DOM05
SUPPLY CHAIN MANAGEMENT
Assignment – I
Assignment Code: 2017DOM053B1 Last Date of Submission: 15th November 2017
Maximum Marks: 100
Section-A
Each question carries 25 Marks.
1. "There are many possible structures for supply chain, but the simplest view has materials converging on an organisation through tiers of suppliers and products diverging through tiers of customers." Elaborate.
2. Why is the location of warehouse important for the SCM? Discuss some methods for determining the location of the warehouse
Section-B (50 Marks)
Case Study
A manufacturer of cookware, bake ware, dinnerware and household tools made a series of changes in their supply chain network as a result of both organic growth and growth through acquisitions. The changes included the number and location of manufacturing operations, the number and location of distribution centers and the reconfiguration of the company’s customer base (mass merchants, department stores, specialty retailers and online businesses).
The management of the company concluded that to achieve the optimal supply chain network from the perspective of cost and service performance, the entire network needed to be redesigned. To do so, a special project team was then commissioned to manage the network redesign internally and Establish was engaged to create the new redesigned network.
The Solution Establish developed a project methodology based on the project objective and scope and the firm’s experience (30+ years) and judgment. The methodology was multi-stepped. Establish also selected a best-in-class network modeling tool to use for the work required.
The first step in the methodology was for the manufacturer’s project team and the Establish team to meet to structure the project work, refines the project scope, develop planning factors and identify key contacts at the major locations and the sources for the data that would need to be gathered.
Second, site visits were scheduled to observe a number of the manufacturer’s operations so that Establish would develop an understanding of current network to include the product groups in the network, their storage and shipping characteristics and requirements, customer’s service requirements, current issues, etc.
Note: From these visits several quick fix opportunities were identified and implemented immediately. Implementation of these opportunities actually yielded benefits that offset the project costs.
Third, the data was gathered and analyzed, and developed as necessary to reflect the operation of the current supply chain. Progress meetings were scheduled to validate the data against the actual supply chain costs.
Fourth, a validation model run was prepared to confirm the accuracy of the model. Then, a 5- year forecast was applied to the validation model to create a model Baseline.
Fifth, a number of alternative scenarios were modelled to identify the optimal supply chain network. The alternative supply chain network scenarios were compared to the baseline. The overall best supply chain network, from the prospective of cost and service performance, was identified and then it was evaluated for practicality. Minor location adjustments were made, a few product groups were shifted and the completed result was the redesigned optimal supply chain network.
A business case was prepared for this redesigned optimal supply chain network and in it more than a 10 percent reduction in annual supply chain operating costs were identified along with improvements in customer’s service performance. In addition, the redesigned network had a simpler configuration and it was easier to manage.
Case Questions:
a) Express your opinion about the manufacturer’s strategies?
b) How far the progress meetings mentioned in the case study are necessary?
c) According to you, is there any need to redesign entire network for efficient service?
DOM05
SUPPLY CHAIN MANAGEMENT
Assignment – II
Assignment Code: 2017DOM05B2 Last Date of Submission: 15th November 2017
Maximum Marks: 100
Section-A
Each question carries 25 Marks.
1. What is Benchmarking? Taking an organization of your choice explain how benchmarking has helped improve his supply chain
2. "In the era of outsourcing, third party logistics can add value to existing supply chains." Explain this statement with examples.
Section-B (50 Marks)
Case Study
Kozmo, the online convenience store to shut down
New York-based Kozmo, the 3-year-old company announced that it would stop delivery service in all nine cities it operates. New York-based Kozmo, which dispatched legions of orange-clad deliverymen to cart goods to customers' doors, is the latest dot.com dream to evaporate in the market downturn. Amazon com, venture capital firm Flatiron Partners and coffee giant Starbucks were among the investors in Kozmo.
Kozmo said in December that investors promised a total of $30 million in private funding. But last month the company learned that an investor had backed out of a $6 million commitment. Kozmo executives had been working on a merger deal with Los Angeles-based PDQuick, another online grocer, sources said. The deal collapsed when funding that was promised to PDQuick did not materialize. Sources said Kozmo still has money but decided to close now and liquidate to ensure that employeesc ould receive a severance package.
