The Holt Renfrew: Inefficient Work Process
The major problem of the Holt Renfrew is layout and the inefficient work process in the distribution center. It causes many problems such as overloaded stock, and stock out which could lead lose sales and customers. Tony considered to consolidating warehouse by build mezzanine floor in the distribution center that they owned. Including building mezzanine floor, there are other options that he can consider, such as outsourcing warehousing to third party, building or leasing a new warehouse, and keep the current situation. According to the case study, make 20000 square-foot mezzanine floor in current distribution center will cost $1 million (Case Study). It could give more space for merchandise that didn’t stored well because the warehouses