...Chaturvedi Assignment Questions for the case: 1. What is the basis for the success of the Dabbawallahs of Mumbai? What factors need to be in place for a service like the Dabbawallahs to work effectively? Basis for the success of the Dabbawallahs of Mumbai is that they were all working for a single purpose of delivering a dabba in time for the customer’s lunch. Several distinctive and supporting success factors include: Dabbawallah Profile. • All the dabbawallah were from the same geographical area and spoke the same language. This gave a kind of cultural profile to the Trust and high degree of cohesion amongst each other. • High disciplined staff to ensure timely delivery. No strikes reported so far. • Each dabbawallah considered themselves as entrepreneur and not employee which led to the high level of ownership and cohesive environment to work in. Decentralization • Each group was responsible for the smooth functioning of the day to day activities entirely independent of the trust. • There were no centralized records of incomes and expenses for group clients, dabbawallah or Mukadams. • Decentralization had been instrumental to building cohesion within each group, and operational autonomy helped to provide focus on delivery effectiveness and improvement. Perceived Equality • Each Dabbawallahs in the group earned equal remuneration; irrespective of the seniority and the amount of time and effort put. • This system was leveler that helped forge equal relationships...
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...Plant Manager (5th largest FemCare Plant in P&G) Education: • MS in Mechanical Engineering (speciality Chemical Engineering) Experiences in P&G : • • Worked in Germany, USA, Turkey, Ukraine • Manufacturing, Logistics & Warehousing, Global Planning • BabyCare & FemCare 3 4 Purpose • To expose you to current trends and thinking on Logistics & Supply Chain Management • To share with you some of P&G’s experiences and thoughts 3 5 Agenda • 4 Laws of Logistics • Business Cases • Communication 3 6 Two Moments of Truth for the Consumer When she chooses and when she uses 8 European consumer behavior facing Out-of-Stock in store Retailers and manufacturers loose when a consumer faces an empty shelf 30 % lost opportunities for Retailer Returns later 17% Buys brand elsewhere 21% 46% lost opportunities for Manufacturer Buys different size 16% Doesn't buy anything 9% Buys a different brand 37% 4 billion Euro of lost sales in Europe! 9 Supply Chain Management Supply chain management can be defined as the management of upstream and downstream relationships with suppliers, distributors and customers to achieve greater customer valueadded at less total cost”. “ 3 10 Mission of Supply Chain/Logistics Get your product to the consumer at the lowest possible cost & cash 11 What are Supply Chain “Laws” ? Material Supplier Manufacturing Distribution Retail Customers Supply Chains conform to...
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...Logistics Management “Logistic is the process of planning, implementing and controlling the efficient, effective flow of goods storage of goods, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements” Logistics exists to satisfy customer requirements by facilitating relevant manufacturing and marketing operation. The main responsibility of logistic is the geographical positioning of raw materials, work in process and finished inventories at the lowest possible cost. Creating logistics value is costly. Logistics accounts for one of the highest costs of doing business. Logistics expenditure normally ranges from 5% to 35% of sales depending on the type of business. Thus logistics even though very important for any business success is expensive. VARIOUS DEFINITIONS OF LOGISTICS MANAGEMENT Logistic management encompasses all materials flows management, from the inflow of purchased materials into works (i.e. materials planning of raw materials components and other products, transport of materials from suppliers to works, receiving and inspection and storage of materials) materials flow through manufacturing processes (i.e. materials issues and materials handling) and material (flow to customers (physical distribution (Refer fig.1 for these relationships) Materials Logistics physical distribution Management Management Fig.1 (Relationship between logistics and other)...
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...Ford Value Chain: The graphic above illustrates the major stages of our value chain and identifies key impacts, stakeholders, and examples of value we create at each stage. The value chain assessment was revised and updated for the 2013/2014 report as part of the “materiality analysis” which prioritizes the most significant issues in Ford’s value chain. (Circled in red are the areas in which Ford sees as most significant in adding value) http://corporate.ford.com/microsites/sustainability-report-2013-14/blueprint-value.html (Ford value chain and its impacts) Each link in a value chain consists of a bundle of value activities, performed by a firm to “design, produce, market, deliver and support its product”. ‘Value activities are the discrete building blocks of competitive advantage’. The value chain of the Ford Motor Company is comparable to that of competing manufacturers in the automobile industry. Many years of increased arbitrary demands on suppliers has led to poor supplier relations and so the 100 year-old company is taking a new approach to reinvent its’ value chain. ------------------------------------------------- Porter, M., “Competitive Advantage: Creating and Sustaining Superior Performance”, Free Press, New York, and Collier Macmillan, London, 1985; 2nd edn, Free Press, London and New York, 19 References Automotive Industries. Norman Martin. April, 2005. December 2007. Ford Wages War on Waste. http://findarticles.com/p/articles/mi_m3012/is_6_179/ai_55055336 ...
