Case Studies

Is Right Shoring the Right Response?

Case Study Type: : Academic
Authors: Stanley Fawcett, Weber State University

As Director of Operations at Kiwi, Michelle had been tasked with increasing Kiwi’s manufacturing capacity and competitive capabilities. The need to evaluate offshoring was raised by a recent market analysis, which revealed that although Kiwi retained an innovation edge over aggressive global rivals, it had lost cost and delivery advantages. 

Silo Manufacturing Corporation: SMC

Case Study Type: : Academic
Authors: Ted Farris, University of North Texas
Pages: 6
Published Date: 2011

This two-part case illustrates the use of economic order quantity to manage conflicting performance measures across different silo'd functions in an organization. Part A requires students to assess the costs of various order quantities and quantify the concept of "robustness." Part B emphasizes managing the variables of annual demand, ordering cost, inventory carrying cost, and unit price to achieve strategic goals. The student must determine how to lower ordering costs to compensate for increases in the other variables as well as to help guide Just-In-Time implementation efforts.

This case contains two additional files. To receive the PowerPoint deck and Excel/macro based costing programs please email education@cscmp.org. CSCMP non-members will need to purchase the case before receiving these additional files.

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Saving Lives through Supply Chain Innovation

Case Study Type: : Practitioner
Authors: Jay Heavner, SCMS, David Jamieson, SCMS, Gordon Comstock, PFSCM, Hany Abdallah, SCMS
Pages: 13
Published Date: 2012

In 2005, the US President’s Emergency Plan for AIDS Relief (PEPFAR) established the Supply Chain Management System (SCMS) to provide a flexible, reliable, cost-effective and secure supply of products for HIV/AIDS programs in 16 countries. Charged with administering the SCMS project, the US Agency for International Development (USAID) awarded the SCMS contract to the Partnership for Supply Chain Management (PFSCM), aconsortium of some of the most trusted names in international public health and development. Faced with millions of people needing treatment in the hardest hit  developing countries, PFSCM moved quickly to support rapid scale-up of HIV/AIDS treatment programs, creating a reliable, integrated, global supply chain where none existed, leveraging economies of scale to reduce the cost of medicines and other commodities, supporting local supply chains and serving as an emergency provider of choice for the global AIDS response.

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Achieving Excellence in a Complex Environment—Pfizer’s Path to Value Chain Visibility and Control

Case Study Type: : Practitioner
Authors: Jeff Jagiela, Pfizer, Inc., Bill Falstich, Pfizer, Inc., Mark Baker, Pfizer, Inc., Mac McGary, GT Nexus, Chad Sonnhalter, Unyson Logistics
Pages: 15
Published Date: 2012

Pfizer Global Transportation has deployed a cloud technology-based information strategy called the ―Logistics Delivery Platform‖. Over the last two years, this innovative strategy has delivered value that well exceeds what would have been achieved by traditional means. In conjunction with our partners, GT Nexus and Unyson, Pfizer has changed the game. The Logistics Delivery Platform has transformed Pfizer’s supply chain into―device independence‖ mode, which is a very specific strategy of injecting a virtualized information and process layer between Pfizer and its various control towers, service providers and trading partners across the value chain.

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Collaborating for Sustainable Supply Chains: Tough, Doable, Rewarding

Case Study Type: : Practitioner
Authors: Gael De Martelaerre, The Dow Chemical Company, Luc Haesaerts, Haesaerts Intermodal
Pages: 10
Published Date: 2012

This case describes how collaboration between three business partners (Dow as supplier, Haesaerts as 3PL and P&G as customer) has yielded considerable improvements in operational stability, agility, productivity, supply chain cost‐to‐serve and Greenhouse Gas (GHG) emissions in a long, complex intra‐European supply chain to an emerging region. In addition this case exemplifies the power of trust and benefits of long‐term commitments between multiple business partners in the value chain. This case furthermore shows that sustainable supply chains are not fiction, but can be achieved by a combination of vigilant focus, implementation of the latest technologies, long‐lasting partnerships, purpose and perseverance.

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Creating a Model of the Retail Business

Case Study Type: : Practitioner
Authors: André Martin, RedPrairie, Jeff Harrop, Demand Clarity, Inc.
Pages: 13
Published Date: 2012

A leading technology appliance manufacturer's retail supply chain is challenging to manage profitably and efficiently due to the fact that many of the items sold in the manufacturer's stores are highly specialized and/or have high price points. This results in intermittent demand patterns that are difficult to forecast by traditional methods. However, in order to truly have a complete model of the retail business for planning purposes, a solution to this problem was critically necessary in order to be successful.

