Sabina Case
1. What suggestions do you have for Sabina about working with suppliers and how would you address the sourcing issue from the Chinese supplier based on Lean principles?
One of the premises of lean principles is the respect for others and suppliers are included in this list. Sabina should highlight the fact that suppliers are an essential part of the business and a long term relationship is vital for the future of both organizations. When both organizations work together to achieve a common goal, an increase in efficiency is palpable.
In order to nurture relationship with suppliers, Sabina should first follow the steps of developing a lean six sigma supply chain to set the parameters for a successful supply chain. The company should start by …show more content…
Couple with these problems, Sabina also has to deal with an uncertainty in demand that lead to extra cost in inventory represented by safety stock. To solve this issue it is recommended the use of Vendor managed inventory (VMI). In VMI, the vendor is responsible for managing customer’s inventory based on the demand of a particular item. http://logistics.about.com/od/forsmallbusinesses/a/VMI.htm. Vendor Managed Inventory could help the company in reducing cost since Buckeye will be no longer entitle to buy safety stock. The benefits could be also seen in the warehouse because the space occupied for the merchandise will be now utilize for different purposes. Moreover, the vendor has more control over the inventory guaranteeing that Buckeye is not going to be out of stock due to its continuous …show more content…
Set in order concentrated on using efficient storage locations, having the most frequent items in positions where can be picked up easily. Shine represents cleaning, one of the advantages of working in a clean environment is that help workers preventing premature damages in machines. E.g. oil leaks. Standardize is the ability to reproduce the first 3 s’ in different environments to create the same culture within the organization. Sustain is described by the routine to maintain all other aspect running with or without supervision. There is no doubt that the use of this tool could help Sabina and the company in reducing the amount of waste in the
One of the premises of lean principles is the respect for others and suppliers are included in this list. Sabina should highlight the fact that suppliers are an essential part of the business and a long term relationship is vital for the future of both organizations. When both organizations work together to achieve a common goal, an increase in efficiency is palpable.
In order to nurture relationship with suppliers, Sabina should first follow the steps of developing a lean six sigma supply chain to set the parameters for a successful supply chain. The company should start by …show more content…
Couple with these problems, Sabina also has to deal with an uncertainty in demand that lead to extra cost in inventory represented by safety stock. To solve this issue it is recommended the use of Vendor managed inventory (VMI). In VMI, the vendor is responsible for managing customer’s inventory based on the demand of a particular item. http://logistics.about.com/od/forsmallbusinesses/a/VMI.htm. Vendor Managed Inventory could help the company in reducing cost since Buckeye will be no longer entitle to buy safety stock. The benefits could be also seen in the warehouse because the space occupied for the merchandise will be now utilize for different purposes. Moreover, the vendor has more control over the inventory guaranteeing that Buckeye is not going to be out of stock due to its continuous …show more content…
Set in order concentrated on using efficient storage locations, having the most frequent items in positions where can be picked up easily. Shine represents cleaning, one of the advantages of working in a clean environment is that help workers preventing premature damages in machines. E.g. oil leaks. Standardize is the ability to reproduce the first 3 s’ in different environments to create the same culture within the organization. Sustain is described by the routine to maintain all other aspect running with or without supervision. There is no doubt that the use of this tool could help Sabina and the company in reducing the amount of waste in the