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Case Analysis.doc Compiled by Dr SIU Brian KT, February 2010 CS1:Pages 38-53 (10 topics documented) CS2:pages:61-71 (7 topics documented) 1 fit into Tutorial 1_3 student summary (length of -Single Enterprise Concept-Integrated Logistics Case Study): 2 11 --INVENTORY -Company Background 3 12 -TRANSPORTATION -Sales and Markets 4 13 -WH,Material Handling,Packaging -Logistics 5 14 -Facility (global logistics and facilities network,location design) -Location of NIKE facilities (UK, France, 6 Germany==>3 wh,mixture in-house & contracted, -LOGISTICAL OPERATION 25,000m2) 7 15 -Market Distribution -CUSTOMER SERVICE 8 16 -MANUFACTURING SUPPORT (MPS,timely availability of material, component ISSUES 5 parts) 17 9 -Analysis of the options -PLANNING/COORDINATION(supply chain integration diagram,Figure 2-3, SOP to (footwear,apparel,#distribution centres) order assignment to transporation shipping and procurement) 10 LOGISTICAL OPERATING ARRANGEMENT (echelon common arrangement of firms and facilities; OR direct delivery); combining both into a flexible logistics system CS1: Case Analysis 1 Several strategies were introduced -annual saving, for example, reduced time to market by 25% -inventories reduced to half -order cycle time from 6 weeks to 2 weeks -How Case Analysis for the CISCO SINGLE ENTERPRISE STRATEGY, Source: Global Logistics and Supply Chain Strategies, May 2000, pp28-38 1 2 strategies -lean supplier -outbound using a single point of contact; inventory tracked to UPS logistics management system (tracking product to destination on a real-time basis) -later changed to FedEx, why? Air,ground and logistics service combined for direct shipment to ustomers, any more warehouse needed About IT? Further discussions by students 2 Inventory: To apply the What It Means To Us The 80/20 Rule means that in any set of things (workers, customers, etc.) a few (20 percent) are vital and many (80 percent) are considered trivial For example, What It Means To Us The 80/20 Rule means that in any set of things (workers, customers, etc.) a few (20 percent) are vital and many (80 percent) are considered trivial How it helps management: to focus on __ % that matters. Further discussions by students 3 -TRANSPORTATION cost of transport Speed of transport Consistency of transport, e.g. taking 3 days one time and 6 days the other time may be a problem! Further discussions by students 4 WH,Material Handling,Packaging - The process of product receipt, movement, storage, and assembly to meet with customer order requirements Cans, bottles boxes packted into larger unit called ”master cartoon” Further discussions by students Case Analysis for the CISCO SINGLE ENTERPRISE STRATEGY, Source: Global Logistics and Supply Chain Strategies, May 2000, pp28-38 2 5 -Facility (global logistics and facilities network,location design) -how about network design? How many warehouses; types of facilities to perform logistics work -Does network facility requires considerations of geographical locations? -For global logistics, network design needs to fit into prime market (such as market share, market forecast, market value) in order to use the information and data to plan sales, make adjustments to production, plan /organize resources more effectively ) to use the information and data to plan sales, make adjustments to production, plan /organize resources more effectively Further discussions by students 6 -LOGISTICAL OPERATION main point: supply chain integration to include supplier and customer see for example the video shown in earlier lectures about DELL computers -be able to draw a diagram of the focal firm with information flow to customers and suppliers Further discussions by students 7 -Market Distribution -the finished product to be sent to destination: the customer -product availability in the supply chain includes what? manufacturer, wholesalers to customer Further discussions by students 8 -MANUFACTURING SUPPORT (MPS,timely availability of material, component parts) -the work in process is different from market distribution -work-in-process linked with MPS (master production schedule) -fluctuation in customer demand and customer orders to be considered in the overall planning Further discussions by students Case Analysis for the CISCO SINGLE ENTERPRISE STRATEGY, Source: Global Logistics and Supply Chain Strategies, May 2000, pp28-38 3 9 -PLANNING/COORDINATION(supply chain integration diagram,Figure 2-3, SOP to order assignment to transporation shipping and procurement) -planning the financial requirements for inventory, facilities, equipment, and … Further discussions by students 10 LOGISTICAL OPERATING ARRANGEMENT (echelon common arrangement of firms and facilities; OR direct delivery); combining both into a flexible logistics system -we quote the example of consolidation of productions in different plans into a central location. Further discussions by students DISCUSSION (TOWARDS THE FINDINGS: WRITTEN ASSIGNMENT WORK) What lessons do we learnt? Basis of analysis: (1) Year of case study 2000, how about 2010? (2) Further analysis from Internet resources to give further findings (3) What are the problems, for example competitive force (5 forces model such as Written Assignment work)? (4) How do we measure the case study performance and/or current performance (can we apply the SCOR model such as Written Assignment work)? For CS2:pages:61-71 (7 topics documented): to be continued in Week 7 Tutorial Case Analysis for the CISCO SINGLE ENTERPRISE STRATEGY, Source: Global Logistics and Supply Chain Strategies, May 2000, pp28-38 4