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GreenerOffice Delivery Service

Case Study Type: : Practitioner
Authors: Michael Roy, Office Depot, Jeff Mayhew, Office Depot, Lissette Gonzalez, Office Depot
Pages: 10
Published Date: 2012

The GreenerOffice Delivery Service provides a winning solution that reduces Office Depot’s impact on the environment while reducing our supply chain operational costs. Prior to the project, Office Depot delivered most customer repack deliveries (daily average 26,229) in corrugate cartons with plastic dunnage (air pillows) and tape. The dunnage is needed to reduce crush factor of the carton that in turn protects the contents. Our innovation was to create an order delivery process in a recycled paper bag shipped in a reusable tote - thus requiring no corrugated cardboard, no dunnage, and little tape. Based on progress from National Roll Out in August 2011, we are tracking well towards a 12-month target of reducing cardboard materials by over 3.5 million pounds. The latter is equivalent to avoiding the use of over 3,000 tons of wood or the harvesting of 20,000 trees. We also estimate the savings in cardboard costs (net of depreciation of the plastic totes and cost of paper bags) to exceed $1.5 million annualized.

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North America Road Logistics ES&OP

Case Study Type: : Practitioner
Authors: Steve Starks, The Dow Chemical Company
Pages: 11
Published Date: 2012

The logistics marketplace has changed and presents new challenges for companies who rely on logistics services to ship their products to provide premier service to their customers. The Dow Chemical Company (“Dow”) has made a breakthrough application of Executive Sales & Operations Planning (ES&OP) concepts to supply chain logistics to progress transformational goals and operational stability. A combined team from Dow’s Supply Chain Operations and Technology Center developed the innovative work processes, tools and structure for executing a Logistics ES&OP process to balance business logistics demand and supply.

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The Power of Collaboration: Optimizing Freight Costs by Sharing Capacity (Weight and Space)

Case Study Type: : Practitioner
Authors: Sonney Jones, Dal-Tile Corporation, George Abernathy, Transplace
Pages: 15
Published Date: 2012

Collaboration is often talked about, yet is challenging to accomplish. The right partners, products and business cultures are key to collaboration coming to life. Shippers with dense freight reach legal weight limits but can leave a significant amount of cubic capacity unexploited in the trailer, container, or boxcar. Likewise, shippers with lower density freight fill the cubic capacity, but leave weight capacity unutilized. By combining its high-density freight with other shippers’ low-density freight, Dal-Tile is able to simultaneously fill both weight and cube volume, thereby optimizing the utilization of transportation capacity. This business case by Dal-Tile, Transplace, Whirlpool and others, benefitted all of the shipping partners by reducing their net logistics cost and combined carbon footprint. 

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A Closed-Loop Returns Management System: Turning Failures into Profits

Case Study Type: : Practitioner
Authors: Sharon Joyner-Payne, Carolina Supply Chain Services, LLC
Pages: 15
Published Date: 2006

Since the beginning of unsaleables management, the goal has been to reduce them. Retailers and manufacturers assigned a person within their organization whose responsibility was to do just that, reduce unsaleables. While both the goal and the action were a start for improvement, to make the really significant changes that can affect the bottom line long term, there had to be a new goal and a new approach. Kellogg’s did just that. Rather than set a goal to just reduce unsaleables, the goal became to increase profitability. Profitability in terms of achieving objectives to improve process efficiencies, improve customer and consumer satisfaction, and reduce costs for both Kellogg’s and their customers. Rather than keep the unsaleables reduction the responsibility of one person, it became a company wide approach with all departments owning a piece of accountability for unsaleables reduction. Kellogg’s calls this innovative approach their Closed-Loop Returns Management System.

 
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A Quantum Leap in Reducing Working Capital Commitment in a Global Supply Chain

Case Study Type: : Practitioner
Authors: Thomas Krupp, Friedrich-Alexander University Erlangen-Nuremberg, Michael Krupp, Friedrich-Alexander University Erlangen-Nuremberg, Peter Klaus, Friedrich-Alexander University Erlangen-Nuremberg
Pages: 17
Published Date: 2006

For modern management following the “shareholder value” approach controlling the assets employed – especially working capital tied up in the supply chain (SC) – is of utmost importance. A method of analysis of the capital bound along multi-stage supply chains to enhance shareholder value by reducing invested capital via supply chain management approach is introduced and described in this article.

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Achieving Agility and Responsiveness with an Outsourced Supply Chain

Case Study Type: : Practitioner
Authors: Edward Tymick, Tellabs, Jeffrey M. Weingarz, Tellabs
Pages: 12
Published Date: 2009

Through an innovative program of business process and technology improvements, Tellabs integrated its 100% outsourced manufacturing operations into a common framework of supply flexibility agreements, end-to-end demand-supply planning, and liability management. As part of this supply chain optimization initiative, the Tellabs Agility Program is an innovative concept that delivers greater flexibility and lead-time reduction in the supply chain by identifying products for which component suppliers agree to provide additional supply upside flexibility without requiring specific buffers. Tellabs uses technology from ICON-SCM that tracks consumption of the flexibility agreements, recommends when to consume them, and measures the positive impact of that consumption on delivery dates.

