Question

you have been asked to play the role of a supply chain consultant.your client (oreo products inc.)needs your help.Oreo Product Inc. is a newer company - in the 8 years of its life they have seen growth but not like this! There finished product (10 individual finish goods) helps charge electric vehicles of all types - under hour. Within their manufacturing process they receive approx . 60% of their raw material from China,15% from the united states and the rest of goods coming from Canada. The manufacturing is done in Vancouver. Up until now they have been able to keep with demand. They will be moving to a new facility within Vancouver next year.Logistics has been crazy. All orders are shipped directly to the customers.There 3 main customers are: The Electric store, We charged it and Power it up. The last 2 customers have been expanding like crazy! They now have stores world wide! All customers have distribution centers. Within North America there is a total of 25 Docs: 15 are locatedon the East coast, 1 in Mexico and the rest on the West Coast. There are 5 DCs serving all the customers in Europe. The final 3 are in japan, Australia and vietnam.

The client needs your help with organizing/suggesting technologies for their new facility along with continue customer service to all their customers.

Provide a proposal which should have the following:

1 Executive summary

2 Suggestions for new facility

3 Suggestions for providing good customer service

4 Suggestion for logistics

Answer 1

Here is the response:

[Two-day repair and replacement guarantee policy is the only inclusion which I made to the executive summary from the case study presented above.]

Oreo Product Inc. – Proposal

As the supply chain consultant, I had the opportunity to review current value stream for Oreo Product Inc.

My findings and proposal are as below:

Summary of current process and value stream:

Oreo Product Inc is a one of the top companies in the world when it comes to chargers for electric vehicles. Customers like the brand not only for the product and its efficiency, but also because Oreo Product Inc. makes it easy for customers to buy their products in terms of ready availability of stock. What also helps is that Oreo Product Inc sells its products through stores which are within few miles of distance. As a customer you are never too far from a store from which you can buy your Oreo Product Inc products. So, mainly product features and availability are what distinguishes the brand largely.

Now, let us look at the overall manufacturing from raw materials to finished products. The raw material comes from three different sources – China, United States and Canada.

Rate of expansion suggests an increasing need to better handle logistics. Logistics is not the company’s forte at this juncture.

Service to customers – sale, exchange, repair – is another important aspect to handle as the company expands. The company has a two-day repair and replacement guarantee policy.

Suggestions:

1. Since most of the raw material comes from China and China is known for manufacturing excellence, its imperative to start a new manufacturing facility at China itself.
2. United States and Canada contribute to approximately 40% of the raw material, so another facility can be opened in either of these countries.
3. Instead of fetching only raw materials from China, USA and Canada – the same could be translated to some amount of processing at the same locations such that plug-and-play components are generated and final angle on bringing it all together is easy and fast – facility in Vancouver can be best used for this purpose.
4. Also, logistics is not the company’s forte. So, I would recommend making use of the key customers - The Electric store, We charged it and Power it up – and their logistics channels to handle the demand-supply in efficient manner for customers ordering online. Online orders should also be provided the option of ordering online and picking up the item(s) from your nearby store. Using the logistics channels of the major customers would also reduce the investment on inventory. Similar deals can be thought of in Japan, Australia and Vietnam too.
5. Service to customers – to align with the two-day repair and replacement guarantee – is another important area of the value stream where my recommendation is to utilize the partnership to the fullest extent instead of indulging in new setups.

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