A company presents different issues concerning its supply chain system. As we can see, there are 51 stores spread in 10 states. This seems to be a lot to manage for only one operator working out of Ohio. 9 of the 10 markets are over 1,000 miles away. We can also see that the different stores offer different menus since they deal with local suppliers, who may not offer products similar to the ones in the other stores. The 51 stores get what they find locally and it may vary from one store to another. This is the result of the hybrid supply system, which tries to use both a centralized system for dried products and local suppliers for fresh products. It is thus, too diversified. Another issue is the short-life of some products, like vegetables, etc. The demand is pretty unequal all the year long, and many factors make it vary. It is hard to forecast demand and consequently, they may have large losses with those short-life products, which cannot be kept too long. In the different factors that make the demand vary, we can find seasons, holidays, weather, etc.
[...] Strategic planning is a strategy as it is defined in its name, it is a goal to reach, a vision of what we want it to be in a years time. All this means that it would take a little while to get there. This change would be progressive and could be the result of a multitude of different little or big changes in the supply chain Based on the characteristics of the HBH product line, what kind of customized distribution plan would you suggest to overcome some of the distribution problems? [...]
[...] (Through, this benchmarking process HBH might be able to find improvements or solutions to its growing number of stock-keeping units.) However, we should be aware that in order to be competitive, the company should not only copy competitors' strategies, but take the best of it, and innovate again. The differentiation is a key point while choosing benchmarking process. Bibliography La logistique globale et le Supply Chain Management : Enjeux, principes, exemples Philippe-Pierre Dornier et Michel Fender Supply Chain Management : Créer des réseaux à forte valeur ajoutée Martin Christopher One Distributor Suppliers all over the USA Etc . [...]
[...] The other reasons that lead to this difference are, seasons, holidays, weather etc. The stocks are also increasing. Since a short time, some of the stores are offering new products because they developed a new café business too, which required supplies that didn't already have. It was a tough task to increase the supplies and organization's need. By consequences, the company lost a lot of money because of their level of stock. Because of the non-cooperation of the different stores, the company could not analyze the sales and the demand. [...]
[...] The stores will be “stores-stocks”; Mc Donald's has this kind of policy, mutual aid between stores. The purchase of a software (ERP) will improve the efficiency of the business. It is a system which attempts to integrate several data sources and processes of the organization into a unified system. A typical ERP system will use multiple components of computer software and hardware to achieve the integration. A key ingredient of most ERP systems is the use of a unified database to store data for the various system modules. [...]
[...] The idea is first to identify the company and its supply chain management problems. This approach is in some aspects similar to an audit; we already had listed the different problem areas of HBH. On a second step, the benchmarking idea is to identify companies with the same process, to identify what are those companies doing better than ours in terms of supply chain management. Leaders of a market and innovating companies might be the right examples to learn about and maybe to follow; knowing they are successful or promising. [...]
Online readingwith our online reader
Content validatedby our reading committee