Robin Kovitz (MBA 2007) acquired Baskits, a Canadian gift basket company, in October of 2014. The business was highly seasonal with two-thirds of its sales occurring in November and December. Baskits dealt with its seasonality by renting additional space at a different location and hiring part time employees in the peak season while operating in a smaller space and with fewer full time employees in the off peak season.
Kovitz experienced firsthand the inefficiencies resulting from operating in two locations, inefficiencies that were exacerbated by the lack of an information technology system. She realized that operating from a single larger location year-round would resolve these inefficiencies. She also viewed an ERP system as critical to control costs through better management of purchase orders and inventories. Kovitz had to decide whether, and how quickly, to implement these changes.
Keywords: Operations; Canada;
Citation:
Ruback, Richard S., Royce Yudkoff, and Ahron Rosenfeld. "Baskits Inc." Harvard Business School Teaching Note 220-086, May 2020. View Details