...Milk? It’s good for you Unless it’s contaminated 1) Explain why the supply chain can dramatically impact a company’s base performance. Supply chain management involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability. The dozens of steps are required to achieve and carry out each of the above components. SCM software can enable an organization to generate efficiencies within these steps by automating and improving the information flows throughout and among the different supply chain components. 2) List all of the products that could possibly be affected by a problem in the U.S. milk supply chain. The products that could possibly be affected by a problem in the U.S. milk supply chain are: Chocolate, Ice cream, cheese, butter, yogurt, evaporated milk, sour cream, whey products and infant formula. 3) How can a CRM system help communicate issues in the supply chain? Customer relationship management involves managing all aspects of a customer relationship within an organization to increase customer loyalty, retention and organizations profitability. Customer contact is often one of the first signs of issues with product quality once the product has reached market. Because a CRM system can track a customer complaint, a company can use the CRM system to help pinpoint the quality issue within the supply chain. Understanding where complaints are originating, with what products and...
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...1: Explain why the supply chain can dramatically impact a company's base performance ANS: Supply chain management involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability. The dozens of steps are required to achieve and carry out each of the above components. SCM software can enable an organization to generate efficiencies within these steps by automating and improving the information flows throughout and among the different supply chain components. If one member of the supply chain makes a reckless decision it can impact the entire supply chain. This is what happened with the china milk contamination and all of the players upstream and downstream in the supply chain from end consumer to the dairy farmers were impacted by one participants reckless decision. Question 2: list all the products that could possibly be affected by a problem in the U.S. Milk supply chain ANS: Products that could possibly be affected by a problem in the U.S. Milk supply chain are: -Milk -Cheese -Butter -Yogurt -Cottage cheese -Boxed Cereals -Cereal Bars -Sandwich Breads -Vegetarian Meat Products -If there were disruptions in the U.S. Milk supply the price of meat could also fall if dairy farmers were forced to slaughter the cattle for meat instead of milking them. Question 3: How can CRM help communicate issues in the supply chain? ANS: Customer relationship management involves managing all...
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...| 2 | Introduction | 2 | 3.1 | Benefits/Pros of RFID in supply chain (Body) | 2 | 3.2 | RFID in supply chain – Described with a case (Body) | 2 | 3.3 | Cons of RFID | 3 | 4 | Conclusion | 3 | 5 | Bibliography | 4 | The impact of RFID technology in Supply Chain Management 1. ABSTRACT This report consists of details of the introduction and inclusion of RFID tagging in supply chain management, along with a several pros and cons in the implementation. In addition, a large retail corporation is discussed in connection with the implementation. The aim of RFID in supply chain management is to see the establishment of product tracking which should revolutionize supply chain management practices. (Michael K, 2005) 2. INTRODUCTION Supply chain management is the management of moving and storing products/goods, from its raw material stage to its selling stage, from one location to another. The key to a good supply chain management is the seamless transfer of its products, supply chain management gained popularity from the mid-1990s. Supply chain has played and will always continue to play a very important role in Globalization. Some keys functions of Supply chain management, is to manage suppliers, inventory, distribution of goods, customer service and transportation. With supply chain playing an integral part in most of the businesses, it is important for a company to make sure that they have a strong supply chain system integrated and with huge developments...
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...pasta is flat, and we should be able to accommodate for this within our supply chain. In order to assist and help deal with these fluctuations I recommend that we implement Just in Time Distribution (JITD) which will assist in lowering our overall inventory levels within the chain and assist us in managing demand, and improve overall company profitability. In order to implement JITD, we require management support in order for this to be successful. Issue Identification Barilla is currently being faced with a decision on where they need to go in respects with just-in-time-distribution (JITD). They need to look at whether this type of program is feasible in their environment and if it makes sense to continue with a JITD system. In order to look at these decisions we need to review some of the issues that JITD system was intended to overcome. Some of the issues that JITD was introduced to overcome are: 1. Demand Fluctuations – There is a high standard deviation of demand on the Barilla Dry products from week to week. (Exhibit 1) 2. Managing the Distribution System – The distribution system along the Barilla supply chain is fully autonomous, the distribution centers order based on their own agendas and pull inventory creating huge demands at times creating a bull whip effect which ultimately increases inventory throughout the supply chain. 3. Operational Inefficiencies – Although the supply chain would ultimately hold approximately 2 months of product Barilla was dealing...
