Club Med Essay
MRP starts with customer orders and forecast demand (see p. 439). Analyse how your case company gets data about (potential) future orders, and indicate which of the two sources above is more important.
The “Early Booking” Bonus
In recent years, Club Med has practiced a deliberate policy of “early booking”, an incentive well-received by customers which was stepped up in 2008. On the strength to this approach, bookings for winter 2009, like those for summer 2008, got off to a fast start initially. Although the economic crisis has created a certain “wait-and-see” attitude and a pronounced trend for late bookings, the positive effects of early-booking remain evident. Boosted by this policy, sales for summer 2009 are also off to an encouraging …show more content…
With this, money is saved on keeping the “stock” in order (for example cleaning services).
Also another possibility for JIT in Club Med is the catering services and storage. Usually for this company´s village, food, and liquor products (etc) are only ordered “just in time” for the summer season or the winter season, or even, for example, an unexpected big group of tourists.
One of the ways that Club Med can keep up with this inventory strategy, in these two cases, is by having their suppliers/services providers near-by the villages. With this they can literally get their products (or services) delivered just in time.
It is important, however, to keep in mind that Club Med can´t apply this method to its fullest, since they have the natural need of keeping a minimum amount of storage: One of the main reasons being the “all-inclusive” strategy, which allows customers to make use of any available services and products.
Essentially, with the “lean synchronization” or the JIT, Club Med is able to avoid any excesses (and therefore errors), but mainly time and money through the already mentioned waste reduction.
The “Early Booking” Bonus
In recent years, Club Med has practiced a deliberate policy of “early booking”, an incentive well-received by customers which was stepped up in 2008. On the strength to this approach, bookings for winter 2009, like those for summer 2008, got off to a fast start initially. Although the economic crisis has created a certain “wait-and-see” attitude and a pronounced trend for late bookings, the positive effects of early-booking remain evident. Boosted by this policy, sales for summer 2009 are also off to an encouraging …show more content…
With this, money is saved on keeping the “stock” in order (for example cleaning services).
Also another possibility for JIT in Club Med is the catering services and storage. Usually for this company´s village, food, and liquor products (etc) are only ordered “just in time” for the summer season or the winter season, or even, for example, an unexpected big group of tourists.
One of the ways that Club Med can keep up with this inventory strategy, in these two cases, is by having their suppliers/services providers near-by the villages. With this they can literally get their products (or services) delivered just in time.
It is important, however, to keep in mind that Club Med can´t apply this method to its fullest, since they have the natural need of keeping a minimum amount of storage: One of the main reasons being the “all-inclusive” strategy, which allows customers to make use of any available services and products.
Essentially, with the “lean synchronization” or the JIT, Club Med is able to avoid any excesses (and therefore errors), but mainly time and money through the already mentioned waste reduction.