Product details

The case presents a situation where Schneider Electric, the international producer of electric parts and components, faces the question of whether to centralize its northern European distribution. The factors that affect the solution are the possible savings from centralized inventory levels, the nature of demand, customer bases and the product mixes sold in the market areas to be centralized, and transportation costs. Furthermore, marketing issues and customers'' service requirements set limits on the cost savings achievable by centralization. The data given in the case reflects the differences in the market areas in terms of the above mentioned factors. The data is both qualitative and quantitative.