Recommandé
Contenu connexe
Tendances
Tendances (19)
Similaire à LINKS Simulation for supply chain management
Similaire à LINKS Simulation for supply chain management (20)
Dernier
Dernier (20)
LINKS Simulation for supply chain management
- 2. High Forecasting Accuracy Best value for money High Fill rate Increased Margins Less Tariffs Minimize Variable Costs Increase inventory turnover Goals
- 4. Product positioning Our strategy was to provide maximum value to customers at the best cost possible, for which we continuously tried to improve the efficiency of our value chain… SAR Inc.
- 5. • Procurement What • To get best value out of purchase Why •To gain better margin •To gain volume discounts •To keep inventory turnover high •For better reliability •Keep minimum number of suppliers & low inventory level. Pros •Frequent change of suppliers affecting quality •Increased investment in IT integration •Fluctuating rates Cons Decision
- 6. • Distribution What • To reduce transportation cost and tariffs • To serve the customers locally • To reduce costs by cross docking Why • Flexibility to meet demand • Reduction in RFID cost/piece • Better control over production • Cushion by postponement of P-0 Pros • High initial investment in DC & insourcing RFID • Inaccurate forecasting will affect the planning Cons Decision
- 7. • Manufacturing • Try to maximize production of P0 • Try to make as per forecast What • For better demand accuracy • No holding up of inventory Why •To increase accuracy of forecast •Reduce unplanned production •Low level of finished goods were produced at DC •Reducing variable cost /unit Pros •Inaccurate forecasting •Reduction in price by competitorCons Decision
- 8. • Transportation What • To avail best transportation cost • To gain transportation discount • For better reliability • To remain sensitive to market demand Why •Select carrier on basis of lowest prices as per updated research reports •Use air transport for both regions for 100% reliability •Select carriers with lower prices •Keep minimum number of carriers Pros •Limited carriers with cross docking •Surface carriers had high failure rateCons Decision
- 9. • Service level remained constant • Marketing spend • Reduce price at regular intervals • Recycling What • Tradeoff between marketing spend and price reduction Why •Better income to revenue ratio on reducing marketing spend •To gain return on assetPros •No gain in customer satisfaction from Recycling in one month •Increased expenses on recycling •Fear of losing customer due to reduced marketing spend •Unfulfilled orders due to surge in demand when price was reduced Cons Decision
- 10. Our results
- 11. Our results
- 12. Our results VSA1 88.4% Forecasting Accuracy % is higher than approximately 93% of all historical firms in Month
- 13. Our results
- 14. Our failures
- 15. Our mistakes/learnings Initial overlooking of postponement RFID insourcing was missed during month 4 and 5 Forecasting was taken as just average Went ahead with the highest cost supplier even though low cost and nearly same reliability suppliers were available in the market Epsilon forecasting was totally haphazard. Initially we bought it in excess and were in short supply in the end ↑Marketing expenditure ≠ ↑Sales! Must have a set strategy in the start and stick to it Adhere to the rules of the game! Blindly aping competitors strategy without proper basic understanding can be suicidal