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Enterprise resource planning approach
Benefits and challenges of enterprise resource planning
Benefits and challenges of enterprise resource planning
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1. The combination of leanness and agility in Wings & Legs’ supply chain
Food industry can be chartered by low margin industry, while along with the shift of power from the manufacturer to the purchaser, the price and demand became flexible, and the product variety increased.
According to Christopher and Towill (2001), there are mainly three ways to combine lean and leagile. The first hybrid approach is the Pareto rule, which means that the dominant 20% of products should use leanness and make to stock. While the remaining 80% products with less share of revenue should use agility. The second hybrid approach is about using lean approach for the base level of demand, while for the peak season or flexible demand, manufacturer can use agility
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And the labeling process is a very fast operation, which means that the lead time will not be so much increased. And with respect to the contamination risk of semi-finished meat product, postponing the labeling are low in risk. Thus, the feasibility of using postponing the labelling operation is very high.
However, comparing with the current situation, the lead time is longer, the manufacturing cost is a bit higher due to lower economic of scale in the labelling operation. Moreover, even though the inventory is reduced, the overstock problem of particular product types still exist. Which means that the repackaging process still very likely to happen. High remanufacturing cost remains the disadvantage point in this MDP position.
2.3 Postponing the packaging operation
By postponing the decoupling point, the risk of being out of stock and the risk of holding too much stock of products which are not required is significant lower (Ben Naylor, Naim and Berry, 1999). And the flexibility of product type is notably increased. While on the other hand, the lead time will be significantly longer, and the economics of scale in the packaging process is reduced. By making the trade-off between the pros and cons, setting up MDP upstream of the packaging process is the best
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However, instead of the lean approaches mainly making forecasts according to the EPOS data, the agile approach need to do more work. First of all, demand recording and forecasting. For instance the retailers should make records of the everyday demand and make forecasts of the future demand trend with the help of current demand data. By doing this, Promotions can be forehead noticed and the reaction speed can be improved. Secondly, the information system. The information system is the bridge between different upstream and downstream partners. Thus it is very important for the agility partners improve their information system to smooth the information transfer. For instance, electronic data interchange (EDI), radio frequency identification (RFID), and Distribution Requirements Planning (DRP) system are all good information systems for transferring the EPOS
In order to right the ship that is America’s food industry, we need to recognize the monopolies in the U.S food industry. These massive food conglomerates must be broken up in order to create competition in the market. This will allow the completion to dictate the market. More companies means more competition, and when companies compete, the consumer wins.
In conclusion, “a study of the average benefits among US manufacturers over a five-year time frame revealed 90% reduction in cycle time, 70% reduction in inventory, 50% reduction in labor costs, and 80% reduction in space requirements” (Russell & Taylor, 2011, p. 740). There are many benefits to embracing Lean, and interest is
Packaging design- Packaging is the science, art, and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of design, evaluation
Understanding the changes in the market and the growth of e-commerce prompted the organization to invest heavily in its supply chain management forecasting and management system. The development of a network of distribution centers and Direct Fulfillment Centers to position the company to capitalize on the growing e-commerce market indicate a strong understanding of the need to adapt to changing market forces. The company spent over $300 million on new distribution center facilities in 2014 alone, and continues to expand to maintain efficiency in product movement (Cassidy,
Traditionally, marketing, distribution, planning, manufacturing, and the purchasing organizations along the supply chain operated independently. The objectives of these organizational divisions are always different and conflict with each other’s objectives. . Marketing puts a higher emphasis on high customer service and maximum sales dollars conflict with manufacturing and distribution goals. Many manufacturing operations are designed to maximize throughput and lower costs with little consideration for the impact on inventory levels and distribution capabilities. Purchasing contracts are often negotiated with very little information beyond historical buying patterns. The result of these factors is that there is not a single, integrated plan for the organization---there were as many plans as businesses. Clearly, there is a need for a mechanism through which these different functions can be integrated together. Supply chain management is a strategy through which such an integration can be achieved.
