1/13/2020 0 Comments
Supply Chain Management Master - Case Study Example It has an excellent distribution service network throughout the UK. While it's administrative office is located in Harrow, its central warehouse is at Thamesmead, London for all of Waissel's worldwide incoming shipments as well as nationwide deliveries (Waissl's). Supply chain of Barilla SpA has been a case of study for the revolutionary changes it made in late eighties and early nineties of the last century. With UK being one of the major markets of Barilla's product, Barilla's action of reducing the distributor's control over the shipment quantity while taking the larger portion of the responsibility has now become an ever guiding policy of supply chain management. The supply chain in Barilla requires the involvement of many third-party distributors. They are the major link between Barilla and the retailers who were the actual person getting customer's interest and their feedback. The Barilla management analyzing the pattern of customer's demand and that of distributors has sharp differences. The company saw very wide fluctuations in the demand pattern of the distributors while the customer's response was much less sharp and unusual (Simchi-Levi, Kaminsky & E. Simchi-Levi, 1999). In the world where globalization as a matter of discussion is making rounds of talk and competitors are from all over the world, it's the supply chain management that is greatly used as management tool to win over competition in retail sector. Supply chain design for a particular product is different than that of others. So, supply chain for supplying or delivering pasta is different from supply chain for fashion jewelry or apparels. Supply chain design for producing and delivering pasta deals with productivity and efficiency. Waissel's being UK's leading importer receives all its inbound shipment from all over the world in its central ware house located at Thamesmead, London. The Wiassel's now uses its nationwide supply network to provide products to retailers. The products of Barilla are also delivered to retailers like Tesco in the same manner. Waissel's has the responsibility that after receiving the order from the retailer, it has to deliver the product directly to the retail store or to its ware house. The long distribution channel with distributor's importing shipments in their warehouse and then using their network of logistical support to supply the product to retailers are basically forecast-driven. The reason behind this much forecasting is the rarity often seen in the stability factor of customer's demand. Forecast is very important because it is the only way to manage a balance in positioning the inventory and other resources. But this forecasting is still not more than a mathematically calculated data so it has its own limitations and most of the time it deviates from actual outcomes (Nagi, 2005). The forecasting errors are normally covered through buffer or safety stock. The supply chain from the simple end-user to raw material provider and producer are all because of being a part of the complete set of supply chain normally see greater variation in demand and hence the safety stock. The actual effect is visible when the lower end supply chain participant increases and decreases its order to higher one according to the orders from the participant lower to it. This causes Bullwhip effect. The effect can
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