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Bertelsmann China: Supply Chains for Books (A)

Case Study Type: : Academic
Authors: Stephan M. Wagner,Otto Beisheim School of Management, Viviane Heldt, Katrin Lentschig , Jennifer Meyer
Pages: 18
Published Date: 2008

This case Bertelsmann China: Supply Chains for Books (A) focuses on one of the world’s leading media companies to illustrate a widespread problem in the supply chain strategy in extremely fast-growing markets. You will learn about the basic challenges of supply chain strategy in an international context.

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Bertelsmann China: Supply Chains for Books (B)

Case Study Type: : Academic
Authors: Stephan M. Wagner, Otto Beisheim School of Management, Viviane Heldt, Katrin Lentschig, Jennifer Meyer
Pages: 10
Published Date: 2008

This case study is situated in China in the beginning of 2006. Bertelsmann Direct Group, the Chinese subsidiary of the worldwide Bertelsmann AG, is one of the leading book retailers in the country. Supply chain management is essential for success in retailing, which is why Bertelsmann puts a lot of effort into the optimization of its supply chain design. The case provides a thorough analytical process towards the calculation of logistics costs and supply chain network optimization.

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BlueStar Office Supply Company (Mini-case)

Case Study Type: : Academic
Authors: Rodney W. Thomas, Georgia Southern University, Stephen Rutner, Georgia Southern University, Christopher Boone, Georgia Southern University
Pages: 6
Published Date: 2012

This case provides students with the opportunity to analyze historical freight payment data in order to reduce transportation costs and improve customer service. Transportation management concepts such as LTL consolidation, carrier reduction, pricing analysis, risk assessment, and trade-off evaluation are emphasized.

*This case contains an additional data file. Please email education@cscmp.org to request the file. 

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BP's Procurement and Supply Chain Management

Case Study Type: : Academic
Authors: Arunachalam Narayanan, Malini Natarajarathinam, Brandon Winn
Pages: 24
Published Date: 2009

BP has interest in both upstream and downstream segments in over 100 countries worldwide. The United States subsidiary of BP is the nation’s largest producer of oil and gas. This case focuses on the upstream procurement activities in the Gulf of Mexico.

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Brazil RFID-enabled Supply Chain

Case Study Type: : Practitioner
Authors: Marcelo Pandini, Hewlett-Packard Brazil, Erika Kajiyama, Hewlett-Packard Brazil, Erick Cano, Hewlett-Packard Brazil
Pages: 12
Published Date: 2008

HP’s key business problem is that it has a lot of serialized product, which incorporates data needed for warranty and service information. Additionally, HP outsources about 90% of its manufacture and distribution and uses multiple vendors at multiple supply chain points. As such, the company faces significant logistical challenges. While conceding barcodes provide good capability for identifying items and their location, HP experienced considerable physical limitations as to where and how often they could be applied without unsustainable additional costs.

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Breaking Down Supply Chain Silos through Strategy to Action

Case Study Type: : Practitioner
Authors: James Kellso, Intel Corporation, Cindie Blackmer, Intel Corporation
Pages: 10
Published Date: 2010

This paper will describe how Intel Corporation and our supply chain organization used the concept of “strategy to action” to break down supply chain silos and barriers across their supply chain to enable new products to operate at true “low cost”. We established a supply chain strategy for a new product suite and took that strategy into action. As a result, we were able to breach a variety of traditional supply chain silo/barriers with results that were never before thought possible.

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Breaking Ground in Services Purchasing

Case Study Type: : Academic
Authors: Lisa M. Ellram, Miami University, Wendy L. Tate, University of Tennessee
Pages: 10
Published Date: 2010

This case provides an overview of how a purchasing organization can try to gain a foothold in an area of spending in which it has not been involved in the past. The legal group had been spending hundreds of millions of dollars on outside purchases with no meaningful involvement from purchasing, until a new Director came on board and purchasing to participate in the transformation of legal spending.

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Carnival Corporation Food Supply Chain

Case Study Type: : Academic
Authors: Dick Verbeek, Supply Chain Skills
Pages: 19
Published Date: 2008

Carnival’s senior management gives a mandate toall directors of food operations to implement an overall 20% reduction in their food costs per passenger. This case study outlines a strategic plan that was put in place for the North American cruise industry’s food supply chain.

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Founded in 1963, providing educational, career development, and networking opportunities to members and to the entire Supply Chain Management profession.