Apply strategic supply chain management to logistics systems.

Apply strategic supply chain management to logistics systems.

Scenario

You are a newly hired Junior Analyst at Mitchell Consulting, a firm that specializes in providing managerial expertise in supply chain management. You are assigned as a support role to a senior consultant. Your role does not allow you to make selections for clients, but you will be evaluated for future promotion based upon your work in the analyst role. You are assigned to new a client, Rosser Inns. Your manager, Senior Analyst Andrea Sims, has directed you to work on this case and provide analysis and options to resolve the problems.

Rosser Inns was started after the end of World War II by Russell Rosser. Russell built his first Inn based on European chalets he observed during the war. Prior to passing away in 2005, Rosser had expanded the business model to include a chain of 50 facilities. Family disagreement and increased competition in the industry has taken the Rosser Inns to the point of bankruptcy. You and Andrea Sims are dispatched to gather data, analyze the situation, and make recommendations to the Board of Directors. The first phase of your analysis includes meeting the board of directors, which currently includes Ruger, Alice, Robbie and Inga Rosser. You and Andrea both take extensive notes, and combined have made the following observations.

• Ruger Rosser – Quiet, disorganized, and prefers paper rather than computerized systems. Believes Rosser is losing customers to competitors due to cheaper rates despite the absence of the “Rosser charm.” He unaware of costs and finances. Ruger is the oldest sibling, but has no sole decision-making authority without his mother Inga’s approval.
• Alice Rosser – Manages accounting functions with old technology and is in her 60’s. Used to manage all company finances but it has recently asked her son Robbie to help her out. Ruger is aware of this change but family agrees not to tell Inga, as the change would likely upset her.
• Robbie Rosser – In his mid-30’s, more tech-savvy than the rest of the family. Routinely uses a laptop, smartphone, email and social media. Officially, Robbie is in charge of ordering and tracking all the supplies required for Rosser Inns but in recent months his mother Alice has been spending less time with the family business and Robbie has slowly assumed financial control of the business. Robbie states that Rosser Inns is on the verge of bankruptcy and can’t pay for the next shipment of supplies to stock the Rosser restaurants and hotels. Robbie has been communicating for months that assets need to be sold, but he doesn’t have the approvals necessary to make a decision without Grandma Inga’s approval. When noted that you have been asked to give a recommendation to Uncle Ruger, Robbie states that the person you need to convince to change is Grandma Inga.
• Inga Rosser – Chairman of the Board. Titles and business structure are unfamiliar to her. Has sole power – family members are afraid to make any decision without her approval. She would happily give up responsibility, but she doesn’t trust Ruger, Alice, or any of her other children. She would consider hiring non-family leaders to help run the family business.

Russell had always used a company fleet of trucks to procure supplies at distribution facilities and local food suppliers. The Rosser trucks have served as a good advertisement and provided employment for over 60 drivers and employees. Russell always contended that a company fleet versus paying others was the best business. However, the fleet has aged and since Russell’s passing, transportation systems and options have improved greatly.

You and Andrea begin to compare notes and prepare a recommendation that aligns the responsibility of running Rosser Inns with the people who are actually doing the work and who have the apparent skill sets to perform necessary tasks. The needs for clear lines of responsibility and decision-making ability is critical to the survival of Rosser Inns.

Instructions

Prepare a presentation to current Board of Directors of Rosser Inns. You will present your recommendations for the role responsibilities and skills necessary to fill the positions of CEO, CFO, and Director of Purchasing.

• Analyze the current supply chain and leadership structure contributing to Rosser’s financial situation.
• Describe industry alternatives in sourcing supplies for Rosser to consider.
• Suggest logistics and supply chain changes that would support financial success.
• Recommend a leadership structure at Rosser that would support operational effectiveness. Include a proposal for who should assume the positions and the role of each. Rosser Inn should ideally have at minimum a Chief Executive Officer, Chief Financial Officer, and a Purchasing Manager. Recommend additional roles as necessary.