SUBJECT – SUPPLY CHAIN MANAGEMENT

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Case Study Project

Total Marks: 80

 

 

SUBJECT – SUPPLY CHAIN MANAGEMENT

 

Group A

 

 

Case Study 1

-Supply Chain Management at Bose Corporation

 

 

1. 1. Briefly present the salient features of the integrated supply chain management system at Bose?

 

Answer:If your company makes a product from parts purchased from suppliers, and those products are sold to customers, then you have a supply chain. Some supply chains are simple, while others are rather complicated. The complexity of the supply chain will vary with the size of the business and the intricacy and numbers of items that are manufactured. SCM is the acronym for the term “Supply Chain Management”. Supply Chain Management is the management of a network of interconnected businesses involved in the ultimate provision of product

 

 

 

2. 2. Discuss how the strategy development process might work at a company like Bose?

 

Answer:Bose has a long standing relationship with W.N. Procter. a Boston based freight forwarder and customs broker. Procter handles customs clearance and shipping from suppliers to Bose. Procter provides Bose with up-to-the minute electronic data interchange (EDI) capabilities which enable Bose to track parts as they move through its global supply chain. Procter provides several other services to Bose such as selecting overseas agents who can help move goods out of the Far East. Procter’s well-established network of overseas contacts is especially useful when shipments must be expedited through foreign customs. Procter also is electronically linked into the US customs system, which allows it to clear freight electronically as much as five days

 

 

 

 

 

3. 3. What should be the relationship between Bose’s supply management strategy and the development ofits performance measurement system?

 

Answer:Bose has developed a detailed supplier performance system that measures on-time delivery, quality performance, technical improvements and supplier suggestions. A report is generated twice a month from this system to be sent to the suppliers providing feed-back about supplier performance. Bose has written contracts with suppliers. After six months of delivery without rejects. Bose certifies the suppliers as qualified

 

 

 

 

4. 4. Discuss the importance of quality of purchased components to Bose?

 

Answer:Perhaps one of the most unique features of Bose’s procurement and logistics system is the development of JIT II. The basic premise of JIT H is: “the person who can do the best job of ordering and managing inventory of a particular item is the supplier itself” Bose negotiated with each supplier to provide a full— time employee at the Bose plant who was responsible for ordering. shipping and receiving materials from that plant, as well as managing on-site inventories of the items. This was facilitated through an EDT connection between Bose’s plant and the supplier’s facility.

 

 

 

 

Case -2 SKF Bearing’s Best Practices

 

 

1. 1. Discuss the activities involved in the supply chain of SKF Bearings?

 

Answer:Supply chain management (SCM) is the management of the flow of goods and services. It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. Interconnected or interlinked networks, channels and node businesses are involved in the provision of products and services required by end customers in a supply chain.Supply chain management has

 

 

 

 

2. 2. Explain how .SKF establishes strong control over its outbound logistics?

                                                                                                                                      

Answer:SKF’s outbound logistics outsourcing is characterized by strong control over quality norms and delivery schedules by SKF personnel. Outbound warehousing which is a completely outsourced activity is controlled by SKF personnel by integrating the warehouses through their in-house developed ERP software platform. Training of logistics company personnel to load/unload goods, assemble and disassemble and for integrating

 

 

 

 

3. 3. What is meant by vendor managed inventory (VMI)?

 

Answer:The warehousing costs of this company are higher than theiroutbound transportation costs because of the extensive warehousing practices, but they have achievedgains through the application of internal control over implementation of quality norms, strict adherenceto Standard Operating Procedures (SOPs) and a robust system of IT implementation throughout theirsupply chain, Future Plans: Moving slowly towards Vendor Managed Inventory (VMI) for inbound sourcing and also looking at outsourcing more warehouse management responsibilities. Looking toimplement more definitive 3PL solutions for outbound activities of the supply chain, but will still, keepoperational control in its own hands.

 

 

 

 

4. 4. What meant by third party (3PL) logistics solutions? Explain how SKF will be able to implement thesame?

 

Answer:A third-party logistics provider (abbreviated 3PL, or sometimes TPL) is a firm that provides service to its customers of outsourced (or “Third Party”) logistics services for part, or all of their supply chain management functions. Third party logistics providers typically specialize in integrated operation, warehousing and transportation services that can be scaled and customized to customers’ needs based on market conditions, such as the demands and delivery service requirements for their products and materials. Often,

 

 

 

 

 

Case -3 Chrysler Unseats its Competition with Supplier Partnerships

 

1. 1. Discuss the approach of Chrysler’s operations managers in developing arid building the Neon model?

 

Answer: It was snowing outside the new Chrysler Headquarters building on Friday afternoon, December 5, 1997, as Thomas T. Stallkamp looked through his window and wondered whether Chrysler was on the right path. Stallkamp was credited as a driving force behind the radical innovations in Chrysler’s supply chain management that had fueled the carmaker’s resurgence during the last seven years, and had just been named President of The Chrysler Corporation.  Many questions came to mind as he reviewed his weekly SC

 

 

 

 

2. 2. Discuss the relevance of this case to the study of supply chain management?

 

Answer: Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among companies. It is said that the ultimate goal of any effective supply chain management system is to reduce inventory (with the assumption that products are available when needed). As a solution for successful supply chain management, sophisticated

 

 

 

 

3. 3. What benefits a manufacturing firm can achieve from its suppliers, through outsourced manufacturing?

