Case Study 2 - Lambert Tamin Intro to Supply Chain Murphy...

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Lambert Tamin Intro to Supply Chain Murphy April 11, 2011 Case Study #2 There were many underlying issues that surrounded Deutsche Bank’s relative position in the marketplace. First and foremost DPWN had to identify each of its problems so it could take proper actions that would create effective solutions for them. One problem with Deutsche Post World Net was that the company was not practicing proper efficiency tactics and this took a major impact on their revenue. Instead of receiving a favorable amount of revenue, they instead were plagued with an increased amount of government subsidies. They realized that they needed to implement a postal service that would be effective in East Germany, especially due to the demolition of the Berlin Wall that helped changed the face of the country. The highly inefficient East Germany postal service had to be integrated after the country’s reunification in 1989. A negative impact of the redesigning of the distribution strategy and the cutting down of the company’s retail outlets had to be taken in order to convert Deutsche Post World Net into a profitable corporation that could issue shares to its public. However, a problem that Deutsche Post World net encountered with this reunification of Germany was duplicated postal codes in Eastern and Western Germany. A second problem was that the ratio of undelivered mail to sent mail was rather high. Lastly, the mail being sent was way too large for the East German infrastructures. A second major issue was that Deutsche Post World Net was no longer the primary service provided in Germany. As a result, the level of competition in Germany increased
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dramatically, especially due to new regulations in the mail shipping quantities. As of 1995, many companies were able to deliver mail in quantities of over 250 grams, but by 2002, companies were granted licenses to deliver packages of fewer than 200 grams in Germany. Another competitive advantage that other companies had that contributed to Deutsche Post World net’s declining influence in delivery service was that in 2002, was that more than a hundred firms
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This note was uploaded on 09/16/2011 for the course SUPPLY CHA 799:301 taught by Professor Salama during the Spring '11 term at Rutgers.

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Case Study 2 - Lambert Tamin Intro to Supply Chain Murphy...

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