Published on February 16, 2014
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If you can not describe what you are doing as a process, you do not know what you are doing W. Edwards Deming 1900-1993, continuous improvement management guru, renown for the DemingCycle
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Production push Producers Shipping Demand pull Distribution centres Regional DC Local DC Distribution Retail
Fresh vegetable Supplier 1 Local DC Regional DC Local DC Supplier 3 Local DC Big supermarkets to be supplied directly from the regional DC. Saving on the infrastructure and transportation. Fresh vegetable to be supplied to local supermarkets via the local DC. Go to the next slide
Local DC Supplier 1 Regional DC Supplier 3 Local DC Issues: Reverse logistics Routing optimization Local DC to invest in freezing facility
• Costs of production in Belgium not competetive • Increase in demand requires opening a new production facility
Example • Building a new production facility in China. • Increasing throughput in Turkish production facility • Moving of Belgian production to Turkey and China • Increasing size of the DC in Poland and in Turkey
Reverse logistics Supplier 1 RM 1 Cutting 1d SKU 1 3d SKU 2 5d 1d Producer RM 2 RM 3 Cutting 10 min Cutting 20 min SKU 3 SKU 4 Producer Assembly 2h 1d SKU = stock keeping unit RM = raw material 3d
Supplier 1 RM 1 Cutting 1d SKU 1 Reverse logistics 3d SKU 2 5d REDUCTION OF WIP Producer RM 2 RM 3 Cutting 10 min Cutting 20 min SKU 3 SKU 4 1d Producer Assembly 2h 1d SKU = stock keeping unit RM = raw material WIP= work in process 3d
Reverse logistics RM 1 Supplier 1 Cutting 1d SKU 1 SKU 2 3d 5d 1d RM 2 Producer Cutting 10 min SKU 3 RM 3 Cutting 20 min SKU 4 Producer Assembly 2h 3d 1d SKU = stock keeping unit RM = raw material
Schematic Shapes sets for modelling any Supply Chain according to the industry-standard methodology. Hand drawn like scribble style: Standard sharp shapes with a shine: Rounded shapes with a shine: Supply Chain Pictograms for creative visualization.
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