Case Notes/Answers
ELIZABETH ARDEN EXECUTING GLOBAL SUPPLY CHAIN
RE-ENGINEERING by David Wood Norman Gao
Discussion Questions:
Typical questions to assign to students in advance:
1. Analyze the differences between the current supply chain and the proposed turnkey strategy. What
will the change mean for suppliers and their roles? What will it mean for current employees and their
roles?
2. Calculate the total financial impact for the re-engineering effort. What does this mean for Elizabeth
Arden and its shareholders?
3. Assuming the role of Pierre Pirard, what would you do and why?
The following materials could be assigned as readings for students prior to class:
1. Thomas Choi and Tom Linton, “Don’t Let Your Supply Chain Control Your Business,” Harvard
Business Review, December 2011
2. P. Fraser Johnson and Michiel R. Leenders, “Minding the Supply Savings Gap,” MIT Sloan
Management Review 51.2, Winter 2010, accessed on August 6, 2013.
Additional questions to be asked during class:
1. Given Elizabeth Arden’s current business situation, how would you rate Pierre Pirard’s
performance in his new role as senior vice-president of the Global Supply Chain?
2. What do you think of the proposed turnkey strategy?
3. Given the changes to the supplier network, how should the consolidation of suppliers be
approached?
4. Considering the change to the employee processes, should the organizational structure change, and
if so, what should the new structure look like?
5. Based on your analysis, how should Elizabeth Arden’s global supply chain re-engineering unfold?
6. What is the financial impact that Elizabeth Arden will realize through the re-engineering effort, and
how significant will the financial improvements be for its shareholders?
, W13479
Teaching Note
ELIZABETH ARDEN: EXECUTING GLOBAL SUPPLY CHAIN RE-
ENGINEERING
SYNOPSIS
In mid-2008, Pierre Pirard, senior vice-president of Global Supply Chain at Elizabeth Arden in New York
City was troubled with the challenges that lay before him. Less than a year after joining the company,
Pirard had already made a significant impact in forecasting, inventory control and service performance. He
had been hired to make sweeping changes to how Elizabeth Arden managed the supply chain, and his next
move would require a radical consolidation of suppliers, make dramatic changes to inventory management,
have a far-reaching impact on product development and require major lead time reductions. Given such a
disruptive move, could current suppliers be able to meet his expectations? Could the company’s current
employees keep up with the pace of change expected? And were significant results to shareholders really
achievable? Pirard was determined to execute the re-engineering in a manner that would best address all
these concerns.
This case is designed for use in a single 80-minute strategy, global operations management, supply chain
or change management course for senior undergraduate or MBA students.
TEACHING OBJECTIVES
This case provides students with the opportunity to understand the application of several key operating
concepts:
1. Executing operations strategy (connecting detailed execution decisions to an operating vision or
concept).
2. Managing supply chain innovation (handling complex disruptive changes to supplier networks).
3. Restructuring organizational design for change (aligning organizational structure to manage complex
operational changes).
ELIZABETH ARDEN EXECUTING GLOBAL SUPPLY CHAIN
RE-ENGINEERING by David Wood Norman Gao
Discussion Questions:
Typical questions to assign to students in advance:
1. Analyze the differences between the current supply chain and the proposed turnkey strategy. What
will the change mean for suppliers and their roles? What will it mean for current employees and their
roles?
2. Calculate the total financial impact for the re-engineering effort. What does this mean for Elizabeth
Arden and its shareholders?
3. Assuming the role of Pierre Pirard, what would you do and why?
The following materials could be assigned as readings for students prior to class:
1. Thomas Choi and Tom Linton, “Don’t Let Your Supply Chain Control Your Business,” Harvard
Business Review, December 2011
2. P. Fraser Johnson and Michiel R. Leenders, “Minding the Supply Savings Gap,” MIT Sloan
Management Review 51.2, Winter 2010, accessed on August 6, 2013.
Additional questions to be asked during class:
1. Given Elizabeth Arden’s current business situation, how would you rate Pierre Pirard’s
performance in his new role as senior vice-president of the Global Supply Chain?
2. What do you think of the proposed turnkey strategy?
3. Given the changes to the supplier network, how should the consolidation of suppliers be
approached?
4. Considering the change to the employee processes, should the organizational structure change, and
if so, what should the new structure look like?
5. Based on your analysis, how should Elizabeth Arden’s global supply chain re-engineering unfold?
6. What is the financial impact that Elizabeth Arden will realize through the re-engineering effort, and
how significant will the financial improvements be for its shareholders?
, W13479
Teaching Note
ELIZABETH ARDEN: EXECUTING GLOBAL SUPPLY CHAIN RE-
ENGINEERING
SYNOPSIS
In mid-2008, Pierre Pirard, senior vice-president of Global Supply Chain at Elizabeth Arden in New York
City was troubled with the challenges that lay before him. Less than a year after joining the company,
Pirard had already made a significant impact in forecasting, inventory control and service performance. He
had been hired to make sweeping changes to how Elizabeth Arden managed the supply chain, and his next
move would require a radical consolidation of suppliers, make dramatic changes to inventory management,
have a far-reaching impact on product development and require major lead time reductions. Given such a
disruptive move, could current suppliers be able to meet his expectations? Could the company’s current
employees keep up with the pace of change expected? And were significant results to shareholders really
achievable? Pirard was determined to execute the re-engineering in a manner that would best address all
these concerns.
This case is designed for use in a single 80-minute strategy, global operations management, supply chain
or change management course for senior undergraduate or MBA students.
TEACHING OBJECTIVES
This case provides students with the opportunity to understand the application of several key operating
concepts:
1. Executing operations strategy (connecting detailed execution decisions to an operating vision or
concept).
2. Managing supply chain innovation (handling complex disruptive changes to supplier networks).
3. Restructuring organizational design for change (aligning organizational structure to manage complex
operational changes).
