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- 1. Supply Chain Management Plan Team Supply Chain Management Plan, Riordan Manufacturing. 1 Supply Chain Complexities Best Practices for CRM Enhancing Efficiencies Outcome Predictions Process Improvements Collaboration and SCM Operational Improvements Conclusion Table of Contents Table of contents 2 Supply Chain Complexities Best Practices for CRM Enhancing Efficiencies
- 2. Outcome Predictions Process Improvements Collaboration and SCM Operational Improvements Conclusion Supply Chain Management Plan Diagrams of Riordan’s supply chain relationships 3 Riordan Operational Structure Riordan Manufacturing is international organization that manufactures plastic products for various industries. Riordan has two plastic assemble plants in the United States and electric fan manufacturing plant in China. The corporate office is in California. 4 Riordan Corporate Office San Jose California Custom plastic parts manufacturing Pontiac, Michigan
- 3. Electric fans manufacturing and assembly Hangzhou, China Plastic beverage containers manufacturing Albany, Georgia Customer Relationship Riordan has diverse group of customers around the world. The customer list includes pharmaceuticals companies, wholesalers, cosmetic companies, beverage companies, and technology companies. 5
- 4. Riordan Manufacturing – Electric fans, custom plastic, plastic beverage containers United States Asia Europe South America Supplier Relationship
- 5. For each division of manufacturing Riordan utilizes various materials for production of plastic products. For example, the electric fan division uses raw materials like plastic pellets, solvents and cardboard. Plastic pellets, solvents and cardboard are also common materials used in Riordan’s U.S. based operating facilities. 6 Cardboard Plastic Pellets, ink, solvents Electricity, light bulbs, natural gas Plastic beverage containers Cardboard, plastic film, packing straw Plastic Pellets, adhesives, solvents Electrical components
- 6. Electric fans Cardboard, paper, plastic film, styrofoam Plastic pellets, dyes, inks, adhesives, solvents Electricity, light bulbs, natural gas Custom plastic parts External Support Functions
- 7. The transportation of raw materials and finished goods is essential to Riordan’s operations. In the Albany, Georgia plant Riordan has built a partnership with Huffman Trucking. Huffman Trucking transports plastic beverage containers to Riordan’s customer across the U.S. In China, Riordan utilizes the services of FedEx and local freight carriers. FedEx services are beneficial to expediting product around the world and the local carrier is beneficial to managing local customer needs. 7 Plastic Bottle Division – Albany, GA Huffman Trucking Company Electric Fans Division - China FedEx China based freight carrier
- 8. Flow of Information Servers, computer hardware, and software Servers, computer hardware, and software Servers, computer hardware, and software With three different manufacturing locations in addition to a corporate office, Riordan relies on services and other computer components to transmit data across the enterprise. Customer orders are received through the corporate office and filtered to each manufacturing division. Each manufacturing facility relays data back to the corporate office. 8 Riordan Manufacturing Corporate Office – Research and Development Order and Data Output
- 9. Custom parts division Plastic bottles division Plastic fan division Supply Chain Complexities Best Practices for CRM Enhancing Efficiencies Outcome Predictions Process Improvements Collaboration and SCM Operational Improvements Conclusion Supply Chain Management Plan
- 10. Proposal for Best Practices for CRM 9 The customer’s definition of value - Quality product or service How do customers feel or think about the products provided? Reasonable pricing How competitive are the prices compared to others? Innovation How many new items do we have? Flexibility How far are we willing to go? Delivery of merchandise How fast and accurately can we get the products to customers? Customer Relationship Management The five bullet points provided above are the most significant factors related to customer satisfaction. While satisfaction is often difficult to predict, industry research has shown that these are the most relevant. They pertain to how we treat, what we offer, and overall performance of the services. 10
- 11. Customer satisfaction within the supply chain- Quality control Items free from defects Shipment Orders are delivered in a cost effective and timely manner Technology Online environments for order management Ongoing improvement Changing based on economic and customer needs. Delivering Supply Chain Value and Satisfaction The advantages of providing quality customer satisfaction within the supply chain numerous. This does not only pertain to customer service but also to retention. It allows for shorter lead times and accurate order processing, that in turn leads to efficient and cost effective delivery. These factors will lead to and allow for advantages with competition and respective industries. 11 Supply Chain Complexities Best Practices for CRM Enhancing Efficiencies Outcome Predictions Process Improvements
- 12. Collaboration and SCM Operational Improvements Conclusion Supply Chain Management Plan Your recommendations for enhancing efficiencies and predictions for the outcomes of your recommended methods 12 Efficiencies - Opportunities Moving Corporate Office Consolidating facilities Raw materials inventory Logistics management One opportunity Riordan has for increasing operational efficiencies is to move the corporate office to an existing facility in the United States. The corporate office includes all
- 13. departments including research and development. By moving the corporate office, Riordan leadership and administrative support could have more visibility into manufacturing processes. A second opportunity for improving efficiencies is to consolidate U.S. manufacturing plants. With similar raw materials needed for each plastic division Riordan could improve raw materials inventory and management. In addition to facilities and materials management, Riordan could also improve the logistics and supply chain management of finish goods. For example if Riordan moved the Pontiac plant to California, Riordan could have operations at each U.S. coast. Having operations on each coast could help improve transit times and freight costs. 13 Efficiencies - Implementation Buy-in from leadership Employee support Funding Supplier relationship Implementing efficiencies in Riordans supply chain will require support from all levels of the organization. Riordan’s leadership must have a clear understanding of the impact operational restructure will have on employees and suppliers. In addition, a
