Crack the Case. D. Ohrvall

Blueblood Distribution

Case Pack: 001

Pages 14 - 20

•Working with an interviewer: Remove pages 3 through 6 to take notes and do your

work. Give the rest of the pack to your interviewer. Interviewer prep is about 10-15 minutes for this case.

•After the interview: Rate yourself using the Self Assessment sheet in the back of the case pack. Review the feedback score and comments from your interviewer and discuss ways to improve. Review the suggested answers in the case.

•Self-study: Remove pages 3 through 6 to take notes and do your work. Remove any data handouts and place them face down. Follow the three Self Study Steps listed on these sheets. This self study method will help you form your plan, practice asking good questions and improve your ability to pull insights from the data slides. Keep in mind that you will benefit most from working with an interviewer who can evaluate your performance objectively.

Throughout these notes references will be made to the MVM™ (Maximum Value Model) and the FRAME Method™, the building blocks of the One Model/One Method™ approach to case interviews. Full descriptions of these unique tools, as well as additional cases, can be found in the book, Crack the Case: How to Conquer Your Case Interviews, available at www.consultingcase.com.

Pack: 001 page 7 of 20

•This case is designed as a warm-up for future tough ones. Your job here is to help the Candidate explore her own ideas fully before looking at the slide.

•On a practical note, these are the most critical metrics for many distribution facilities. This data should be helpful for similar cases in the future.

IntroIntroFactsFacts

(Tell(Te lthetheCandidateCandidateififAsked)Asked)

•Ownership – Each location is “owned” by

•Ownership – Each location is “owned” by

the Regional VP, a company employee with the Regional VP, a company employee with incentive compensation consisting of 75% incentive compensation consisting of 75%

from regional performance and 25% from from regional performance and 25% from

overall corporate performance. An overall corporate performance. An

additional bonus is available to the top 5 additional bonus is available to the top 5

performing regions. performing regions.

•Sales force – Each distribution site is

•Sales force – Each distribution site is

responsible for generating sales near the responsible for generating sales near the

site with grocery chains, restaurants and site with grocery chains, restaurants and

wine and spirit retailers. wine and spirit retailers.

•Regions – There was little planning around

•Regions – There was little planning around

how each region was developed; the how each region was developed; the

Regional VP determined most of the Regional VP determined most of the

regional locations according to his/her regional locations according to his/her

preferences.

preferences.

•Information sharing across regions –

•Information sharing across regions –

Distribution centers are encouraged to share Distribution centers are encouraged to share

best practices to increase the overall best practices to increase the overa l performance of the company. performance of the company.

On-Track Indicators

Structures the discussion – directs the conversation into relevant areas

Pulls out insights – does a good job of “connecting the dots” between various topics

Creative – thinks of innovative ways to collect data and measure distribution center performance

KeyKeyInsightsInsights

(Do(DoNotNotTellTe lthetheCandidate)Candidate)

Common Sense Review

Common Sense Review

This case is not complicated, but it does This case is not complicated, but it does

require the Candidate to think clearly about require the Candidate to think clearly about

which metrics will have the most impact. which metrics wi l have the most impact.

There is not enough information to draw There is not enough information to draw

statistical significance between each metric statistical significance between each metric

and the bottom line performance, but some and the bottom line performance, but some

metrics do appear to be more important than metrics do appear to be more important than

others.

others.

4 Key Metrics

4 Key Metrics

These four metrics have the biggest impact on These four metrics have the biggest impact on

performance: inventory turns, limiting the performance: inventory turns, limiting the

number of SKU’s, route density and relative number of SKU’s, route density and relative

market share (RMS). Sites that are the bottom market share (RMS). Sites that are the bottom

performers tend to perform much worse on performers tend to perform much worse on

these. Since you start off with a discussion these. Since you start off with a discussion

first, see how the Candidate’s initial thoughts first, see how the Candidate’s initial thoughts

compare to the final answers. compare to the final answers.

Off-Track Indicators

Sticks on one topic too long – this is a wide open question that requires discussion in multiple areas

Avoids data – talks a good game about metrics, but has no idea how to build them or interpret them

Thinks of impractical solutions – wants to review metrics that are difficult to collect

Case at a Glance

Pack: 001 page 8 of 20

Candidate

Questions &

Answers

Candidate takes notes, asks for a minute, forms a plan and presents it.

Look for clear connections between each part of the plan and an understanding of how each part contributes to the whole. Look for solid logic on how this plan will get some answers.

Data &

Answers to

Provide

See Intro Facts on the Interviewer Fact Sheet. Also review potential questions on the Mine for the Answer sheet (p. 18).

No handouts yet. Ask questions about her approach.

Guide the discussion through the brainstorming and the handout. Metrics as a topic come up all the time in business. Here is a chance for your Candidate to think

4through the kind of metrics that matter most to a distribution site. After talking about the metrics, hand out some performance data. This is all the information that the Candidate needs to do well on the case.

Ask for a recommendation at the

5end. Gauge whether it is data driven and based on

the facts of the case.

•Options going forward should reference the data from the case.

•The Candidate should be looking for ways to gather more detailed data and want to confirm with rigor that these numbers are correct.

•There may be other metrics that could be measured that would be even more meaningful, like the experience of the distribution site leader.

Pack: 001 page 11 of 20

Pack: 001 page 12 of 20

Interviewer Feedback

Pack: 001 page 13 of 20

6. You drove the case.

12

Clearly in control, you took the case to a conclusion

Analytics

7. You analyzed the data well on a piece by piece basis.

8. You integrated data well and reached insights (saw the big picture).

Recommendation

9. Your final recommendation was to the point and data driven.

10. You were persuasive in making your final points.

Total Score:

(10-60)

Before giving your score, have the candidate do the Self Assessment at the back of the case pack. What can you tell the candidate that will help him or her prioritize his prep going forward?