Supply Chain Project

 The presentations are designed to display the students learning competencies from the course chapters. 

 Presentation are to include the below elements:

Company Background

Evaluation of the Supply Chain Processes

Sales & Operations Planning

Decisions in Sourcing

Supply Chain Sustainability with Learning Outcomes & Recommendations

It’s about Porsche.

This is an example. I need 15-20 pages.

Applied Global Logistics and Supply  

Chain Project  

Supply Chain Optimization For ABC Eyewear  

Student Name  

SCM 304-03: Supply Chain Management  

California State University, San Bernardino  

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ABC Eyewear- Supply Chain Optimization  

Content  

1. ABC Eyewear Company Background   

2. Evaluation of the ABC Supply Chain Processes   

3. Drivers of Supply Chain Performance   

4. ABC Eyewear Network Design   

5. Risk Mitigation within the Supply Chain   

6. Forecasting Practices of ABC Eyewear   

7. Sales & Operations Planning   

8. Inventory Management Practices   

9. Use of Transportation   

10. ABC Eyewear-Decisions in Sourcing   

11. Use of Information Technology for Supply Chain Optimization   

12. Supply Chain Sustainability with Learning Outcomes & Recommendations   

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ABC Eyewear Company Background   

ABC Eyewear is an organization specializing in manufacturing and  retail sales of eyewear products.  Stated in Japan in 1961, the original  founder of the organization specialised in metal work specific to  eyeglass creation.  Eyeglasses were sold on a local basis with  popularity growing into the 1970s. As the company progressed, the  manufacturing of eyewear became a global business and thus the  need to explore sourcing options as well as a distribution network to  move goods and services.    

 Established a formal distribution network in the 1970s  

 Supply Chain design for multiple geographies in the 80s &  90s  

 Multiple business acquisitions within the 2000s  

 Sustained Global souring and manufacturing business at present  

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Continued background  

 The current ABC business model as of 2014  

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Continued background  

ABC continues to target a market with room to further grow and  

expand.  Given the below details, there is a tremendous level of  

growth within the eyewear industry taking place over the next five  

years.  With the correct Supply Chain Optimization, profits will be  

captured through efficiencies.   

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Evaluation of the ABC Supply Chain Processes   

ABC Eyewear has established a supply chain which is cantered  

around meeting customer expectations.  This is achieved through the  

following processes:  

 Detailed focus on product design.  

 Collaboration between sales and operations teams on a global  

basis.  

 Strategic placement of facilities to meet consumer demand.  

 Fewest number of supply locations to reach the largest impacting  

markets.  

 Ability to be flexible with changing market conditions  

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Evaluation of the ABC Supply Chain Processes  

Continued   

In evaluating the ABC Supply Chain, the functions related to meeting  

customer demand are fluid.  The areas for improvement are depicted  

within the following diagram. Functions related to business execution  

are most critical to the success of planning.    

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Drivers of Supply Chain Performance   

ABC is highly focused on the drivers of the Supply Chain. These  

elements help to ensure that more responsive approach is taken. As  

ABC must meet consumer demand based on fashion products, there  

is a need to be more responsive within the market.  

 Critical view of supply chain drivers.  

 Product times are important.  

 Transportation costs maintained.  

 Facility location costs need to be reviewed.  

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ABC Eyewear Network Design   

ABC has emerged into an industry leader based on the ability to  

develop a successful network design.  ABC has maintained low costs  

related to facility placement which has lead to increased revenue for  

the organization. ABC is a leader in souring materials in the emerging  

markets which has also lead to cost control and savings while offering  high quality products. These functions are tied together through  

ePurchasing which connects suppliers through Information  

Technology.  

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Risk Mitigation within the Supply Chain   

A good portion of success can be attributed to risk mitigation.  ABC  

has been able to identify potential risks within the Supply Chain and  

thus ensure that there are no potential disruptions.  The risk indicators  

which ABC has a close watch on are:  

 Price fluctuations within the market.  

 Exchange rate changes from conducting business in multiple  

markets.  

 Having multiple levels of sourcing for raw materials to ensure that  

no stoppage occurs.  

 Adding levels of redundancy to back up systems.  

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Forecasting Practices of ABC Eyewear   

ABC uses statistical methods for planning and forecasting of market  

demand.  As the eyewear industry is a more mature and stable  

market, ABC is able to plan material productions based on historical  

data as well as current sales data to arrive at meeting the level of  

inventory which is required to achieve customer demand.  The goal is  to ensure equilibrium in matching supply with demand.  ABC employs  

the following:  

 Push-Pull process  

 Long, medium and short range forecasts used  

 Quantitative method of forecasting utilized  

 Use of trend progressions  

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Sales & Operations Planning   

During the established of ABC, there was a clear need to ensure that  alignment between sales and operations teams was cohesive.  As  there is great detail within the planning process to correctly execute  on the delivery of end products, there was a clear need to join  organizations together to ensure organizational alignment.    

