PROBLEM IDENTIFICATION :

As SES is loosing its competitive advantage of the product by entry of new competitors as their
were no entry barriers in the market over the period of time, Now buyer (BAG) is looking for
Better logistical support in terms of product delivery with Minimum service window.
Since SES has been using traditional logistical & supply chain approach,service window had a
huge gape as per new BAG management. New competitive sales environment has bought firm
to compete on Product as well as Logistics quality.

Supplier Problem : Majorly Relying on 2 companies for Compound supplies i.e 60% of the total
supplies is decreasing the performance cycle of the company, thus increasing high maintenance
stocks and increase in production time.

Logistics Problem : Manual Merchant records, Manual order processing in warehouse and Dwell
time at the warehouse is reducing the service capability of SES

ANALYSIS & Recommendations

Manufacturing Technology : Though SES is continuously investing in manufacturing equipment

changing the process to manufacture difference polymers might not be true as SES is majorly
depended upon two compound suppliers. Solution to this would be the use of 25% and 15%
suppliers to increase the performance of the company and also to balance out price
effectiveness of the product
Increase in dependency upon 25% ,15% suppliers might increase the product price but it will
also increase the service levels and less inventory management

SES truck service : Market distribution over 200 miles radius should also be done by TRUCK
service in order to improve quick delivery and service levels thus reducing the time period of
delivery, Increase in delivery schedules of within 200 miles radius can bring lower lead times.

Electronic Data Interchange : Data from Order processing to Order shipment keeping vendor &
purchased management in flow will also help in increase the service level of Logistics supply
chain. Flow of data to Vendors,Manufacturing,inventory, Stocks, Internal distribution,Operations
and Customer delivery can be viewed as the series of integrated enterprises that must also
share the information with each other in order to ensure smooth & effective performance of the
business through the top to bottle pipeline of the enterprise.
It will help easy BAG to manage/plan order placement

IT MODELS : Forecasting analysis , Cost relationships model, Resource utilization model and
Simulation models to predict Inventory, cost driving factors of the product, Consumption of scare
resources will increase performance levels at each stage and pre plan productions and orders
with Historical data analysis..

Above can help SES in shrinking service window and give BAG higher level of service (higher
fill rates) in less time (shorter order cycles).

Supplier Auditing : SES Should go ahead with Supplier Auditing approach in order to
shift procurement plan from Top Bidders to other vendors

Improve Minimum order cycle & Maximum order cycle in order to achieve 96.2%
Service capability by effective Vendor Management & Inventory Management i.e less
dependency upon top bidders

Improve Product Quality with Advanced Manufacturing equipments in order to achieve

Competitive Advantage
Lead time reduction can be achieved by Implementations of various inventory control
methods by tracking historical order processing data (Implementation of IT Models)

Futuristic Approach : Adaptability to change rapid according to rapid changing

environment and meet customer demands as customer might demand same day
delivery and 100% fill/performance rates over a period of time.

Above Analysis states the shortcomings in the SES supply chain. SES Should work on
below processes as explained in SWOT

Each of these relationships is sustained by the execution of primary logistics activities

like transportation, facility structure.inventory management,material handling and
communication / information. These activities are interwoven throughout the integrated
logistics system. Each is vital and is found at every stage.

SWOT ANALYSIS FOR SES

Strengths :
-Long Term Relationship with BAG
-Advanced Manufacturing EQUIPMENT
-Pre Established Logistical base

Weakness
-Data Interchange in some key areas is still manual
-Limited Logistical support after 200 kms radius
-Dependency upon top bidders

Opportunities
- Services can be improved by changing vendor selection management and logistics
support system
- Electronic data interchange can help both SES AND BAG group with achieving high
level performance and order management.
-Working Closely with BAG already will help SES in improving the desired service area
helping SES to remain on top spot on the critical supplier list.

Threats
- Competitive sales environment : Any other vendor can achieve the same if they match
same cost at particular product price with high service levels
- New Management changes can bring new changes in the bidding/contract process

Implementation Strategy

Company Should do implementation by following steps

1 : Assessing/Identification of Need based changes as per Pinto/BAG Guidelines in
relation to current Supply chain and Channelise planned resources the core areas
according to their need/cost.
2 : Have Vendor/Supplier Auditing
3 : Implement EDI
4 : Improve Logistics (Trucking System)

SES Should immediately look for above solution in order to procure the next year
contract and improve service levels.Since Benson is retiring in next 6 months before
Pinto takes over the management, SES Has time to implement new strategies and
technologies also these changes will also help to solidify relationships with pinto and 6
months will be trial period for implementation of new plan and if there are any changes
required they can be well taken care of within before the renewal of the plan. This also
given advantage to SES and BAG of working together toward a common goal of
achieving high performance and fill rate within minimum timeline

Contingency Plan

1. Always maintain THRESHOLD stock - If implementation of goes wrong or there is any error
during the implementation of the change in process, There should be threshold stock availability
in order to meet the customer requirements until the process is not returned back to normal.

2. Develop reverse design engineering capabilities so that business of BAG is not effected by
any change in technology, wireframing of workflow and

3.Cross-train relevant staff to keep the business running in any event of disruption