Supply Chain Logistics
. What changes did Shavers make to integrate its European logistics?
Integrated logistics is defined as the the process of anticipating customer needs and wants; acquiring the capital, materials, people, technologies and information necessary to meet those needs and wants; optimizing the goods-or-service-producing a network to fulfill customer requests; and utilizing the network to fulfill customer request in a timely way.” Integrated logistics is a service-oriented process. It incorporates actions that help move the product from the raw material source to the final customer.
In this case for shavers to have a global market they would require to have greater degree of centralization, coordination and planning. They also had to shift fundamental decision points from local level to the European level. Areas which needed changes/ of strategic importance were;
I. Finished goods and work in progress inventories.
II. Distribution operations and location.
III. Supply chain strategy.
IV. Development of forecasting and requirement planning systems.
V. Purchasing. To satisfy customer demand they needed modern planning and control systems which had effective scheduling, manufacturing and distribution planning for each product on offer. The changes started in the following areas in that order;
Finished Goods Inventory
Centralized responsibility for inventory would require the establishment of European planning function .i.e. to obtain sales forecasts from each local market, monitor finished goods stock levels at each distribution center and develop production plans and stock movement schedules to drive the flow of finished goods to DCs to ensure a high service level.
Distribution Network
It required to best configuration of DCs and provide input to the proposed business I.S .The distribution centers had to be reduced from 13 to 8 so as they could operate efficiently. There was also an introduction of a third party operated depot at Belgium and
Integrated logistics is defined as the the process of anticipating customer needs and wants; acquiring the capital, materials, people, technologies and information necessary to meet those needs and wants; optimizing the goods-or-service-producing a network to fulfill customer requests; and utilizing the network to fulfill customer request in a timely way.” Integrated logistics is a service-oriented process. It incorporates actions that help move the product from the raw material source to the final customer.
In this case for shavers to have a global market they would require to have greater degree of centralization, coordination and planning. They also had to shift fundamental decision points from local level to the European level. Areas which needed changes/ of strategic importance were;
I. Finished goods and work in progress inventories.
II. Distribution operations and location.
III. Supply chain strategy.
IV. Development of forecasting and requirement planning systems.
V. Purchasing. To satisfy customer demand they needed modern planning and control systems which had effective scheduling, manufacturing and distribution planning for each product on offer. The changes started in the following areas in that order;
Finished Goods Inventory
Centralized responsibility for inventory would require the establishment of European planning function .i.e. to obtain sales forecasts from each local market, monitor finished goods stock levels at each distribution center and develop production plans and stock movement schedules to drive the flow of finished goods to DCs to ensure a high service level.
Distribution Network
It required to best configuration of DCs and provide input to the proposed business I.S .The distribution centers had to be reduced from 13 to 8 so as they could operate efficiently. There was also an introduction of a third party operated depot at Belgium and