...quality has made Budweiser a household name around the world. Delivery: With the help of IT Budweiser can produce and deliver its product faster than its competitors. Information is power. Flexibility: Budweiser’s ability to offer a wide variety of products throughout the world is a good reason Budweiser has grown for 48.9 to 50.1. Knowing what customers are buying and the demographic of distinct regions helps Budweiser deliver product for specific customers. Service: By placing a date on the beer, Budweiser offers a unique service to customers. Freshness is what Budweiser is offering its customer. 2. How can an SCM system help a distributor such as Anheuser-Bush make its supply chain more effective and efficient. The software will enhance the supply chain visibility and dexterity which will provide a cost effective way to ensure managers have the clarity they need to operate most efficiently. Speed up product time to market, cutting administrative costs and reducing delays, in the end increase its profit. With greater...
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...For years Barilla was successful in selling their brand of fine pastas but when a shift in demand for products resulted in items being sold out, Barilla tried to operate like a responsive supply chain which did not work for this functional product. Based on Fisher’s 2x2 model Barilla’s supply chain should be run as a functional product with an efficient supply chain. Barilla should run a more efficient supply chain which can be achieved through the use of the Just-In-Time-Distribution (JITD) program; effective communication with the distributor will allow Barilla to retailers with proper stock of goods through more accurate forecasting and sales data. The critical elements of the JITD program employ the use of distributors’ shipment data to send only what is needed to the retailer. Each day the distributor will provide information on what is shipped to retailers and current stock levels of each location; essentially the manufacturer would co-manage the inventory with the distributor. By implementing the JITD program the suppliers would receive the right amount of product due to Barilla’s ability to improve their forecasting through current sales data and provide the necessary product to the distributor. They would also be able to manage the shelf-space and material distribution through the use of vendor-created delivery schedules. This program takes the pressure off the distributor to hold inventory they didn’t carry and increase the stock of items they already had. The JITD...
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...Inbound freight takes center stage | Page 1 Inbound freight takes center stage Ford Motor Company Case Study Inbound freight takes center stage Inbound freight takes center stage Contents Snapshot The challenge The solution The rollout Issues encountered Results Logistics finally catches up with ‘lean’ 1 2 3 4 4 5 5 Share this case study Tweet about this case study Follow Viewlocity on Twitter Share this on Linkedin Connect to Viewlocity on Linkedin Share via email Inbound freight takes center stage | Page 1 Snapshot Ford Motor Company Key challenge To balance inbound freight costs for thousands of parts across hundreds of suppliers with the high frequency of deliveries needed to support just-in-time (JIT) automobile manufacturing. Solution Ford deployed the Inbound Planning Engine from Viewlocity Technologies that considers multiple factors and constraints necessary to meet lean manufacturing requirements at the lowest possible cost. Factors considered included: • • • • • • • • Load sequencing across suppliers Quantities per load Trailer capacity Load configuration Dock schedules and capacities Production schedules Target plant inventory levels Return of part containers to suppliers Upon consideration of all of these factors, the Viewlocity Inbound Planning Engine was used to determine the plan for the right quantity and delivery frequency for every part at the lowest possible cost. The Viewlocity Inbound Planning Engine was first...
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...and inventory in an effort to meet demand. Now Holey has excess manufacturing capacity beyond the actual manufacturing plan, this works extremely well when actual demand exceeds forecasted demand (pre-booked orders), but is it robust enough to handle the opposite scenario? In other words, the model is “optimized” for large upswings in product demand, thus allowing the company to manufacture products within a selling season, but is “sub-optimized” for large downswings in product demand, which is what happened between November and January and what will happen if the economy tanks. The challenge is building a supply chain that is robust enough to withstand a broad range of scenarios, and having enough forward visibility to economic changes and supply chain activities so that the company can take preemptive corrective actions. Holey Soles doesn’t have real-time visibility to actual demand and downstream inventory. From the case it looks like the company’s primary “demand signal” is not actual demand, but orders from retail customers. Diversify? Holey Soles makes the bulk of its sales in the summer, it makes sense to consider diversification. By extending the portfolio of products they can ensure a regular revenue stream from January through to December. Innovation is the key to creating a unique brand identity and distinguishing Holey Soles from other foam-clog suppliers. As a fast-growing company needs to be careful they don’t try and branch out too quickly from what they...
