PUMA Case Study

PUMA Case Study

When Puma experienced efficacy issues in its own Swedish warehouse following rapid growth, the management steered the adoption of a cell system that could save the circumstance. This system became among the very inviting elements of the warehouse afterward. Thus, this paper explores the rationale that led to this adoption, the various elements of this machine and the benefit it had on the firm, employees, and customers.

Operational issues

Puma has always been dedicated to positioning itself in the market through technology adoption such as automation, IT and social networking (Laird 2012; Palli, Biagiotti & Melchiorri n.d.). The motive behind the institution of the mobile system by Puma revolves around three major facets.

First, the sooner paper-based system had become inefficient due to the rapid increase of the company. For Puma which dealt with consumer products, efficacy was predominant as it determined that the introduction of a loyal customer base in addition to the association between the firm, employees, and clients.

When compared to the computerized system, the older system demanded the physical efforts of their individual resources to be put in all actions which greatly reduced efficiency.

Another factor involves errors that resulted in many customer complaints and unnecessary wastage of resources. It can be contended that unlike an automated system, a manual method such as the paper-based system can and has resulted in numerous human errors. Thus, once the system made incorrect deliveries, the customers obviously complained and lost the trust they had in the corporation.

In addition to client complaints, both tangible and intangible resources were wasted. Human resources were employed in large numbers and had to invest more time in order to finish an arrangement which eventually led to reduced profitability.

Another element that might have driven Puma to utilize the cell system was rate. It is apparent that an automated system could operate faster than the manual system and the many tasks involved with ordering and delivering products required a faster system.

Advanced planning and scheduling are important to this firm compelled it to think of a system that may synchronize deliveries with warehouse requirements. In reality, Puma is not only dedicated to faster warehouse processes but has also used speed as a branding approach.

For instance, DigitalBuzz (2012, p.1) observes how the company utilizes a discount campaign that’s intended to increase the buying speed of consumers in Mexico.

The mobile system

The Mobile system implemented in Puma comprised three core elements: a handheld computer, bar codes and a central server. The handheld pc identifies the correct bay and confirms the scanned items correspond to the orders. The bar codes separate the incoming and outgoing deliveries by communicating them in a way that the computers may identify each of them.

The central server enables the synchronization of the computers as well as the bar codes using a wireless network. This is improved by 17 Cisco Wi-Fi access points that connect the handheld computers into the central server. In this manner, the system allows different orders to be sent and received by different users automatically.

Benefits

The mobile system increased Puma’s profitability through greater performance and reduced cost labor. The increased speed allowed the firm to serve a larger customer base which directly related to greater profitability. The efficiency of this system allowed the management to concentrate their decision on other topics such as marketing thus enhancing the performance of the firm.

When compared with the previous system that demanded more employees, the cell system cut the labor supply provided by shift employees consequently cutting down the cost of labor significantly. In addition, the enhanced performance of these employees also increased the device output of an individual employee consequently lower cost per employee.

The mobile system embraced by Puma is beneficial to the workers in that it eliminated the majority of the boring activities and improved their purpose. In addition to this, Roos (2005) related job satisfaction to worker motivation and the new system allowed the workers to be more self-dependent and resourceful thus adding to their own motivation.

On the side of customers, the cell system allowed the company to create customer value. This came about due to improved customer expectations and service. The firm was able to accelerate order requests and remove any errors that might have happened in the procedure (Kolesar, Van-Ryzin & Culter 1998). As clients expected to be served faithfully by such a respectable firm, this accomplishment met the needs appropriately.

Conclusion

Due to rapid expansion, Puma experienced some problems related to its warehouse operations and fulfilling the requirements of customers, employees and the firm as a whole. As a result, the motivation to adopt a cell system for the warehouse originated from the need to boost efficiency, reduce errors and increase speed.

This system that included handheld computers, bar codes along with a central server was able to automate the majority of the warehouse operations. The advantages accrued notify of increased profitability, workers’ pride and creation of customer value.

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