Supply Chain End User Report – Analysis
CONTENTS
Strengthening
page 28
the supply
Recipe for supply chain
success at AB World
Foods
chain links
page 30
Life Technologies
improves e-commerce
infrastructure
Manufacturing & Logistics IT spoke with
three well-established companies in different
page 32-33
Enabling a decade of
vertical markets to put their individual supply chain
supply chain success
improvement success stories under the microscope.
at Deutsche
Edelstahlwerke
The Doosan story
corporate culture. “These two advantages were
page 34
very important for us,” said Song, adding: “We
Food safety and
Doosan produces the essential materials for also recognised the potential for us to benefit
traceability from farm
to fork
electronic application such as mobile phones, from i2’s rich experience in SCM across many
televisions and refrigerators. The company’s vertical sectors.”
page 36
main output is copper clad laminate (CCL) for
Cambridge Food
Printed Circuit Boards (PCBs). Indeed, it is one Longer-term planning
Company savours of Korea’s largest suppliers of raw materials for Doosan uses i2 Supply Chain Planner for rough-
supply chain success
PCBs and also sells to countries such as China, cut master planning and Sales & Operations
Taiwan, Singapore and Indonesia. In 2007 the Management (S&OM) as its demand manage -
page 37
company sought to find an effective solution to ment tool. “Before using i2 S&OM, we could not
Chesapeake secures
reduce its inventory stock levels. After launching make long-term demand plans; we just made
supply chain
improvements
an SCM initiative soon after, it finally selected a demand plan for the coming four weeks,”
its i2 tool in May 2008. “We concentrated on explained Song. “Since deploying the i2 S&OM
reducing our inventory levels of standard parts, solution, we are now able to plan longer-term
and also looked at improving gross margin, and have greater planning visibility. Also, since
working capital and cash flow,” explained the implementation of the i2 S&OP and i2
Jaegil Song, S&OM Supply Chain Planner solutions in November
team leader at Doosan. 2008, we have been able to manage a 13-week
rolling plan.” Song pointed out that, during
According to Song, Doosan’s weekly S&OM meeting, the company
Doosan selected i2 closely monitors actuals on a weekly basis.
primarily based on
the company’s solid Doosan’s weekly S&OP operation schedule
reputation in the Supply begins with the acquisition of sales forecasts,
Chain Management defined with a cut-off time set to Monday
(SCM) systems industry, evening. “We run a process to balance demand
with references and supply to generate a rough cut plan,” said
worldwide. Secondly, Song. “Planning results and issues are then
Doosan’s selection discussed with both our manufacturing and
was based on i2’s sales departments. We then review the KPI
under standing of its figures and compare them with the previous
week’s agreements. Final target adjustments
are made during the management meeting
Jaegil Song, S&OM team leader, Doosan (pictured at a recent i2 SCM
on Wednesday, where the president and
conference): “The finishing (goods fulfilment rate in the warehouse on a weekly
basis), which was fluctuating between 80 to 90 per cent at the early stages, is
executives in charge, together with our sales
currently capped at around 99 per cent, and the inventory clearance rate within
and manufacturing departments, review the
four weeks in the warehouse has improved from 80 to 98.5 per cent.” root causes of any potential problems and
analyse the possible ‘plan-and-do’ gaps >>
24
MANUFACTURING
&LOGISTICSIT October 2009
www.logisticsit.com
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