Page 10 - OCS Workbook - Day 2 Suggested Solutions (May 2018)

CIMA MAY 2018 – OPERATIONAL CASE STUDY

The company also operates a successful apprenticeship scheme aimed at producing highly-skilled
factory employees and encouraging new creative talent.

The company’s senior management team has changed significantly over the past few years. The
current team is relatively young, enthusiastic and engenders a culture of creativity and innovation
throughout the organisation and bring previous experience of the luxury goods industry to the
company.
Overall, human resources within the company are currently adding great value. In order to add
further value to the human resources, the company could implement an HR plan aimed to define
and close the gap between the demand and supply of labour in the organisation. It could also
implement a programme of relevant internal/ external training programmes.
Technology

Mansako has invested in the design and implementation of a range of integrated information
systems. This includes linking electronic point of sales (EPOS) to the financial and logistics
information systems which provides up-to-the-minute sales and inventory data and links each
store directly to the distribution centre.
The financial information system produces monthly management and annual statutory accounts.
It also generates daily and weekly sales revenue and gross margin information for management to
monitor actual results against budgets. These activities increase value within the company in
terms of raising cost efficiency.

A significant proportion of Mansako’s customers are well-informed about, and proficient in the
use of, technology and are just as likely to make purchases using Mansako’s app on their mobile
phones as in a store. Mansako is adding value through its technological developments but there
is a constant need to innovate within the digital world where immediacy is key.
Mansako’s omni-channel strategy includes in-store digital ordering, in-store collection of digital
orders (Click & Collect) and in-store digital returns. The company will continue to strengthen its
position in Europe and expand internationally through its omni-channel strategy, with well
situated stores complemented by a strong digital presence.

Procurement
At Mansako, the production staff are also responsible for the purchasing of raw materials. They
select the finest quality leather hides from sustainable sources as well as durable components for
our handbags such as zips and buckles. They also select good quality materials used in the
production process, such as those used to stitch individual pieces of leather together and the glue
used to attach the lining of the bags.
Mansako has worked with the same suppliers for a number of years and has built up strong
relationships with these suppliers, all of whom must sign and adhere to Mansako’s ‘Code of
Conduct for Suppliers’. The code sets out the minimum standards of ethical and responsible
behaviour which must be met, including animal welfare policies such as product and material
traceability.

Emphasis at Masako is on the price, quality and accurate delivery of the goods. The company does
not outsource its procurement, ensuring high quality standards right from the point of selection
of leather hides.
In order to add further value to the infrastructure, the company could carry out a cost/ benefit
analysis to establish whether it is worthwhile having a dedicated procurement team. This could
free up the production staff time as procurement is known to be a tedious process of ensuring
that they can reduce cost of materials and perhaps identify a better source of materials to better
ensure a flow of increased income into the company.

66 KAPLAN PUBLISHING