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...Thinking, viewed 5 September 2012, http://youtu.be/pEIXE9DI9e4.) System thinking is useful to global supply chains because it is an approach to problem solving, by viewing “problems” as parts of an overall system, rather than reacting to specific part, outcomes or events and potentially contributing to further development of unintended consequences. System thinking is not one thing but a set of habits or practices within a framework that is based on the belief that the component parts of a system can be best understood in the context of relationships with each other and with other systems, rather than in isolation.() The company that this analysis will focus on is Coca Cola company, in particular it will focus of the challenges they face in globalisation, industry specific challenges, some risk and failure points, system thinking and the product life cycle. The coca cola enterprise is a globalised company with an iconic brand name that is known around the world. It is a global business with “17 manufacturing facilities spread out around the world, it produces 11 million bottles and cans per year and employs over 13,500 employees”.(http://cokecce.com) The risk associated with globalisation can be broken down in four sections. Supply, demand, operational and security risks. (metzgar ) states “Supply risk which is the distribution of outcomes related to adverse events in inbound supply that effect the ability of the focal firm to meet customer demand ( in terms of both quantity and...
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...Barilla SpA (A) Case Module 1 ------------------------------------------------- Table of Contents ------------------------------------------------- Executive Summary 3 Issue Identification and Root Case Analysis 4 Alternatives and Options 7 Recommendations and Implementation 8 Monitor and Control 9 Exhibits 10 ------------------------------------------------- Executive Summary ------------------------------------------------- The tremendous fluctuation that occurred from week to week in the number of Barilla dry products being ordered by the distributors and the extreme demand variability seriously strained Barilla’s manufacturing and logistics operations. Barilla’s highly automated manufacturing system was not designed to accommodate large fluctuations in demand nor, was it designed to accommodate sudden changes in demand or product. Brando Vitali, Barilla’s director of logistics, proposed the idea of Just-In-Time Distribution (JITD) in the 1980’s as an alternative to Barilla’s traditional...
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...in 2005, Walmart was able to generate cost savings and profits from different areas of its supply chain. Having faced challenges to convince all its stakeholders to participate in this strategy, there is long way from setting a firm foundation for their strategy supply chain wide and to reach a consensus with its stakeholders on the need to focus on sustainability. However, with 2006 coming to an end, Ruben and Elm are pressured to evaluate the performance of their sustainability strategy based on both business and sustainability factors, and to decide whether to continue or halt the programme. Analysis of sustainable strategy Being profit-driven, Walmart has to ensure that business value is derived from the sustainability strategy, in order to maintain its dominant retail position. One benefit was cost reduction throughout the value chain of its products. Waste was effectively eliminated and efficiency in production, packaging, transportation, store operations and customer use was realized. There was introduction of an additional revenue stream by selling the firm’s carbon credits through reduction in carbon emissions. Furthermore, it allowed Walmart to seek strategic level input from outside parties, creating collaboration with various companies to come out with new and innovative green products. Assurance of supply is also achieved, where Walmart was able to lock-in available supply or contribute to the preservation of scarce resources. Better suppliers’ quality was realized...
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...Barilla SpA ------------------------------------------------- Rohit Agarwal Barilla SpA ------------------------------------------------- Rohit Agarwal Barilla SpA (A) Introduction: Barilla was founded in 1875 when Pietro Barilla opened a small shop in Parma, Italy on via Vittorio Emanuele. Adjoining the shop was the small “laboratory’ Pietro used to make the pasta and bread products he sold in his store. In 1990, Barilla was the largest pasta manufacturer in the world, making 35% of all pasta sold in Italy and 22% of all pasta sold in the Europe. Barilla was organized into seven divisions: three pasta divisions, the Bakery Products Division, the Fresh Bread Division, the Catering Division, and the International Division. Giorgio Maggiali, the director of logistics was becoming increasingly frustrated. His predecessor Brando Vitali, who had served as the director of logistics for Barilla before Maggiali had proposed implementing Just-in-Time Distribution (JITD), which was modeled after the popular ‘Just-in-Time’ manufacturing concept. Vitali had proposed that, rather than following the traditional practice of delivering product to Barilla’s distributors on the basis of whatever orders those distributors placed with the company, Barilla’s own logistics would instead specify the “appropriate” delivery quantities – those that would more effectively met end-customer’s needs yet would also more evenly distribute the workload on Barilla’s manufacturing and logistics system...
