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Ladner Building Products Case analysis

Ladner Building Products (Ladner) is a building material distributor located in Montreal, Quebec. Ladner began operation in 1986 for the purposes of selling and distributing products for a large forest product company. In order to improve Ladner¡¯s financial performance and expand its market presence, the company enlarged its product base dramatically to include a broader range of building materials from 1989. ... The products and customers¡¯ orders vary a lot. ... Ladner¡¯s decentralized organization structure provided a great deal of authority to the five regional general managers and their staffs. ...

Alternatives and analysis
Logistics starts with purchasing materials from suppliers, and then flows to the storage of materials and finally ends with delivering materials to customers. ...

Pay more efforts on peak season: In the building material distributing industry, demand was mostly seasonal, with approximately two-thirds of sales occurring between May and November. ...

Batch purchasing of products from suppliers: There are three product segments. ... But the prices of industrial and allied products are negotiable. For allied products, the prices can be negotiated and fixed for a year. ...

Focus on high margin products: The sales of commodity products comprise 40% of the company¡¯s annual dollar volume, while its margin is 7-10%, lower than average margin. Industrial and allied products have higher margin as 12-15% and 12-28% respectively.


Approximate Word count = 1090
Approximate Pages = 4.4
(250 words per page double spaced)
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