Supply Chain Project
The presentations are designed to display the students learning competencies from the course chapters.
Presentation are to include the below elements:
Company Background
Evaluation of the Supply Chain Processes
Sales & Operations Planning
Decisions in Sourcing
Supply Chain Sustainability with Learning Outcomes & Recommendations
It’s about Porsche.
This is an example. I need 15-20 pages.
Applied Global Logistics and Supply
Chain Project
Supply Chain Optimization For ABC Eyewear
Student Name
SCM 304-03: Supply Chain Management
California State University, San Bernardino
1
ABC Eyewear- Supply Chain Optimization
Content
1. ABC Eyewear Company Background
2. Evaluation of the ABC Supply Chain Processes
3. Drivers of Supply Chain Performance
4. ABC Eyewear Network Design
5. Risk Mitigation within the Supply Chain
6. Forecasting Practices of ABC Eyewear
7. Sales & Operations Planning
8. Inventory Management Practices
9. Use of Transportation
10. ABC Eyewear-Decisions in Sourcing
11. Use of Information Technology for Supply Chain Optimization
12. Supply Chain Sustainability with Learning Outcomes & Recommendations
2
ABC Eyewear Company Background
ABC Eyewear is an organization specializing in manufacturing and retail sales of eyewear products. Stated in Japan in 1961, the original founder of the organization specialised in metal work specific to eyeglass creation. Eyeglasses were sold on a local basis with popularity growing into the 1970s. As the company progressed, the manufacturing of eyewear became a global business and thus the need to explore sourcing options as well as a distribution network to move goods and services.
Established a formal distribution network in the 1970s
Supply Chain design for multiple geographies in the 80s & 90s
Multiple business acquisitions within the 2000s
Sustained Global souring and manufacturing business at present
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Continued background
The current ABC business model as of 2014
4
Continued background
ABC continues to target a market with room to further grow and
expand. Given the below details, there is a tremendous level of
growth within the eyewear industry taking place over the next five
years. With the correct Supply Chain Optimization, profits will be
captured through efficiencies.
5
Evaluation of the ABC Supply Chain Processes
ABC Eyewear has established a supply chain which is cantered
around meeting customer expectations. This is achieved through the
following processes:
Detailed focus on product design.
Collaboration between sales and operations teams on a global
basis.
Strategic placement of facilities to meet consumer demand.
Fewest number of supply locations to reach the largest impacting
markets.
Ability to be flexible with changing market conditions
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Evaluation of the ABC Supply Chain Processes
Continued
In evaluating the ABC Supply Chain, the functions related to meeting
customer demand are fluid. The areas for improvement are depicted
within the following diagram. Functions related to business execution
are most critical to the success of planning.
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Drivers of Supply Chain Performance
ABC is highly focused on the drivers of the Supply Chain. These
elements help to ensure that more responsive approach is taken. As
ABC must meet consumer demand based on fashion products, there
is a need to be more responsive within the market.
Critical view of supply chain drivers.
Product times are important.
Transportation costs maintained.
Facility location costs need to be reviewed.
8
ABC Eyewear Network Design
ABC has emerged into an industry leader based on the ability to
develop a successful network design. ABC has maintained low costs
related to facility placement which has lead to increased revenue for
the organization. ABC is a leader in souring materials in the emerging
markets which has also lead to cost control and savings while offering high quality products. These functions are tied together through
ePurchasing which connects suppliers through Information
Technology.
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Risk Mitigation within the Supply Chain
A good portion of success can be attributed to risk mitigation. ABC
has been able to identify potential risks within the Supply Chain and
thus ensure that there are no potential disruptions. The risk indicators
which ABC has a close watch on are:
Price fluctuations within the market.
Exchange rate changes from conducting business in multiple
markets.
Having multiple levels of sourcing for raw materials to ensure that
no stoppage occurs.
Adding levels of redundancy to back up systems.
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Forecasting Practices of ABC Eyewear
ABC uses statistical methods for planning and forecasting of market
demand. As the eyewear industry is a more mature and stable
market, ABC is able to plan material productions based on historical
data as well as current sales data to arrive at meeting the level of
inventory which is required to achieve customer demand. The goal is to ensure equilibrium in matching supply with demand. ABC employs
the following:
Push-Pull process
Long, medium and short range forecasts used
Quantitative method of forecasting utilized
Use of trend progressions
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Sales & Operations Planning
During the established of ABC, there was a clear need to ensure that alignment between sales and operations teams was cohesive. As there is great detail within the planning process to correctly execute on the delivery of end products, there was a clear need to join organizations together to ensure organizational alignment.
