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Warehousing Strategy at Volkswagen Group Canada Inc

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Submitted By psantana09
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It was Tuesday, January 18, 2011, and Kym Meisner, di rector of warehousing and logistics at Volkswagen
Group Canada Inc. (VGCA), was reviewing a presenta tion by the sales and marke ting team regarding the five-year growth plan for both the Volkswagen and
Audi vehicle brands in Canada. In her 20 years working for VGCA, Kym had never seen such aggressive growth targets attributed to new car launches, product facelifts and expected incr eases in year-over-year vehicle sa les volume. She had already heard concerns from Dave Cook, the warehouse manager of VGCA’s parts distribu tion centre in Toronto,
Ontario, regarding the limited space available in the warehouse. She wondered to herself how they could possibly make room for the inventory of additional new parts needed to supply the growing network of dealerships across the country.
Kym had scheduled a meeting with Dave and the other members of the warehouse team the following afternoon to work on a plan for the distribution centre.
She was particularly intere sted in the changes, if any, that would be needed to the size and layout of the warehouse to accommodate the company’s growth plans. Kym decided to do some quick analysis to prepare for the meeting on Wednesday.
VOLKSWAGEN GROUP
1
The Volkswagen Group, headquarter ed in Wolfsburg, Germany, wa s one of the world’s leading automobile manufacturers and the largest carmaker in Europe. The company represented nine brands from seven European countries: Volkswagen, Audi, SEAT,
Skoda, Volkswagen Commerci al Vehicles, Bentley,
Bugatti, Lamborghini and Scania. Each brand had its ow n character and operated as an independent entity on the market. The product range extended from low-c onsumption small cars to luxury-class vehicles. In the commercial vehicle sector, the product offeri ng spanned pickups, bus

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