![ASIAN CASE RESEARCH JOURNAL, VOL. 23, ISSUE 1,
153–191 (2019)
�������E�:RUOG�6FLHQWLÀF�3XEOLVKLQJ�&R�
� '2,����������6����������������
ACRJ
This case was prepared by
Dr. Ivy S. N. Chen of Hong
Kong Polytechnic Univer-
sity, Professor Sherriff T. K.
Luk of Emlyon Business
School, France, and Dr.
Jinghui Tao of Nanjing
University of Finance and
Economics, as a basis for
classroom discussion rather
than to illustrate either effec-
tive or ineffective handling of
an administrative or business
situation.
Please send all correspon-
dence to Dr. Ivy S. N. Chen,
Department of Management
and Marketing, Hong Kong
Polytechnic University, Hung
Hom, Kowloon, Hong Kong.
E-mail: [email protected]
Kerry Logistics — Paving the
New Silk Road](https://image.slidesharecdn.com/asiancaseresearchjournalvol-221123094324-b12a7e87/85/asian-case-research-journal-vol-23-issue-1-153191-2019docx-1-320.jpg)
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ASIAN CASE RESEARCH JOURNAL, VOL. 23, ISSUE 1, 153–191 (2019).docx
- 1. ASIAN CASE RESEARCH JOURNAL, VOL. 23, ISSUE 1, 153–191 (2019) �������E�:RUOG�6FLHQWLÀF�3XEOLVKLQJ�&R� � '2,����������6���������������� ACRJ This case was prepared by Dr. Ivy S. N. Chen of Hong Kong Polytechnic Univer- sity, Professor Sherriff T. K. Luk of Emlyon Business School, France, and Dr. Jinghui Tao of Nanjing University of Finance and Economics, as a basis for classroom discussion rather than to illustrate either effec- tive or ineffective handling of an administrative or business situation. Please send all correspon- dence to Dr. Ivy S. N. Chen, Department of Management and Marketing, Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong. E-mail: [email protected] Kerry Logistics — Paving the New Silk Road
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- 35. Student Name SCM 304-03: Supply Chain Management California State University, San Bernardino 1 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
- 36. 10. ABC Eyewear-Decisions in Sourcing 11. Use of Information Technology for Supply Chain Optimization 12. Supply Chain Sustainability with Learning Outcomes & Recommendations 2 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. 90s
- 37. present 3 Continued background 4 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. 5
- 38. 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: basis. facilities to meet consumer demand. impacting markets. 6 Evaluation of the ABC Supply Chain Processes Continued In evaluating the ABC Supply Chain, the functions related to meeting
- 39. 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. 7 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. 8
- 40. 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. 9 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
- 41. which ABC has a close watch on are: markets. ensure that no stoppage occurs. up systems. 10 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
- 42. employs the following: -Pull process 11 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. the level of generalization around the planning process. guidance of finance, human resources, marketing and information technology. utive
- 43. management. 12 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: customer orders.
- 44. 13 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: ost containment 14 Use of Transportation continued
- 45. effective rates are obtained in the market place. the needs of the ABC supply chain. Ensuring that no disruption takes place which could affect customers. ty through an integrated track and trace system. If a customer makes an order, there needs to be end to end view. summer and holiday months for ABC. Ensuring market uncertainty is accounted for relative to capacity. 15 ABC Eyewear-Decisions in Sourcing Sourcing specific to the ABC supply chain has had a great effect on
- 46. 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: -shore sourcing for eyeglass materials. 16 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
- 47. organisational functions, a level of visibility is provided to ensure that transparency is available throughout the supply chain. 17 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:
- 48. 18 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:
- 49. 19 Supply Chain Sustainability with Learning Outcomes & Recommendations Continued ifying the supply sections there will be a higher level of cost competition which could also potentially drive a higher demand in product quality. Information Technologies. ength 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. 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 20
- 50. BEX 5601 – Case Study Analysis Assignment Briefing Title: Business Case Study Analysis Weight: 35% Length: 2,000 words (not including appendices, citations, references, and illustrations) Type: Individual assessment Due Date: Friday, Week 9, before 5:00pm Melbourne time. Submission requirements: 1. A signed assessment cover sheet must accompany this assessment. 2. Assignments must be uploaded in .pdf format to the dedicated assignment drop box on Moodle. Details: You are required to undertake a thorough analysis of the business environment for a specific organisation. The case study for analysis can be found on the Moodle site for this unit. The Moodle site also has some useful case study analysis resources which students should also access and read thoroughly as preparation for this assessment. It is strongly recommended that you commence work on the analysis of the business case as early as possible in the semester. Students should also familiarize themselves with the grading rubric for this assessment
- 51. prior to commencing any analysis on the case. Case Analysis Format: The following format is recommended for preparing this assessment. Assignment Cover Sheet (signed, dates, and fully completed). The coversheet must be uploaded to Moodle as a separate document to the assessment task. Cover page (identifying student s name, student identification number, and workshop day and time). Table of Contents (with page numbers) 1. P.E.S.T. Analysis. 2. Problem Statement 3. Problem Analysis 4. Identification of Solution s to the Problem 5. Evaluation of