Description Make a case study using the attached template UNFORMATTED ATTACHMENT PREVIEW CASE STU ...
Description Make a case study using the attached template UNFORMATTED ATTACHMENT PREVIEW CASE STUDY ANALYSIS [Document subtitle] [DATE] STUDENT NAME STUDENT ID TABLE OF CONTETNS Section 1 2 3 4 5 6 7 8 9 Content/Topic Executive Summary Introduction Immediate Issue Basic Issue Assumptions Analysis Potential Recommendation Final Recommendation Implementation Timeline 1 Page Executive Summary (Word Limit: 50 Words) An executive summary is just as the name says: it summarizes all the materials that follow in the report. Executive Summaries should give readers a high-level overview of your Case Study. The Executive Summary may include, • The problem faced by the decision maker. • A small Background on the organization • Goal of this Report • Overview of the Analysis tools/methodology used • Conclusion including the recommendation. A good way to approach the executive summary is to write it as if the reader will only read this section. Usually, it is written after completing all other sections. Introduction /Background: (Word Limit: 50 Words) • • • Synopsis of the Company being analyzed Short, need not be lengthy. Identify the main individuals in the case Immediate Issue/Main Issue: (Word Limit: 20 Words) Immediate issue refers to the specific decision, problem, challenge, or opportunity faced by the decision-maker in the case. Please note that an immediate issue is not a symptom of the issue, but it is the issue Basic Issues: (Word Limit: 20 Words) Basic issues are larger and more generic in nature. These are usually symptoms of the main issue. Assumptions: (Word Limit: 50 Words) You can list a few of the assumptions that you have made while analyzing the case. It is OK to make assumptions. But your assumptions must be relevant and they must be justified. Some students have the tendency assume that they will bring in or they will hire perfect person to solve the issue. Like, “OK I will bring in a consultant to solve the issue mentioned in the case”. It is not a good assumption and is not a solution at all. 2 Analysis (No word limit) You can use may the following tools to analyses a case. • • • • • SWOT Analysis PESTEL Analysis ROOT CAUSE Analysis 5 WHY Analysis Others Analysis o Quantitative Analysis o Qualitative Analysis Please note that you need to use only relevant tools to analyze a case. For example, if you are using PESTEL Analysis, if not all 6 points are applicable, use only those that are relevant to the case. Potential Recommendation: (Word Limit: 50 Words) • • • What can we do to solve the problem(s)? List a number of solutions that you propose. Evaluate the solutions. For example, list the advantages and disadvantages of each solution. Final Recommendation: (Word Limit: 50 Words) Select the best solution from the list of potential solutions that you have found out and justify your selection. Remember- the final recommendation/solution must address the main issue. Implementation Time Line: (Word Limit: 30 Words) Finally, you need to have an implementation timeline based on your final recommendation It must be realistic. If needed, you can make a Gannt Chart format. For example, Recommendation Implementation Timeline No. Steps 1 2 Month Months 1 Step 1 X 2 Step 2 X 3 Step 3 3 3 Months X 4 Months 5 Months 6 Months 1 WELCOME Sean Justine, CSCP, PMP® Warehousing Distribution Management 2 Agenda ? Welcome and Introductions ? Review of Class Rules ? Topic Outline ? Evaluation ? Lecture –Module 1 Sean Justine, CSCP, PMP® 3 Welcome and Introductions ? Introductions ? Memberships ? APICS ? OPBA ? SUPPLY CHAIN CANADA ? ISM Sean Justine, CSCP, PMP® 4 Review of Class Rules ? General Rules ? Electronic Devices ? Do not come to class, if unfit to attend. ? Class Room Rules ? Be respectful and considerate ? Do not monopolize Sean Justine, CSCP, PMP® 5 Evaluation & Topical Outline Method Quantity Overall Weight Assignment/Quiz – 8% 5 40% Case Study – 10% 1 20% Exam – 25% 2 40% Sean Justine, CSCP, PMP® 6 Module 1 Role of warehousing in supply chain process Sean Justine, CSCP, PMP® 7 Key Issues Discussed ? Role of warehousing ? Role of warehousing in balancing supply & demand ? Ways in which warehousing must align with corporate and supply chain strategies ? Role of customer service in warehousing Sean Justine, CSCP, PMP® 8 Back to Basics ? Supply Chain & SCM ? Sourcing ? Procurement ? Purchasing ? Logistics ? Distribution ? Warehousing - It is the act or process of storing large quantities of goods so that they can be sold or used at a later date. Sean Justine, CSCP, PMP® 9 Warehouses & Distribution Centers ? Functional Differences ? W/H? Homogenous spaces for storing goods until dispatched ? D/C? Value adders ? Flow velocity ? Refers to the period of time for which a particular product stays at a particular place ? W/H? Longer Period ? D/C? Shorter Period Sean Justine, CSCP, PMP® 10 Warehousing & Distribution Centers ? Relation with the customers ? W/H? Do not deal directly with customer ? D/C? Deal directly with customers ? Complexity ? W/H? Less Complex ? D/C? More Complex Sean Justine, CSCP, PMP® History of Warehousing and Role of Warehousing in Supply Chain ? ? ? ? ? ? ? 