Thank you Michael Barth arrived at his small, windowless office stuck into a cor

Question

Thank you Michael Barth arrived at his small, windowless office stuck into a corner of the Hankey Industries manufacturing plant in Catasaqua, Pennsylvania, just after 8:00am on Monday, June 16, 2014. He opened his email inbox and uttered a small sigh as he saw emails from three sales representatives for LTL carriers containing large attachments. The sigh signified the amount of work that he knew these emails had in store for him over the next few weeks. Michael was the logistics manager for Hankey Industries, a small manufacturer of cleaning and specialty chemicals with annual s S8.5 million. Hankey Industries was founded in Catasaqua, Pennsylvania, in 1949 by Jason Hankey, a veteran of the U.S. Navy in the Pacific theater f World War II. Jason's primary goal was to help his customers solve their difficult industrial cleaning and specialty chemical problems, a commitment to customer service that has continued to this day. The current manufacturing plant is located adjacent to the original site in larger building that opened in 1978 Hankey Industries' Logistics Operations Hankey Industries offers a variety of industrial cleaning and specialty chemical products, mainly through distribute although it does provide some cleaners directly to large railroads which use the products to clean their locomotives. As a result, Hankey's logistics operations are relatively simple to map. Most shipments travel from the plant in Catasaqua to a small number of customer locations which represent the distributors' warehouses or the railroads' maintenance centers. A list of Hankey's major customers' locations is provided in Exhibit 1 Because its products are relatively homogeneous with respect to their physical characteristics (such as density, packaging, susceptibility to damage, etc.), Hankey's logistics department has developed a standard pallet size with a total weight of 400 pounds. Most customers, especially the distributors, order full pallet quantities of each product at regular intervals (such as every week or every month). Hankey provides pricing incentives to encourage its customers to order mixed pallets of products at the standard size of 400 pounds per pallet whenever the customers do not require a full pallet of a single product. Sometimes, however, a customer finds it necessary to place an order for a quantity smaller than a full pallet. This could be because the customer does not have the storage space to hold an additional full pallet of product and can only accept a partial pallet or because usage of the product is too slow relative to the size of a full pallet. In line with Hankey's stated commitment to customer service, these requests are handled on a case-by-case basis to meet the customer's needs. Hankey Industries operations are small enough that its entire logistics department consists of Michael (the department manager) and two traffic associates who handle the day-to-day operations such as tenderin shipments to carriers and tracing shipments that were not delivered on time among their other tasks. There are no dedicated logistics analysts in the department; as a result, Michael has to perform all of the analy himself sis

Explanation / Answer

1. Does your selected business have differentiated products or services? If so, what is the basis for this differentiation from the competition?

Yes, they have unique product, it is differentiated through processing of meats and quicker delivery services . This is realized due to its

.Processing plants

.Volume of supply capability

.Great supply chain network

It produces several different products, like Buffalo wings, boneless Buffalo wings and is an innovator in the industry.

2. Does your firm have a cost-leadership position in this business? If so, can you identify which cost drivers it uses effectively to hold this position?

They do not have acost-leadership position, but are differentiated due to their range of products, service and volume of operations.

And it has its own chicke and meat producers, to facilitate the volume business, without being a cost leader.

3. What is your firm’s approach to the market? If it segments the market, identify the scope of competition it is using.

It does not segment its market. It works on B2B business, and approaches the blanket way.It supplies products to each type of food outlets, and generally depends on the large contracts and partnerships.

They supply to all type of restaurants.

They sell at supermarkets.

It supplies to Prisons as well.

So by ditributing to multiple channels they target a large spectru of markets, though there is partnerships based on segments its mostly to most frequented restaurant chains.

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