“Supply Chain Management of Walt Disney”
Walt Disney Studios Home Entertainment distributes Disney and other film titles to the rental and sell-through home entertainment markets worldwide.one of the largest producers of Broadway musicals. Disney Music Group distributes original music and motion picture soundtracks under Walt Disney Records and Hollywood Records. The Walt Disney Company and its affiliated companies have remained faithful to their commitment to produce unparalleled entertainment experiences based on the rich legacy of quality creative content and exceptional storytelling. also includes Disney Live Family Entertainment and Disney on Ice. With the creation of Mickey Mouse and Snow White and the Seven Dwarfs. studio entertainment and consumer products. The Walt Disney Studios joined forces with Academy Award-winning director Robert Zemeckis and his ImageMovers partners/producers Jack Rapke and Steve Starkey to form ImageMovers Digital. the Disney name quickly became synonymous with quality entertainment for the whole family. The Walt Disney Studios distributes motion pictures under Walt Disney Pictures .
The Walt Disney Studios
The Walt Disney Studios is the foundation on which Disney was built. Walt Disney Studios Motion Pictures International serves as the studio's international distribution arm. In February 2007. and at its heart are worldrenowned animated features and live-action motion pictures. Disney Theatrical Productions. The Walt Disney Company.which includes Walt Disney Animation Studios. Disney acquired renowned computer animation leader Pixar in an all-stock transaction completed in May 2006.Company’s Overview
Since its founding in 1923. is a leading diversified international family entertainment and media enterprise with four business segments: media networks. Pixar Animation Studios and DisneyToon Studios .
Parks and Resorts
Disney's Parks and Resorts is not just home to Disney's beloved characters but the place "Where
.Touchstone Pictures and Hollywood Pictures. the world's first full-length animated feature. Advancing its strategy of developing outstanding creative content. a new state of the art studio devoted exclusively to the production of performance capture projects. together with its subsidiaries and affiliates. parks and resorts.
Disney's imprints include Disney Libri. Hyperion Books for Children. Penny's Bay. home décor and books and magazines to interactive games. is owned and operated by an unaffiliated third party in Japan under a license agreement with The Walt Disney Company. Parks and Resorts has grown to encompass the world-class Disney Cruise Line. Marne La Valle. Health & Beauty." The segment traces its roots to 1952. Urayasu. electronics and fine art. Disney owns and operates the Disney Store chain in North America and Europe. stationery. Disney Food. toys. Chiba Disneyland Resort Paris. France Hong Kong Disneyland. California Walt Disney World Resort. Accessories & Footwear. Anaheim.we remain dedicated to the promise that our Cast members turn the ordinary into the extraordinary. Other businesses involved in Disney's consumer products sales aredisneystore. Making dreams come true every day is central to our global growth strategy. Disney Consumer Products and affiliates (DCP) extend the Disney brand to merchandise ranging from apparel. through our vacation ownership program -.in our parks. Disney Home and Disney Stationery. and five resort locations (encompassing 11 theme parks. on a guided tour of exotic locales. on the high seas. and Disney Editions.
Disney Consumer Products
Disney merchandising began in 1929 when Walt Disney was approached by a businessman interested in placing Mickey Mouse on the cover of a children's writing tablet. foods and beverages. including some owned or co-owned by independent entities) on three continents: Disneyland Resort. This is accomplished through DCP's various lines of business which include: Disney Toys. The Disney stores retail chain. when Walt Disney formed what is today known as Walt Disney Imagineering to build Disneyland Park in Anaheim. Florida Tokyo Disney Resort. Adventures by Disney (immersive Disney-guided travel around the world). the company's official shopping portal and the Disney stores retail chain. California. Lake Buena Vista.Dreams Come True.000 members). Lantau Island Wherever the Guest experience takes place . Disney Publishing Worldwide (DPW) is the world's largest publisher of children’s books and magazines.
. which debuted in 1987. reaching more than 100 million readers each month in 75 countries. Disney Press. Disney Apparel. Jump at the Sun.com. eight Disney Vacation Club resorts (with more than 100. Since then.
