Naveen Case Study

SUPPLY CHAIN NETWORK REDESIGN
Introduction
Designing Supply Chain Network for each industry or business involves arriving at a
satisfactory design framework taking into all elements like product, market, process, technology,
costs, external environment and factors and their impact besides evaluating alternate scenarios
suiting your specific business requirements. No two supply chain designs can be the same. The
network design will vary depending upon many factors including location and whether you are
looking at national, regional or global business models.
Supply Chain Network in Simple and basic Terms Involves determining following process
design:
Procurement
 Where are your suppliers

 How will you procure raw materials and components
Manufacturing
 Where will you locate the factories for manufacturing/assembly

 Manufacturing Methodology
Finished Good
 Where will you hold inventories, Number of Warehouses, Location of warehouses

etc.
 How will you distribute to markets - Transportation and Distribution logistics
All above decisions are influenced and driven by Key Driver which is the Customer
Fulfillment.
1
Overview of the case:
A manufacturer of cookware, bake ware, dinnerware and household tools made a series of
changes in their supply chain network as a result of both organic growth and growth through
acquisitions.
For this a special team was appointed and they came up with a methodology which includes
several steps. Those are:
Step-1: The manufacturer’s project team and the Establish team to meet to structure the project
work, refines the project scope, develop planning factors and identify key contacts at the major
locations and the sources for the data that would need to be gathered.
Step-2: Site visits were scheduled to observe a number of the manufacturer’s operations so that
Establish would develop an understanding of current network to include the product groups in
the network, their storage and shipping characteristics and requirements, customer’s service
requirements, current issues, etc.
Step-3: The data was gathered and analyzed, and developed as necessary to reflect the operation
of the current supply chain. Progress meetings were scheduled to validate the data against the
actual supply chain costs.
Step-4: A validation model run was prepared to confirm the accuracy of the model. Then, a
5year forecast was applied to the validation model to create a model Baseline.
Step-5: A number of alternative scenarios were modeled to identify the optimal supply chain
network. The alternative supply chain network scenarios were compared to the baseline. The
overall best supply chain network, from the prospective of cost and service performance, was
identified and then it was evaluated for practicality
2
Questions:
1. Express your opinion about the manufacturer’s strategies?
As I mentioned in the introduction part supply chain network design is something which
needs to be taken into consideration well. So the manufacturer’s step by step process will give a
effective results to the company
2. How far the progress meetings mentioned in the case study are necessary?
Step-3: The data was gathered and analyzed, and developed as necessary to reflect the
operation of the current supply chain. Progress meetings were scheduled to validate the data
against the actual supply chain costs.
It is very much important to have a meeting and asking for managers opinion before taking a
final decision. That too at the stage of data analysis it is very essential to ask for the clarification
to those who actually involved in the process
3. According to you, is there any need to redesign entire network for efficient service?
Efficient service will only come from the updatation on both the customer expectation and
the manufacturing process. Building a supply chain network will help us to gain customer
satisfaction to the vast manner.
But it is not necessary that it should always go right. So while redesigning the exiting supply
chain we need to take a utmost care with the existing system and forecasting the future
performance of the company as well.
Conclusion:
Supply Chain Network designs not only provide an operating framework of the entire
business to guide the managements, they also examine the structure from strategic view point
taking into account external influences, interdependencies of all processes and critically evaluate
opportunities to maximize profitability.
Supply Chain Design consultants use various design software’s and optimization techniques
coupled with inputs from industry consultants and experts.
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SUPPLY CHAIN NETWORK REDESIGN

 Where are your suppliers

 Where will you locate the factories for manufacturing/assembly

 Where will you hold inventories, Number of Warehouses, Location of warehouses

1. Express your opinion about the manufacturer’s strategies?

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