Kimberly Clark - a Lean Operations Organization
Kimberly Clark – Lean Logistics
June 25, 2012
Executive Summary Organizations in today’s economy often include cost control or reduction in their overall strategies. Logistics is an area of increasing focus where internal and external costs affect the margins and customer demands require excellence of service. In distribution, selective, exclusive and intensive are three primary channels in which an organization must determine the best option in relation to products and customers. The Kimberly Clark Company provides an excellent example for today’s organizations with “a customer-oriented supply chain reorganization begun more than four years ago, K-C is improving distribution efficiencies, reducing transportation costs and shrinking its carbon footprint, while becoming an indispensable partner to retail customers” (Jamison, 2008, para.3).
Technology and the Supply Chain Continuous advancements in technology offer new solutions to old problems in supply chain management as well as placing focus on the current needs of distribution in global markets. Real-time locations systems (RTLS) are among emerging technologies where “RFID is no longer considered an emerging technology. It is a proven solution with high value add and an increasingly attractive ROI, said Michael Liard, Director, AutoID for VDC Research Group.” (Zebra Technologies, 2012). Technology plays an important role in distribution where retail customers focus on inventory reduction while maintaining adequate supply to meet consumer demands. Real time information provides organizations such as Kimberly Clark with the necessary data to develop the most effective channels for distribution based on individual products and customers. Kimberly Clark’s EDI Solution Kimberly Clark’s efforts in supply chain improvement are validated through receipt of the Dick Clark Supply Chain Award in 2011which “honors the consumer goods company that best
June 25, 2012
Executive Summary Organizations in today’s economy often include cost control or reduction in their overall strategies. Logistics is an area of increasing focus where internal and external costs affect the margins and customer demands require excellence of service. In distribution, selective, exclusive and intensive are three primary channels in which an organization must determine the best option in relation to products and customers. The Kimberly Clark Company provides an excellent example for today’s organizations with “a customer-oriented supply chain reorganization begun more than four years ago, K-C is improving distribution efficiencies, reducing transportation costs and shrinking its carbon footprint, while becoming an indispensable partner to retail customers” (Jamison, 2008, para.3).
Technology and the Supply Chain Continuous advancements in technology offer new solutions to old problems in supply chain management as well as placing focus on the current needs of distribution in global markets. Real-time locations systems (RTLS) are among emerging technologies where “RFID is no longer considered an emerging technology. It is a proven solution with high value add and an increasingly attractive ROI, said Michael Liard, Director, AutoID for VDC Research Group.” (Zebra Technologies, 2012). Technology plays an important role in distribution where retail customers focus on inventory reduction while maintaining adequate supply to meet consumer demands. Real time information provides organizations such as Kimberly Clark with the necessary data to develop the most effective channels for distribution based on individual products and customers. Kimberly Clark’s EDI Solution Kimberly Clark’s efforts in supply chain improvement are validated through receipt of the Dick Clark Supply Chain Award in 2011which “honors the consumer goods company that best
References: Allen, N. & Allen, A.M. (2010, September 24). The lean challenge – Kimberly clark. Retrieved from http://www.logisticsmediauk.co.uk/articles/the-lean-challenge---kimberly-clark. Gilmore, D. (2008, September 4). Kimberly clark rethinks its supply chain. Supply chain digest. Retrieved from http://www.scdigest.com/assets/FirstThoughts/08-09-04.php. Intersystems. (copyright 1996-2012). Kimberly clark connects with its supplychain 7 times faster using ensemble-based edi solution. Retrieved from http://www.intersystems.com/casestudies/ensemble/kc.html. Jamison, M. (2008, July 14). Kimberly clark’s supply chain network of the future. Retrieved from http://www.industryweek.com/articles/kimberly-clarks_supply_chain_network_of_the_future_16775.aspx. Mallen, Bruce. (1996). Selecting channels of distribution: a multi-stage process. International Journal of Physical Distribution & Logistics Management, 26(5), 5-21. Retrieved June 24, 2012, from ABI/INFORM Global. (Document ID: 116351286). PRLog, (2009, February 11). Outsourcing pros and cons. Retrieved from http://www.prlog.org/10181084-outsourcing-pros-and-cons.html. Zebra Technologies; RTLS Solutions Increasingly Being Used in all Regions and Vertical Markets, According to VDC Research Group. (2012, June). Investment Weekly News,564. Retrieved June 24, 2012, from Banking Information Source. (Document ID: 2692143721).