11 Roots go back to several centuries Exploration Age Rail transportation in 1800’s World War 1 ? Hand Trucks World War II ? Fork lift truck ? Wooden pallets AS/RS (1960-1970) Impact of JIT https://www.munters.com/en/industries/storagepreservation-archives/distribution-warehouse/ Sean Justine, CSCP, PMP® 12 Traditional Warehousing ? Supporting Functional Economies of Scale ? Role in Supporting Economies of Manufacturing ? Role in Supporting Economies of Purchasing ? Role in Supporting Economies of Transportation https://www.mindtools.com/p ages/article/newSTR_63.htm Sean Justine, CSCP, PMP® Role in Supporting Economies of Manufacturing 13 ? Long manufacturing runs of single products create efficiencies in production processes ? Plant supporting warehouses must add value in the supply chain by supporting long manufacturing runs ? To gain economies of production ? To reduce changeover needs. ? Finished products produced in mass quantities must be stored and maintained for future demand. Sean Justine, CSCP, PMP® Role in Supporting Economies of Purchasing ? Bulk purchase pricing may provide cost-savings per item ? It might be sometimes more than the inventory carrying cost created. ? Warehousing helps in 14 ? Storage of materials ? Maintaining safety stocks to meet variations in demand, quality and lead times. Sean Justine, CSCP, PMP® Role in Supporting Economies of Transportation ? Transportation cost per unit is reduced as a greater number of units are transported. ? Fixed costs are spread over the greater product amount being transported ? Variable costs do not necessarily increase one-for-one ? Warehouses add value by supporting large volume transportation needs Sean Justine, CSCP, PMP® 15 16 LTL vs FTL LTL -Less than Truck Load FTL - Full Truck Load Depends on: ? size of your shipment, ? budget, ? sensitivity of the freight, ? time frame for delivery. https://www.exfreight.com/our-services/trucking/ Sean Justine, CSCP, PMP® 17 Designing Warehouse Strategy ? Additional factors to be considered when designing the strategy of the warehouse plan. 1. Anticipatory Inventory ? Inventory to handle expected Spikes in Demand 2. Seasonal Stocking ? Stocks to handle fluctuation in demand due to weather, seasons etc Sean Justine, CSCP, PMP® 18 Designing Warehouse Strategy(Conti..) ? Additional factors to be considered when designing the strategy of the warehouse plan. 3. 4. Balances Supply with Demand ? Allows customers the ability to order in lesser quantities and more often. ? Mixed Pallets-Mixed items or SKU’s stacked on the same individual pallet Protection Against Uncertainty in Demand and Lead Time ? Safety Stock ? Maintain safety stock in strategic locations where uncertainty exists and forecast accuracy is low. Sean Justine, CSCP, PMP® Warehousing & Corporate Strategy ? Assets of Warehousing ? The Make or Buy Decision ? People ? Improve control ? Real Estate ? Union Free ? Equipment ? Ownership ? 19 Dealing with Growth ? Diversification versus specialization Sean Justine, CSCP, PMP® 20 Competitive Supply Chain Strategies ? Low-Cost Strategy ? Low cost strategy may required long-term storage of large quantities of product ? Warehouses offer intermediate stocking points ? Decentralized warehousing can reduce the overall transportation cost. ? Time-Based Strategies Sean Justine, CSCP, PMP® 21 Time-Based Strategies ? Time-Based Strategy: Focuses on reduction of time needed to accomplish tasks. ? Adopting Time based strategies can help the supply chain to ? Reduce inventory in the system ? Improve service responsiveness ? Time-Based Distribution Strategies’ ? Cross-dock strategy ? Postponement Sean Justine, CSCP, PMP® 22 Cross-dock strategy ? Cross-docking ? Practice of unloading freight from an inbound load, and then loading it directly into an outbound shipment with little to no storage in-between. ? Methods ? Continuous cross-docking ? Consolidation ? Deconsolidation Sean Justine, CSCP, PMP® https://www.mtelogistix.com/blog/cross-dockingbenefits/ 23 Postponement strategy ? Postponement ? Postponement of final customization until there is a demand or customer order ? Types ? Manufacturing Postponement ? Assembly Postponement ? Packaging Postponement ? Labeling Postponement Sean Justine, CSCP, PMP® https://tehimpex.si/en/products/maintenanceand-services/best-partner-bonfiglioli 24 Interface Between Supply Chain Partners ? Warehouses occupy strategic positions ? Final entity to inspect product quality, condition, and count, and verify documentation accuracy ? Influences final customer perception and reality of quality and cost. ? Warehouses must be seen and managed as supply chain partners Sean Justine, CSCP, PMP® Role of customer service in warehousing ? Critical Service Factors influenced by warehouses ? Stock Availability o Order