ISCOM 424 Week 5 Team Assignment Supply Chain Management Plan

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Supply Chain Management Plan

Team Supply Chain Management Plan, Riordan Manufacturing.

Supply Chain Complexities

Best Practices for CRM

Enhancing Efficiencies

Outcome Predictions

Process Improvements

Collaboration and SCM

Operational Improvements

Conclusion

Table of Contents

Table of contents

Supply Chain Complexities

Best Practices for CRM

Enhancing Efficiencies

Outcome Predictions

Process Improvements

Collaboration and SCM

Operational Improvements

Conclusion

Supply Chain Management Plan

Diagrams of Riordan’s supply chain relationships

Riordan Operational Structure

Riordan Manufacturing is international organization that manufactures plastic products for various industries. Riordan has two plastic assemble plants in the United States and electric fan manufacturing plant in China. The corporate office is in California.

Riordan Corporate Office

San Jose California

Custom plastic parts manufacturing

Pontiac, Michigan

Electric fans manufacturing and assembly

Hangzhou, China

Plastic beverage containers manufacturing

Albany, Georgia

Customer Relationship

Riordan has diverse group of customers around the world. The customer list includes pharmaceuticals companies, wholesalers, cosmetic companies, beverage companies, and technology companies.

Riordan Manufacturing – Electric fans, custom plastic, plastic beverage containers

United States

Asia

Europe

South America

Supplier Relationship

For each division of manufacturing Riordan utilizes various materials for production of plastic products. For example, the electric fan division uses raw materials like plastic pellets, solvents and cardboard. Plastic pellets, solvents and cardboard are also common materials used in Riordan’s U.S. based operating facilities.

Cardboard

Plastic Pellets, ink, solvents

Electricity, light bulbs, natural gas

Plastic beverage containers

Cardboard, plastic film, packing straw

Plastic Pellets, adhesives, solvents

Electrical components

Electric fans

Cardboard, paper, plastic film, styrofoam

Plastic pellets, dyes, inks, adhesives, solvents

Electricity, light bulbs, natural gas

Custom plastic parts

External Support Functions

The transportation of raw materials and finished goods is essential to Riordan’s operations. In the Albany, Georgia plant Riordan has built a partnership with Huffman Trucking. Huffman Trucking transports plastic beverage containers to Riordan’s customer across the U.S. In China, Riordan utilizes the services of FedEx and local freight carriers. FedEx services are beneficial to expediting product around the world and the local carrier is beneficial to managing local customer needs.

Plastic Bottle Division – Albany, GA

Huffman Trucking Company

Electric Fans Division - China

FedEx

China based freight carrier

Flow of Information

Servers, computer hardware, and software

With three different manufacturing locations in addition to a corporate office, Riordan relies on services and other computer components to transmit data across the enterprise. Customer orders are received through the corporate office and filtered to each manufacturing division. Each manufacturing facility relays data back to the corporate office.

Riordan Manufacturing Corporate Office – Research and Development

Order and Data Output

Custom parts division

Plastic bottles division

Plastic fan division

Supply Chain Complexities

Best Practices for CRM

Enhancing Efficiencies

Outcome Predictions

Process Improvements

Collaboration and SCM

Operational Improvements

Conclusion

Supply Chain Management Plan

Proposal for Best Practices for CRM

The customer’s definition of value -

Quality product or service

How do customers feel or think about the products provided?

Reasonable pricing

How competitive are the prices compared to others?

Innovation

How many new items do we have?

Flexibility

How far are we willing to go?

Delivery of merchandise

How fast and accurately can we get the products to customers?

Customer Relationship Management

The five bullet points provided above are the most significant factors related to customer satisfaction. While satisfaction is often difficult to predict, industry research has shown that these are the most relevant. They pertain to how we treat, what we offer, and overall performance of the services.

Customer satisfaction within the supply chain-

Quality control

Items free from defects

Shipment

Orders are delivered in a cost effective and timely manner

Technology

Online environments for order management

Ongoing improvement

Changing based on economic and customer needs.

Delivering Supply Chain Value and Satisfaction

The advantages of providing quality customer satisfaction within the supply chain numerous. This does not only pertain to customer service but also to retention. It allows for shorter lead times and accurate order processing, that in turn leads to efficient and cost effective delivery. These factors will lead to and allow for advantages with competition and respective industries.

