reckitt benkiser ( case study) for scm

7/31/2019 Reckitt Benkiser ( Case Study) for SCM

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Diptiman Guha 2010067

Reckitt Benkiser ( Case study)


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Problem Identification

Central planning team frequently changes theproduction plan in addition to the Procurement

team

Integration of the whole supply channel often

becomes troublesome


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Solutions

While implementing the centrally planningproduction plan, inputs from local teams are to be

considered regarding the demand sides of the

products locally

An intermediate stage of channel categorization

can be done by creating intermediary between

Central units of the supply chain and local units


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Central Team:Strategic

planning, Longterm production

and procurement

Intermediaryteam:Coordination,

Managing localteams, weekly

reviews

Local teams:Logistics andprocurementplanning and

execution


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The Decision making and planning process:

All strategic long term decisions are taken by the

central team

Based on sales demand, procurement anddelivery plannings are to be taken up by the local

teams

The intermediary team will help in resolving

conflicts and achieving coordination between theboth sides


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PROBLEM 2

Problem Identification:

As in present for domestic material both central

and factory teams are responsible for inventory

levels

MOQ of 50% of the materials do not fulfil the

average monthly requirement

If plant orders quantities less than the MOQs the

purchasing cost becomes very high


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Solutions

The inventory model that they should followshould be FOQ (Fixed Order Quantity)

Assuming 95% service level the value of z is

.1736 , Safety stock = z * Square root of lead

time * monthly demand


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Factors Importance Central Team Local Team Degree of Control

Imported ItemsEssential in the

manufacture of

products as these

items may not be

available locally

In control of

planning the

imported materials

dealing with

vendors who

supply the material

Provide with

requirements and

inventory level of

imported materials

Central Team >

Local Team

Demand ForecastThe starting step

for manufacture is

to determine the

required no of

products which

they will require

It will be deciding

the demand

forecast based on

sales projections

and demands from

previous years

Help in gathering

data for the sales

records also help

to provide local

sales demands

Central Team >

Local Team

Lead TimeIt helps in

identifying when to

order to vendors

such that the order

delivery happens

when the order is

required

They are

responsible to

handle vendors

supplying imported

material hence,

they will have to

take care of leadtime with those

Handle vendors

providing non

imported material

so they need to

maintain data

regarding lead

times from thosevendors

Central Team =

Local Team


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PROBLEM 3

Problem Identification:

Demand has a high fluctuation and the

manufacturing of the products at the co packs are

seasonal

Storage requires spending


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Solutions

Use seasonality models like exponentialsmoothing linear regression etc. in order to de-

seasonalise demand in historical data

Removal of the seasonality factor from the data

will provide a much clearer picture and help

achieve the targeted service level by making

forecasting easy


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THANK YOU

reckitt benkiser ( case study) for scm

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