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Wednesday 9th of May 2012 Presented at Victoria University, Melbourne, Australia Supply Chain Management
Company background
Established in the UK
Metal framing, electrical and mechanical support systems Nation wide and export customers Turnover of 55 million 650 employees
Issues
EBIT inferior at Betta board expectations (5,5% per annum compare to 14%)
This low level could be due to problems with customer relations
- Not able to supply products effectively - Lack of visibility with customers / customer dissatisfaction - Information system does not incorporate real time web access
Restructure
?
FIN
LOG
HR MKT
Applications
Methods of EC are only useful when they enable a supply chain application
Lawrence (2002) : Manufacturer direct sale to end user Manufacturer as information controller Distributor as information controller
System implementation
Kulkarni methods (2005) for e-supply chain implementation
Implementation of an ERP
Adoption of collaborative planning and scheduling Electronic linking of customer and supplier
Planned realignment
Implement R3
APO System
Implement CRM
Implement R3
APO System
Implement CRM
Implement R3
Material Management
Production Planning
SAP
Financial Planning
APO
Implement R3
APO System
Implement CRM
Restructure organization
Redevelopment of Employees
Functional department into process teams Training new roles and IT Systems Counseling
Results achieved
Improve customer delivery Response time and cost Developed integration
Implement R3
APO System
Implement CRM
Improve logistics
14 Hauliers (local) to 1 haulier (national)
Results achieved
Better price and service Easy to access external Information System
Implement R3
APO System
Implement CRM
Demand planning
SAP APO Demand Planning Module was Implemented
Statistical and collaborative technique is used. Pilot study on new supply chain is used.
Implement R3
APO System
Implement CRM
Demand planning
FORECASTING
REVIEW FORCATING
S & OP Meeting
Production Plan
ERP SYSTEM
Update
Implement R3
APO System
Implement CRM
Results achieved
Progress on the EBIT level return
Customer focus company through a change of business culture Cost of inventory reduced by 30% thanks to demand planning Delivery cost reduced by 22%
What are the recommendations of Betta Struts supply chain vision and why is each important?
Vision => A total framing solution provider with one face to the customer
Align the service model to what the market requires Plan product movement along the supply chain Introduce common data and processes Improve in-bound logistics
What status had Betta Struts achieved for each major IS at the end of the case?
To be implemented
CRM
How did Betta Struts ensure that its people and their culture supported the e-supply chain?
Redeployment of employees
From functional departments to process teams With given performance measures Keep the expert in their field
Training provided
Common meeting with different departments represented : IS Manager, Logistic Manager, National Sales Manager
Recommendations
What else could have they done in term of change management?
Include the employee into the change process (focus group) Create a feedback/discussion platform for employee suggestion
Implement SAP CRM module to help them manage customer relationship Ensure the security of their website Others ?
Questions?
Thank you
References
Total Supply Chain Management, Basu, Ron Wright, J. Nevan
http://reader.eblib.com.au.wallaby.vu.edu.au:2048/(S(ccokoc2l orlznpbfxef1u4sk))/Reader.aspx?p=535029&o=158&u=CP%2b9or %2bpqqzB3%2bT9tLT48Q%3d%3d&t=1336087442&h=4A053563128 88419C3E033CB5C5F251D3526DC0E&s=5831655&ut=507&pg=1&r =img&c=-1&pat=n# Supply Chain, Ian Sadler