SUBMITTED BY:

RITUPARNA NEOG (24),

SURABHI SAVITA (33),

NIFT-MFM,

NEW DELHI

SUPPLY CHAIN COE SUBMISSION

Under the guidance of Prof.Amandeep Singh Grover

Xerox present headquarterNorwalk, Connecticut, US.

SUSTAINABLE SUPPLY CHAIN

Introduction Large global company: Financial

services & Document Processing Products marketed in over 130

countries Direct sales force: 15,000 (dealers,

distributors & agents 30, 000 technicians employed for

after sales services. 22 manufacturing facilities in Europe,

N & S America and in Far East. Its “Ready for Real Business “

campaign emphasizes that Xerox will drive “Non Core Business Processes” allowing its clients to focus only on ‘ real ’ business operations

Xerox –at a glance Founded in 1906, Rochester, NY, US.headquartered in Norwalk, Connecticut (moved from Stamford, Connecticut in October 2007..PARC founded in 1970. Incorporated in 2002 as an independent centre.Fuji Xerox was established in 1962 as a 50:50 partnership with Rank Xerox.

PRESENTKey people -Ursula Burns, CEO -Anne M. Mulcahy, ChairmanEmployees 53,600 (2009)9,400+ patents(2009)$880 million spent on R&D (2009)Xerox locations-160 countries.On September 28, 2009, Xerox announced the intended acquisition of Affiliated Computer Services for $6.4 billion.

Organisat

Xerox- Strategy to WinExecute on growth initiatives Capitalize on market opportunities

Expand distribution Leverage distribution investment

Secure future Technology leadership

Build on Xerox heritage of innovation

Optimize productivity& infrastructure.

Drive cost reductions & margin Improvement.

Segment Offerings

Mission & Goals

To develop, manufacture, market and service a broad range of document processing products including large scale electronic printers,duplicators,copiers,work stations, engineering products, telecopiers and supply associated with those products.

MISSION

Customer satisfaction Return on assets Market Share Employee Satisfaction

GOALS

Industries it servesEnergyFinancial ServicesGovernmentHealth CareHigher EducationHigh Tech and CommunicationsInsuranceManufacturingRetail and Consumer ProductsShipping and LogisticsTransportationTravel

Inventory Performance

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Average

20% inventory

11% Logistics cost

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1989 1990 1991 1992 1993

Unit Process Optimization

Cross-organizational process Change

Change Agents

10%

7%?

Logistics customer satisfaction

100 %

Route Map

Strategic Partnership- ‘Close the Loop’

•In late 2010, Xerox partnered with Close the Loop, one of the world's largest recyclers of imaging supplies that specializes in cartridge returns.

•Close the Loop collects U.S. customers returns and manages the recycling on� behalf of Xerox using a patented material separation process that recovers used materials for reuse in new printer cartridges and other products.

•These processes enable virtually all material returned through the program to be beneficially managed.

•This partnership both simplifies the returns process for customers and also allows more of the return stream to be recycled into useful products.

Features of Closed loop supply chain

• Closed-loop supply chain: supply chains that are designed to consider the processes required for returns of products, in addition to the traditional forward processes.

• These additional processes (also referred to as the reverse supply chain) are:• Product acquisition: the task of retrieving the used product. This is a key to

creating a profitable closed-loop supply chain.• Reverse logistics: the process of planning, implementing, and controlling the

efficient, effective inbound flow and storage of secondary goods and related information opposite to the traditional supply chain direction for the purpose of recovering value or proper disposal.

• Test, sort and disposition: testing and sorting the returns and disposition refers to how a product is disposed of, e.g. sold to a broker, sold to an outlet, sent to landfill, etc.– Refurbish: similar to reconditioning but requires more work to repair the product.– Selling and redistribution.

New Assets

Acquire

NewBuildRemain

Distribute

Deliver

Removal

Asset strip

Recovery and repair

1.2 billion $ Logistics

cost

A closed loop supply chain of Xerox

New Assets

Acquire

NewBuildRemain

Distribute

Deliver

Removal

Asset strip

Recovery and repair

1.2 billion $ Logistics

cost

A closed loop supply chain of Xerox

Manufacturing & Supply

• The company’s largest manufacturing site is in Webster, NY, where they produce fusers, photoreceptors, Xerox iGen and Nuvera® systems, components, consumables and other products.

• They also have EA Toner plant located in Webster.

• They have a facility in Venray, Netherlands, which handles supplies manufacturing and supply chain management for the Eastern Hemisphere

• Master supply agreement with Flextronics, a global electronics manufacturing services company, to outsource portions of manufacturing for Mid-range and Entry businesses, continues through 2014.

• They also acquire products from various third parties in order to increase the breadth of product portfolio and meet channel requirements.

