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7/31/2019 Reckitt Benkiser ( Case Study) for SCM
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Diptiman Guha 2010067
Reckitt Benkiser ( Case study)
7/31/2019 Reckitt Benkiser ( Case Study) for SCM
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7/31/2019 Reckitt Benkiser ( Case Study) for SCM
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Problem Identification
Central planning team frequently changes theproduction plan in addition to the Procurement
team
Integration of the whole supply channel often
becomes troublesome
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Solutions
While implementing the centrally planningproduction plan, inputs from local teams are to be
considered regarding the demand sides of the
products locally
An intermediate stage of channel categorization
can be done by creating intermediary between
Central units of the supply chain and local units
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Central Team:Strategic
planning, Longterm production
and procurement
Intermediaryteam:Coordination,
Managing localteams, weekly
reviews
Local teams:Logistics andprocurementplanning and
execution
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The Decision making and planning process:
All strategic long term decisions are taken by the
central team
Based on sales demand, procurement anddelivery plannings are to be taken up by the local
teams
The intermediary team will help in resolving
conflicts and achieving coordination between theboth sides
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PROBLEM 2
Problem Identification:
As in present for domestic material both central
and factory teams are responsible for inventory
levels
MOQ of 50% of the materials do not fulfil the
average monthly requirement
If plant orders quantities less than the MOQs the
purchasing cost becomes very high
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Solutions
The inventory model that they should followshould be FOQ (Fixed Order Quantity)
Assuming 95% service level the value of z is
.1736 , Safety stock = z * Square root of lead
time * monthly demand
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Factors Importance Central Team Local Team Degree of Control
Imported ItemsEssential in the
manufacture of
products as these
items may not be
available locally
In control of
planning the
imported materials
dealing with
vendors who
supply the material
Provide with
requirements and
inventory level of
imported materials
Central Team >
Local Team
Demand ForecastThe starting step
for manufacture is
to determine the
required no of
products which
they will require
It will be deciding
the demand
forecast based on
sales projections
and demands from
previous years
Help in gathering
data for the sales
records also help
to provide local
sales demands
Central Team >
Local Team
Lead TimeIt helps in
identifying when to
order to vendors
such that the order
delivery happens
when the order is
required
They are
responsible to
handle vendors
supplying imported
material hence,
they will have to
take care of leadtime with those
Handle vendors
providing non
imported material
so they need to
maintain data
regarding lead
times from thosevendors
Central Team =
Local Team
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PROBLEM 3
Problem Identification:
Demand has a high fluctuation and the
manufacturing of the products at the co packs are
seasonal
Storage requires spending
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Solutions
Use seasonality models like exponentialsmoothing linear regression etc. in order to de-
seasonalise demand in historical data
Removal of the seasonality factor from the data
will provide a much clearer picture and help
achieve the targeted service level by making
forecasting easy
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THANK YOU
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