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...Case study of Seven-Eleven Japan Co. 1. Convenience store chain attempts to be responsive and provide customers what they need, when they need it, where they need it. What are some different ways that a convenience store supply chain can be responsive? What are some risks in each case? Ways of responsiveness of convenience store Risks supply chain Fast replenishment: Cost of transport 1-3 times daily store delivery Rely on the stability of Transport Local inventory: Cost of inventory maintenance Sales of items stockpiled in local store Cost of obsolete inventory Order taking*: Cost of numerous orders processing Delivering merchandise according to customers’ Limited lead time orders On-site producing: Cost of raw material inventory Producing merchandise with raw material on-site Fluctuation of sales 2. 7-Eleven's supply chain strategy in Japan can be described as attempting to micro-match supply and demand using rapid replenishment. What are some risks associated with this choice? Rapid replenishment and Micro-match supply & demand strategy highly rely on the efficient ordering system and the fast transport. As a result, the cost of ordering system and fast transport themselves can be a risk. Moreover, according to this case, 7-11 develops an anticipation system, in order to forecast the local sales. However, when customers’ needs fluctuate in short period and original anticipation loses effectiveness, it will face extra cost of transport. 3. What has 7-Eleven...
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...(HP) Company December 15, 20XX I. Process Elements/Table of Content (Part 2) Part 1 Executive Summary Part 2 Table of Contents I. Issue with Impact Analysis Part 3 Immediate Issues Part 4 Systemic Issues II. Environmental and Root Cause Analysis Part 5 Qualitative Analysis Part 6 Quantitative Analysis III. Alternatives Part 7 Alternatives IV. List Recommendations Part 8 Recommendations V. Implementation Part 9 Recommendations Implementation Plan VI. Monitor and Control Part 10 Monitor and Control Part 11 Conclusion & Management Plan Part 3: Immediate Issue Hp’s distribution centers have been filled with pallets of the DeskJet printer. However the Europe is still claiming the inventory levels there needed to be raised. The Vancouver top management insists that HP is just going to meet customer needs with fewer inventories. Our immediate issue: 1. Too much inventory are in the DeskJet supply chain 2. European and Asian DCs cannot meet delivery requirement 3. Vancouver Division couldn't build the right products in the right quantities. Part 4: Systemic Issues 1.DCs operate system: Timing: Long Term Nature: Strategic In order to match Vancouver’s pull production system, DCs operate system need to be updated to a pull system as well. Now DCs performance measures are LIFR (Line Item Fill Rate) and OFR (Order Fill Rate). And DCs system did not support manufacturing (assembly of components into a final product). There is no MRP(Material...
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...store chain attempts to be responsive and provide customers what they need, when they need it, where they need it. What are some different ways that a convenience store supply chain can be responsive? What are some risks in each case? Some of the ways that a convenience store chain can response are: * Focusing in the total cost of the supporting a chain, that includes all the elements of cost that go into a purchase like order quantities, deliveries, warehousing, support systems, among others. The risk of this approach is not giving the appropriate amount of profit to the products and services, because focusing in the amount of costs this kind of business will generate. * Controlling the number of deliveries from other companies (vendors) to your store. The risk here is by controlling the number of vendors you are taking the risk of been out of stock and not fulfilling the demand. * Creating a distribution center is one of the best ways to reduce costs, and also control their own supply chain. The risk of this method is that initiating a distribution center is expensive, if your chain has not made the idealize amount of profits this approach is very risky, because this method requires structure, employees, machines, among other expenses. 2. Seven-Eleven’s supply chain strategy in Japan can be described as attempting to micro-match supply and demand using rapid replenishment. What are some risks associated its supply choice? The risks with this supply choice...