The Group includes the ABC Television Network (including ABC Daytime. The Worldwide Leader in Sports. ESPN International (31 international networks and syndication). ESPN Regional Television. cable. Inc. is the leading multinational. ABC owned television stations. research. ESPN Enterprises. ESPN2. as well the Company's equity interest in A&E Television Networks. ESPN Radio.. ESPN On Demand. Based in Bristol. The Disney-ABC Television Group also manages the Radio Disney Network.. ESPNEWS. publishing and Internet businesses. general interest and non-fiction book imprint Hyperion.Media Networks
Media Networks comprise a vast array of broadcast. ESPN Interactive and ESPN PPV. Key areas include: Disney-ABC Television Group. ESPN Deportes. Ct. ESPN... Sports media assets include ESPN on ABC. mobile games and interactive entertainment worldwide. and a supporting headquarters group.com (Broadband). and other growing new businesses including ESPN360. ESPN. The Hearst Corporation holds a 20 percent interest in ESPN. radio. mobile and video game consoles around the globe. ESPN Classic. ESPNU).
About Disney Interactive Media Group
The Disney Interactive Media Group (DIMG) is a segment of The Walt Disney Company (NYSE: DIS) responsible for the creation and delivery of Disney branded interactive entertainment and informational content across multiple platforms including online. The Disney-ABC Television Group is home to all of Disney's worldwide entertainment and news television properties. ESPN Zones (sports-themed restaurants licensed by ESPN). respectively). which produces the
. which is an indirect subsidiary of The Walt Disney Company. six domestic cable television networks (ESPN. and Disney Online. ABC Entertainment Group and ABC News divisions). Marketing. ESPN The Magazine. ESPN Inc. sales and communications functions also exist within the segment. ESPN Mobile Properties (wireless). ESPN HD and ESPN2 HD (high-definition simulcast services of ESPN and ESPN2. Inc. ABC Family and SOAP net. DIMG core businesses include Disney Interactive Studios. launched in 1979. which self publishes and distributes a broad portfolio of multi-platform video games. the Disney Channels Worldwide global kids' TV business. Walt Disney Internet Group. multimedia sports entertainment company featuring the broadest portfolio of multimedia sports assets with over 50 business entities. ESPN is 80 percent owned by ABC. as well as television distribution divisions Disney-ABC Domestic Television and Disney-ABC ESPN Television.com.
E!Entertainment Television ESPN. which includes references to The Walt Disney Company and/or its affiliated entities. DisneyStore. Studio Operations – VHS and DVD 3. The History Channel. and family branded Internet Web sites Studio Entertainment Buena Vista Home Entertainment (BVHE) – Domestic and International Buena Vista Music Group Buena Vista Television
Since this is an integrated website. Parks and Resorts 2. either The Walt Disney Company and/or one or more of its affiliated companies. Catalog North American Supply Chain Assessment and Initiatives Additional Improvement
The Walt Disney Company Operations span four business segments
Media Networks ABC Television Network ABC Radio Networks ESPN Disney Channel Disney Channel Worldwide Soap Net Toon Disney Joint ventures – A&E Television Networks.com.
Background of the Walt Disney Company and Strategic Sourcing Disney Supply Chain Context Sample Activities across Business Segments 1. "Disney" or the "Company" means. Consumer Products – The Disney Store. Disney. Lifetime Entertainment Services.No. as appropriate. 1 Community-Family & Parenting Web site and an industry-leading suite of online virtual worlds for kids and families.
Hollywood Pictures.6 billion The Disney Stores (TDS) Disney Store Catalog Disney Store Online Disney Interactive Disney Publishing Worldwide Baby Einstein
Overview of Key Portions of the Disney Supply Chain
Disney BU supply chains depend on different core processes and drivers to respond to differing customer and guest requirements Cursory review shows sizeable assets are deployed to support Disney North American merchandise supply chain activities – More than 20 warehouses owned or operating on behalf of Disney – More than 900 retail locations across the stores. Touchstone Pictures.
Walt Disney Theatrical Movie banners: Walt Disney Pictures. two water parks. Miramax. and Dimension Parks and Resorts $ 7. parks. and Buena Vista Home Entertainment An overview of activities and suppliers across BUs indicate that there are more opportunities for cross-BU synergy than are currently in operation
. and resorts European operations depend on significantly higher numbers of warehouses and third-party providers than seen in North America The majority of costs and assets are in Disney Consumer Products. Parks and Resorts. 25 hotels Disney Cruise Line Disneyland Resort – two theme parks.0 billion Walt Disney World Resort (WDW) – four theme parks. four resort hotels Disney Regional Entertainment Tokyo Disneyland Resort (royalties arrangement with Oriental Land Company) Disneyland Resort Paris (royalties arrangement with Euro Disney) Walt Disney Imagineering Mighty Ducks Anaheim Angels Consumer Products $ 2.