Removed the level of generalization around the planning process.
Clear identification around resource planning. Includes guidance of finance, human resources, marketing and information technology.
Closely monitor monthly revenue plans set forth by executive management.
Focus on resource capacity.
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Inventory Management Practices
The ability for ABC to manage inventory levels is a critical component
in reaching desired revenue objectives. As high associated costs
come with having to hold excess inventory there is focus on cost
mitigation associated with warehousing as well as removal of
inventory which is not selling. ABC utilizes selling practices to help move inventory which has become out-dated. In addition ABC
manages inventory levels through the practice of:
Safety stock, to ensure that there is not gap time in filling customer
orders.
Centralized facility use to mitigate transportation costs.
Delayed product differentiation.
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Use of Transportation within the ABC
Supply Chain
ABC Eyewear uses a global transportation network to manage all
cargo flow processes. As ABC is both a manufactures and retailer,
there is a need for multiple types of transportation solutions. ABC is
focused on:
Cost containment
Service
Reliability
Visibility
Flexibility
These are achieved through…
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Use of Transportation continued
Cost containment through bid proposals to ensure most effective
rates are obtained in the market place.
Vetting carriers based on the level of service ability to meet the
needs of the ABC supply chain.
Reliability in the type of transportation which is offered. Ensuring
that no disruption takes place which could affect customers.
Visibility through an integrated track and trace system. If a customer makes an order, there needs to be end to end view.
Flexibility during times of peak season, which are the summer and
holiday months for ABC. Ensuring market uncertainty is accounted
for relative to capacity.
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ABC Eyewear-Decisions in Sourcing
Sourcing specific to the ABC supply chain has had a great effect on
the level of organizational profitability. ABC has achieved this process
through, reduction of costs, design collaboration from manufacturing
similar types of products, direct communication with suppliers to
ensure process efficiencies and price reductions from direct sources through the process of proposals and auctions. ABC uses primarily:
Off-shore sourcing for eyeglass materials.
Quality can be controlled while maintaining costs.
Ability to adjust level of strategic flexibility.
Evaluation process if a need to change suppliers.
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Use of Information Technology for Supply
Chain Optimization
Information technology is a key contributing factor to the success of
ABC Eyewear. Through the process of collectively managing all the
organisational functions, a level of visibility is provided to ensure that transparency is available throughout the supply chain.
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Use of Information Technology for Supply
Chain Optimization cont.
ABC uses Information technology to monitor inventory levels related
to customer demand. Market share for ABC within the eyewear
industry can be attributed to the successful implementation of
information systems such as Enterprise Resource Planning. ABC is
provided continuous visibility within the supply chain which provides managers with important information in making critical business
decisions. The benefits to having a successful ERP system for ABC
include:
A level of control over business functions.
Improved communications with customers.
Supply chain integration across new departments.
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Supply Chain Sustainability with Learning
Outcomes & Recommendations
ABC Eyewear has emerged as an industry leader in fashion eyewear products. The success of the organization can be attributed to the optimization and evolution of the supply chain process which have been reviewed. ABC has leveraged the successful task of sourcing materials used in product designs which has provided positive sales year over year. The ability to adjust with market trends as well as changing economic climates has also lent a level of success to the organization. The five and ten year focus is to remain consistent with supply chain practices, to be aware of changing market conditions and make needed adjustments to stay ahead of the competition. The following are recommendations for ABC to achieve continued success:
Further review with respect to levels of material sourcing.
Mitigation of high costs related to supplier selection
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Supply Chain Sustainability with Learning
Outcomes & Recommendations Continued
By diversifying the supply sections there will be a higher level of cost competition which could also potentially drive a higher demand in product quality.
I would also advise continued reviews of implemented Information Technologies.
While there is strength in the current systems of ABC related to ERPs, the tech industry is moving at such a fast pace that there is a need to keep a thumb on the pulse of changes to technology and reporting to ensure the highest level of transparency and visibility.
Sustainability to the supply chain is critical and ensuring the optimization is taking place on a continuous basis is vital. ABC Eyewear is an industry leader and given the current processes set in place, ABC will enjoy this level of success for years to come
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IndividualSupplyChainProject.pptx
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