XEROX

THE DOCUMENT COMPANY G ro u p 7 Pre se n ta ti n - P 9 o

Introduction
Ø Large global company: Financial services & Document Processing Ø Products marketed in over 130 countries Ø Direct sales force: 15,000 (dealers, distributors & agents Ø 30, 000 technicians employed for after sales services. Ø 22 manufacturing facilities in Europe, N & S America and in Far East.
Ø

Mission
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.

Goals
Ø Ø Ø Ø Customer satisfaction Return on assets Market Share Employee Satisfaction

L o g istics Tria n g le

Inventory Performance

Route Map
20 % inventory 11 % Logistics customer satisfaction

100 %

% Logistics of cost re ve nu e

10 % 7% 1989 1992 1990 1993 1991

?

Unit Process Optimization Cross-organizational process Change Change Agents

Key concerns
ØD e si n a n d i p l m e n t a su p p l ch a i g m e y n so l ti n th a t m i i i s th e i p a ct of u o n m ze m si n i ca n t o p e ra ti n a lco n stra i ts g fi o n ØS ta n d a rd i ze a n d m o d e rn i ze its spare p a rts su p p l ch a i w i y n th n e w b u si e ss n p ro ce sse s, syste m s a n d a u to m a ti n o ØM a i ta i cu rre n t se rvi n n ce l ve l to its e s cu sto m e rs th ro u g h th e tra n si o n p h a se ti ØB u i d a co n ti u o u s i p ro ve m e n t cu l re l n m tu th a t stri s to i cre a se su p p l ch a i ve n y n e ffi e n cy ci ØR e d u ce o p e ra ti g co sts n

Solution
ØE xe lp l ce d a su p p l ch a i a y n m a n a g e m e n t ( S C M ) co n su l n g te a m ti i th e X e rox o rg a n i ti n n za o ØC l si g th re e re g i n a l ce n te rs a n d o n o tra n sfe rri g n o p e ra ti n s o to tw o exi n g l ca ti n s sti o o ØR e d e si n i g g n th e tw o exi n g sti l ca ti n s o o to m anage i cre a se d n p ro d u ct fl w o ØI te g ra ti g a l syste m s a n d p ro ce sse s n n l a cro ss th e n e tw o rk

A closed loop supply chain of Xerox
New Assets

Recover y and repair

Acquire

1 . 2 billion Asset strip

New Buil d $ Logistics cost Remai n Distribute

Removal

Deliver

A closed loop supply chain of Xerox
New Assets

Recover y and repair

Acquire

1 . 2 billion Asset strip

New Buil d $ Logistics cost Remai n Distribute

Removal

Deliver

Inventory management and logistics process vision
Ø Customer satisfaction is the key Ø Demand driven supply chain Ø Time to customer is a competitive advantage Ø Common product language Ø Complexity managed through high performance work systems Ø Recycling is key

Order Satisfaction/ Delivery Management Ø Shared ownership of orders Ø Plan for order satisfaction Ø Information availability exchange for inventory Ø Same day delivery capability Ø 100% build to order on high end

Configuration (Asset Information) Management
Ø One logical data base, SAP Ø Co-ordinated, multifunctional, multinational, configuration management Ø Rapid communication of configuration information

Ø Ø

Inventory Planning
Ø One Company Ø Service level- driven stocking Ø Demand- driven forecasting

Logistics & Physical Distribution Planning Ø One company, one integrated supply chain Ø Networks optimize customer satisfaction at lowest cost & inventory Ø Plan networks as a continuum from customer to supplier Ø

Logistics Operation
Ø Manage flow not stock Ø Plan the work Ø Integrate warehousing and transport Ø Same day delivery capability

Results

ØG re a te r vi b i i a n d m o re a ccu ra te d a ta i th e si l ty n sp a re p a rts su p p l ch a i , a l o w i g y n l n X e rox to i p ro ve th e p l n n i g p ro ce ss a n d o ve ra l m a n l e ffi e n cy a cro ss i n e tw o rk ci ts ØI p ro ve d m su p p l y ch a i n re l a b i i i l ty and re sp o n si n e ss, e n a b l n g X e rox to m a i ta i i ve i n n ts se rvi co m m i e n ts to customers . ce tm ØN e w p ro ce ss-d ri n , ve re su l - o ri n te d ts e m a n a g e m e n t a n d th e a tta i m e n t o f si n i ca n t n g fi co st sa vi g s. n ØS u b sta n ti lsa vi g s a cro ss th e su p p l ch a i : a n y n
ØTransportation 16% ØWarehouse 12%

Key Differentiators
Ø Unit Process optimization:
functional team multi cross

Ø Process vision: IM & L Ø Process improvements in process:
functionality giving flexibility

Cross

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

Thank You

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