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...inventory, plus a large direct sales force in more than 170 countries and an unpredictable sales cycle, effective supply chain management is critical for continued growth. Whirlpool has not always considered logistics a competitive advantage. However, since naming Penske as lead logistics supplier, Whirlpool experienced cost savings, increased customer satisfaction and found a partner to help integrate the recent acquisition of Maytag. Whirlpool as its single logistics provider for the Quality Express network. Penske was responsible for the logistics of the entire network, including managing the relationship of the two regions it subcontracted. This Penske-Whirlpool partnership replaced Whirlpool’s previous logistics solution, comprised of two incumbent third-party logistics providers. The partnership accomplished Whirlpool’s early logistics objectives, most notably, to establish effective processes and procedures, allow for more visibility of the company’s distribution network and reduce supply chain costs. Recently, Whirlpool’s management took a more customer-centric approach to analyzing its supply chain and began benchmarking its supply chain against other companies to identify “best in class” practices. This exercise prompted Whirlpool to question whether having a single logistics provider was the best structure to exceed customer expectations and maximize cost savings. At the...
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...PAMANTASAN NG LUNGSOD NG MAYNILA (University of the City of Manila) Intramuros, Manila COLLEGE OF BUSINESS AND MANAGEMENT In Partial Fulfilment of the Requirement for the Degree of Bachelor of Science in Business Administration Major in Human Resource and Operations Management, Marketing Management Submitted to: Prof. Christopher Malanum Submitted by: Acuna, Charzel R. Alcoran, Rachelle Anne K. Aquino, Patricia Mae Ann E. AUGUST 2015 Part 1: Channels of Distributions Channels of Distribution Few producers sell their goods directly to final users. Instead, most use intermediaries to bring their products to market. According to Philip Kotler, distribution channel is a set of interdependent organizations that help make a product or service available for use or consumptions by consumer or business user. Here are some definitions from different websites: Goods and services often pass to consumers through multiple channels. While increasing the number of ways in which a consumer can find a good has the potential to increase sales, it also creates a complex system that can make distribution management difficult. In addition, the longer the distribution channel the less profit a product manufacturer might get from the sale. (Distribution Channel Definition| Investopedia http://www.investopedia.com/terms/d/distribution-channel.asp#ixzz3jhyoJ8Pg) The path through which goods and services travel from the vendor to the consumer or payments for those products travel...
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...CONTENT Introduction – IKEA’s background……………3 IKEA’s Supply Chain Analysis……………….3-4 IKEA’s Logistics Activities……………………4-6 IKEA’s Internal Environment…………………6-7 IKEA’s External Environment…………………8 Problems and Solutions……………………….8-10 Conclusion…………………………………….11 References…………………………………….12 Introduction Since first founded in 1940s, with its mission statements to “create a better everyday life for the many people”, IKEA’s business idea has achieved great success. In this report, we would mainly focus on IKEA’s logistics function, We begin by analyzing IKEA’s supply chain, adopted strategy, the internal and external environment. Second, we investigate into IKEA’s logistics operations. At the last part, we discuss the problems of business and logistics aspect IKEA faces, and give our advices to solve them. IKEA’s Supply Chain Analysis For the IKEA’s supply chain, it includes suppliers, manufacturers, retailers and customers. Firstly, IKEA has thousand amounts of suppliers provide raw materials and components for the manufacturing acticities globally. It also has cooperation with a number of suppliers as joint owners or financiers in Poland, Slovakia, Russia and China such as Konakovo factory (Russia) providing four different items for IKEA’s Moscow store, Priozersk factory (Russia) providing five different chair models, RPOFIm (Poland) providing three different types of office chairs etc. This can ensure the continuous flow of manufacturing services...