Fill Rate? How many orders are filled to completion. o Case Fill Rate? Cases shipped / total cases ordered ? Lead Time o Cycle Stock? Inventory that is expected to be sold during a given order period (cycle). ? Consistency of Lead Time o Safety Stocks ?To protect against such fluctuations in lead-times Sean Justine, CSCP, PMP® 25 Value to Supply Chain ? Value is provided through ? Storing product and protect against uncertainties ? Product assortment ? Postponing ? Consolidating ? Cross-docking ? Sequencing materials and components ? Performing light manufacturing, assembly, and kitting Sean Justine, CSCP, PMP® 26 1 General Warehouse & Distribution Center Strategies MODULE 3-CHAPTER 3 2 Agenda ? Review - Module 3 - Chapter 12 ? Lecture - Module 3 – Chapter 3 3 Key Issues Discussed ? The various categories of warehouses ? Evaluate the relevant costs associated with warehousing ? Warehousing and materials handling strategies ? Consolidation/deconsolidation techniques 4 Warehousing ? Warehousing ? refers to “that part of the firm’s logistics system that stores products (raw materials, part, good-in-process, finished goods) at an between points of origin and point of consumption.” ? Warehousing and transportation are substitutes for each other, with warehousing having been referred to as “transportation at zero miles per hour.” Douglas M. Lambert, James R. Stock, and Lisa M. Ellram, Fundamentals of Logistics Management (New York: Irwin McGraw-Hill, 1998), Chapter 8. 5 Components of Warehousing ? Space Space ? Price volatility with changes in demand ? Warehouses often increase in value over time ? Utilization of warehouse space impacted by cultural influences ? Equipment People Equipment ? Depreciates in value ? Materials handling devices-racks, conveyors, and all of the hardware and software ? Type depends on the space utilization ? People ? Most critical component ? Impact of personal performance of warehousing quality 6 Equipment's 1. Pallet https://www.cubesmart.com/blog/y our-home/diy-projects/palletprojects-for-all-diyers/ 2. Pallet Jack http://www.welbrit.co.uk/for k.php 3. Fork Lift https://www.mechan.co.uk/c ranes 4. Hand Trolley 5. Jib Crane https://www.imarketthaila nd.com/en/shops/bentle y-diy-200kg-heavy-dutyhand-trolley-sack-truck/ https://machinethug.com/buypallet-jack-or-electric-palletjack/ 7 Warehousing Alternatives Owning or Leasing The Private warehouse Renting The Contract warehouse The Public warehouse How Many Centralized Decentralized 8 Private Warehousing ? Owned by the firm storing goods in the facility ? Largest uses of private warehousing are retail chain stores ? Should be considered by companies dealing with large volumes of inventory ? Assumes both sufficient demand volume and stability so that warehouse remains full ? Generates high fixed costs ? Offers control to owner ? Importance of managing skilled employees 9 Utility of Private Warehousing ? Necessary when service & cost to distribute can be better accomplished in-house ? Superior distribution service can be achieved ? Total control over all factors ? Helps in building the customer perception of the brand image with superior service. ? Example of Furniture Distributor ? Furnitures are prone to chipping, scratching, denting ? Hired & trained employees in blanket wrapping & nesting of furniture ? Ensured standard quality by superior handling ? Avoided risk by entrusting such critical responsibilities toa public /3 rd party/contract warehouse. 10 When to Consider Private Warehousing ? High service quality needed. ? Significant and steady product throughput. ? User possesses strong warehouse operating skills. ? User service and quality more than offset capital investment and risk. ? User possesses strong skills to hire, train, and effectively manage personnel and associated costs. ? Special handling and value-added services needed. ? Postponement strategies. ? Positioning inventory for single or multiple markets. 11 Advantages of Private Warehousing ? Degree of Control ? Flexibility ? Less Costly Over the Long Term ? Better Use of Human Resources ? Tax Benefits ? Intangible Benefits 12 Disadvantages of Private Warehousing ? Lack of Flexibility ? Cannot expand and contract meet increases or decreases in demand ? Financial Constraints ? High fixed cost ? Hiring & Training Costs ? Equipment cost ? Necessity of having high and steady demand volumes ? Less attractive when interest rates are high 13 Public Warehousing ? Independent contractor who offers services to more than one user ? Serve all legitimate users ? Require no capital investment on the user’s part ? Allows users to rent space as needed ? Can be rented on a month-to-month basis ? Offers flexibility ? May provide specialized services 14 Types of Public Warehousing ? General Merchandise Warehouse ? Refrigerated Warehouse ? Bonded Warehouse ? Household Goods Warehouse ? Special Commodity Warehouse ? Bulk Storage Warehouses 15 Types of Public Warehousing 3. Bonded 1. General Merchandise 2 Refrigerated