In fact, each of the companies tackled issues in phases, effectively learning more as they went along. The following five mini case studies explore a few high-profile companies that have managed to sustain their supply chain cost reduction efforts and keep expenses under control.
A wallboard and sticker system was a low-tech solution for identifying equipment items in the yard at Terex.
Retail activity is extremely seasonal, with the majority of sales made between March and July. The only way Intel could find to make supply chain cost reductions was to bring this cycle time down and therefore reduce inventory.
Successful Supply Chain Cost Reduction and Management Sep 27, Cost Saving 3 comments If you were to tell me that your company had never looked at its supply chain costs and sought to deliver reductions, I would be mightily surprised.
As at December ofTerex was making plans to integrate the yard management solution with its ERP platform to M3s10 reverse logistics mini case even greater functionality.
Deere and company has a complex product range, which includes a mix of heavy machinery for the consumer market and industrial equipment, which is made to order. Terex had to implement costly but effective RFID tracking capabilities At the same time, none of the changes took place overnight.
If you want to see sustainable cost reductions, your company will need to view the big picture from a new angle or two, and be prepared to step outside of the comfort zone to which it will have become accustomed. Headquartered in Westport Connecticut, Terex Corporation may not be such a well-known name, but if your company has ever rented an aerial working platform a scissor-lift or similarthere is a good chance it was manufactured by Terex and originally dispatched to the rental company from a transfer center in North Bend, Washington.
Disposal fees are unavoidable if wanting to follow the legal methods of disposal; therefore just be factored into their cost structure.
The only option was to try to reduce levels of inventory, which, up to that point, had been kept very high in order to support a nine-week order cycle.
It has since been revamped to include two new case studies, so that there are now five mini case studies in total. It is recommended that the Company pursue its scrap metal waste collection as a no-charge option to their garbage disposal. A yard management software YMS product was chosen, and the transfer centre was surveyed before implementation of a pilot project covering a small portion of the yard.
The high cost of disposition is cutting deeply into profit margins.
Painted should be separated, as well as aluminum, copper, tin and the sort. Most companies start out with the best intentions to achieve successful and sustainable supply chain cost management, but somehow seem to lose momentum, only to see costs increase again in fairly short order.
As a result of the decentralised environment, in which inbound logistics and transport management were separate operational fields, there was insufficient transparency in the supply chain. The North Bend facility is always filled with lifting equipment, most pieces made to order and uniquely customised for specific customers.
The company grew substantially over the course of two decades, with a considerable proportion of that growth achieved by way of acquisitions. Synergies and economies of scale and the benefits of the same were not being taken advantage of, and all these issues were set against a backdrop of a volatile, seasonal market.
The remaining partners were then managed via a weekly scorecard system, which was aligned with renewed service level agreements. The challenges faced by these organisations and the steps they took, may provide some inspiration for successful long-term cost management within your own organisation.
That alone has saved the labour costs previously incurred in carrying out manual counts. At the point when optimisation planning began, sourcing and inbound logistics were managed by teams in various countries, each with different levels of SCM maturity, and using different tools and systems.
The Path to Cost Reduction: Intel had to shift an entire supply chain to a new and previously unheard of strategy in its sector. This would reduce profit by a set amount, but unfortunately cannot be calculated in this case. Reverse Logistics Mini Case Reverse Logistics Mini Case The Company is having a difficult time receiving a healthy profit due to the high costs of garbage disposal and the lack of alternative sources of income.
Seldom will major savings be made by whittling away piecemeal at what seem on the face of it, to be the most pressing issues of the day such as direct transportation costs or supplier pricing. As North and South American divisions of the company were already working with a recently implemented TMS, it was decided that the blended approach would be implemented first in Europe, with commitments to replicate the model, if successful, in its other operating regions.The challenges faced by these organizations may provide some inspiration for long-term and successful supply chain cost reduction and management within your own organization.
3 Mini Case Studies: Successful Supply Chain Cost Reduction and Management | Logistics Bureau. CASE STUDY Lifting Rental Equipment // Reverse Logistics EVALUATION // Without a functional and scalable process, Off-Hire returns would continue to be an area of inefficiency and.
Reverse Logistics - Case 4, Examine the Situation (Essay Sample) Instructions: We return to the hypothetical grocery delivery business described in Case 1. - Attached are the previous papers for Case 1, 2 & 3 to look back on.
M3S10 Reverse Logistics Mini Case Building a New Supply Chain – Reverse Logistics – Mini Case Study Report PROBLEM: The Company is having a difficult time receiving a healthy profit due to the high costs of garbage disposal and the lack of alternative sources of income.
Reverse Logistics Mini Case The Company is having a difficult time receiving a healthy profit due to the high costs of garbage disposal and the lack of alternative sources of income.
Failure to find alternate sources of income will make it difficult for the Company to remain in operation and be profitable. Find out how CASI are leaders in optimizing the consumer returns process in the Reverse logistics markets. Learn More-Consumer goods & Book and Media returns.Download