 

Answer: When most people think of the term outsourcing in regard to a manufacturing company, they immediately think of moving production out of the United States to another country or offshore outsourcing. Manufacturing companies have a myriad of reasons for outsourcing production, but the main impetus for deciding in favor of outsourcing usually boils down to one thing: cost reduction.

 

 

 

 

 

4. 4. Discuss the differences between outsourcing and out-partnering?

 

Answer: The terms “partnering” and “outsourcing” are thrown about so frequently …. and in so many contexts …. that it’s hard to nail down an exact definition for either.

 

These two practices are becoming ever so common among the business community, and although the distinction between them is becoming increasingly blurred, they do have distinguishing traits, which bear consequential benefits and risks.

 

It has been said that the practice of outsourcing should be looked upon not as a simple customer-vendor relationship, but rather as a partnership where the engaging parties mutually benefit from their agreement. While this may be a sound

 

 

 

Case -4Delphi Automotive Setting New Norms

 

 

 

1. 1. Explain the supply chain of Delphi Automotive.

 

Answer:Delphi Automotive India Ltd. is the Indian arm of the global giant Delphi Automotive. The major components that Delphi supplies in the country are steering columns, half shafts, AC Units, Engine Management systems, Catalytic Converters and Wiring Harnesses. The Company also takes up sourcing requirements of clients based out of India.

 

 

 

 

2. 2. Explain how Delphi Automotive manages its inbound sourcing.

 

Answer:Delphi Automotive India has outsourced the entire inbound sourcing part of the supply chain to its suppliers, totaling about 150. They are responsible for the inbound transportation and warehousing of components before the latter reaches any of Delphi’s manufacturing plants.

 

Nexteer might be a relatively new name among tier suppliers but its production history goes back decades. Formerly the steering division of Delphi, it was taken over and run as a separate business unit by General Motors when Delphi emerged from bankruptcy in 2009. In 2010, after GM emerged from its own bankruptcy, the company was bought by

 

 

 

 

3. 3. Explain how Delphi Automotive manages its outbound logistics.

 

Answer:For outbound transportation and warehousing. the company works with a mixture of national transporters and organised logistics solution providers, Its outbound warehousing has been outsourced to a trading company with capabilities in warehouse management. To make sure that quality norms are adhered to and supply schedules are met, logistics service provider and transporter evaluation is done on the basis of requirement levels met, which is 100 percent for any component before it goes on to the line. This is a very Important service level definition on which logistic solution providers and transporters are evaluate

 

 

 

 

 

1. 4 Suggest a suitable strategy for Delphi Automotive to Improve its supply chain effectives.

 

Answer:Since the stock and inventory checking aspects of the supply chain have been automated, details of stocksand status of delivery can be tracked. Web enabledconsignment tracking facilities are provided by Delphi India to its foreign customers enabling the latter totrack the status and location of their’ consignments at any given point in time. Indian customers areslowly being provided with this facility. Also, Indian customers can place

 

 

 

 

Group B

 

 

 

Case-5 Karnataka Engineering Company Limited

 

 

1. 1. At what volumes is the opening of a warehouse in a state justified primarily on the grounds of the 4 percent central sales tax for transactions across states?

 

Answer:The problem here is a relatively complex one, in theory, because of the number of different but interrelated decisions that have to the made. Two options are suggested to approach this problem. One is to decompose the decision areas (typically in the order of the hierarchy described above) and calculate only the aggregate contributions from other decisions. For example, a shipment size can be assumed while deciding the number and location of warehouses (and that would determine the relevant costs), and this can be repeated for each significant option. Another approach is to explicitly and simultaneously

 

 

 

 

2. 2. How many warehouses do you think are required for the distribution of KEC’s products in AndhraPradesh? What could the candidate locations of the warehouses be? What would be the criteria on whichto select the candidates?

 

Answer:By 1983 (the case time context), the two-wheeler market had been liberalised and companies had to deal with the new realities. Logistics was one of the business activities which got a strong look. The case of Karnataka Engineering Company Limited (KEC) provides the background for analysing a key set of logistical concerns.

 

Strengthening the distribution network for finished products is one of the most direct ways of improving service effectiveness and cost efficiency of a firm’s marketing related operations. The cost of selling up and operating different facilities in the

 

 

 

 

3. 3. Determine the optimal selection of warehouses and the best allocation of demand points to the selectedwarehouses?

 

Answer:Five hierarchical decisions have to be made in this case; deciding on the number of warehouses, the location of those warehouses, the allocation of demand points to a warehouse, the selection of a shipment size, and an order processing and routing policy for the actual distribution from warehouse to demandpoints. Here, shipments from depots to dealers are through trucks or LCVs. Depending on the order processing discipline that is selected, one could have the possibility of meeting the demands of two or more dealers with a

 

 

 

 

4. 4. What are the best choices for shipment (truck) size from warehouses to demand points? Given the size,what routing would you recommend for a typical dispatch run?

 

Answer:In 1987, there was a slump in the Two-wheeler market which affected all manufacturers badly. The market became extremely competitive. This forced KEC to look for ways to tackle the increased competitiveness. It was felt by the Staff Vice-President (Corporate Planning) that the physical distribution function was a source of competitive advantage which, if properly handled, could yield substantial dividends that would be visible

 

 

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