https://www.valuewholesa le.com/category/wholesal e/general-merchandise/ 4. Special Commodity https://hocltd.com/bond ed-warehouse-torontocanada# https://www.mmh.com/images/MMH191 0_Supp_Cold_Dematic_Temperature_Co ntrolled_warehouse_Inline1.jpg http://bahuvida.com/productdetails/ warehousing-and-quality-control 16 Utility of Public Warehousing ? Flexible ? Least Costly ? Offers storage and general handling services ? Storage agreements as little as 30 days ? Caters to customers with fluctuating needs for space ? Additional services-Cross Docking, Postponement, consolidation/deconsolidation ? Space, Equipment and labor will be scheduled according to client needs ? Low costs for servicing all clients ? Fixed costs & overhead costs with the entire facility can be allocated across clients 17 When to Consider Public Warehousing ? Long-term or short-term storage. ? Increasing, decreasing or fluctuating product demand. ? Positioning low-volume inventory widely geographically. ? Value-added services but not to the extent that contract services would dictate greater dedication to facility, equipment, personnel, and special services and processes. ? Client possessing little to no warehouse operating skills. ? Client wanting to minimize capital investment and risk. ? Client wanting to minimize personnel cost and management. 18 Advantages of Public Warehousing ? Conservation of capital ? The ability to increase warehouse space to cover peak requirement ? Reduced risk ? Economies of scale ? Greater Flexibility ? Tax advantages ? Knows Exact Warehousing Costs ? Can Minimize Labor Disputes 19 Disadvantages of Public Warehousing ? Communication Problems ? Lack of Specialized Services ? Space May Not Be Available ? Lack of control by the user 20 The Ownership Decision Characteristics Private Public Throughput volume High Low Demand variability Stable Fluctuating Market density High Low Special physical control Yes No Customer service required High Low Security requirements High Low Multiple use needed Yes No Management of Business Logistics, 7th Ed 21 The Ownership Decision Management of Business Logistics, 7th Ed. 22 Contract Warehousing ? Also referred to as third-party (3PL) warehousing or dedicated warehousing ? “a long term, mutually beneficial arrangement which provides unique and specially tailored warehousing and logistics services exclusively to one client, where the vendor and client share the risks associated with the operation.” ? Both vendor and client share the risks associated with the warehousing ? Less costly than private warehousing and more costly than public warehousing ? Long Term agreement ? Supports additional activities. 23 Utility of Contract Warehousing ? Advisable to operate under a contract agreement pertaining to service, expectations, responsibilities, and pricing ? Agreements are usually long term depending of nature of service ? Higher level of commitment needed for specified long-term services ? Guaranteed throughput ? Examples, ? A global brand of potato chips with customer demanding mixed pallets ? A national brand of hair products meeting customer’s specific needs. 24 When to Consider Contract Warehousing ? Value-added services or special handling needed ? Significant and steady product throughput ? Postponement strategies ? Positioning inventory for single or multiple markets ? Client possessing little to no warehouse operating skills ? Client wanting to minimize capital investment and risk ? Client wanting to minimize personnel cost and management 25 Warehousing Option: A strategic Decision Characteristics Private Public Contract Investment High None Very Little Flexibility in Material Handling, Storage & throughput planning Location Location Cost per unit stored Inversely related to volume Low Inversely related to volume Level of control High Low Medium Adequacy of goods stored High Low High Risk Due to change in market demand Minimal Minimal Logistics Management Vinod V.Sople Page 44 Factors Affecting the Number of Warehouses Factor Centralized Decentralized Substitutability Low High Product Value High Low Purchase Size Large Small Special Warehousing Yes No Product Line Diverse Limited Customer Service Low High Management of Business Logistics, 7th Ed. 26 27 Number of warehouses Main Factors ? Inventory costs ? Warehousing costs ? Transportation costs ? Cost of lost sales ? Maintenance of customer service levels ? Service small quantity buyers . Management of Business Logistics, 7th Ed Indifference Point Between Public and Private ? Private = Fixed Costs + Variable Costs ? Public = Variable Costs ? Example: ? ? Private Fixed Costs = $500,000/year ? Private Variable Costs = $0.15/pc ? Public Variable Costs = $0.25/pc Indifference point is where both costs are equal ? 500,000 + .15X = .25X ? 500,000 = .10X ? X = 5,000,000 pc Retrieved from Transportation/Logistics Strategy; Sam Walton College of Business 28 29 Cost Points of Indifference Purchase answer to see full attachment User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.