 Removed the level of generalization around the planning process.  

 Clear identification around resource planning.  Includes guidance  of finance, human resources, marketing and information  technology.   

 Closely monitor monthly revenue plans set forth by executive  management.  

 Focus on resource capacity.  

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Inventory Management Practices   

The ability for ABC to manage inventory levels is a critical component  

in reaching desired revenue objectives.  As high associated costs  

come with having to hold excess inventory there is focus on cost  

mitigation associated with warehousing as well as removal of  

inventory which is not selling.  ABC utilizes selling practices to help  move inventory which has become out-dated. In addition ABC  

manages inventory levels through the practice of:  

 Safety stock, to ensure that there is not gap time in filling customer  

orders.  

 Centralized facility use to mitigate transportation costs.  

 Delayed product differentiation.   

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Use of Transportation within the ABC  

Supply Chain   

ABC Eyewear uses a global transportation network to manage all  

cargo flow processes.  As ABC is both a manufactures and retailer,  

there is a need for multiple types of transportation solutions.  ABC is  

focused on:  

 Cost containment  

 Service  

 Reliability  

 Visibility   

 Flexibility  

 These are achieved through…  

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Use of Transportation continued  

 Cost containment through bid proposals to ensure most effective  

rates are obtained in the market place.  

 Vetting carriers based on the level of service ability to meet the  

needs of the ABC supply chain.  

 Reliability in the type of transportation which is offered. Ensuring  

that no disruption takes place which could affect customers.   

 Visibility through an integrated track and trace system.  If a  customer makes an order, there needs to be end to end view.  

 Flexibility during times of peak season, which are the summer and  

holiday months for ABC. Ensuring market uncertainty is accounted  

for relative to capacity.   

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ABC Eyewear-Decisions in Sourcing  

Sourcing specific to the ABC supply chain has had a great effect on  

the level of organizational profitability. ABC has achieved this process  

through, reduction of costs, design collaboration from manufacturing  

similar types of products, direct communication with suppliers to  

ensure process efficiencies and price reductions from direct sources  through the process of proposals and auctions. ABC uses primarily:  

 Off-shore sourcing for eyeglass materials.  

 Quality can be controlled while maintaining costs.  

 Ability to adjust level of strategic flexibility.  

 Evaluation process if a need to change suppliers.  

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Use of Information Technology for Supply  

Chain Optimization  

Information technology is a key contributing factor to the success of  

ABC Eyewear.  Through the process of collectively managing all the  

organisational functions, a level of visibility is provided to ensure that  transparency is available throughout the supply chain.   

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Use of Information Technology for Supply  

Chain Optimization cont.  

ABC uses Information technology to monitor inventory levels related  

to customer demand.  Market share for ABC within the eyewear  

industry can be attributed to the successful implementation of  

information systems such as Enterprise Resource Planning.  ABC is  

provided continuous visibility within the supply chain which provides  managers with important information in making critical business  

decisions.  The benefits to having a successful ERP system for ABC  

include:  

 A level of control over business functions.  

 Improved communications with customers.  

 Supply chain integration across new departments.   

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Supply Chain Sustainability with Learning  

Outcomes & Recommendations   

ABC Eyewear has emerged as an industry leader in fashion eyewear  products. The success of the organization can be attributed to the  optimization and evolution of the supply chain process which have  been reviewed.  ABC has leveraged the successful task of sourcing  materials used in product designs which has provided positive sales  year over year.  The ability to adjust with market trends as well as  changing economic climates has also lent a level of success to the  organization. The five and ten year focus is to remain consistent with  supply chain practices, to be aware of changing market conditions  and make needed adjustments to stay ahead of the competition.  The  following are recommendations for ABC to achieve continued  success:  

 Further review with respect to levels of material sourcing.  

 Mitigation of high costs related to supplier selection  

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Supply Chain Sustainability with Learning  

Outcomes & Recommendations Continued  

 By diversifying the supply sections there will be a higher level of  cost competition which could also potentially drive a higher  demand in product quality.  

 I would also advise continued reviews of implemented Information  Technologies.   

 While there is strength in the current systems of ABC related to ERPs,  the tech industry is moving at such a fast pace that there is a need  to keep a thumb on the pulse of changes to technology and  reporting to ensure the highest level of transparency and visibility.   

 Sustainability to the supply chain is critical and ensuring the  optimization is taking place on a continuous basis is vital.  ABC  Eyewear is an industry leader and given the current processes set  in place, ABC will enjoy this level of success for years to come  

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