• Arrangements with Fuji Xerox under which they purchase and sell products.

Inventory management and logistics process vision

Customer satisfaction is the key

Demand driven supply chain

Time to customer is a competitive advantage

Common product language

Complexity managed through high performance work systems

Recycling is key

Order Satisfaction/ Delivery Management

Shared ownership of orders

Plan for order satisfaction

Information availability exchange for inventory

Same day delivery capability

100% build to order on high end

Configuration (Asset Information) Management

One logical data base, SAP

Co-ordinated, multifunctional, multinational, configuration management

Rapid communication of configuration information

Inventory Planning

One CompanyService level- driven stockingDemand- driven forecasting

Logistics & PhysicalDistribution Planning

One company, one integrated supply chain

Networks optimize customer satisfaction at lowest cost & inventory

Plan networks as a continuum from customer to supplier

Logistics Operation

Manage flow not stock Plan the workIntegrate warehousing and transportSame day delivery capability

WASTE PREVENTION AND MANAGEMENT

Waste Prevention & Management

• Xerox’s Green World Alliance initiative provides a collection and reuse/recycling program for spent imaging supplies.

• Xerox’s Product Takeback and Recycling program manages equipment at end of life.

• Xerox is investing in technologies that reduce the creation of waste.

• Example: – The solid ink imaging process utilizes compact “cartridge-free” solid ink

sticks with no plastic housings or casings, thereby reducing print-related waste by up to 90% compared with comparable color laser products.

WASTE FREE GOAL

Design products, packaging and supplies that make efficient use of resources, minimize waste, reuse material where feasible and recycle what can’t be reused

• This partnership with Xerox customers resulted in more than 3.4 million cartridges, toner containers and other used supply items being returned in 2010.

• Eco-Box returns allow the customer to order free bundles of Eco Boxes that hold from five to 12 cartridges per return, depending on the size of the item.

• Xerox continues to monitor global customer feedback and industry best practices to stay on the path of continuous improvement.

Waste Prevention & ManagementGreen World Alliance Reuse program

Central to the commitment to waste-free products

Total Waste Diverted from Landfills from Cartridges, Bottles and Waste Toner through Reuse/Recycle

• Returned products are sorted, and items suitable for remanufacturing are cleaned, inspected and then remanufactured.

• Those which cannot be remanufactured are recycled. • Remanufactured cartridges, containing an average of 90%

reused/recycled parts, are built and tested to the same performance specifications as new products.

Waste Prevention & ManagementWell-Established Collecting and Reprocessing Methods

Individual unit returns for sale

Eco Box program

Pallet returns.

Xerox customers have three options for returning spent consumables to Xerox for reuse and recycling at no charge:

• Xerox enables reuse according to the following hierarchy:– Reuse of complete end item as used or new, depending on the condition of the

machine. This requires the least reprocessing, transportation and energy usage.

– Remanufacturing or conversion into a newer-generation product or part Nearly 40% of machines returned in the U.S. are sent for remanufacturing of some sort.

– Reuse of major modules, subcomponents, and parts for spares or manufacturing. In 2010, almost 200,000 parts were stripped off of used machines and sent back out to the field for reuse either in manufacturing or as repair parts.

– Material recycling. Any remaining portion of a machine after the above processes have been followed is stripped of any recyclable material (e.g., plastics, copper wire) and material requiring special disposal services, such as PWBs, batteries and lamps. The remainder of the machine is then crushed and sent to a scrap metal reclaim facility.

Waste Prevention & ManagementProduct Take-Back and Recycling

Waste Prevention & ManagementWaste Diverted from Landfills through Remanufacture and Parts Reuse

•Xerox continues to operate its European take-back program to enable equipment remanufacturing and parts reuse

• A waste vendor approval process assesses the safety and environmental practices as well as compliance history of each vendor. •Xerox does not allow its vendors to send electronic scrap to developing nations for processing.

E-Waste

Process Flow

Xerox –green supply chain

• Xerox cites a number of benefits of a waste-free company:

• financial,• competitive advantage,• compliance • legislative regulation, • meeting customer requirements.

In 1991, the Xerox Corporation set a goal for the company to become waste-free.

Proactive leadership is Xerox’s stated goal in its environmental programs. All Xerox products are required, at a minimum, to comply with government standards and meet Xerox’s internal environmental standards. Internal standards are frequently more stringent than existing legislative requirements.

Process Flow

Process flows comprises of:

•Forward Flow•Reverse Flow•Remanufactured Flows

Product recovery process• The product recovery process is as follows:1) Products are collected from Xerox customers and returned to one of

centralized logistic return centers. • Reverse flows represent the movement of goods from the end-user

to Xerox for disposition and reuse.