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...Warehouse Warehouse is a primary link between producers and customers. It is a part of a firm's logistics system that stores products at and between point-of-origin and point-of-consumption. Besides, warehouse provides information to management on the status. Adidas uses leased warehouse. Adidas can have the advantage of short-term space rental while using it like a private warehouse (Lambert, Stock & Ellram 2006). When Adidas took over sporting brands Reebok and Rockport. They wanted to take chance of the efficiencies and synergies that could be achieved by consolidating inventory from five key brands, which are Adidas, Reebok, Taylor Made, Rockport and Ashworth. On the other hand, Adidas’s Northern European operations, who serve and lead retailers in the UK, Ireland and Benelux was split between four conventional warehouses by using different systems and processes with the overspill being handled by third parties. According to Total Logistics’ recommendation, they develop a concept for a 30,000 m^2 fully automated facility. This was implemented in just 18 months, including the implementation of a new warehouse management system. The procedures took into account the current requirements of all five brands. This bought out the new facility layout and requirements and the overarching Adidas warehouse management system requirements (Total Logistic 2014). Transportation Adidas is one of the global leaders in the sporting goods industry. However, Adidas needs transportation...
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...The corporate strategy of fedex corporation Executive Summary This analysis of the corporate strategy of FedEx Corporation relates to three specific issues in the corporate strategy case. The first issue is a critical analysis of the global express transportation and logistics industry. The second issue discusses about the mergers and acquisitions in transportation and logistics industry. The final issue is a critical review of the performance of FedEx in the events leading to the January 2000 reorganisation. In the first section, the global express transportation and logistics industry is an attractive sector based on the fundamentals of the sector given in the five forces analysis using Porter's framework. There are large barriers to entry, there are minimal substitutes that exist, industry is relatively disciplined, and the power of buyers and suppliers are mixed. FedEx is well placed in the sector given its core competencies and dynamic capabilities relating to its management and the functional areas of marketing, human resources and information technology and systems. In the second section, gives a brief knowledge about the benefits and limitations of merger and acquisition strategies in this industry. This also describes how effective was the 1998 Caliber System acquisition and where did it led the company do in its further years. In the final section, it is noted that FedEx performed poorly within its sector and given its capabilities, the firm was expected to have...
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...group. H&M’s strategy has been developing along: • expansion, through the set up of a proprietary distribution network of centrally controlled stores • price-competitiveness and profitability, through very efficient management of production and logistics • very short lead times which ensure quick response to market trends and reduction of stocks H&M was a pioneer in pursuing a strategy of vertical integration with the distribution network. This strategy has allowed the company to directly collect and fully exploit information about sales and consumers in order to improve and accelerate response to the market Case characteristics • Sector focus Clothing • Business focus Large company • Geographical focus Worldwide Case objectives • Supply chain integration ÆÆÆÆ • Integration of internal processes ÆÆÆ • Integration of extended enterprise ÆÆÆÆ Æ = some relevance for case; ÆÆÆÆ = high relevance Background and objectives H&M is well known for being a successful and expansive company, both in terms of market and of financial performance. The company’s strategy is carried out along the lines of continuous expansion and search for most promising markets, cost-efficient production of goods, and reduction of lead times. H&M is also an example of competitive advantages brought by integrated e-business solutions. Procurement and logistics can track sales and stock status as, owning the stores, they share a common 1 This case study was conducted by...
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...Principle 1: Segment customers based on the service needs of distinct groups and adapt the supply chain to serve these segments profitably. Segmentation has traditionally grouped customers by industry, product, or trade channel and then taken a one-size-fits-all approach to serving them, averaging costs and profitability within and across segments. The typical result, as one manager admits: "We don't fully understand the relative value customers place on our service offerings." But segmenting customers by their particular needs equips a company to develop a portfolio of services tailored to various segments. Surveys, interviews, and industry research have been the traditional tools for defining key segmentation criteria. Today, progressive manufacturers are turning to such advanced analytical techniques as cluster and conjoint analysis to measure customer tradeoffs and predict the marginal profitability of each segment. One manufacturer of home improvement and building products bases segmentation on sales and merchandising needs and order fulfillment requirements. Others are finding that criteria such as technical support and account planning activities drive segmentation. Viewed from the classic perspective, this needs-based segmentation may produce some odd couples. For the manufacturer in Exhibit 1, "innovators" include an industrial distributor (Grainger), a do-it-yourself retailer (Home Depot), and a mass merchant (Wal-Mart). Research also can established the services...
