PERDUE FARMS AND OTHERS: SUPPLY CHAIN

MANAGEMENT MEETS THE HOLIDAY SEASON

Submitted by

156 Obulesu Nanganuru

157 Paresh Mali 158 Parijat 159 Pavneet kaur 160 Peyush

PERDUE FARMS-COMPANY

PROFILE

founded in 1920 third-largest American producer of broilers (chickens for eating) provides food and agricultural products and services to customers in more than 50 countries. annual sales in excess of $4.6 billion ranked as the third largest poultry company in the U.S

PERDUES WAY TO SUCCESS

Sales forecasting system Initially(1920-1998)

Relied on gut feeling of suppliers and customers Seasonal histories

1998 onwards

Invested $20 million in SCM technology in 1998 Used Manguistics forecasting software and supply chain planning tools

RESULTS

More adept at getting turkeys from farm to table Better handling & management of festive season By 2003 Perdue rose to become a $2.7 Billion

TECHNIQUES USED:

Company has 4 distribution centers to their destinations Delivery Trucks equipped with GPS

Tabs on turkey for en route monitoring Quick replacement of truck in case of break down

Using communication techniques to stay in touch with customers

Telephone Email Videoconferencing

Benefits Achieved:

Correct and real time estimation of customer demand Flexibility in supply

HOLIDAY SEASON- MOMENT OF TRUTH

Exposes any defect in supply management Lesser response time

On time action
E.g.: Thanksgiving season

CHALLENGES
Challenge faced by manufacturers and retailers: Maintaining right amount of inventory
Optimistic approach - too much inventory fire sale prices Pessimistic approach less inventory - unsatisfied customers

Reasons :
Frequent change in customers taste highly fickle minded customers Use of products for fashion rather than for function Short product cycle Some gifts grab more attention than other

Hence SCM

SUPPLY CHAIN MANAGEMENT

KEY TO SUCCESSFUL SCM

Extensive and accurate information

Improves inventory and logistic practices Inventory being an expensive strategy Do not provide enough information

Use information as a substitute for inventory

Monthly Planning cycles are not enough

Continuous coordination between actual selling and actual inventory

SUPPLY CHAIN MANAGEMENT

CHECK LIST FOR A GOOD SUPPLY CHAIN SYSTEM

Flexible To ensure fast response to supply chain events Quick Integrated view of total demand and total supply Perceptive To identify changing market trends
For e.g. : Gift Card Season

THANK YOU!!