Scotts Miracle-Gro Case Study Analysis Of A Business

Due to the nature of lawn and garden care, ePowerCenter best accommodates Scotts’ seasonal growth, allowing the consumer affairs team to scale their agents—from 30 to 140, depending on the time of the year—with easier training.

ePowerCenter saves Scotts time and resources by providing them with easy access to all product information. This ease of access also empowers consumer affairs agents with the tools they need to help drive customer loyalty by focusing on the complex, immediate needs of the consumer, handling 600,000 cases annually.

The flexibility and integration capabilities of the system allow smoother brand acquisition and product additions. ePowerCenter’s dynamic field configuration tools enable the Scotts consumer affairs team to make changes to the system without requiring an expensive and complicated IT support process.

Additionally, the team is seeing faster quality control in identifying “complaints per million” metrics, thanks to the CRM’s reporting function that Scotts uses to guide consumer affairs, quality, and supply chain.

“Our seasonal nature was one of the reasons why we selected ePowerCenter. There is so much information that agents need to access to best serve our customers, and we just don’t have the time or resources to train on all of that information on a seasonal basis. We needed a system that would be both easy to train on and allow access to all of our product information.”
– Lisa Taubler, Consumer Affairs Director

Scotts Miracle-Gro: the Spreader Sourcing Decision Essay

3493 WordsJun 2nd, 201114 Pages


Introduction This paper provides a case analysis and case solution to an Ivey School of Business case study on Scotts Miracle-Gro, the biggest company in North America’s lawn and garden industry and the world’s leading supplier and marketer of consumer lawn and garden care products (Gray & Leiblein, 2008, p. 1). The time setting for the case is the summer of 2007. The case focuses on questions about where to optimally locate Scotts’ manufacturing operations for its fertilizer spreaders. Based in Marysville, Ohio and with a history dating back to the 1868 founding of the Scotts Company, the contemporary Scotts Miracle-Gro Company was created by a…show more content…

As indicated by the table on the following page, there are significant differences between the estimated first year costs at a Chinese contract manufacturer versus the Temecula plant. The Chinese building cost of $200,000, is just 6.6% of the $3,000,000 annual lease on the Temecula facility. The current Chinese cost per kilowatt of 6.5 cents is just 35% of the current California rate of 18.5 cents per kilowatt. It is not possible from the information provided in the case to estimate actual cost differences, since no data are provided on total energy requirements or usage. In assessing the difference in energy costs, however, it is important to consider the likelihood that the Chinese plant will be less energy efficient than the California plant, which will to some extent offset the lower electricity rates (Kumar & Koptizke, 2008, p. 107).
Annual Cost Estimates, Temecula versus Chinese Manufacturer
|COST Factor |TEMECULA |Forecast |CHINA |Forecast |China v. |
| |Cost $ |Change % |Cost $ |Change % |Temecula |
| | | | |

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