Parcel Predicaments - Jan Hulsmann Case Study - Management Assignment Help

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PARCEL PREDICAMENTS 
Jan Hulsmann, managing cifeolor of tne astribuson. parcel and postal ovision at VanderLande Industries (VI), paced hurriedly over the firm headquarters' campus-like terrain in Veghel, a village in the south of the Netherlands. on a chilly damp autumn day In November 2013. He had just returned from a meeting in Germany with one of VI's main divisional clients, Deutsche Post DHL. The meeting had been successful: Deutsche Post DHL had just committed to ordering a substantial number of new depots for their Germany-based parcel and postal distribution operations, a decision that had a Significant impact on VI's projected divisional revenues over the coming years. 
Having worked for production companies for most of his professional life. Hulsmannd been trying to push a standardized production approach at VI — a firm that prided itself on its highly customized approach — since he joined the company in 2008. VI was a world-leading manufacturer of goods-handling automation systems across warehousing. parcel and postal and baggage-handling sectors. For decades its business had been organized around projects. Each and every project was designed from scratch for an individual customer with a team of specialized engineers. project managers. service employees, salespeople. and procurement specialists and so on. Because of this attention to services and deep engagement with customers. VI products were of high quality. albeit expensive. 
This deep customer engagement was VI's competitive advantage. but it also became a liability in a harsh economic climate where customers were cutting the amount of funds they were Willing to spend. Corning from a background of production companies, Hulsmann believed VI could learn from a standardized. mass-production way of working. By building numerous but relatively similar products. VI could reduce costs. lower prices. shorten delivery time. gain repeated business. and become more competitive. 
The Deutsche Post DHL projects were VI's first large-scale success in making such a transition. Contracts for building 10 similar depots had been signed and VI was now looking at another 40 or 50. Initial heavy investments were made to get the design right, and VI began to see significant pay-offs in the second year. This is the way we should go." Hulsmann told his employees Despite the enthusiasm, however. the Deutsche Post DHL projects were still small, representing only a single-digit percentage rate of VI's annual turnover. VI could not let go of its traditional project business but could only add standardized production on top of its usual business or fuse it into its projects. But what was the rght way forward? None of VI's infrastructure was suitable for standardized production. Most employees had zero experience in a production mode of working. In order to take advantage of the experience accumulated from the Deutsche Post DHL projects. VI had to re-organize itself to become suitable for doing repeated business. Hulsmann was certain that the market was there. 
 

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