The document discusses the potential extension of the transit point model across Merloni Elettrodomestici's operations, highlighting benefits like improved costs and efficiency, while also addressing challenges like capital investment and transportation issues. It outlines an implementation plan that includes identifying expected benefits, investing in IT systems, optimizing interconnectivity, and enhancing training for employees. Recommendations suggest utilizing transshipment to improve performance and advanced logistics systems for real-time visibility, while noting that success depends on managing demand variance and distribution distances.

1. MERLONI
ELETTRODOMESTICI
SPA
Anant B | Rishav | Mahesh | SanketGroup 3

2. Should the TP model be extended
across the country? Why? If yes,
what should be the implementation
plan?
Yes!

3. Why should it be extended?
 Improved costs
 Better efficiency
 More agile
 More responsive
 More visibility
 Reduced workforce

4. However
Several factors attributed to the success of the
transit point trail
 No stock outs at the central warehouse
 No production issues
 Weather conditions
 No transportation issues

5. Additional factors
 Considerable capital and time needs to be
invested
 Average product delivery time could increase
 Higher costs of transportation
 High costs involved in modifying Central Office
 To be cost effective, there needs to be consistent
high volumes
 Transportation fleet needs to be increased to
serve all regions
 Need to optimize interconnectivity between all
regional offices

6. Implementation Plan
 Identify the expected benefits
 Understand the requirements
 Sophisticated IT systems
 Standardized processes and training

7. Cross docking facilities
 Modify the existing ware houses
 New facilities which support cross docking
 Storage area in the facility
 Facilitate direct customer pickups

8. Cross docking facility

9. Safety Stock Maintenance
 At regional warehouses
 At central warehouses and plants
 Maintain customer service levels

10. IT Systems
 Order processing
 Information sharing
 CPFR
 Increase supply chain visibility
 Implement advanced forecasting techniques
 Space optimization techniques

11. Interconnectivity of regional
offices
 To manage supply and demand
 Identify regional offices in close proximity
 Managing left over inventory

12. Training the employees
 To handle the cross docking facilities
 Use of IT systems
 Hiring experienced personnel

13. Transportation
 More focus on transportation
 Consider having own fleet
 More control over the logistics

14. Standardized processes
 Maintain standard processes
 Clear roles and responsibilities
 Continuous improvement

15. Recommendation
 The success of cross docking depends upon
low demand-variance and relatively close
distribution distances. However, the demands
for Merloni’s products were quite variable.
 The company should had used advance
logistics information system like “Total Asset
Visibility (TAV)”, which gives real time visibility
at any time.

16. Recommendation
 They should use the concept of transshipment
to increase its performance on efficiency front.
As given in the case study, regional
warehouse are of different capacity. So, the
company could use some of the bigger
warehouses to fill other smaller warehouses or
nearby warehouses as and when required.