- 14. cost analysis is necessary for understanding the capital investment and potential losses of consolidating facilities. Finally, Riordan must work with suppliers to educate them on changes and how the changes impact the supplier relationship. 14 Supply Chain Complexities Best Practices for CRM Enhancing Efficiencies Outcome Predictions Process Improvements Collaboration and SCM Operational Improvements Conclusion Supply Chain Management Plan Predictions for the outcomes of your recommended methods. 15 Relocating plant Lead to lower overhead Higher visibility between plants and suppliers Lower shipping cost
- 15. By relocating the headquarters to one of the other plants, Riordan will see benefits such as lower overhead cost for the company because the company will not need to pay money on an extra building. By relocating a plant, the company will see reduce costs by reducing transportation cost. Riordan will have higher visibility into the operations of the plant they relocate to because they will be on site. Also the company will have more visibility into the processes at the other facilities because they will be able to visit the facilities more often. Riordan will see lower shipping cost because the raw materials needed for research and development will be more readily available to the team than when the company had to have raw material shipped to California. 16 Raw Materials Management Lower costs Lower inventory Higher visibility into suppliers
- 16. By introducing a process to track raw materials more closely, Riordan will benefit by seeing the cost of materials go down and see inventory maintained at lower levels. This will all be due to the fact that Riordan will offer more visibility to their suppliers and customers than before. This leads to lower inventory because of real time information being transmitting and the ability to change quickly if an event happens. 17 Supplier Relationship Lower costs Have quicker response for new products Combine certain tasks The supplier relationship can be improved and will lead to lower cost for Riordan. This is because the two companies will work together to produce new products. This will lead to quicker responses to what the customer needs or wants. By working together the company will have the potential to combine tasks with a supplier who is also doing the task. This will lead to lower cost for both companies and is a plus to having a great supplier relationship.
- 17. 18 Supply Chain Complexities Best Practices for CRM Enhancing Efficiencies Outcome Predictions Process Improvements Collaboration and SCM Operational Improvements Conclusion Supply Chain Management Plan At least one table that demonstrates clear, customized measures for process improvements. These measures must include performance measures, relationship measures, cost reduction measures, and any other measures you may recommend. 19 Plant Duties - CurrentLocationPurchasing & SalesLedger & PaymentsInvoicing & AP/ARReporting & EDSSPayrollBarcodingR&DManuf.San JoseYesYesYesYesYesYesYesNoAlbanyYesYesYesNoNoNoNo YesPontiacYesYesYesNoNoNoNoYesHangzhouYesYesYesNoN oNoNoYes
- 18. Currently, Riordan uses San Jose as the HQ location. All the payroll, reporting, EDSS, Barcoding, Vendor Payments, EDI, and R&D come from this location and the other 3 facilities do all the manufacturing. Since no actual manufacturing is performed in San Jose, this facility is redundant. It also could become a bottleneck, or single point of failure for the organization since there is no backup for any of these functions at the other facilities. The highlighted sections are functions unique to the facility. In the case of manufacturing, each plant specializes in certain products. 20 Plant Duties – Proposed Option #1 LocationPurchasing & SalesLedger & PaymentsInvoicing & AP/ARReporting & EDSSPayrollBarcodingR&DManuf.AlbanyYesYesYesYesYesYe sYesYesPontiacYesYesYesNoNoNoNoYesHangzhouYesYesYes NoNoNoNoYes If the company shut down the San Jose facility, it would save quite a bit of overhead. The functions currently performed at this facility could either be rolled into one of the other plants (Albany is central to the other two plants – option #1), or even better, all functions could be available at all plants (option #2). This would increase each facility’s independence and reduce reliability on one central location. It also creates redundancy, in case there is a disaster or one plant needs to close for an extended period of time, one of the other plants can pick up the administrative duties. The highlighted sections are functions
- 19. unique to the facility. In the case of manufacturing, each plant specializes in certain products. 21 Plant Duties – Proposed Option #2 LocationPurchasing & SalesLedger & PaymentsInvoicing & AP/ARReporting & EDSSPayrollBarcodingR&DManuf.AlbanyYesYesYesYesYesYe sYesYesPontiacYesYesYesYesYesYesYesYesHangzhouYesYes YesYesYesYesYesYes If the company shut down the San Jose facility, it would save quite a bit of overhead. The functions currently performed at this facility could either be rolled into one of the other plants (Albany is central to the other two plants – option #1), or even better, all functions could be available at all plants (option #2). This would increase each facility’s independence and reduce reliability on one central location. It also creates redundancy, in case there is a disaster or one plant needs to close for an extended period of time, one of the other plants can pick up the administrative duties. The highlighted sections are functions unique to the facility. In the case of manufacturing, each plant specializes in certain products. 22
- 20. Supply Chain Complexities Best Practices for CRM Enhancing Efficiencies Outcome Predictions Process Improvements Collaboration and SCM Operational Improvements Conclusion Supply Chain Management Plan An illustrated chart or diagram that explains how collaborative planning, forecasting, and replenishment processes affect supply chain management. 23 SCM – Operational Flow Riordan’s current supply chain operational flow is strong, and functioning very effectively. The diagram represents the current flow of orders, payments, and goods across the entire supply chain – from customer to HQ to plant to supplier, then back to customer. However, none of this is possible without a strong information flow and collaboration between customer, vendor, and supplier.