WMS. but sources of supply extend internationally
Supply chain characteristics:
Distribute merchandise. large and specialty retailers More than 100 million videos distributed to 14.000+ points of distribution More than 100. while significant external warehouses and 3PL activities are utilized
The North American distribution network is primarily domestic.000 SKUs across business units
. food. and MRO items 30+ warehouses across commodities (8+ owned) More than 250 logistics services suppliers Multiple ERP.– Most supply chain activities are managed independently – Many contracts are negotiated and managed separately – Internal warehousing is underutilized. TMS. operating supplies. and APS systems deployed Strategic outsourcing relationships span BUs Asia and Europe are the primary sources for imported merchandise Import management teams support multiple BUs
Business activity levels:
All Lines of Business (LOBs) operate in region Ship to 400 TDS stores.
BVHE.200 SKUs shipped to 120 stores 60 million videos to 30.000 points of distribution
Supply chain characteristics:
48 warehouses (2 owned. and general supplies Strategic outsourcing relationships in place Hundreds of unique store layouts in each resort Tens of thousands of active SKUs SKU management driven by guest service and “The Show” Daily replenishment of “A” items Holistic approach to supply chain management Electronic integration of supply base Total cost approach to sourcing Lead-time analysis and reduction
Major BU initiatives
. food.The European market has multinational supply chains for TDS.000 shipments per day 4. and Disneyland Paris
Business activity levels:
5 LOBs in 10 countries Over 3. 46 third party) 75 logistics services suppliers 500+ cast and temps in logistics/operations 10 different IT systems
Parks & Resorts Supply Chain Characteristics
Significant international sources of supply On-site warehousing support for merchandise.
Supply chain system rationalization Facility utilization
Hong Kong Disneyland and Asia supply chain strategy
Current plans are to open “by the middle of the decade” One theme park is initially planned. and general supplies warehousing and distribution operations must be established Merchandise operations have the potential for servicing more than the Hong Kong park Existing supply chain services will be leveraged as much as possible to support the new park
Studio Operations Business Unit Example – Video and DVD Supply Chain Characteristics
Single core manufacturing partner. with significant expansion provisions Merchandise.000+ distribution points in North America and 30. and multiple distribution partners in North America and Europe 14. food.000 in Europe 100+ million units of production per year New releases drive sales and are focused on “street date” Hit title sales exceed 10 million units for a single release Multiple Point of Purchase (POP) displays are shipped for in-store displays Thousands of catalog SKUs are active for distribution and sale Shifting product demand from VHS to DVD Industry average of 20-25% returns
Major BU initiatives
Sales forecasting improvement Inventory reduction Distribution optimization Enhanced supplier partnerships Next generation technologies: video-on-demand and digital cinema
Approximately 700 locations in nine countries Approximately 250 million guests each year visit the stores Peak seasons are Easter. toys.Main drivers:
Improve customer service Reduce administration on a Pan-European basis Achieve physical supply chain efficiencies Reduce exceptions Reduce cost
Reduction in suppliers from seven to one Same supplier for manufacturing and distribution Single SAP SOP system Ability to move to consolidated billing and administration in the future
Supply Chain Characteristics Retail
Highly automated retail distribution center in Memphis. TN. and kitchenware Utilize distribution partners for delivery
B-to-C (DisneyStore. garments. plush.400 Disney products offered on-line Also provides distribution services for other business units
Home office provide import and customs support for all North American business units except Walt Disney World and Walt Disney Imagineering Major BU initiatives
Distribution optimization through shared assets
.com and Catalog)
Main B-to-C distribution center in Jonesville.ft. of more than 400. and Christmas Products are diverse in size and weight and include beds.000 sq. Less automated retail distribution center in Lutterworth.000 sq.000 sq. SC. of 200. UK. 2. of more than 600.ft.ft. pins. snow globes. Halloween.
Migration to demand-based replenishment Store conversion – new layouts and new formats Supply chain visibility – inbound and outbound
The North American Supply Chain Assessment is focused on transportation-related processes
Strategic Sourcing/Supply Chain Improvement Roadmap will be followed to ensure a robust solution is developed
training and education will be important parts of the improvement process
.A common process and metrics terminology will be communicated.
Logistics providers will be reevaluated to determine their ability to support Disney’s supply chain vision at a competitive cost
Additional operational improvements are underway
European VHS and DVD distribution sourcing and enhanced supply chain improvements Global ERP Standardization – Data availability – Administrative cost reduction eSource – Electronic supplier catalogs – Auctions – Paperless receipts and payments Sourcing improvements – Vendor compliance – MRO inventory management and global service contracts – Consistent contracts – Total landed cost