CASE STUDY ANALSYS OF INTERNATIONAL

TRADE LOGISTICS

CASE 1: OLIVER WIGHT CASE STUDY,

CASE 2: SYSPRO CASE STUDY

Submitted
to

PROF. K K K Chand

Submitted by

Suchanda Som
1226109149
MBA-IB

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OLIVER WIGHT CASE STUDY

Company Background:
Weyerhaeuser is one of the world's largest forest products companies. Its Cellulose
Fibers business makes fluff pulp and paper-grade pulp used by consumer products
companies around the world for diapers, adult incontinence and feminine hygiene
products, tissue and paper towels. And these customers have sophisticated supply
chains and are very demanding of their suppliers.
Company wanted to achieve Class A rating in S&OP so that it can have an integrated
operating network to meet the demand need of customers so that business goal is met.
For this effective resource planning is required and updating of operating plan is also
needed.

Class A in S&OP:
Sales and operations planning is one of the key strategies and approaches to respond
to an increasingly complex business climate. The need for S&OP is being fuelled by
customer demand for faster response to market shifts and for more made-to-order
products and services.
S&OP is the set of business processes and technologies that enable an enterprise to
respond effectively to demand and supply variability with insight into the optimal
market deployment and most profitable supply chain mix. S&OP strategies help
companies make right-timed planning decisions for the best combination of products,
customers, and markets to serve.
Class A in S&OP means achieving a high degree of integration and disciplined
process. The Class A performances brought both tangible and intangible benefits. The
tangible benefits being reduced inventory levels, production efficiency, compliance
with the master schedule etc. and the intangible benefits included customer
confidence and satisfaction.

Further developments and adoption of Oliver Wight solutions:

Oliver Wight is a consultancy firm which offers coaching and guidance to develop the
support system which help a firm to achieve excellence in their field. In this case
Weyerhaeuser Company wanted to achieve Class A in production facilities after it
achieved Class A recognition in S&OP.

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Oliver Wight identified loopholes in EBS (Enterprise Business Solutions) system
which was adopted by Weyerhaeuser in 2004 and directed cellulose fibers leaders for
better integration of their planning processes. Because the production facilities were
acting individually and for a better organisational structure it was needed to integrate
all. Then the company started using Oliver Wight ABCD checklist to improve its
performance for achieving Class A in Integrated Planning and Control in its
production facilities. It allowed Cellulose Fibers to optimize its supply chain
processes which ultimately led to high level of customer satisfaction.
Oliver Wight also guided them to broaden their vision and objectives which although
was broad but still not competent with other companies.
With its implementation, inventory management is improved as a proper recording is
done according to demand. As a result efficiency in production process is also met.
The sales plans are also achieved in a better way.
Following practices are implemented:
 Individual accountability with clear roles and responsibilities
 Collaborative customer relationships to yield improved satisfaction
 Integrated and leveraged processes to drive system-wide improvement
 Alignment to a single, agreed-to operating plan built on one set of numbers
 Deploying Sales and Operations Planning
 Implementing reliable processes for on-time, damage-free delivery
 Tying product/business development more tightly into demand and supply
management
 Initiating collaborative, ongoing demand and supply balancing

Under the process a team was formed consisting of business leaders for from its mills,
sales offices and Corporate Headquarters. The group did proper exercises on business
excellence and integrated supply chain management to gain knowledge about overall
working of the organisation

Achievements:
In order to achieve efficient planning and control system a proper integration and
management of the entire value chain is needed from getting the raw material to
supplying the finished product to customer.

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A team work will ensure that all departments have information about other
departments. Creation of new roles and designation will help to fill the loopholes. The
role of supply chain integration director, demand manager and supply manager are
created, considering each as a different field of function. Thus roles are created and
removed both to form a proper organisation structure.
A proper demand and supply forecasting is achieved as a result because each
specialised department will bring more efficiency in work. The flow of information
will be continuous and appropriate and transparency in communication between all
levels will be maintained.
In order the supply the product at right time, transportation system should also be
efficient. So transportation representatives are also appointed in this team.
By using ABCD checklist, the company is able to strike a proper balance between
demand and supply keeping in mind the time constraint. By achieving a good supply
chain the company will be able to utilise its assets efficiently and inventory related
problems will also minimised. change

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CASE STUDY ON ELECTRONICS INDUSTRY:

About the industry:

Electronics industry is a very dynamic industry and the product becomes outdated in
very short span of time. It requires a huge flow of capital, continuous innovation
keeping in mind the market needs and competitor’s offerings. The product life cycle
in this industry is very short. The companies have to ensure that their product reaches
the market earlier otherwise it will miss the race. The industry has lower levels of
vertical integration and dependent on other industries for sub parts. As the time factor
has to be maintained at each stage, in this industry supply chain plays a very vital role.
Both internal supply chain and external supply chain management is needed. That is
the sub parts has to be supplied to the assembly unit at right time and once assembled
the final product has to reach the customers at right time. The supply chains are very
long and complex. Another important area which needs proper attention is quality
aspect. So, at every step of production checking is to be done. All the companies want
to achieve different sigma levels. Thus electronics companies have to be very high
performing companies.
R&D sector is very important in this industry. A proper timing in product
development will ensure that the processes after that i.e. manufacturing and supplying
to the customers are also in time. A huge amount of capital inflow is needed. Thus
electronics industry is highly capital intensive industry.
So, it can be inferred that the main problem associated with this industry is huge
requirement of capital and requirement of highly integrated supply chain.

Analysis of the problem and solution:

The electronics firm thus needs a ERP (Enterprise Resource Planning) system which
will ensure a proper functioning of all levels of supply chain both back offices and
front offices and production scheduling. ERP system assists an organisation to define
and plan on the resources required during the operation process of purchase,
production, distribution and strategic planning to satisfy customer order. An
international support system is also required as many parts are outsourced from
foreign countries as well. So the software for ERP is required to handle different
languages and currencies.

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An ERP system with SOA (services oriented architecture) is needed to go hand in
hand with the other supply chain networks. As the number of products and partners
increases they need to be accommodated or entered into the system.
SYSPRO’s solution package designed following the ERP models meets all this
requirements. It also brings innovation in its product like introduction of e-signature,
return to vendor application etc. It is observed that solution provided by SYSPRO’s in
areas like Finance, Manufacturing, Lot Traceability and RMA modules have proved
to be of great help for the electronics firm. This solution has helped them to achieve
synchronisation in their whole operation cycle.
The technology architecture that SYSPRO utilizes is a multilayered, .NET stack that
provides significant connectivity and product flexibility. This is critical for electronics
makers that need to interact with third parties and their systems.
Thus the dynamism of electronics firms is well satisfied by this dynamic software
which changes its architecture and features with changing requirements. This can act
as a standard system to solve all the problems faced by electronics sector.