- 21. 24 SCM – Information Flow Information flow is not as linear or “one-way” as operation flow, it is more circular. In order for the supply chain to operate effectively, information must flow both ways at all times. Collaborative planning, forecasting, and replenishment are necessary to keep the supply chain healthy. If there is a communication breakdown anywhere along the way, the supply chain itself breaks. Information flow is a “two-way” street. Any breakdown causes the bullwhip effect and/or stock-outs and delays. 25 Supply Chain Complexities Best Practices for CRM Enhancing Efficiencies Outcome Predictions Process Improvements Collaboration and SCM Operational Improvements Conclusion Supply Chain Management Plan
- 22. A rationale for how your plan effectively carries out improvements in supply chain operations at Riordan Manufacturing. 26 Strong focus on all supply chain components Firm understanding of Riordan’s supply chain design “Core” supply chain issues are focused on rather than symptoms (perceived problems) This ensures the proposed changes to Riordan’s supply chain will have a maximized effect. Operational Improvements When deciding on the most appropriate enhancements for Riordan Manufacturing’s supply chain; every aspect involved with production was analyzed thoroughly. This allowed for the most critical relationships among components to be evaluated and new methods for improvement to develop amid them. By fully understanding every element involved with production; it allowed team B to focus on the core problems within Riordan’s supply chain rather than providing “band-aid” remedies (quick fixes). 27 Proposed improvements require full company participation and
- 23. consensus. Improvements provide new opportunities to grow, and allow supply chain components to communicate with greater efficiency. Strong data and projections provide convincing evidence to support the improvements. Operational Improvements The improvements suggested promote cooperation among all company operations. This allows for stronger communication to develop among components, and ensures everyone (from shop floor worker to C.E.O) remains informed of changes. Communication also makes ALL employees feel like a valuable part of the company, and allows them to suggest changes where/when they see necessary. Considering employee and customer suggestions is one of the most important concepts Riordan can focus on; particularly in their plants where management rarely sees daily production flow. The customer and shop floor worker are the people who are constantly exposed to the operations and final product of Riordan Manufacturing. It is nothing but beneficial to listen to them. In order to ensure the suggestions outlined are even considered; data has been collected, analyzed, and future company projections have been made. This shows sincere dedication to
- 24. solving supply chain issues, and provides a basis upon which further data may continue to be collected. Data is key to support any company changes that involve any type of large monetary and/or personnel commitment. 28 Supply Chain Complexities Best Practices for CRM Enhancing Efficiencies Outcome Predictions Process Improvements Collaboration and SCM Operational Improvements Conclusion After outlining the current supply chain, and making suggestions about CRM improvements, it is possible to look at what else can be done on the supply chain to enhance its efficiencies. Moving or consolidating offices will help save money and time, which will make the company more competitive. Collaborating with suppliers and internally adds additional efficiencies and once everyone in the company is bought into these ideas, Riordan will have improved their operations and supply chain which allows for future growth. 29 Blanchard, D. (2006). Supply chain management: Best practices. Hoboken, NJ: John Wiley & Sons. Fawcett, S., & Ellram, L. (2007). Supply chain management:
- 25. From vision to implementation. Upper Saddle River, NJ: Pearson/Prentice Hall. Riordan Manufacturing. (2004). Riordan Manufacturing. Retrieved from https://ecampus.phoenix.edu/secure/aapd/cist/vop/business/Rior dan/Internet/IndexPort.htm If Supply Chain Is the Answer, Then What’s the Question? (Blanchard, D 2006) David Blanchard copyright © 2006 John Wiley & Sons ISBN: 9780471781417 Anatomy of a Supply Chain (Blanchard, D 2006) David Blanchard copyright © 2006 John Wiley & Sons ISBN: 9780471781417 References