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09 Case Study SCM Production and Warehouse Management

Materials Management, Supply Chain Management

CNT Ltd is into manufacture of Citrus based fruit drinks. The main raw material product is procured locally for the four factories situated in Agra, Pune, Vishakhapatnam and Cochin to support distribution across India. the sales are controlled from Head office in New Delhi and branches all over India. The distribution network is based on centralized orders issued from Delhi and this created a lot of time being wasted in providing storage and distribution orders.  The company has a order system based on the reports submitted by Sales Officers for their location. The Sales officers have to check with Finance to ensure when their orders have been dispatched and when it will reach the distribution centers. The Factory Managers have reported that they have to wait for orders to dispatch which is very large, whereas they have to sit with the huge inventory. They have expressed space shortage for FG (Finished Goods) Inventory. Whereas the Sales officers are complaining that they are not getting the orders executed. Small orders are not taken on priority. This has affected the Receivables also since there is no clear policy on order closure. CNT Management has asked you to come up with a plan to ensure Faster Distribution and providing more decentralized reporting system. You have studied the system and want to bring in the changes by way of implementing Scientific Inventory and Distribution Management system and handling order handling process. You found that there are duplication of the products and no proper routes are planned. This could have been avoided if the dispatch had information on availability of products. The production planning was based on availability of space for storage at factory level.

You have also suggested having multiple Storage and Warehouse in different locations. 

  1. What are the measures what you will initiate to ensure the system is streamlined for success.

  2. What Principles of Materials Management you would keep in mind while designing the system and implementation of system

  3. Which part of the process you will not change? why?

  4. What according to you should drive the production and how will the organization control this?

Lakshminarasimman V Rao | SCM | Material Handling| Material Management | Corporate Neeti Consulting | Mysuru

All data above is a combination of data from Internet, purpose of this doc is for research and education only and responses received from Class students and interaction.

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1 commentaire

Anjali Reddy
Anjali Reddy
23 oct. 2020

1. * Waiting for the centralised orders from Delhi leads to waste of time in storage and distribution orders. To avoid this appointing a Branch head would be better. He has to be given the Liberty and authority in handling the distribution order instead of waiting for the orders to be issued from Delhi.

* Small orders are not given priority. This directly affects the recieveables so the company should implement "First come First serve". The dispatchment of orders should be done according to date of issue of orders.

2. Principles of material management

* Effective management and supervision

* Simple inventory control program

*Effective purchase system

3. I will the change Factory manager's waiting for the orders to dispatch…

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