The Baker case presents a real-life scenario of a company that has had a great history and a strong reputation. As a plumbing parts manufacturer and distributor, the Baker Corp. has created a large cliental and an army of loyal customers. Customer retention is not a problem, most of the clients are repeat customer and whom continue to refer the Baker Corps new customers.
However, the problem seems to be within the company's internal policies and procedures. The lack of business policies and procedures has the company, working as several small companies instead of one corporation. Overall control and accountability has been lost, which has made forecasting a big problem. The direction of the company is looks well from a distance, which has kept the stakeholders interested in the Baker Corp. However, the robust company has forced itself into a corner and cannot continue to grow without complete accountability and control. The Baker Corp. needs accountability and control measures taken now, in order to maintain rapid growth and accurate measures for future forecasting.
Currently, all ten-distribution centers are warehousing an idle inventory worth $100,000 at each site, which is one in idle inventory for the Baker Corp.. The logistics of the Baker Corporation has had past problem from the past, which were never corrected and accounted for. Orders are constantly being damaged and misplace, which is costly the company loss revenues. However the main problem seems to narrowed down to the ordering system or lack there of. The number of errors from misplace orders, should concern and the need to work on training and an organized center for taking calls. ...