Just last month, Kozmo Chief Executive Gerry Burdo was upbeat about Kozmo's future, saying he was looking to steer Kozmo away from its Internet-only business model and toward a "clicks and bricks" approach. But some analysts say Kozmo's business model only made sense in the context of a densely packed city such as New York. Vern Keenan, a financial analyst with Keenan Vision, said the service had a chance to work in only a few other cities around the world, such as Lonclon, Stockholm or Paris. "This seemed like a dumb idea from the beginning," Keenan said. "This grew out of a New York City frame of mind and it simply didn't translate."
Kozmo was started by a pair of twenty-something former college roommates. They got the idea for the company on a night when they craved videos and snacks and wished a business existed that would deliver it to them. Kozmo offered free delivery and charged competitive prices when it launched in New York. Though customers loved the service, the costs of delivery were high.
After co-founder and former Chief Executive Joseph park stepped down, Burdo slashed Kozmo's overhead, instituted a delivery fee and oversaw several rounds of layoffs. The company also closed operations in San Diego and Houston. Burdo said last month that profitability was not far away. The company had reached a milestone last December when it reported profits at one of its operations for the first time. Kozmo later saw two more operations reach profitability as a result of brisk holiday business.
Online delivery companies have been among the most ravaged by the Internet shakeout. Kozmo's rival in New York, Urbanfetch, shuttered its consumer operations last fall. Online grocers such as Webvan and Peapod have also struggled, and smaller operations such as Streamline.com and ShopLink.com have dosed down. Peapod was days away from closing last year when Dutch grocer Royal Ahold agreed to take a majority stake.
From the very beginning, supply chain management was to be a core competency of Kozmo. The promising dot.com would deliver your order everything from the latest video to electronics equipment in less than an hour. The technology was superior, the employees were enthusiastict, and the customers were satisfied. But eventually, Kozmo ran out of time and money.
Case Questions:
(a) What, in your opinion, is the major reason for the failure of Kozmo?
(b) Do you think that Kozmo promised what its supply chain could not bear? What could have prevented its shut-down?
SUPPLY CHAIN MANAGEMENT
Assignment – I
Assignment Code: 2017DOM053B1 Last Date of Submission: 15th November 2017
Maximum Marks: 100
Section-A
Each question carries 25 Marks.
1. "There are many possible structures for supply chain, but the simplest view has materials converging on an organisation through tiers of suppliers and products diverging through tiers of customers." Elaborate.
2. Why is the location of warehouse important for the SCM? Discuss some methods for determining the location of the warehouse
Section-B (50 Marks)
Case Study
A manufacturer of cookware, bake ware, dinnerware and household tools made a series of changes in their supply chain network as a result of both organic growth and growth through acquisitions. The changes included the number and location of manufacturing operations, the number and location of distribution centers and the reconfiguration of the company’s customer base (mass merchants, department stores, specialty retailers and online businesses).
The management of the company concluded that to achieve the optimal supply chain network from the perspective of cost and service performance, the entire network needed to be redesigned. To do so, a special project team was then commissioned to manage the network redesign internally and Establish was engaged to create the new redesigned network.
The Solution Establish developed a project methodology based on the project objective and scope and the firm’s experience (30+ years) and judgment. The methodology was multi-stepped. Establish also selected a best-in-class network modeling tool to use for the work required.
The first step in the methodology was for the manufacturer’s project team and the Establish team to meet to structure the project work, refines the project scope, develop planning factors and identify key contacts at the major locations and the sources for the data that would need to be gathered.
Second, site visits were scheduled to observe a number of the manufacturer’s operations so that Establish would develop an understanding of current network to include the product groups in the network, their storage and shipping characteristics and requirements, customer’s service requirements, current issues, etc.
Note: From these visits several quick fix opportunities were identified and implemented immediately. Implementation of these opportunities actually yielded benefits that offset the project costs.
Third, the data was gathered and analyzed, and developed as necessary to reflect the operation of the current supply chain. Progress meetings were scheduled to validate the data against the actual supply chain costs.
Fourth, a validation model run was prepared to confirm the accuracy of the model. Then, a 5- year forecast was applied to the validation model to create a model Baseline.