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...Case Study #4 (7/11 Japan) A convenience store chain attempts to be responsive and provide customers what they need, when they need it, where they need it. What are some different ways that a convenience store supply chain can be responsive? What are some risks in each case? -A convenience store can be responsive in a few different ways in order to meet customer needs and wants. The store can conduct customer surveys in order to get a direct response on what the store is lacking or what customers prefer. They could do a store analysis also which would show them customer purchase patterns so they can pinpoint the hot items and when they should be in stock. In both cases the risk is that you could get the wrong information and stock your store wrong, or you could end up only tailoring to one customer’s needs, which might not be the same needs as the majority of your customers. Seven-Eleven’s supply chain strategy in Japan can be described as attempting to micro-match supply and demand using rapid replenishment. What are some risks associated with this choice? -Rapid replenishment as a strategy for supply and demand runs a few risk which are: customers will discontinue use of a product, the product will remain on the shelf until the shelf life is exceeded or you might not have what the customer needs/wants at the time of need because you are consistently replenishing other products from other customers. By the time the product that the customer wanted arrives in the store...
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...Global Operations Management Individual Project 3 Kathy Farris AMERICAN INTERCONTINENTAL UNIVERSITY ABSTRACT Six software packages will be reviewed. Two each for materials requirement planning (MRP), capacity requirements planning (CRP) and enterprise resource planning (ERP). Each were evaluated for cost, functionality and end user support to name a few. This paper will show which software packages will best fit the needs for PPQ manufacturing after areas of consideration have been reviewed and compared. In order to stay competitive with in their manufacturing area, it is vital for a company to have a quality systemization in place to help track and control operations. It today’s technology driven world there are many options available to help company’s be more effective without having to hire a completely new department. PPQ manufacturing has decided to invest in the latest software technology to help in their materials requirement planning (MRP), capacity requirement planning (CRP), and with their enterprise resource planning (ERP). Following is an analysis of six software packages, two for each of the respective areas. Each software package has been reviewed for both advantages and disadvantages, as well as, cost, current system compatibility, work flow processes, functionality, ease of use and end user support. Each of these elements has been taken into consideration in order to determine which software package would be most suitable for PPQ’s needs...
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...Second Component Value Chain Con-way Inc. Primary Activities: Inbound logistics Under inbound logistics, Menlo Worldwide Logistics is the expert. They handle all of the receiving, warehousing, and inventory control of input materials. Menlo serves industries like the automotive, high-tech, retail/consumer, chemical, government, and industrial goods. They work with companies one on one to set up transportation management, warehouse management, value-added services, supply chain solutions and information technology. They achieve these results with shorter implementation periods and lower project costs than a customer company could achieve. Compared to their competition, Con-way Inc. has the competitive advantage because Menlo Worldwide. UPS and FedEx inbound logistics would consist of their local stores that receive and store inventory of packages that customers can come pick up and drop off. Besides their local stores, they both only have a few regional warehouses that they use for bigger packages and delivers. This is where Con-way exceeds. Because of Menlo, Con-way goes further than just storing and receiving packages and deliveries. They actually help manage transportation and warehousing with business which is their main customers. Operations Con-way Inc. operations are comprised of three business segments. That is Con-way Freight, Menlo Worldwide Logistics and Con-way Truckload. Con-way’s major operations include less than truckload services, full truckload services...
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...Joint Venture The globalization strategy our team is going to explore for Moonglow is Joint venture. We are going to discuss the pros and cons to a joint venture along with some environmental factors that Moonglow needs to consider before deciding on a location. We are also going to explore different organization structures and give a recommendation on how to restructure Moonglow to succeed in the global market. Lastly, we will describe ways Moonglow can expand internationally while maintaining its eco-friendly practices and continue producing organic products. According to Jones (2011) a joint ventures is a “strategic alliance among two or more organizations that agree to establish and share the ownership jointly of a new business” (p. 342). Joint ventures are formal and bounded by a legal agreement with all parties’ rights and responsibilities spelled out. Joint ventures are considered one of the best methods for entering into foreign markets. As with any business venture, there are pros and cons that need to be considered (Jones, 2011). Many foreign markets have the potential to be closed to outside companies. Joint ventures make entering into closed markets easier. The pros to entering into a joint venture are access to limited capital resources, transfer of technology, bypass of legal restrictions, access to raw material, knowledge of regulatory climate, and investment incentives (Hall, 1984). In a joint venture, Moonglow will gain...
