Case Hickory Hill - SCM INVENTORY/TRANSPORT CASE HICKORY...

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SCM INVENTORY/TRANSPORT CASE: HICKORY HILL Hickory Hill is a well-established smoked foods company specializing in smoked turkeys and has been selling its products throughout the north-western part of the continental United States since the 1960s. Initially owned and operated by a German immigrant family, the key to the company’s success lays in a secret smoking process. By 2008 the firm had 250 retail outlets and 400 franchisees. Although the company sells a variety of turkey products its competitive strength lay in one main product line, “Tender Most” that had sales in 2007 of $4,350,000. Sales estimates for 2008 indicate a 15 percent increase over the 2007 level. Turkeys are supplied by Kentucky Meadow Turkeys, who clean and smoke the turkeys using the patented process and provides the necessary industrial packaging for safe shipment to the retail outlets. Tender Most is sold to retail outlets for $4.00 per pound and due to some planned promotions and better positioning in advertising, a 30 percent sales increase in 2009 is expected for the Tender Most line. The smoking process employed by Hickory Hill has some unique characteristics that clearly differentiate the company's products from those of its competitors. The smoked turkeys can
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