...Barilla - Supply Chain Inventory Management Barilla TABLE OF CONTENTS EXECUTIVE SUMMARY 3 ISSUES IDENTIFICATION 3 ENVIRONMENTAL AND ROOT CAUSE ANALYSIS 3 ALTERNATIVES AND/OR OPTIONS 3 RECOMMENDATION AND IMPLEMENTATION: 3-4 Executive Summary: In an attempt to control inventory swings, reduce costs, and improve sales we have introduced the JITD initiative. This initiative has been a failure from the beginning and there is no point salvaging it. We need to abandon the JITD initiative and focus on a new strategy that seems like a more logical and promising approach. Issues Identification: The issue is that distributors and Barilla’s sales team do not support the just-in-time distribution (JITD) initiative. Due to the following reasons: • JTID is a more costly approach to manufacturing pasta because the plants cannot maximize the efficiency of their kilns. • Distributors o strategies vary o Lack sophistication when it comes to technology and forecasting. o Do not want to give a brand they carry so much leverage over their business • Sales staff o Are no long able to offer trade promotions o Are worried their job will become obsolete o Are worried their customers will start pushing Barilla’s competitors brands because they have excess stock of those products Environmental and Root Cause Analysis: Barilla is a profitable business that is simply looking to enhance the...
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...purchasing and supply chain management in an organization. Over the years, the role of purchasing and supply chain in an organization has continued to evolved, changed, and developed in response to changes witnessed in business environment. The increasing numbers or world-class competitors in local and international trades are a direct driver of increase in purchasing and supply chain roles and demands. Many management scholars have defined the notion and significance of supply chain management in detail across the globe. Many times, theoretical definitions of what purchasing and supply is are provided. But This term paper will firstly, suggest that purchasing and supply chain management is a developing field that constantly changed based on happenings in business environment. And secondly, suggest that individual firms’ purchasing and supply chain is base on such firms’ type of business, size, and mission. Evolution of supply chain management. Supply chain management involves the management of all activities in order to satisfy the ultimate consumer. It covers almost all business activities, including marketing, manufacturing (or service provision) purchasing, logistics and arguably is an all-inclusive concept that create a world-class culture and continue economic development. (Quayle, Michael 2006) In a nutshell, purchasing and supply chain management is a series of interwoven activities that cut across every departments of on organization. Purchasing and supply chain managements’...
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...| Issue 6 Omni-Channel Supply Chain: From Backend to Forefront Foreword Pratik Pal President & Global Head Retail, CPG, Travel, Transportation & Hospitality Welcome to the sixth edition of Forum, the TCS Retail Thought Leadership journal. In this issue, we present our perspective on the changes shaping the supply chain of tomorrow. Retailers all over the world are making the transition from multichannel to omni-channel. The key to delivering the ‘order anywhere, fulfill anywhere’ promise is the supply chain. Supply chain is poised to become the key influencer of the interconnected customer experience. Based on my interactions with leading retailers across the world, it is my view that the battle for omni-channel supremacy will be fought and won on the grounds of supply chain. Retailers across the world are focused on re-architecting and recalibrating their supply chains while maintaining the delicate balance between customer experience and profitability. While earlier, significant investments were directed toward digital customer engagement, in the times ahead, investments will predominantly focus on supply chain re-imagination. In this edition, we discuss the prominent challenges and the response needed across key areas spanning the entire value chain as well as the building blocks for enabling omni-channel supply chain. The ‘plan-buy-make–move–sell’ value chain is no more linear. While the ’sell’ component of the value chain can now be executed by any...
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...------------------------------------------------- OF Operation management ON (SUPPLY CHAIN MANAGEMENT PRACTICES OF VARIOUS RETAIL CHAINS) TERM PAPER MORE FREE TERM PAPERS ON SITE: www.BesplatniSeminarskiRadovi.com Introduction: Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. It defines SCM as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally." A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Supply chains exist in both service and manufacturing organizations, although the complexity of the chain may vary greatly from industry to industry and firm to firm. Supply chain management is typically viewed to lie between fully vertically...
