文档介绍：Andersen Consulting - Strategic Services
Office Supplies Distributor Case
Situation:
Supplies Mate (SM), a distributor of office supplies in Central London, has experienced declining profitability over the past five years.
Question:
How can the distributor address this profitability trend?
Suggested Frameworks:
Profitability model with emphasis on understanding fixed vs. variable operating costs.
Key Facts (to be shared as the case progresses):
Company
Profitability has slipped from 12% to 8% over the past five years
Revenues have grown by 15% over the past five years
SM distributes from one central warehouse in downtown London that it has owned for 20 years
SM has built a reputation for customer service, “Personal on-time delivery and support every time.”
Customers
Large businesses (60%), medium-sized business (20%), small businesses (20%)
Many of the medium-sized and most of the small business accounts were acquired recently and are located on the perimeter of the city (not to be given unless asked for specifically).
Competitors
Fragmented industry
Client is one of the largest and most essful distributors
Category killer OfficeMax has just entered the market, but the client’s revenues have grown due to its focus on customer service
Products
Sells a full-line of office supplies (., paper, pens, toner), “All your office supply needs. “
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