Essay About Haus Mart And Associated Risks

Haus Mart 1980
Exel started working with Haus Mart in 1980. Haus Mart is the leading German retailer for home textiles and home accessories. 70% of their sales come from brand name while 30% comes from private label. Exel is the world’s largest provider of freight management and contract logistics services. There is currently an opportunity for Exel to potentially move into Joint Planning for Haus Mart and other clients and I believe they should take advantage of this chance. Exel would be able to provide improvements to Haus Mart’s supply chain and could implement economies of scale and efficiencies that Haus Mart is not actively applying. The issue is that moving into Joint Planning has some associated risks. While Exel has an in-depth understanding regarding Haus Mart’s supply chain, they have never done any of the actual planning for a client before so they have no experience. Their clients may also expect or require Exel to invest in their company if they begin to plan, which would be risky. Another risk to this is that if Exel fails or makes a mistake they could lose not only their client but also their reputation among other potential clients. Though they may face a learning curve when first attempting supply chain planning, I believe moving into this new area would be in both companies’ best interests. Because Exel has been working with Haus Mart for so long, they know the business well and are aware of the opportunities for improvement. Exel can help Haus Mart’s current supply chain planners remove any disorganization. They can help them to make better decisions and conduct research about new potential business chances. Exel has solid problem solving skills and learning capabilities and I believe they have a strong chance of succeeding with Haus Mart and any other clients in the future.