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...American multinational retailer corporation that runs chains of large discount department stores), has earned its reputation as the largest retailing company in the world. The man behind who started everything and laid down the basic principles and philosophy to be emulated by Wal-Mart people is Sam Walton, who found the company in 1962. Last year, Wal-Mart's annual sales were $350 billion and it had more than 8,500 stores in 15 countries and with over two million employees. It was in the early eighties that, in order to follow their business model based on a low price strategy, Wal-Mart placed heavy emphasis on developing and implementing tight supply chain solutions which has catapulted them not only to the top of the retail channel but into the history books. The four core principles that engulfs the overwhelming success of Walmart are; the focus on the improvement of sales, constantly reducing costs such that they will be able to capitalize on cost saving opportunities to be passed on the customers, the adoption of efficient distribution and logistics management systems to ensure the constant flow of the goods and the use of highly advantageous innovative information technology (IT) tools that makes the operating processes even faster, efficient and up to date. The key for the phenomenal growth of Walmart rely on the emphasis being placed in the customer needs and the reduction of cost through efficient supply management practices as Walmart’s core principles in running...
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...The importance of information sharing in a supply chain for the supplier‘s performance Bachelor thesis: Organization studies, 2nd semester, academic year 2011-2012 Thesis Circle: Time will tell…. A processes perspective on inter-organizational collaboration Name: PC Jansen ANR: 770926 E-mail: P.C.Jansen@uvt.nl The importance of information sharing in a supply chain for the supplier‘s performance Abstract This literature review investigates the effect of information sharing from a buyer to a supplier in a supply chain on the performance of that supplier, with taking in mind that the supplier has to combat the bullwhip effect. With the existence of the bullwhip effect, a supplier cannot make right forecasts and therefore has difficulties in planning its production and/or inventory control. This research shows that information sharing is the key solution to reduce or avoid the bullwhip effect and, by that, it positively influences the performance of the supplier in the chain. Keywords: Bullwhip, supply chain, information sharing, supplier performance, inventory control, single-echelon, multi-echelon Thesis Circle: Time will tell…. A processes perspective on inter-organizational collaboration Supervisor: Remco Mannak Supervisor 2: Annemieke Stoppelenburg Name: PC Jansen ANR: 770926 E-mail: P.C.Jansen@uvt.nl 2 Table of contents Table of contents 3 1. Introduction 4 2. Theoretical Framework ...
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...within the Supply Chain La’Trice L. Watson American Military University Abstract Logisticians continually make strategic level decisions in order to manage uncertainty, customer service and cost. Clients such as manufacturers, raw materials suppliers, distributors, retailers and shippers are provided a service by logistic service providers within the supply chain which makes it necessary to formulate strategies (Davenport, Jarvenpa, & Beers, 1996). Logistics is a part of the supply chain, which plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption to meet the clients’ needs (Butterworth-Heinemann, 2004). A number of logistical strategies exist from company to company, each claiming to be more efficient, faster, and better than their competitors. Any logistical strategy should contain some common components that supports the company’s overall logistics strategy (Waters, 2003). An effective strategy can be established for any logistical situation utilizing these four components: Agile logistics, lean management, a good relationship with vendors and effective technology systems. Logistical Strategies within the Supply Chain Because supply chain strategy depends on the type of supply chain a company uses, the type of functional strategies chosen should complement the type of supply chain that the...
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...Key Supply Chain Performance Indicator Paper Danny Shieh ISCOM/370 March 31th, 2012 Leon Powell Key Supply Chain Performance Indicator Paper The success of a company can often be represented by its performance of the supply chain element. Such performance is measured to ensure the flow and process of each element is accurate and up to standard based on the company’s goals and objectives. In this paper, author will first define supply chain and its elements, then define the meaning and importance of key performance indicators. Lastly, Author will explain three example indicators, how it is calculated, and what the number means. Supply Chain Management Supply chain management (SCM) is defined as managing the flow of information and materials from upstream suppliers to downstream customers. The Institute for Supply Management’s definition states that “Supply chain management is the design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer” ("Institute for Supply Management", 2011). The elements of the supply chain are components that made the flow possible. Such element includes supplier, logistics/transportation, purchasing, production, inventory, planning, IT, quality assurance/quality control, and customer. These elements are important to the flow of supply chain as they each contribute a function that worked together...
