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ACADMIC SESSION 2009-11
INSTITUTE OF MANAGEMENT STUDIES, GHAZIABAD (U.P.)
Submitted To:Prof. Avdesh gupta
Submitted By:Deepanshu Kaushik Roll No – BM -09062
Case: Welch's, Straightline, Skyworks and Pella: The Business Value of Supply Chain Management
Q 1. What is the business value of supply chain management systems for Welch's and other Companies in the consumer packaged goods industry?
Welch's Foods Inc is a Massachusetts-based fruit juice manufacturer.
The business value of supply chain management at Welch's are It wants to collaborate more closely with its customers to ensure that their products are always readily available to their customers. Welch’s wants to collaborate with Prescient, because Prescient specializes in making software for Consumer product market, so they have a pretty ingrained understanding of the consumer product industry. The customer logistics software used by Welch's create the orders and manage the inventories of one-third of its retail customers, and it also allows some retailers to double the number of times they turn for products. The software is helping the Welch’s to create forecasts and be able to use those forecasts to increase their orders for customers. The SCM also enables them to gather information from the retailers and create orders. It also helps them to send information to retailers about the size of the orders they are placing for them. The business value of SCM is this that they increase the orders for their customers and help them to do faster transaction. Prescient's specialty is consumer products, so its supply chain application has in built functions like new packaging design support and creating forecasts from point-of-sale-data. They have kept aside the engineering and product design options. It also enables clients to be involved in product development and product strategy.
Q 2. What is the business value of supply chain management systems for Straightline, Skyworks and other manufacturing countries?
I) Straightline- Straightline is a online distribution channel of U.S. Steel.
The business value of the SCM for Straightline are : Straightline is getting Supply chain optimization solution from SSI, which helps processors in managing their inventories and as a result allows them to compete with the overseas rivals. It provides facility to fulfill customized orders for configured steel materials from finished goods manufacturers such as automakers and appliance manufacturers. The supply chain module takes into account freight costs, configuration of orders, similarity with other orders, and availability of inventory and processors capacity to handle orders. It also helps to select the inventory to process a order given the grade of the material.
II) Skyworks- Skyworks is a Semiconductor company.
It uses a supply chain service from Adexa to master its complex global supply chain and to access realtime data to give customers information accurately about product availability. The business value of the SCM for Skyworks are : They are trying to coordinate the demand requirements to be able to deliver to their customer on time and the capacity requirements. They have the capability to modify a customer's delivery date and have that change according to what the factory is building tomorrow. The system can also replan the entire supply chain overnight. And furthermore they are answerable to customers in hours instead of days, about what they can deliver to them and when.
III) Pella: ERP vendors like Oracle, PeopleSoft and SAP are now actively marketing their supplychain applications as an “add-on” capability to their e-business. They are providing supply chain automation, which supports all the data in one model. You need not buy a separate software product and figure out how to integrate that product. You just need to turn on to different parts of it.
It also provides multiple Oracle E-Business Suite modules to help streamline its supply chain operations. These are the business value of supply chain management at Straightline, Skyworks and Pella. Q 3. How does Pella's approach to supply chain management systems differ from that of the Other companies in this case? Which approach is better? Why? Pella is providing such software that just needs to be installed and it is ready to use. It uses multiple Oracle E-Business Suite modules to help streamline its supply chain operations. Welch's provide information about the size of the order and were more focused on packaging. Straightline provides supply chain optimization solution. It provides help to choose the inventory to process a customer order given the grade of the material. Skyworks was focusing on timely availability of the demand of the customers and delivery of the products in hours. According to me Pella's approach is better than compares to other approach because In Pella they are provided with a complete package. It is providing automation services, which supports all data in one model. While on the other hand others are different in their approach. They are supplying incomplete facilities to the customers. As it uses ERP it becomes more efficient and effective in competing in this world of technology, which is rapidly changing. They are providing a complete supply chain management package, which is very essential to survive in the market these days.