Dakota Office Supplies

Joshua Capone

Virginia Hampton

Jodi Henriquez

Max Miller

Talia Shmuel

Laura Watson

Alita Wright

Dakota Office Products Case Study

Executive Summary

This analysis is for Dakota Office Products seeks to assess the company’s current business operations and recommend any future action necessary to ensure company success and return the business to profitability.   Within this study, we will classify ineffective business practices which led to the company’s first profit loss in its history.   Further, we will study the company’s current pricing structure, ordering methods, shipping and delivery process, and lack of sufficient cash flows. For Dakota Office Products (DOP), its existing costing system was deficient because it does not adequately account for all of the known costs such as the desktop delivery service as well as the hidden costs such as the ten percent DOP paid to keep up its working capital line of credit for accounts receivable. The Activity Based Costing (ABC) method may also be used to improve processes and identify avenues to augment business effectiveness and by determining the true costs of a given product or service. ABC principles are used to focus management's attention on the total cost to produce a product or service, and as a basis for full cost recovery of a production or service process.

Overview

Dakota Office Products is a well- established office supply firm with a solid reputation. They are regional distributors for office supplies with a major clientele that includes institutional and commercial customers. Dakota deals with a comprehensive line office supplies ranging from writing equipment to paper to other necessary office supplies. The company has established a good name for itself in its industry. Additionally, they have also arranged for several distribution centers where the shipments are required to be unloaded and packed into cartons intended to be delivered to their respective customers. In order to increase the value for...