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... 4 Internal Analysis 8 Alternatives 9 Recommendation 10 References 11 Introduction Loblaw Companies is facing the greatest competitive challenge of its recent history with the launch of Wal-Mart into their markets. Having originally entered the market in 1994 through the acquisition of 122 Woolco Stores, Wal-Mart is planning to open their first SuperCenter in Canada imminently. Known for their Every Day Low Price (EDLP) value proposition, exceptionally efficient supply chain, logistics and ERP process execution, marketing aimed at budget-conscious buyers, and product selection, Wal-Mart is a strategic threat to Loblaw. While Wal-Mart is a strategic competitive threat, Loblaw must also stay focused on coordinating their competitive strategy to also stay ahead of dominant grocery competitors including Sobeys, Metrics, A&P, and Canada Safeway. In addition, wholesale clubs, specialty chains, convenience stores and online shopping are additional considerations to keep in mind when defining a strategic response o Wal-Mart. Any competitive response on Loblaw’s part must support and strengthen competitiveness in each of these other channels, or the company risks becoming out of balance from a competitive standpoint. Pricing as a competitive differentiator for Loblaw is not to be taken in isolation; there must also be a concerted approach to look at the company first from an operational performance perspective. In conjunction...
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.... Apple has had a history of having poor working conditions at many of the facilities used by its suppliers, such as Foxconn, with reports of unethical behavior such as underage workers, forced labor, and high visibility suicides. Although Apple audits its supplier facilities some suppliers have been reported to continue exhibiting poor conditions. These conditions include discriminatory practices, failure to protect juvenile workers, and excessive working hours. http://www.macworld.com/article/2097723/apples-2014-supplier-report-better-working-conditions-fewer-conflict-minerals.html According to Lawrence and Weber (2014), Apple joined the Fair Labor Association, the first electronic company to do so, in which Apple requested and with the company’s financial support, the FLA immediately undertook the most extensive audit ever conducted of conditions in China’s electronics supply chain. After the audit, Apple issued a statement saying, “Our team has been working for years to educate workers, improve conditions and make Apple’s supply chain a model for the industry, which I why we asked the FLA to conduct these audits” and for its, Foxconn agreed to reduce overtime from 80 to 36 hours per month by July 2013, while raising wages to prevent workers from losing income, Apple also agreed to pay worker retroactively for unpaid overtime and to improve health and safety protections (Lawrence and Weber, 2014). Prior to these allegations Apple had already established a Supplier Code...
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...Steel, Global Wires, Dattapara Road, Borivali (E), Mumbai 400066, India Abstract: The steel hardware retail supply chains in India are in ordinary state. Longer lead time, large inventories, non availability of stocks; poor retail network, poor infrastructure, and poor customer service are some of the issues faced by this industry. The different work entities in this industry are operating in silos. It requires integration to beat bloodthirsty pressures to remain competitive. In spite of advances in Telecom/ Information Technology, there is hardly any change in the operations of hardware shop supply chain owners due to various reasons. The advances in operations management, communications and information technology, as well as a rapidly growing array of logistics options, leaves good opportunity for hardware suppliers to reduce operating costs and improve overall efficiency. This paper highlights the practical issues faced by retail hardware suppliers / channel partners and proposes solutions to address the issues. It also highlights some of the best practices of the organised retail which could be useful to retail hardware channel members. The right Supply Chain solution can create a strategic competitive advantage by streamlining the distribution network, leveraging industry best practices tailored to the steel hardware business. Keywords: Retail supply chain, steel hardware channel, retail challenges, retailers, distributors, retailers. Introduction The steel...
