CASE 4
Westminster Company
Company Profile
Westminster Company is one of the world’s largest manufacturers of consumer health products. Their distinctive name and company logo are recognized throughout the world. Originally founded as a family-owned pharmaceutical supply business in 1923, the company has expanded, by virtue of aggressive new product development, into a global provider of health care consumer products. Westminster maintains regional offices in Europe, Latin America and the Pacific Rim to support overseas manufacturing and distribution.
Westminster’s domestic operations consist of three separate but wholly owned companies that each manufactures and distributes unique product lines. Decentralized management has been a proud historical tradition at Westminster. According to President Jonathan Beamer, the policy of maintaining unique and independent companies encourages responsibility, self-ownership of the product development and marketing process and provides the incentive for entrepreneurial management. Westminster’s products are marketed through a network of diverse retailers and wholesalers. Trade class as a percent of sales is 37 percent grocery, 20 percent drug, 35 percent mass merchandise and 8 percent miscellaneous. All three companies sell and distribute products to several of the same customers.
Westminster Today
Pressure from domestic and global competitors, as well as large domestic Westminster customers has recently forced the company to reevaluate their traditional supply chain practices. In particular, attention has focused on the changes that customers are demanding as well as other operational modifications in current practice that management feels are required to effectively compete in the 21st century marketplace.
Westminster just completed several months of extensive study focusing on their customers’ current and future supply chain requirements. The findings addressed a variety of issues, but two key topics were identified:…