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...Supply Chain Management Chapter – 5 Level-3 Project Course: BADM 425 – Production and Operations Management Instructor: Professor Tom Martin Report Written by: Raja Vinjamuri (7291237) Firm chosen: Walmart Person Interviewed: Mr. Clay Peltier (Assistant Manager) Report: Before, we discuss about the Supply chain management of Walmart, I would like to clarify their business philosophy, which is to keep prices as low as possible. Even if their margins weren't higher than competitors and in fact very less, they could make up for that in volume. Various factors like Technology combined with flawless Supply chain management, enables them to maintain such low costs. Now let’s see various elements of their supply chain management. The relationships of the firms in Supply chain: Normally any supply chain has a suppliers, manufacturers, distributors, wholesalers and retailers. Though walmart is technically considered as a retailer, in the words of one of its assistant manager of operations, “it is actually a wholesaler with a huge number of its own retail outlets”. Because Walmart supply chain has so many suppliers, as they sell a wide range of products they tend to do a lot of “Vertical integration” which is to own a major part of supply chain. Actually, based on types of integration of supply chain, they have various types of stores such as Walmart store U.S, Walmart Discount Stores, Walmart Supercenter, Sam's Club etc. So a supply chain integration connects the flow of work...
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...Operations management can be described as the practice of managing the operating core of a company: the activities related to creation, production, distribution, as well as delivery of the products or service of the company. It focus on controlling and managing the process to manufacture and distribute goods or services, and concern about the responsibility of ensuring operations in business process are effective in the terms of meeting customers’ satisfaction, as well as efficient in terms of consuming as little resources as necessary. The definition of operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs to outputs (Jay Heizer & Barry Render, 2008). It is the function of managing the operating core of an organization: the activities associated with creation, production, distribution, and delivery of the organizations’ goods and service (Kashi Naresh Singh & Rajiy Kumar Srivastava, 2007). In this report, I would like to focus on three strategic decision areas of operations management: Quality, Supply chain management, as well as Inventory. 2 Problem Statement Tesco is one of the most successful retailer companies in the world, and Tesco’s operations strategy has contributed greatly to Tesco’s business processes. It is widely acknowledged Tesco’s operation management is effective and efficient in facilitating Tesco’s business strategy, however, how exactly Tesco’s operations management and strategy...
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...Literature review The concept of Supply Chain Management is based on two core ideas. The first is that practically every product that reaches an end user represents the cumulative effort of multiple organizations. These organizations are referred to collectively as the supply chain. The second idea is that while supply chains have existed for a long time, most organizations have only paid attention to what was happening within their “four walls.” Few businesses understood, much less managed, the entire chain of activities that ultimately delivered products to the final customer. The result was disjointed and often ineffective supply chains. Supply chain management, then, is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities. The organizations that make up the supply chain are “linked” together through physical flows and information flows. Physical flows involve the transformation, movement, and storage of goods and materials. They are the most visible piece of the supply chain. But just as important are information flows. Information flows allow the various supply chain partners to coordinate their...