Supply Chain Complexities

Best Practices for CRM

Enhancing Efficiencies

Outcome Predictions

Process Improvements

Collaboration and SCM

Operational Improvements

Conclusion

Supply Chain Management Plan

Your recommendations for enhancing efficiencies and predictions for the outcomes of your recommended methods

Efficiencies - Opportunities

Moving Corporate Office

Consolidating facilities

Raw materials inventory

Logistics management

One opportunity Riordan has for increasing operational efficiencies is to move the corporate office to an existing facility in the United States. The corporate office includes all departments including research and development. By moving the corporate office, Riordan leadership and administrative support could have more visibility into manufacturing processes. A second opportunity for improving efficiencies is to consolidate U.S. manufacturing plants. With similar raw materials needed for each plastic division Riordan could improve raw materials inventory and management. In addition to facilities and materials management, Riordan could also improve the logistics and supply chain management of finish goods. For example if Riordan moved the Pontiac plant to California, Riordan could have operations at each U.S. coast. Having operations on each coast could help improve transit times and freight costs.

Efficiencies - Implementation

Buy-in from leadership

Employee support

Funding

Supplier relationship

Implementing efficiencies in Riordans supply chain will require support from all levels of the organization. Riordan’s leadership must have a clear understanding of the impact operational restructure will have on employees and suppliers. In addition, a cost analysis is necessary for understanding the capital investment and potential losses of consolidating facilities. Finally, Riordan must work with suppliers to educate them on changes and how the changes impact the supplier relationship.

Supply Chain Complexities

Best Practices for CRM

Enhancing Efficiencies

Outcome Predictions

Process Improvements

Collaboration and SCM

Operational Improvements

Conclusion

Supply Chain Management Plan

Predictions for the outcomes of your recommended methods.

Relocating plant

Lead to lower overhead

Higher visibility between plants and suppliers

Lower shipping cost

By relocating the headquarters to one of the other plants, Riordan will see benefits such as lower overhead cost for the company because the company will not need to pay money on an extra building. By relocating a plant, the company will see reduce costs by reducing transportation cost.

Riordan will have higher visibility into the operations of the plant they relocate to because they will be on site. Also the company will have more visibility into the processes at the other facilities because they will be able to visit the facilities more often.

Riordan will see lower shipping cost because the raw materials needed for research and development will be more readily available to the team than when the company had to have raw material shipped to California.

Raw Materials Management

Lower costs

Lower inventory

Higher visibility into suppliers

By introducing a process to track raw materials more closely, Riordan will benefit by seeing the cost of materials go down and see inventory maintained at lower levels. This will all be due to the fact that Riordan will offer more visibility to their suppliers and customers than before. This leads to lower inventory because of real time information being transmitting and the ability to change quickly if an event happens.

Supplier Relationship

Lower costs

Have quicker response for new products

Combine certain tasks

The supplier relationship can be improved and will lead to lower cost for Riordan. This is because the two companies will work together to produce new products. This will lead to quicker responses to what the customer needs or wants. By working together the company will have the potential to combine tasks with a supplier who is also doing the task. This will lead to lower cost for both companies and is a plus to having a great supplier relationship.

Supply Chain Complexities

Best Practices for CRM

Enhancing Efficiencies

Outcome Predictions

Process Improvements

Collaboration and SCM

Operational Improvements

Conclusion

Supply Chain Management Plan

At least one table that demonstrates clear, customized measures for process improvements. These measures must include performance measures, relationship measures, cost reduction measures, and any other measures you may recommend.

Plant Duties - Current

Location	Purchasing & Sales	Ledger & Payments	Invoicing & AP/AR	Reporting & EDSS	Payroll	Barcoding	R&D	Manuf.
San Jose	Yes	Yes	Yes	Yes	Yes	Yes	Yes	No
Albany	Yes	Yes	Yes	No	No	No	No	Yes
Pontiac	Yes	Yes	Yes	No	No	No	No	Yes
Hangzhou	Yes	Yes	Yes	No	No	No	No	Yes

Currently, Riordan uses San Jose as the HQ location. All the payroll, reporting, EDSS, Barcoding, Vendor Payments, EDI, and R&D come from this location and the other 3 facilities do all the manufacturing. Since no actual manufacturing is performed in San Jose, this facility is redundant. It also could become a bottleneck, or single point of failure for the organization since there is no backup for any of these functions at the other facilities. The highlighted sections are functions unique to the facility. In the case of manufacturing, each plant specializes in certain products.

Plant Duties – Proposed Option #1

Location	Purchasing & Sales	Ledger & Payments	Invoicing & AP/AR	Reporting & EDSS	Payroll	Barcoding	R&D	Manuf.
Albany	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Pontiac	Yes	Yes	Yes	No	No	No	No	Yes
Hangzhou	Yes	Yes	Yes	No	No	No	No	Yes

If the company shut down the San Jose facility, it would save quite a bit of overhead. The functions currently performed at this facility could either be rolled into one of the other plants (Albany is central to the other two plants – option #1), or even better, all functions could be available at all plants (option #2). This would increase each facility’s independence and reduce reliability on one central location. It also creates redundancy, in case there is a disaster or one plant needs to close for an extended period of time, one of the other plants can pick up the administrative duties. The highlighted sections are functions unique to the facility. In the case of manufacturing, each plant specializes in certain products.

