perdue farms case solution
TRANSCRIPT
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Supply Chain Management
Meets the Holiday Season
Presentation by-
Hitesh Bhatia A011
Annesha Ghosh A020
Astha Saith A046
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Company Information
Major Chicken processing company
Based in US, Annual sales over $4.6 Billion
Established in 1920 End to end solution, from farm till table
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What is SCM ??
Supply chain management is aimed at managingcomplex and dynamic supply and demand networks.
Information Flow
Raw Materials
RETAILERFACTORY DC RDCSUPPLIER
Finished Goods
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Why did Perdue Farms feel the need of
IT in SCM ??
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Moment of Truth!!
Holiday SeasonToughest time formanufacturers andretailers
Supply ChainWeakness exposed
Difficulty in salesestimation
Supply Chain
Weakness
exposed
Difficulty in sales
estimation
Window to respond to
fluctuations is short
Unpredictable Consumertastes
Elongated supply chain
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Existing Supply Chain
Sourcing from Asia(As lower costs)
Long RouteEarly Sourcing
Decisions
Demand Uncertain at
an early time
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Systems in Place
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Constraints & Initiatives taken
CONSTRAINTS INITIATIVES
Inability to track delivery Vans
Time a critical factor in
poultry business
QUALCOMMs mobile communications
systemOmni TRACS
GPS system, where exactly the product
Communicate real-time with drivers
Better customer service Efficiency of drivers, more take home
income
Difficulty in estimation
Low Speed and flexibility
Manugistics forecasting software and SupplyChain tools
Product and geography-wise
Distribution Signaling - Actual sales and
Actual Inventory coordination
Substituting inventory with information
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Constraints & Initiatives taken
CONSTRAINTS INITIATIVES
Inability to track everyday salesVendor management inventory control
systems to track sales in real time
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Inventory v/s Information
Forecasting based on
seasonal history, gut feel
Inventory Stocked to respond
to demand fluctuations
End
Users
End
Users
Perdue
Farms
Perdue
Farms
Suppliers
Suppliers
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Questions & Answers
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Question 1
What are the key factors which determine the
success or failure of supply chains during holiday
season?
Which of these are under control of companies and
which are inherent in end-consumer business?
Provide some examples
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Answer 1
Speed and Flexibility - Response to Volatile demand
Proximity of Warehouse to Retail store - Lead time
System integration - Efficient forecasting
Examples: GPS installed in trucks
Investment in latest technology for
communication
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Question 2
Effect of gift Cards during holiday season on
Demand planning and Supply chain Management?
Suppose nothing is known about the recipients of
gift cards. What strategies can retailer and supplier
consider to accommodate these effects?
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Answer 2
Surge in demand from customer will exert pressure
on supply chain, testing its capability
Make use of past data
purchases/ordering duringJanuary & February
Overhaul and revisit the entire supply chain
immediately after Christmas
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Question 3
Prof Tomlin says that Smart companies substitute
information for inventory. What do you think he
means by this statement?
How do companies take advantage of information
to improve their inventory and logistic practices?
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Answer 3
Optimal inventoryInformation system can provide
shelf life
Integration of supplier and retailer System-Efficient
demand management
Logistics can be planned in advance and deployed
efficiently
GPS tracks logistics-Helps in contingency planning.
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Take Away
Managing Supply Chain using InformationSystem & Technology:
Speed and flexibility in supply chain
Everyday sales monitoring
Minimising gap between actual sales and actualinventory
Better customer service
Tackling changing customer demands
Cost effectiveness Reduction of lead time Growth of Business