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Projects: Supply Chain



Pamida's Distribution Debacle



By Edward Cone
2002-01-01
Article Views: 7412
Article Rating:starstarstarstarstar / 0

  Table of Contents:
  1. Pamida's Distribution Debacle
  2. ' Upgrade Downgrade '
  3. ' Pamida Holdings Corp'

The Pamida retail chain sought higher profits by modernizing a distribution center. Too bad it left old software in place.

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Pamida's Distribution Debacle - ' Pamida Holdings Corp'


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. Base Case">

Pamida Holdings Corp. Base Case

Headquarters: 8800 "F" Street, Omaha, NE 68127

Phone: (402) 339-2400

Business: General merchandise retail chain

Chief Information Officer: Dan Nicklen, VP, information systems

Recent Financials: $601 million in sales, $14.4 million loss for 39 weeks ended Nov. 3, 2001

Challenge: Upgrade distribution system to keep more goods in stock in stores

Baseline Goals:

  • Convert Indiana distribution center to full-service warehouse in time to capitalize on the Christmas 2000 shopping season
  • Improve gross margins, which stood at 26.3% in second half of 1999
  • Minimize "out of stock" items
  • Help expand chain beyond its current 229 stores in 16 states




     
     
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