The relocation to still larger premises in the suburban Chicago considerably helped to increase the utilization but the sales remained constant. The founders, therefore, hired an outside manager to improve the performance.
The new manager, Sue McCaskey found that the firm did not have well defined inventory system that could track the sales and customer trend towards specific auto parts and services rendered. While the physical verification of the inventory was carried out regularly but the lack of necessary records made it difficult to predict the stock of requisite parts that would be required by the customers. These were the major factors for the stagnant sales performance.
McCaskey studied the inventory and sales pattern for two of the products; exhaust gasket and drive belt to show the advantages of having good inventory and sales management system that would help identify the short inventory of the products that have good demand. The information thus generated would promote better management of the inventory. Sales and purchase are vital element of effective distribution center. It would therefore, help device strategies and plans to increase its performance outcome.