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.11 Videotron PRTNR1 12:28 PM Done MGMT-6080-01-18F Spartan Buil.. 8IvEy Publishing 9B15D009 SPARTAN BUILDING PRODUCTS or cless dscussion The effective or inefflective handling of a managenial suation The athor may have disquised certain names and other eng University, Londion, Ontario, Canada, NG ONT;) 519 661.3208 (e) cases@/vey ca www.veycases.com 2015 Richad 015-07-0 Liz Scott, logistics analyst for Spartan Building Products (Spartan), a building materials distributor located in Montreal, Qucbec, had been asked by Paul Saxton, vice president, logistics and materials management, to prepare a report analyzing the company's logistics practices. Paul was especially interested in where changes could be made to reduce costs, improve compamy performance or accomplish both We spend a lot of money on logisties at Spartan- especially in the distribution end of our business. Right now I am not at all satisfied that our area is performing as well as it could. Our delivery performance is getting better, but we still have a ways to go, What troubles me most however, is that our costs are too high. I'm not sure if we should simply charge more for customer deliveries or take another approach H was Monday, April 20,2015, and Liz knew Paul did not want a report that simply summanized Spartan's logistics costsewas expecting Liz to offer specifie rccommendations on how to address the problems uncovered Although Paul wanted the report in two weeks, Liz felt that she would easily need all of that time to analyze the·nformation that she had collected over the past ew days and to gather any additional data she might need. THE BUILDING MATERIALS INDUSTRY Product Segments The Canadian building materials industry comprised three main product segments: construction materials indastrial products and allied products. The domestic forest products industry provided a competitive supply hase for constraction matcrials, inclding lumber and plywood. Prices for these products were based on commodity exchanges, such as the Chicago Board of Trade and the Intercoetinental Exchange (formally the Winnipeg Commodity Exchange). Some industrial products, such as hardwood plywood, medium-density fibre board (MDF) and particleboard, were essentially commodities. However. others, sach as Fomica counterlops, were
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