Case Study

Case Study – easyInternetcafe

[Type the document subtitle]

[Type the author name]

Table of Contents

Executive Summary …..……………………..……………………………………………………3

Issue Identification………………………………………………………………………………..4

Environmental and Root Cause Analysis…………………………………………………………4

Alternatives and/ or Options………………………………………………………………………6

Recommendation and Implementation…………………………………………………...……….7

Monitor and Control…………………………………………………………………………..…..7

Executive Summary

In 1999, easyInternetcafe (EIC) started as a small scale internet café operating in the UK. They then expanded into other global markets quickly like the US and various other European countries. EIC was doing very well and was earning numerous accolades for their innovation. Even though they were winning accolades, they were losing millions of dollars over the years. They lost between £80 - £100 Million so management decided to take action and source out some activities that didn’t align with the company’s core business concepts like logistics. They decided to shift all ownership and responsibility to franchisees.

EIC needs to assess and identify a suitable third party logistics solution. By examining two different options EIC will decide whether to select Ingram Micro or continue with the current operational Model.

It is recommended that EIC select Ingram Micro based on the analysis presented. In order to do this, monthly based meetings, quarterly reviews and performance scorecards will be used with each franchisee upon opening the store to be sure that the new logistics process runs efficiently and effectively.

Issue Identification

There are two issues that EIC has to deal with. The first issue is to reduce the transportation costs. The EIC management stressed that their transportation costs were really too high. The annual transportation costs based on 208 store openings was £125,250. This worked out to be £1300 to cover transportation costs per store. The overall costs need to be reduced so EIC...