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Disney

The document provides an overview of The Walt Disney Company, including its founding in 1922, growth into a global media and entertainment company, and operations across various business segments including parks and resorts, media networks, studio entertainment, and consumer products. It then discusses key aspects of Disney's supply chain operations, including inventory management, sourcing, logistics, distribution centers, and focus on customer response and "show business" priorities.

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Jalal Abdallah
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0% found this document useful (0 votes)
1K views18 pages

Disney

The document provides an overview of The Walt Disney Company, including its founding in 1922, growth into a global media and entertainment company, and operations across various business segments including parks and resorts, media networks, studio entertainment, and consumer products. It then discusses key aspects of Disney's supply chain operations, including inventory management, sourcing, logistics, distribution centers, and focus on customer response and "show business" priorities.

Uploaded by

Jalal Abdallah
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Presented by:

Lama Khoury
Nathalie Estephan
Nehme
Rana Najm
Rania Jaber
Jalal Abdallah
The land of magic
• The Walt Disney Company was funded in 1922.

• World leader in family entertainment & operating on a multinational


level.

• The first purpose of the studio at the time was to produce animated
films.

• Then it had gone from just producing animated cartoons to a successful


media company reaching people through several different mediums.

• The largest licensor of manufactured goods in the world, with products


ranging from fine furniture to plush toys that bear the Disney name
Disney World
• The world’s largest amusement park operator came from the vision of Walt
Disney bringing his characters such as Mickey Mouse to come to life.

• Runs vast theme parks and resorts that serve tens of thousands of Guests
daily on three continents.

• The first Walt Disney theme park and resorts was originated in Anaheim
California on 1955. Today, it encompasses of eleven theme parks operating
in five different countries on three continents.

• Disney World is comprised of 4 different Parks with each having their own
personality with different attractions and entertainment.

• You will find Various attraction and rides, characters and parades, Nightlife
and entertainment , restaurant and dining.
• Disney’s value chain is comprised of four primary segments:
– media networks
– parks and resorts
– studio entertainment
– consumer products

• Each one of its value chain operates as its own company with their own separate
management team.

• Each also has its own Marketing, research, and sales function.

• Disney’s management success can be visualized as a vast array’s of hierarchy


segments.

• Is diverse and substantial (To get things right, they take many different approaches. )
Core Competencies
• Employee satisfaction and retention, superior customer value and
employee empowerment.

• "You're as strong as your weakest link," said Kimbrell [business


programs facilitator for the Disney Institute]. "We (Disney) learned
from listening to the front line.” The key to learning from employees is
creating an environment that contributes to information sharing, he
said.

• Disney’s ability to manage large crowds of people.

• Its ability to diversify enables them to survive through multiple


recessions making them one of the world’s most robust entertainment
companies
Overview of Key Portions of the Disney
Supply Chain
• Disney BU supply chains depend on different core processes and drivers to respond to
differing customer and guest requirements

• Cursory review shows sizeable assets are deployed to support Disney North American
merchandise supply chain activities
– More than 20 warehouses owned or operating on behalf of Disney
– More than 900 retail locations across the stores, parks, and resorts

• European operations depend on significantly higher numbers of warehouses and third-


party providers than seen in North America

• The majority of costs and assets are in Disney Consumer Products, Parks and Resorts, and
Buena Vista Home Entertainment

• An overview of activities and suppliers across BUs indicate that there are more
opportunities for cross-BU synergy than are currently in operation
– Most supply chain activities are managed independently
– Many contracts are negotiated and managed separately
– Internal warehousing is underutilized,
Supply Chain
• The Walt Disney Company has a large portfolio of intellectual property that
the company manages through relationships with a range of licensees,
vendors and retailers. Products bearing Disney characters, stories, songs and
brand names include a wide range of categories such as apparel, footwear,
toys, stationery, published materials, food, CDs and DVDs, home furnishings
and consumer electronics, among others. Disney has granted rights to more
than 8,000 businesses to use our intellectual property in the manufacture of
such products. Some of these licensees are large, even global, companies and
retailers, while many others are medium-sized and small companies located
around the world.
• The majority of Disney-branded products are manufactured by licensees,
managed by Disney Consumer Products (DCP). Studio Entertainment, Parks
and Resorts, Media Networks and Disney Internet Media Group also source
Disney merchandise for retail sale or for promotional purposes through
licensee and vendor relationships.
Supply Chain Characteristics

– Significant international sources of supply


– On-site warehousing support for merchandise, food, and general supplies
– Strategic outsourcing relationships in place
– Hundreds of unique store layouts in each resort
– Tens of thousands of active SKUs
– SKU management driven by guest service and “The Show”
– Daily replenishment of “A” items

Major BU initiatives

– Holistic approach to supply chain management


– Electronic integration of supply base
– Total cost approach to sourcing
– Lead-time analysis and reduction
– Supply chain system rationalization
– Facility utilization
Customer Response: Transportation:
• Customer Service Policy • Network Design
• Customer Satisfaction • Shipment Management
• Order Entry • Fleet Container Management
• Order Processing • Carrier Management
• Invoicing and Collections • Freight Management

Inventory Planning & Mgmt. : DC Operations:


• Forecasting • Receiving
• Order Qty. Engineering • Putaway
• Fill Rate Planning • Storage
• Control Policy • Order Picking
• Deployment • Shipping

Supply Transportation Operations


• Supplier Service Policy
• Sourcing
• Supplier Integration
• Purchase Order Processing
• Buying and Payment
DISNEY’s Supply Chain Management
• Customer Response
establishes the appropriate logistics response to
customer demand, as agreed in the Customer
Service Policy

• Inventory Planning & Management


determines and maintains the lowest level of
inventory to support the Customer Service Policy

• Sourcing & Procurement


builds the inventory to meet Customer Service
Policy

• Logistics & Trade Management (Transportation)


links the sources of supply with the customer

• DC Operations (Warehousing)
stores the inventory that cannot be immediately
and profitably consumed by the customer
“Show Business” Supply Chain
I - Customer Response: Focus first on the guest
• Study the demand and set the appropriate
customer service.
• Determine demand through forecasting and
market trends.
• Measure performance through feedbacks and
guest satisfaction measures.
II – Inventory Management:
Balancing guest, show, and profitability

• Planning mixture:
– Life cycle management
– Optimization “making what works, work for us”
• Location optimization
• Develop in-house advanced business solutions
III – Sourcing:
combination of sourcing strategy to manage global
volume and costs.

• A mix of supplier are used as a sourcing


strategy which provides flexibility to respond
to changing business demands.(domestic manufacturer
– domestic importer with domestic pricing - domestic importer with
import pricing – direct importer)

• Use developed tools to quantify the total


delivered cost.
• A supplier scorecard is utilized to formally
communicate performance.
IV – Logistics:
maximize fulfillment service, minimize logistics costs.

• Continuous planning and visibility


• Automate information flow
• Consolidate loads (moves)
• Select modes and carriers
• Track and trace
• Audit / settle
V – Distribution center Operations :

• “world’s largest stockrooms”:


• 50% of the warehoused SKUs are carried by
less than 1% of the serviced locations.

• 60% of the warehoused SKUs have a life span


less than 1 year
WE CAN PUT THIS AS RECOMMENDATION – HOW TO
IMPROVE DISNEY’S SCM
WE COULD PUT THE BELOW POINT IN THE
CONCLUSION SLIDE
• Disney's outlook on planning, centers on
their commitment to family entertainment,
customer satisfaction, quality, diversification
of markets, innovation, management
reorganization and corporate restructuring
when necessary.
THANK YOU

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