Dream Beauty Supply Chain Paper

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Dream Beauty Company is a beauty supplier and cosmetic manufacturer based in Money City Nevada. The chain services customers throughout the United States. New attention has focused on the supply chain operations after a supply chain expert was elected to the board of directors. Cost have increased and management desires an explanation. Several relevant facts are surrounding the company. Dream Beauty has four cycles that make up the total supply chain. Their products are supplied to customers through three channels: retail stores, convenience stores, and mass merchants (Bowersox, Closs, & Cooper, 2014.) Generated sales are shown in Appendix B. The cycle zones are orders processing, packaging, labeling, and delivery. The breakdown of total costs by percentage are displayed in Appendix B. Delivery attaches higher prices, while labeling attributes the least. The company maintains a three-day order fulfillment window. Orders are delivered from distribution centers located all over the U.S.

Dream Beauty Company is operating smoothly, but could run more advantageously. The main known problem is associated cost. Delivery makes up the largest charge and needs reducing. …show more content…
To instantly decrease delivery cost additional fees will be added to orders under 500. This will also decrease order processing because orders are combined into larger shipments instead of smaller ones. The invoice policy has to be enforced. If channels do not comply, they will be charged for their delinquency. Downsizing warehouses is a good idea, yet will add cost to the company. Currently, everything is working fine so there is no need for change. Convenient stores bring in their fair share of proceeds, so cutting stores down could hurt the company. Every store will not always generate the same income. Closing prosperous spots could become detrimental

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