A Dissertation On The Expansion And Success Of Hu Friedy - Bmgt - Essay

831 words - 4 pages

Hu Friedy
BMGT 372 Sec SG92
February 25th 2019
Joshua Briggs
Professor Richard Hutchins
When you are in the chair at the dentist office, you usually never get a glance at the middle of the
thin, aluminum colored tool in your dentist’s grasp. If you did, you would see the word
Hu-Friedy ​in the middle. Hu-Friedy Mfg Co. LLC, is the long version of Hu- Friedy, a moniker
created by the original founder Hugo Friedman. Friedman’s first two letters of his first and last
name stood on the front of his small boutique in Chicago in 1908. In 1959, now emeritus to the
organization, Richard Sanslow acquired the company expanding it to a world class dental
company and brand. The company also has offices and distribution centers in 30 countries across
the United States as well Europe, Japan & Latin America. Hu-Friedy has a monopolization in
this industry servicing 97% of dental schools. These reasons alone peaked my interest out of the
other companies at display to review their issues of transportation and logistics. In 2016, global
procurement manager Luke Durand reviewed the company's annual budget and was amazed at
the high amount of expenses for the transportation of company goods concerning their Illinois
locations. A lot of these goods happened to be finished goods ready for distribution, yet after
further reading, there were expenses of unfinished goods as well. Due to its large volume of
merchandise being handled annually, Durand questioned if it would be more profitable to enter
in a long contract with a dedicated carrier, manage the delivery service themselves or hire a 3rd
party logistics provider. In this case, to alleviate the $ 200,000 of annual expenses I analyzed
each of the locations of the manufacturing plants which Hu-Friedy operated, in Chicago and Des
Plaines, Illinois. Each location had a campus own by Hu-Friedy servicing its final distribution
activities. Hu-Friedy has a total of 14 suppliers which are contracted for specific items to be
shipped to their locations. When analyzing, I came upon the fact several businesses were
dropping off materials used in the finished goods processing of the merchandise at other
locations before they were transported to either campus. Along with this information, several
companies actually transported goods in which another company was capable of transporting. I
also analyzed all of the company’s frequency of shipping, size of materials, drop off location,
annual costs, unit cost per trip, as well as their destination if being dropped off at anot...

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