Plant Duties – Proposed Option #2

Location	Purchasing & Sales	Ledger & Payments	Invoicing & AP/AR	Reporting & EDSS	Payroll	Barcoding	R&D	Manuf.
Albany	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Pontiac	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Hangzhou	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes

Supply Chain Complexities

Best Practices for CRM

Enhancing Efficiencies

Outcome Predictions

Process Improvements

Collaboration and SCM

Operational Improvements

Conclusion

Supply Chain Management Plan

An illustrated chart or diagram that explains how collaborative planning, forecasting, and replenishment processes affect supply chain management.

SCM – Operational Flow

Riordan’s current supply chain operational flow is strong, and functioning very effectively. The diagram represents the current flow of orders, payments, and goods across the entire supply chain – from customer to HQ to plant to supplier, then back to customer. However, none of this is possible without a strong information flow and collaboration between customer, vendor, and supplier.

SCM – Information Flow

Information flow is not as linear or “one-way” as operation flow, it is more circular. In order for the supply chain to operate effectively, information must flow both ways at all times. Collaborative planning, forecasting, and replenishment are necessary to keep the supply chain healthy. If there is a communication breakdown anywhere along the way, the supply chain itself breaks. Information flow is a “two-way” street. Any breakdown causes the bullwhip effect and/or stock-outs and delays.

Supply Chain Complexities

Best Practices for CRM

Enhancing Efficiencies

Outcome Predictions

Process Improvements

Collaboration and SCM

Operational Improvements

Conclusion

Supply Chain Management Plan

A rationale for how your plan effectively carries out improvements in supply chain operations at Riordan Manufacturing.

Strong focus on all supply chain components

Firm understanding of Riordan’s supply chain design

“Core” supply chain issues are focused on rather than symptoms (perceived problems)

This ensures the proposed changes to Riordan’s supply chain will have a maximized effect.

Operational Improvements

When deciding on the most appropriate enhancements for Riordan Manufacturing’s supply chain; every aspect involved with production was analyzed thoroughly. This allowed for the most critical relationships among components to be evaluated and new methods for improvement to develop amid them. By fully understanding every element involved with production; it allowed team B to focus on the core problems within Riordan’s supply chain rather than providing “band-aid” remedies (quick fixes).

Proposed improvements require full company participation and consensus.

Improvements provide new opportunities to grow, and allow supply chain components to communicate with greater efficiency.

Strong data and projections provide convincing evidence to support the improvements.

Operational Improvements

The improvements suggested promote cooperation among all company operations. This allows for stronger communication to develop among components, and ensures everyone (from shop floor worker to C.E.O) remains informed of changes. Communication also makes ALL employees feel like a valuable part of the company, and allows them to suggest changes where/when they see necessary. Considering employee and customer suggestions is one of the most important concepts Riordan can focus on; particularly in their plants where management rarely sees daily production flow. The customer and shop floor worker are the people who are constantly exposed to the operations and final product of Riordan Manufacturing. It is nothing but beneficial to listen to them.

In order to ensure the suggestions outlined are even considered; data has been collected, analyzed, and future company projections have been made. This shows sincere dedication to solving supply chain issues, and provides a basis upon which further data may continue to be collected. Data is key to support any company changes that involve any type of large monetary and/or personnel commitment.

Supply Chain Complexities

Best Practices for CRM

Enhancing Efficiencies

Outcome Predictions

Process Improvements

Collaboration and SCM

Operational Improvements

Conclusion

After outlining the current supply chain, and making suggestions about CRM improvements, it is possible to look at what else can be done on the supply chain to enhance its efficiencies. Moving or consolidating offices will help save money and time, which will make the company more competitive. Collaborating with suppliers and internally adds additional efficiencies and once everyone in the company is bought into these ideas, Riordan will have improved their operations and supply chain which allows for future growth.

Blanchard, D. (2006). Supply chain management: Best practices. Hoboken, NJ: John Wiley & Sons.

Fawcett, S., & Ellram, L. (2007). Supply chain management: From vision to implementation. Upper Saddle River, NJ: Pearson/Prentice Hall.

Riordan Manufacturing. (2004). Riordan Manufacturing. Retrieved from https:// ecampus.phoenix.edu/secure/aapd/cist/vop/business/Riordan/Internet/IndexPort.htm

If Supply Chain Is the Answer, Then What’s the Question?

ISBN: 9780471781417

Anatomy of a Supply Chain

ISBN: 9780471781417

References