Cavanaugh Dunn Powell 1 Agenda Introduction Manufacturing TransportationService Inventory Summary 2 Major Problems Long production runs Poor service from contracted carrier High inventory levels ID: 440450
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Slide1
Chabot Wallpaper Analysis
Cavanaugh, Dunn, Powell
1Slide2
Agenda
Introduction
ManufacturingTransportation/ServiceInventorySummary
2Slide3
Major Problems
Long production runs
Poor service from contracted carrierHigh inventory levels
3Slide4
4Slide5
Streamline Manufacturing Process
Postponement at the Tennessee manufacturing plant
Hold inventory earlier in the supply chainWork in Process vs. Finished Goods
Helps to create a more responsive supply chain
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Current Manufacturing Process
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Proposed Manufacturing Process
7Slide8
How To Improve Lead Time
2
5.5
days
7 days
8Slide9
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How To Improve Transportation
FOB Destination/Freight Prepaid
Change freight terms to FOB Origin/Freight Collect if customer’s transportation is cheaperBuild relationships with more than one carrier
Contingency planning
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Inventory Solutions
ABC Analysis on item turnover rates
Reduce case sizes for B and C itemsMore responsive supply chain enables us to ship more A items to keep up with demand
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ABC Analysis
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Tradeoffs
As case sizes decrease…
Packaging and handling costs increase
Customer service levels increase
Obsolescence costs decrease
Inventory costs increase for Chabot, but decrease for retailers
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Summary
Postponement is key to increasing customer service
Lead times will decreaseImprove carrier strategy to be more responsive to customer needs
Reduced inventory levels lead to better customer service
Customer service is at the heart of everything you do
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Questions
17