2) Remanufactured flows are the movement of remanufactured goods from Xerox to customers.

• The customers for remanufactured products are often not the same customers as for new equipment.

• The flow of remanufactured goods is a forward flow of materials, not a reverse flow.

Product categorization for reuse• Returned units are inspected and assigned to one of four graded categories. These categories

represent the most economically attractive use of the returned product. The grades are the basis for the reuse alternative .

• Category 1 products are virtually unused machines requiring only minor servicing. • Category 2 machines are in good condition. These machines require parts and components

to be replaced during the remanufacturing process.• Category 3 machines are in good condition, but not economically fit for remanufacturing.

Therefore, parts and components are stripped off the frame of the machine and enter the reused parts inventories.

• Machines are classified as category 2 or 3 based, in part, on the demand for remanufactured machine and the levels of reused parts inventories.

• Category 4 machines are economically fit only for materials recycling.

• The categorization decision is based on a variety of factors including:

– the overall condition of the machine, – the age of the machine, – the demand for reused parts, and– current inventory levels of reused parts.

Results

Greater visibility and more accurate data in the spare parts supply chain, allowing Xerox to improve the planning process and overall efficiency across its network

Improved supply chain reliability and responsiveness, enabling Xerox to maintain its service commitments to customers.

New process-driven, results-oriented management and the attainment of significant cost savings.

Substantial savings across the supply chain: Transportation 16% Warehouse 12% Supply Chain 3% Total 15%

Key Differentiators

Unit Process optimization: multi cross functional team

Process vision: IM & L

Process improvements in process: Cross functionality giving flexibility

Management of Change: Convince people Converting understanding into positive perception Take the ownership and make people understand it’s the only way

Issues related to Reassemble-to-Order Process

The key dimensions in aggregate planning for a Reassemble-to-Order environment are :

• Xerox Europe reported a total of 116,308 copiers returned in 1999. The majority of these units were returned from lease agreements.

• The quality of these returns is difficult to predict, because not only are copiers complex but the condition of a photocopier is dependent on the intensity of its use and its age.

• Through the use of the nominal grading system , Xerox is able to determine the most economic use of a copier—after the condition of the copier has been determined.

• The use of Signature Analysis profiles aid the examiner in determining the reusability of a component.

• The complexity of the remanufacturing processes is directly related to not only the number of part and components, but also the number of operations required to return each component to usable status..

Issues related to Reassemble-to-Order Process

• Xerox tracks leases to enable the forecasting of the rate of product returns.

• Product returns from leasing, for non-OEM remanufacturers, represent less than 5% of total returns.

• Consequently, forecasting product returns is difficult due to the uncertainty associated with non-leasing returns.

• Matching return rates and sales rates is difficult. The volume of returns in the case of value-added remanufacturing is significantly less than for container reuse.

• Marketing is more complex for the remanufactured products, since customers may require significant education and assurances to convince them to purchase remanufactured products.

Managerial Concerns and Needs

• Xerox Europe does not make remanufactured copiers to stock and have chosen to reassemble the required components and parts per each customer order.

• Managers in a Reassemble-to-Order (RATO) environment have greater information needs, since the products, testing, and remanufacturing processes are significantly more complex than in a Remanufacture-to-Stock (RMTS) environment.

• Further, these products are more expensive; therefore units awaiting disposition and inventoried components may represent a sizable investment. There may be multiple economic uses for a remanufactured component (e.g. spare or on a remanufactured unit), so inventory planning must take this into account.

• The management of remanufacturing product and components must take into account the life cycle of the product in the field (likely demand for spare parts and consumables) and the market life cycle (likely demand for product in the future).

• A successful production planning system must be capable of coping with the inherent complexities in this type of an environment. A disposal policy to balance supply and demand is an obvious concern.

• Xerox continues to expand its consumable return programs. Most recently, a new program called the Green World Alliance is expected to increase worldwide return rates for retail and office products’ supplies.

• The anticipated growth in product returns makes the development of formal planning systems crucial to ensure that product reuse programs continue to be value-added activities for Xerox.

Key concerns

Design and implement a supply chain solution that minimizes the impact of significant operational constraints

Standardize and modernize its spare parts supply chain with new business processes, systems and automation

Maintain current service levels to its customers through the transition phase

Build a continuous improvement culture that strives to increase supply chain efficiency

Reduce operating costs

Solution

Exel placed a supply chain management (SCM) consulting team in the Xerox organization

Closing three regional centres and transferring operations to two existing locations

Redesigning the two existing locations to manage increased product flow

Integrating all systems and processes across the network

Implementing new warehouse and transportation management systems

Sources

• www.trinity.edu• www.personal.psu.edu• www.xerox.com• www.xerox.com/gwa.