Logistics and Project Planning at Easyinternetcafe Ltd.

Written Case Study 1:

Logistics and Project Planning at easyInternetcafe Ltd.

Executive Summary:

EasyInternetcafe (EIC) was launched in 1999 under the EasyGroup. Their goal was to provide customers with internet access at a low cost and to capitalize on the technology boom.

Due to poor financial performance, easyInternetcafe has decided to re-organize its business model from large cafes to a franchise model with smaller café sizes in order to become a more profitable company. The company has suffered from the dotcom burst and their losses are increasing.

The main goal is to focus on its core competencies such as the yield management model. In order to do so, they need to examine options for new logistics systems that will be well executed and will lead to the development of their operations. Their original business model to build and operate on the principle of Yield Management has taken away from their focus on logistics. As a result, the company needs to outsource its non-core competence activities, including the logistic function.

The company has already decided to appoint franchisees for all new stores and if possible, for existing stores as well. According to the new strategy, the franchisee would be responsible for the cost of the property and the hardware. It was also decided to move away from large stores, and move toward smaller stores with 20-30 PCs.

Different logistic scenarios and proposals have been analyzed as alternatives to the current logistics process. Ingram Marco has been chosen as the logistics provider as they offer more full service activities while remaining at a lower cost than other competitors. This decision will benefit warehousing, accounting, and transportation, in addition to reducing the logistics costs and labor per new store.

By including Ingram Marco in corporate decisions and meetings, EIC can keep Ingram Marco accountable and stay updated with issues as they arise, just as they would if the...