Fifth, a number of alternative scenarios were modelled to identify the optimal supply chain network. The alternative supply chain network scenarios were compared to the baseline. The overall best supply chain network, from the prospective of cost and service performance, was identified and then it was evaluated for practicality. Minor location adjustments were made, a few product groups were shifted and the completed result was the redesigned optimal supply chain network.
A business case was prepared for this redesigned optimal supply chain network and in it more than a 10 percent reduction in annual supply chain operating costs were identified along with improvements in customer’s service performance. In addition, the redesigned network had a simpler configuration and it was easier to manage.
Case Questions:
a) Express your opinion about the manufacturer’s strategies?
b) How far the progress meetings mentioned in the case study are necessary?
c) According to you, is there any need to redesign entire network for efficient service?
DOM05
SUPPLY CHAIN MANAGEMENT
Assignment – II
Assignment Code: 2017DOM05B2 Last Date of Submission: 15th November 2017
Maximum Marks: 100
Section-A
Each question carries 25 Marks.
1. What is Benchmarking? Taking an organization of your choice explain how benchmarking has helped improve his supply chain
2. "In the era of outsourcing, third party logistics can add value to existing supply chains." Explain this statement with examples.
Section-B (50 Marks)
Case Study
Kozmo, the online convenience store to shut down
New York-based Kozmo, the 3-year-old company announced that it would stop delivery service in all nine cities it operates. New York-based Kozmo, which dispatched legions of orange-clad deliverymen to cart goods to customers' doors, is the latest dot.com dream to evaporate in the market downturn. Amazon com, venture capital firm Flatiron Partners and coffee giant Starbucks were among the investors in Kozmo.
Kozmo said in December that investors promised a total of $30 million in private funding. But last month the company learned that an investor had backed out of a $6 million commitment. Kozmo executives had been working on a merger deal with Los Angeles-based PDQuick, another online grocer, sources said. The deal collapsed when funding that was promised to PDQuick did not materialize. Sources said Kozmo still has money but decided to close now and liquidate to ensure that employeesc ould receive a severance package.
Just last month, Kozmo Chief Executive Gerry Burdo was upbeat about Kozmo's future, saying he was looking to steer Kozmo away from its Internet-only business model and toward a "clicks and bricks" approach. But some analysts say Kozmo's business model only made sense in the context of a densely packed city such as New York. Vern Keenan, a financial analyst with Keenan Vision, said the service had a chance to work in only a few other cities around the world, such as Lonclon, Stockholm or Paris. "This seemed like a dumb idea from the beginning," Keenan said. "This grew out of a New York City frame of mind and it simply didn't translate."
Kozmo was started by a pair of twenty-something former college roommates. They got the idea for the company on a night when they craved videos and snacks and wished a business existed that would deliver it to them. Kozmo offered free delivery and charged competitive prices when it launched in New York. Though customers loved the service, the costs of delivery were high.
After co-founder and former Chief Executive Joseph park stepped down, Burdo slashed Kozmo's overhead, instituted a delivery fee and oversaw several rounds of layoffs. The company also closed operations in San Diego and Houston. Burdo said last month that profitability was not far away. The company had reached a milestone last December when it reported profits at one of its operations for the first time. Kozmo later saw two more operations reach profitability as a result of brisk holiday business.
Online delivery companies have been among the most ravaged by the Internet shakeout. Kozmo's rival in New York, Urbanfetch, shuttered its consumer operations last fall. Online grocers such as Webvan and Peapod have also struggled, and smaller operations such as Streamline.com and ShopLink.com have dosed down. Peapod was days away from closing last year when Dutch grocer Royal Ahold agreed to take a majority stake.
From the very beginning, supply chain management was to be a core competency of Kozmo. The promising dot.com would deliver your order everything from the latest video to electronics equipment in less than an hour. The technology was superior, the employees were enthusiastict, and the customers were satisfied. But eventually, Kozmo ran out of time and money.
Case Questions:
(a) What, in your opinion, is the major reason for the failure of Kozmo?
(b) Do you think that Kozmo promised what its supply chain could not bear? What could have prevented its shut-down?
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