consolidation across multiple orders from Emerson clients and GEODIS customers, shipping and payables, and service to retailers.

Innovation Statement

Emerson Healthcare is a very unique business model in which its sole purpose is to provide its small to mid-sized consumer brand clients with a supply chain competitive to those of large multinational brands. As pressure from both Emerson’s clients and retailers have pushed it to further reduce costs, improve speed to market, and increase efficiencies, the implementation of a Freight Consolidation Services (FCS) program has brought Emerson’s clients back into the competitive consumer marketplace, creating an innovative multi-layer consolidation program.

Impact Statement

With support from GEODIS, Emerson Healthcare’s fulfillment costs declined by more than 20 percent, and one client saved over $2.8M within one year of entering the program. The enhanced freight consolidation program with added GEODIS customers is forecasted to save on average 14 percent in transportation costs by December 2016.

Applicability

Consumers are driving a more competitive retail environment; therefore, retailers are demanding far more from their suppliers than ever before. Those requirements will only increase, placing even tighter requirements on the supply chain. The Emerson/GEODIS consolidation programs offer innovative ways to take dollars out of the supply chain versus negotiating out nickels.

Emerson Healthcare and GEODIS Relationship

Founded in 1994, Emerson Group is a leading representative of small to mid-sized health, beauty, nutrition, and over-the-counter brands distributing to U.S. retail businesses. Originating as a sales management company, Emerson has evolved into the multifaceted company it is today. The evolution began when more and more opportunities for Emerson’s clients were being missed or lost because retailers wanted to source product from large multinationals. For retailers, there was less risk involved with these large brands if a product failed and less cost associated with the purchase order cycle. Retailers also preferred larger, consolidated orders and shipments from a single vendor in order to receive and process more efficiently.

The Emerson Group reacted to the trend by implementing its own supply chain and distribution model to consolidate its clients and bring the efficiencies of one large company to all of the brands that it represented. It was at this time that Emerson clients were provided access to a holistic portfolio of solutions including sales, marketing, and logistics services through Emerson Group’s business units: Emerson Consulting, Emerson Marketing, and Emerson Healthcare, respectively. The emulated structure of a standard consumer products company without ownership of any of the products was a game changer in the industry for both retailers and clients alike. Emerson’s model afforded virtually any size consumer brands company the supply chain and resources equal to those of multinationals.

The strategic relationship between Emerson Healthcare, the logistics arm of the Emerson Group, and GEODIS is the foundation of the logistics infrastructure that enables this model to be successful. With this partnership, Emerson has grown and developed the brands of their 75+ clients while retailers such as Walmart, Target, CVS, Walgreens, and Dollar General have realized cost savings and efficiencies.

GEODIS navigated the complexities and requirements of all involved parties to deliver a comprehensive solution to support the Emerson Healthcare model of consolidated consumer brands. The first challenge for GEODIS was to select the optimal location for the Emerson warehouse. GEODIS began with an analysis of inbound and outbound transportation data to determine the ideal location of a single, national warehouse. The network optimization study identified Plainfield, Indiana, as the ideal site as its centralized location exhibited low transportation costs for both inbound shipments from vendors and outbound shipments to retail distribution centers across the United States.

After site selection, the next challenge was to successfully consolidate shipments to streamline and simplify the shipping process for Emerson’s clients. GEODIS provided a transportation solution that combined the orders from all Emerson clients yet gave visibility to each order and inventory within each shipment on the individual client level to allow Emerson to allocate costs out per client, for all modes, including TL, LTL, and parcel.

Also, be sure to watch the videos listed below:

https://www.youtube.com/watch?v=-bSL7jtB6CQ

https://www.youtube.com/watch?v=k-5OxVADvXA

https://www.youtube.com/watch?v=V-KoGK-LdPM

https://www.youtube.com/watch?v=P6pJWN2SYN0

Instructions:

In your case study paper, you will address the following questions:

1. What was the major issue facing Emerson & GEODIS with respect to supply chain management issues?

2. How did Emerson & GEODIS overcome the issue?

3. On a scale of 1-10, with one being terrible and 10 being fantastic, how would you rate Emerson & GEODIS's ability to serve their customers? Please be explicit in identifying why you chose the number that you did.

4. With respect to the eight essentials of CRM identified on page 63 in the textbook, choose two of them that you think Emerson & GEODIS addressed very effectively and choose two of them that you think Emerson & GEODIS could improve upon. Please be explicit in your explanation.

· Rapid Time to Value

· Point and Click Customization

· 360-Degree Customer View

· Real-Time Visibility

· No More "Defective" Data

· High Adoption

· Extending Your Success

· Broad Community

You will submit a paper of at least 500 words, not including title or reference page

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