1. What are the characteristics of the market served by the Horizon Foods Corporation?
Poor Delivery, high cost of shipping crate, small quantity, high stocks, and high competition. Horizon’s product lines have focused on ethnic food specialties including salad dressings, sauces for Italian pasta, and condiments such as specialty pickles. Is a national company that provides food products. Customers in this market are in many places, diﬀerent points; they prepare meals for small retailers who are demanding customized products, customers’ demands small quantities.
2. What problems exist at the Horizon Foods Corporation?
Horizon have problems with the distribution of products, the amount of inventory control problems in warehouses, the increasing demands of customers on products, services, the costs of transportation are high, coordinate issues within the company, also they need a better communication. Orders are generally small, amounting to five to six cases per order, or about 150 to 200 pounds at a time.
3. Why do you think the problems exist?
Marketing and production departments are not lined. They need information on time. Inventory of products that require a special request of customers, the demands of the customers due to the fact that small amounts of 5-6, shipping crate increase the cost of 150-200 pounds, negotiated warehouse is not enough quality service as provided by other companies, the company’s determination of the amount of inventory in the structuring, planning and transport issues the contract warehouses intricacies of product quantities. The two plants: one in the Central Valley of California at Fresno and the other in Illinois about 60 miles south of Chicago, the transport between are expenses too.
4. What would you suggest the task force recommend in order to gain “control over this product movement process”?
The changes required to gain control over the supply chain, Horizon need a better level of communication system. They need to keep an eye and to implement new systems that would help in these areas: Business administration, accounting systems.