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...1 Retail logistics: changes and challenges John Fernie and Leigh Sparks It is often taken for granted that products will be available to buy in the shops. The cornucopia of goods that is available in a hypermarket or a department store sometimes means that we forget how the products were supplied. We expect our lettuces to be fresh, the new Playstation to be available on launch day and our clothes to be in good condition and ready to wear. With the introduction of e-commerce we have come to demand complete availability and home delivery at times of our choosing. Consumer beliefs and needs have altered. Our willingness to wait to be satisfied or served has reduced and we expect instant product availability and gratification. It should be obvious from this that the supply or logistics system that gets products from production through retailing to consumption has also needed to be transformed. Physical distribution and materials management have been replaced by logistics management and a subsequent concern for the whole supply chain (Figure 1.1). This logistics transformation derives from cost and service requirements as well as consumer and retailer change (see Fernie, 1990; Fernie and Sparks, 1998). Elements of logistics are remarkably expensive, if not controlled effectively. Holding stock or inventory in warehouses just in case it is needed is a highly costly activity. The stock itself is expensive and might not sell or could become obsolete. Warehouses and distribution...
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...Company Name: 1.0 Introduction The Council of Supply Chain Management Professionals (CSCMP) defines logistics as the process of planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods including services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. This definition includes inbound, outbound, internal, and external movements. Inbound Logistics It is important for companies to have total visibility of their inbound logistics function. If the logistics management can see which inbound deliveries are arriving they can schedule the correct resources to be available at the correct times so that materials are unloaded in a timely fashion without causing a bottleneck at the receiving dock. The inbound logistics process in SAP starts when purchase orders are processed at the vendor and an advanced shipping notification (ASN) is sent back. When an ASN is received this can trigger an inbound delivery to be created in SAP. The delivery will contain information on the vendor, the items, quantities to be expected and the delivery details. The delivery monitor is used to display and process open and completed deliveries. It is a single list that is easily reviewed. It shows deliveries that are due for picking or putaway and creation of transfer orders, deliveries for which picked quantities or putaway stocks need to be confirmed...
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...EVENT MANAGEMENT HANDBOOK 1 Background This handbook has been developed by a team of staff from partner institutions including Varna Free University “Chernorizets Hrabar” VFU (Bulgaria), Fundacion Universidad Empresa Region De Murcia (FUERM), Spain, Klaipeda Business and Technology College (KBTC), Lithuania and Liverpool John Moores University, United Kingdom. Each has taken advice and guidance from both academic and industrial bodies in the development of such. The handbook assists with the updating and development of staff involved in the Organisation, Planning and Implementation of Events. Authors: Asta Beloviene is a Dean of Business Faculty has great experience in management of education process, communication between different levels of training and social partners. Remigijus Kinderis is a Lecturer of Tourism Administration Department, Director of the hotel “Pajuris “ in Klaipeda, author of various tourism feasibility studies and projects. Phil Williamson (FHEA, MSc Events, Cert Ed, DMS, BA) is a Senior Lecturer in Events Management. 12 years experience of delivering to undergraduate, postgraduate, industry. Phil’s practitioner experience was with leading UK commercial event organisations. Tilcho Ivanov (Prof. Dr is a Professor in Branch Economics and Management and Economic Analysis at the University of National and World Economy and Varna Free University “Chernorizets Hrabar”. He has more than 30 years of experience in different economic sectors. Carmen Anton Ortin...
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...Global Value Chain Logistics Case Analysis Patricia West GEN 483 – GLOBAL VALUE CHAIN MANAGEMENT David Fogarty – Faculty June 9, 2008 Global Value Chain Logistics Case Analysis Laura Ashley, founded in 1953 by Bernard and Laura Ashley when they began printing textiles on the kitchen table of their London attic flat, was a specialty retailer, primarily of upscale women’s fashions, fabrics, and home furnishing products. The company was known for products that typified the tradition of English rural life. LA segmented its market in terms of customer lifestyles. As opposed to many of its competitors who targeted specific demographic or age groups, LA offered styles that would be appropriate for a customer from an early age to an older age. In 1990 LA appeared to be growing with 481 retail stores throughout the world a label that was well known. However, despite the continued success the sales went up, profits were flat, and capital employed rose out of control and Andrew Higginson felt all the problems were internal. The fundamental weaknesses in the LA supply chain were overdependence on in-house manufacturing, significant currency exposure, working capital intensity, excessive short-term dept, and rapid cash outflow. Information technology investments lagged growth and, where systems did exist, they were totally inadequate. In 1990 the LA company made changes to the supply chain using a worldwide network of third party product sources, limiting company-owned...
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