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Hurray for stupid executive decisions...

G

GMI

Member
I work at a company that imports our products. Each line of product we sell has three variances. So the traditional method has been that each crate will contain 1/3 of each type.

Our CEO decide that to prevent confusion, each crate will have only one variance of that particular product. This is all nice and well...except 99% of our customer needs all three variance on each purchase. So now my warehouse guys has to open 3x the number of crates, and now our shipping area is a crazy huge mess...and will remain so for the next 15, 16 containers. :beer:

cliffs
ceo decide to change shipment practice without thinking about it...everything is now FUBAR
 
can you figure out a way for it to drive more sales? not sure i followed which crates are which
 
Originally posted by: KillyKillall
Do you prefer middle management decisions?
Click to expand...
I do.
Middle management is much less likely to completely change everything on a whim. They are also closer to the working stiffs and seem to understand how things work.

The only time our CEO knows how things work is when he makes an effort to learn, which is rare.
 
Originally posted by: FoBoT
can you figure out a way for it to drive more sales? not sure i followed which crates are which
Click to expand...

It sounds like you have three products: A, B, and C. You used to be able to buy A, B, & C in whatever quantity to fill out a box. For example..you could by 15 A's, 10 B's, and 5 C's in one crate. Now you have to buy 30 A's, 30 B's, and 30 C's to get all of them through 3 crates.

Is that accurate GMI? If so... driving sales was the decision behind it.
 
Originally posted by: KillyKillall
Originally posted by: FoBoT
can you figure out a way for it to drive more sales? not sure i followed which crates are which
Click to expand...

It sounds like you have three products: A, B, and C. You used to be able to buy A, B, & C in whatever quantity to fill out a box. For example..you could by 15 A's, 10 B's, and 5 C's in one crate. Now you have to buy 30 A's, 30 B's, and 30 C's to get all of them through 3 crates.

Is that accurate GMI? If so... driving sales was the decision behind it.
Click to expand...

Sounds to me that they shipped 10a 10b 10c in each case before as that was what most customers ordered. Now they are having to custom assemble cases to meet customers demands as a b and c now come 30 to a case.
 
I wish that were the case 🙁

Traditionally in one crate of product A, you have 4 of A1, 4 of A2 and 4 of A3. Most customer will need a few of each type to complete their project, and will order accordingly. So if someone needs 2 A1, 1 A2 and 3 A3, my warehouse guys use to be able to open one crate, take out the extras and ship it out. Now, we will have to open 3 crates to fulfill the same order.

 
CEO's need to stay in thier office and play with their numbers and let the grunts work out the best way to get the job done.
 
Oh...so you're changing how the product arrives to you vs. how it arrives to the customer.

This makes sense to me business wise. Previously you were changing the configuration 2 times. For example:

Whoever ships it to you packages 4 of each configuration in a box. You receive it and then have to reconfigure it again before shipping it to a customer.

Now you only configure it one time. There is no configuration prior to you receiving it and you have to configure it to send to customer.

From Executive standpoint, this saves money and removes duplicated work as well as reduces the amount of possible defects.

From your standpoint it kinda sucks.
 
Economically, this does make business sense in the long run. Let's say your company sells more of A1 and A2 to A3, with a ratio of 3 to 1. A simple calculation will show you that less containers will have to be shipped to fullfil the same orders.

Also, for inventory control and records, now you know exactly where each of the product are and their supplies.

Edit: and that's why he's the CEO 😉
 
It make sense for if we are selling products that are uniform.

However, we're a granite distributor. So a container of granite A will not be able to match with another container of granite A 6 monthes from now. As a result, even if we are sold out of A1 and still have A2 and A3 in stock, I will have to reorder another batch of A1, A2 and A3 to ensure there isn't a major pattern/color difference.
 
Originally posted by: GMI
I wish that were the case 🙁

Traditionally in one crate of product A, you have 4 of A1, 4 of A2 and 4 of A3. Most customer will need a few of each type to complete their project, and will order accordingly. So if someone needs 2 A1, 1 A2 and 3 A3, my warehouse guys use to be able to open one crate, take out the extras and ship it out. Now, we will have to open 3 crates to fulfill the same order.
Click to expand...

You guys sell steak sauce?
 
Corporate places are insanely retarded. I work at Pac Sun and we don't have near enough room on the floor for every piece of clothing they ship us. We have like 35 boxes of shipment sitting in the back room. It makes no sense at all.
 
He is purchasing crates of each variance probably because he is getting the crates of each variance at a lower price than purchasing a "mixed" crate.

more discount => higher profits for the company.
 
Originally posted by: gsethi
He is purchasing crates of each variance probably because he is getting the crates of each variance at a lower price than purchasing a "mixed" crate.

more discount => higher profits for the company.
Click to expand...

The manufactor is part of the same company, but as far as cost is concern, it's the same price for each piece regardless of how we tell them to pack it back at the factory. Because each piece is fabricated off the line, then staged to be packed. So packing it in whatever crazy configuration we can think of doesn't affect the overall cost
 
Just tell your customers that their minimum order has increased to 1 crate of each size.

You know have to do 1/3 the work.
 
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