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GLOBAL SUPPLY CHAIN 1
GLOBAL SUPPLY CHAIN RE-ENGINEERING

MBA 6123
Supply Chain Design and Management
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Instructor: Albert Salinas
Date: 14 November 2016

INTRODUCTION
Company Process Re-engineering fundamentally alters the job environment. Individual
procedures are integrated to gain productivity and efficiency. Employees are permitted to create
decisions instantly for the purpose of eliminating process obstructions and raise pace to market.
By doing so, it is not only advantageous for the general company performance, but can also raise
employee loyalty and satisfaction (Guha, 2006). Workers can increase their knowledge and skill
into other parts, and be capable of making decisions that influence their personal performance.
On the other hand, there-engineering focal point is restricted within a company. In order to
enhance performance, newest re-engineering methodology with regard to supply chain must be
utilized and properly aligned.
1. Describe the differences between current supply chain and

proposed turnkey strategy.
Elizabeth Ardens company was founded in the year 1910 and has its headquarters in
Florida. The companys is categorized under Product Offerings and deals in skin care. It is also
renowned in more than one hundred and twenty countries. The initial vision of the company was
to offer excellent products in market, together with services and packaging, for women around
the globe. The Company has distribution of more than 300 brands in the United States of
America. The company introduced fresh shipping patterns. This is the companys new strategy to
directly ship products to many other retail stores with regard to big department chains, and also
raise sales to a lot of retailers including CVS, Wal-Mart, Rite-Aid, Target Walgreens, and Sears,
among others. Also, there was raised emphasis on global shipments, not only to overseas
associates and big distributers that serve big overseas retails for instance Sephora, Boots, and
Debenhams, but also to voyage retail outlets for instance airport boutiques and duty free shops.
These areas have storage space that is limited, and need regular and little shipments.
Compared to the current supply chain, the turnkey strategy is a kind of project which is
structured in such a way that a buyer can purchase it as a complete product. This has
dissimilarity with build to order, which the manufacturer develops a product to the customers
precise specifications or in a situation where a product that is not complete is sold assuming the
purchaser will complete it.
2. What will the change mean for suppliers and their roles? What
does it mean for current employees and their roles?
Since there will be a fundamental merging of providers, inventory management changes,
and extensive influence on product, and also requirement for main front time cutbacks, both the
suppliers and current employees will be affected with regards to the roles. This is because;
alteration of the structures will affect individual roles, by introducing new changes. The current
providers will have to adjust to the changes in order for them to achieve their anticipation. The
changes would also require the current employees of the company to keep up with the expected
changes.
3. Calculate the total financial impact for the re-engineering effort.

What does this mean for Elizabeth Arden and its shareholders?
For 12 months ending 30th June 2011, Elizabeth Ardens net income as attuned excludes
six million, five hundred thousand U.S Dollars, pre tax regarding costs of debt extinguishment.
Also, there was $0.3 million pre tax, in relation to execution of Oracle order processing and
accounting systems. There was also another $0.3 million pre-tax of restructuring costs relating to
the companys Re-engineering initiative. This made the company and the shareholders to spend
more towards this initiative.
4. Assume the role of Pierre Pirard; what would your do?
As Pierre Pirard, I would put structures to ensure that the current employees of the
company mange to sustain the pace with regards to the changes expected, so as to avoid the
transition being troublesome hence affecting the companys performance negatively. Also,
ensuring that not many employees are let go will be significant in order not to kill the confidence
of the workers. Another fundamental issue is to ensure that important output to shareholders is
achievable. Ensuring that re-engineering is executed in a way that will deal with all these issues
in the best way possible will do this.

REFERENCES
David, W. & Norman G. (2013). Elizabeth Arden: Executing Global Supply Chain Re-
engineering. Ivey Publishing. Nov 8, 2013.
Guha, S. (2006). Business Process Reengineering: Building a Comprehensive Methodology,
Information Systems Management.
Hussein, B. (2008). PRISM: Process Re-engineering Integrated Spiral Model, VDM Verlag

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GLOBAL SUPPLY CHAIN 1

GLOBAL SUPPLY CHAIN RE-ENGINEERING

Supply Chain Design and Management

Instructor: Albert Salinas

Date: 14 November 2016

Company Process Re-engineering fundamentally alters the job environment. Individual

utilized and properly aligned.

1. Describe the differences between current supply chain and

purchaser will complete it.

3. Calculate the total financial impact for the re-engineering effort.

more towards this initiative.

4. Assume the role of Pierre Pirard; what would your do?

in the best way possible will do this.

engineering. Ivey Publishing. Nov 8, 2013.

Guha, S. (2006). Business Process Reengineering: Building a Comprehensive Methodology,

Information Systems Management.

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