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...Aligning Supply Chain Strategies with Product Uncertainties Hau L. Lee upply chain management has emerged as one of the major areas for companies to gain a competitive edge. Managing supply chains effectively is a complex and challenging task, due to the current business trends of expanding product variety, short product life cycle, increasing outsourcing, globalization of businesses, and continuous advances in information technology. The Internet has contributed to both the increasing needs and opportunities for improved supply chain management. With the Internet, companies in a supply chain can be connected in real time with information and knowledge shared continuously, new products and services can be designed to fit special market segments, and new supply chain structures can be developed to serve customers in a more direct manner. S When a company faces the pressure of excessive inventory, degraded customer service, escalating costs and declining profits, or a poor return on assets, its supply chain is out of control. On the other hand, when a company moves in to new markets or new technologies, it must have its supply chain prepared for the new business challenges and opportunities. Although there are many new supply chain concepts and fads designed to exploit the advantages of the Internet, successful companies understand that the right supply chain strategy is dependent on a number of factors: ▪ The strategy needs to be tailored to meet specific...
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...Competitive advantage is gained by being the lowest cost competitor or by differentiating. However within supply chains a competitive advantage is gained by reducing costs and increasing responsiveness. Darden utilizes four different supply chains, in turn, reducing costs and increasing responsiveness to customers needs. Darden has a “smallware” distributor direct from their headquarters to ensure the highest quality is shipped to each restaurant. Darden strategically places 11 distribution centers throughout the United States to provide the quickest delivery to each of Darden’s unique restaurants. The 11 distribution centers allow Darden to have a quick response time to customer’s needs. Darden also has a fresh food supply which is measured in days to ensure the freshest food is delivered in the right amount of days. Darden also developed independent suppliers for the seafood component of their restaurants. Having multiple seafood suppliers is an advantage because the seafood industry is extremely volatile, in having multiple suppliers it ensures a steady inflow of inventory regardless. The Darden management team has taken their supply chain and created a competitive advantage, something most businesses would not utilize. Darden effectively manages four supply chains creating a competitive advantage. However four supply chains can create some complications. If one supply chain fails or has some sort of lag the company can greatly suffer. The companies Toyota and Honda had experienced...
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...Supply Chain Management Name Course Date Supply Chain Management Supply chain management is the supervision of goods and services till they reach the target customers or market. Companies should have supply chains which are efficient, responsive to the needs of clients, agile and risk hedging. Firms and other business entities need to put in place mechanisms that ensure incentives are aligned in the supply chain as expected so that the costs, incurred risks and rewards of carrying out business are distributed equitably across the network. Misalignment of the incentives affects a company ability to control its supply chain resulting in excess inventory, high operational costs with reduced profits and a weak return on assets (Narayanan & Raman, 2004). A company needs to devise strategies which will enhance the supply process of its products till they reach the desired market or customers. One of the methods to be used is the framework of uncertainty which elaborates on the demand and supply uncertainty faced by a product. Fisher introduces the aligning of supply chain strategies at the right level of demand. The demand uncertainty deals with the approximation of the demand for a good and, therefore, the deployment of different supply chains based on the need. Functional products such as basic clothing, food, oil and gas and household consumable items tend to have extended product life and consistent demand, need for a more mature and stable supply process (Narayanan &...
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...centralized inventory management system. A centralized system will help to consolidate ordering, purchasing, and buying decisions for each of the four dealerships. This will allow Wolf Motors greater leverage with suppliers and will allow for better quality control. In addition, Wolf Motors could negotiate with their suppliers for better pricing through higher volume ordering and purchasing. This will allow Wolf Motors to achieve economies of scale. In addition, Wolf Motors should consider an automated electronic data interchange (EDI) inventory management system. An EDI system will allow the dealerships to be connected to one another (share inventory information) as well as to suppliers. The EDI system would alert Wolf Motors and suppliers when critical inventory levels are reached. Also, inventory pooling between the four dealerships may eliminate the need for safety stock at all four locations as well as the need for overstock. Parts can be moved between the dealerships. Finally, a vendor-managed inventory (VMI) system should also be considered. With a VMI, the supplier is responsible for maintaining the inventory level required by the customer (Wolf Motors). A VMI will allow Wolf Motors’ suppliers share inventory information and to continuously replenish stock as needed. With a VMI system, typically the supplier retains possession of the inventory until it is used by the customer (Wolf Motors). This will allow Wolf Motors to avoid shortages as well as decrease their inventory costs...
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