However, comparing with the current situation, the lead time is longer, the manufacturing cost is a bit higher due to lower economic of scale in the labelling operation. Moreover, even though the inventory is reduced, the overstock of particular product type still exist. Which means that repackaging process still very likely to happen. High remanufacturing cost remains the disadvantage point in this MDP position.
The Food Industry is defined as a complex manufacturing industry that includes different activities such as “the processing, conversion, preparation, preservation and packaging of foodstuffs” according to M. Malagie. It is divided in thirteen different manufacturing sectors, where each one of it focuses on a specific type of product employed such as meat, fruits, vegetables, fish, chicken, grains, flour, pasta, chocolate, milk and oils.
The lean approach can substantially improve the process' efficiency. The objective is to create high quality products at a minimum cost in a short delivery time (Basu and Wright, 2008). This section explains briefly how Lean improves operational efficiency and enhances the competitiveness.
Two words, lean and agile, combine to make the word leagility. Supply chain managers need lean supply lines to eliminate waste and keep costs low. They also require agile supply chains to get the right amount of the product to the right place in order to satisfy the ever-changing nature of the marketplace. Traditional management recommended a lean supply chain for products with a stable demand, yet low profit margin. Conversely, products with a high profit margin and volatile demand should have an agile supply chain (Van der Vorst). Modern managers may benefit from studying hybrid supply chains that are both lean and agile.
Therefore, the attention has been drawn from quantity of food to quality and safety. A gap between food demand and safe food supply becomes an urgent issue to be solved, which also affects global food market and food security.
Products are not standardized and vary by country in terms of type, packaging and specification. This increases production time, production costs, lead tim...
The decision of product program and strategic sales planning should be made base on a long-term forecast of the possible sales volume in terms of the whole product range (Fleischmann, Meyr and Wagner : 2008), which take into consideration of the existing product lines, future product developments and the potential of new demand. On the other hand, the product life-cycle and other factors like economy, politics and competition should also be estimated and considered. In addition, when new product is launched, the location and target customer and market should also be determined carefully. And Hoekstra (1992, Chap.1.5) suggested during the strategic decision stage, the location of the decoupling points will be predefined base on the lead times and assigned to a particular product or market combination. The decoupling points, the points at which demand changes from independent to dependent and the company become responsible for determination of the time and quantity of material to be procured, processed or finished (Vollmann, T. E.et al: 2005), gives rise to different categories of product/process environments, in terms of Engineering-to-order (ETO), Make-to-order (MTO), Assemble-to-order (ATO) and Make-to-stock (MTS) (Figure__ ). As ...
The IT strategy for an ecommerce company is not similar to a utility company. For example, the IT strategy for amazon or ebay not similar to that of a power grid company in west coast. IT strategy and budgetary policy is different for Tiffany and United Airlines. Agile leaders constantly think about their IT strategy to ensure IT is in alignment with business strategy of the company. Agile leaders must ensure that knowledge gap is minimal within the organization. By eliminating the knowledge gap, an organization can operate more efficiently and help cut or avoid costs that does not add value to the business. In order to set effective and meaningful IT strategy, leaders should consider designing and architecting an IT organization where IT organizational function, IT architecture and agile development framework are converging well. Another component plays a significant role here which is outsourcing. Agile organization’s decentralized functions along with deeper understanding of applications, software and hardware architecture is advantageous before allocating budget for outsourcing for the agile software development. One way to control IT budget is to ensure IT decisions are business demand driven while demands are well vetted and controlled. Ensure which demands and ideas are quantifiable in terms of value, revenue, efficiency and quality. But at the same time, IT leaders must ensure that
The demand for easy to prepare and convenience of food create major scientific and technological challenges that cannot be fulfilled without experts scientific capable of understanding complex chemistry or biochemistry of food system and knowledge about method to preserved food which increases dependability of society towards ready-to-eat has led the greater responsibility for processors in terms of quality, safety and nutrition (McGill, 2011).
Our modern life and the organization of the business is now can’t be considered without such component as packaging. The envelopment of the physical object is considered to be