Polaroid European Distribution System

Case Summary

The Polaroid case study is an example of the way how a major logistics change is met with uncertainty , scrutiny and resistance . The case gives an avid of the implementation of a direct distribution system for its subsidiaries in Europe . It gives the details of the different aspects considered by different managers of the subsidiaries when responding to the proposal of the elimination of national warehouses and consolidating the warehousing to a central location in Enschede . The reduction in the number of Polaroid 's warehouses in the US from

18 to 4 with significant cost savings was one of the key factors the proposal to adopt a similar strategy in Europe was put forward

The of the different types of distribution channels in various European countries was provided in detail in the case . Several arguments were provided by European managers against the proposal even though International Distribution Director , Carroll , had put forward the proposal in 1982 after viewing the success of centralized distribution systems in the US . His proposal was met with one-sided responses from managers in Europe . Several hurdles and reasons were provided against the carrying out of centralization of the warehouses in Europe . One of the main arguments put forward in this regard was the fact that the development of computer systems and technology was high in the US while Europe was lagging behind in this department . Since the success of centralization was to a great extent dependent on the development of computer systems , Europeans managers confirmed that the success story in the US would not be the same in UK for Polaroid . Further , they were concerned about the back-s from customers and the -fill rates of the European s

In 1983 , four subsidiaries were provided with automated systems for controlling inventory and bringing them more closer to the concept of automated distribution which was then later intended to be merged into direct distribution . Since there were several technological differences in between the US and UK , the control program was re-written with many additional features added to the system . This gave the European managers a little relief since they were able to perform more automated functions than their US counterparts - a fact that actually made the managers leave their hesitation towards the implementation of the direct distribution system

It was proposed that an International Distribution Service Center (IDSC be made to function as a central distribution center at Enschede which would eliminate the need for the ten subsidiaries in Europe to operate a separate warehouse . It was estimated that the proposal would result in significant costs savings , timely deliveries and huge savings on packaging and transportations . Not many changes were made till 1985 when Lee Brewer was appointed as Vice President for International Marketing . It was then when in the quest for cost-savings proposals , he displayed interest in the direct distribution concept and then changes began to be made at a faster pace than earlier to being the distribution system closer to a direct...