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...and what are the pros and cons by purchasing the products from suppliers outside the North America. We know your corporate objective is GROWTH and your strategy is to focus in narrow and differentiate market. You can provide unique product mix that other competitors cannot. As your company growth, you need huge amount of SKU to meet your customers’ needs. And now, you found a corporate global sourcing initiative. Global sourcing is one thing that we all thought it will be beneficial to TSC in somehow. Let me analysis the pros and cons of purchasing products from suppliers outside the North America. * (Since you are expending your company, your customers will increase relatively. TSC might need much more products’ mix to in order to meet the customers’ needs. Now global sourcing helps. It can provide more diverse products from suppliers outside the North America. You may not need to worry about find the right product to your customers.) * (We assume your current suppliers who are within the North America also purchasing their products from suppliers outside the North America. If TSC purchases products from suppliers outside the North America, it will cut off the Middle-man’s who are the suppliers TSC currently dealt with which imply the cost of the products will decrease at the same time. But here, I am just saying the cost of the product itself, not including freight.) This two paragraphs are talking the reasons of choosing global sourcing supply chain. We can judge their...
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...Contaminated! Ahlivia Spencer Professor Rappel MBA 5110 - Management Information Systems December 5, 2015 Chapter One Case: Got Milk? It’s Good for You… Unless It’s Contaminated! (p. 40-41) Summary China is known to drink 25 million tons of milk a year, a practice that is still fairly new to the culture (Baltzan, 2015). In such a high demand, the market for milk flourished, sending dairy producers in a moral-less fight. In 2008 it was discovered that a dairy producer named Sanlu, used an additive called melamine in an effort to increase their testing of protein and driving their prices up. This chemical is also used to make plastic. Four infants died because of the contamination, and 53,000 became sick. A few of the biggest diary producers pulled their products from the shelves. Nearly 20 countries banned Chinese products all together. Recently Starbucks launched a new product that is grown in China. They hope to launch it world wide, but in order for that to come to pass, farmers are going to have to produce fast enough to meet a high demand. This could open up another issue for Chinese illegitimate business practices. Answers to Questions 1. Explain why the supply chain can dramatically impact a company? There are a lot of factors that went into selling milk in China. The supply chain assisted in that process. Many people such as farmers, middlemen, and distributors were a part of the supply chain. With large market, processes were always looking to be improved...
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...customers. The Kimberly Clark Company provides an excellent example for today’s organizations with “a customer-oriented supply chain reorganization begun more than four years ago, K-C is improving distribution efficiencies, reducing transportation costs and shrinking its carbon footprint, while becoming an indispensable partner to retail customers” (Jamison, 2008, para.3). Technology and the Supply Chain Continuous advancements in technology offer new solutions to old problems in supply chain management as well as placing focus on the current needs of distribution in global markets. Real-time locations systems (RTLS) are among emerging technologies where “RFID is no longer considered an emerging technology. It is a proven solution with high value add and an increasingly attractive ROI, said Michael Liard, Director, AutoID for VDC Research Group.” (Zebra Technologies, 2012). Technology plays an important role in distribution where retail customers focus on inventory reduction while maintaining adequate supply to meet consumer demands. Real time information provides organizations such as Kimberly Clark with the necessary data to develop the most effective channels for distribution based on individual products and customers. Kimberly Clark’s EDI Solution Kimberly Clark’s efforts in supply chain improvement are validated through receipt of the Dick Clark Supply...
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...Supply Chain Management: CEO Decision on West Coast Expansion Yunior A. Espinal Colorado Tech University SCM 210 – Intro to Logistics / Supply Chain May 1, 2015 Supply Chain Management: CEO Decision on West Coast Expansion Section I: Introduction The main pro for having multiple distribution centers and shipping locations across the U.S. is to have the ability to meet customer demand at all major locations. Other pros include lowering the transportation and freight costs to diverse customer locations. Reducing the travel area when establishing multiple distribution centers and shipping locations lower transportation costs. The expectation is that multiple distribution centers will help to lower the time frame for customer servicing by meeting current customer demand. Effectively, linking demand with inventory (Fortna, n.d.). Intuitively, cons include the cost of land, buildings, labor, and equipment, for the development of multiple distribution centers and shipping locations. The rate of domestic sales for each region should increase faster than the rate of cost of operations for each regional distribution center. The benefit of having more than one international distribution center is to manage more effectively the distribution of international sales. Cons include the higher cost of labor (Blackerby, 2003). Cost of labor is reflective of the underlying exchange rate of the euro/USD or 1 euro = $1.50. The cons of an international shipping location instead shipping from the...
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