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...agribusiness solutions for the farmers as well as customers by having fertilizer division. The analysis demonstrates the importance of trade-offs, innovation, product development, line of fit and Information Technology systems in the operations strategy, while showing decentralization structure and effect of it on global companies. Introduction Bunge limited is a successful example for transformation of companies to globalization as Bunge CEO Weisser goal to become the best company in the world in agribusiness and food. Performance objectives indicating market requirements from quality, speed, dependability, flexibility and cost for companies to position themselves in the market while decisions areas for operations strategy as capacity, supply network, process technology, and development and organization for companies to set their operation resources capabilities achieving the performance required in the market to reach and maintain the intended market position as a vital part of...
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...SUPPLY CHAIN INVENTORY MANAGEMENT SUBMITTED BY A CASE STUDY OF BARILLA SpA. Table of Contents 1. Executive summary 2. Body of the repot 3. conclusion Executive Summary Barilla SpA is the case study that I will be examining in this paper presentation. I will be looking critically into some of the issues why the Just-in-time-distribution (JITD) program that was proposed by Brando Vitali who had served as Barilla’s directors of logistics before Maggiali had met a strong resistance both from the distributors and the sales and marketing organization. Vital had proposed rather than follow the traditional practice of delivering product to Barilla’s distributors on the basis of whatever orders those distributors placed with the company, Barilla’s own logistics organization would instead specify the appropriate delivery quantities –those that would more effectively meet end-consumer’s needs yet would also more evenly distribute the workload on Barilla’s manufacturing and logistics system. Was this program necessary at this time? Is it that both the distributors and sales and marketing organization do not understand the benefits of the program? Do they see it as a program that will distort all what they passive to be running smoothly? Should this program have been introduced at this time? Who stands to gain from this program? Will this program actually reduce cost from logistics as envisaged by Vitali? Will this program address the thinning margin that is being...
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...ippingU.S.-Mexico Shipping Options White Paper In brief Understanding what can happen at the U.S.-Mexico border with your truckload shipments could impact the decisions you make—and whether or not you will actually get what you pay for. By reviewing the process and your options, you will be able to develop better, more efficient strategies to help minimize costs and risk. Contents Cross-Border Shipping: A Primer 1. Carrier restrictions 2. Cargo inspections 3. Cargo insurance 4. Equipment availability Northbound Shipments, Step by Step Southbound Shipments, Step by Step 7 Tips for Choosing a Cross-Border Provider C.H. Robinson | U.S.-Mexico Cross-Border Services 4 4 4 5 6 6 7 8 2 If you’re not already shipping products via truckload across the U.S.-Mexican border, it’s probably only a matter of time, considering that Mexico is the United States’ third-largest trading partner.1 More than 18,000 companies with U.S. investment already have operations in Mexico,2 and many others ship their products across the border. This white paper will better prepare you to join them. There are two distinct methods of truck transportation across the border: transloading and direct service. In transloading, product is transferred from one trailer or container to another at a warehouse or terminal before crossing the border and being taken to FIGURE 1 Main land-border the final delivery. In direct service, a trailer or container crossings...
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...11.1 Logistics In both vertical and horizontal marketing systems, systematised information contributes to the efficient flow of goods and services from the point-of-origin to the point-of-consumption. This process of regulation begins with customer service and extends to the procurement, handling, and processing of resources aimed at delivering customer satisfaction. All ways in which resources are procured, handled, and processed fall within a set of activities known as logistics. Logistics is a process of systematising information to facilitate the efficient and cost-effective flows of goods and services to produce customer satisfaction. Each member in the supply chain must be involved in logistics activities. Logistics flows may begin with the supplier/manufacturer relationship, but efficient logistics activities are needed throughout the marketing channel. Relationship marketing epitomises the interac-tive process necessary to achieve customer satisfaction by maintaining a participative exchange of information with all of a firm’s channel partners. In addition, develop-ments in electronic retailing are now aimed at making this whole process more effective and efficient. The Council of Logistics Management defines logistics management as: ‘The process of planning, implementing and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods, and related information from point-of-origin to point-of-consumption for...
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