Case Study about Reducing Damage in the Fast Moving Consumer Goods Supply Chain
Executive summary:~ The Aseptic Carton has many qualities. It is a low cost, environmentally friendly packaging material made from renewable resources, which make it attractive to filler manufacturers, retailers and consumers especially for liquid products such as milk and juice. In the United Kingdom several millions of cartons are purchased each year. However, it is also vulnerable to damage in the supply chain if handled inappropriately. The purpose of this study was to compare the different methods by which cartons are collated in bulk and distributed through the supply chain, and to identify the hazards for carton damage in each of those chains.
To achieve this, The Carton User Group (CUG) together with Pira International and the Lean Enterprise Research Centre (LERC) conducted a three-month project commencing in October 2002. The study examined the physical condition at six points in the supply chain of Tetra Brik and Combibloc one litre, “baseline”, aseptic drinks cartons, supplied to retail in four formats: Tetra on dollies, Tetra on pallets, Combi on dollies, Combi on pallets. The report concludes that there are much lower levels of damage present when the pallet or dolly is moved through the chain from manufacturer to store as a single item. However, where the pallet is broken down, either at distribution centres or stores, the amount and seriousness of damage increases significantly. Keep Reading…
Case Study about Reducing Costs through Production and Supply Chain Management
Introduction: IKEA, the Swedish home products retailer, is known for its good-quality, inexpensive products, which are typically sold at prices 30–50% below those of its competitors. While the price of products from other companies continues to rise over time, IKEA claims that its retail prices have been reduced by a total of 20% over the last four years.
At IKEA, the process of cost reduction starts at product conception and continues throughout the process of design, sourcing of materials and components, production, and distribution. For example, the “Bang” mug has been redesigned many times to realize shipping cost savings. Originally, 864 mugs would fit into a pallet. After redesign a pallet held 1,280 mugs, and with a further redesign 2,024 mugs could be squeezed into a pallet, reducing shipping costs by 60%.
The bulk bag filling station is designed to handle free flowing heavy mineral concentrate at a rate of 10 x 2000kg bags per hour. The filling station is a stand alone unit with bag placement and removal performed manually by the operator, together with fork lift assistance to remove the filled bags. The bag strap support hooks are mounted on air cylinders to lower the filled bag onto the pallet for removal. The bulk bag filling station includes the product surge hopper, heavy duty RHS support frame, filling chute complete with a pneumatic inflating dust tight bag holder and bag pre-inflation and dust collection ports, bag pre-inflation system and mild steel product contact surfaces. Read more..
International Game Technology is the leading manufacturer of Slot Machines in the world and each is customized for every customer. This project involved the consolidation of 17 facilities to one 260,000 square foot manufacturing and warehouse facility. By reengineering their production process IGT successfully reduced their cycle time by 30%. All standard components are put on a pallet that are delivered to a vertical carousel to receive specific and custom components unique to that order. Click here to read more…
Having drawn up a basic scheme for MPD, it is time to inject some life into it. In its dramatic manifestations the condition has a pallet of daunting complexity. Consider a system in which a cast of actors, as varied as fantasy can create, plays human, transcendental and diabolical parts, living in fear and turmoil in a vast range of different environments, where awareness continually changes in a moving pattern of light and shadow.
Consider further that several dramas may go on simultaneously in two or more different realities, not all of which are in public view, and you begin to have some awareness of the baffling complexity of MPD. Click here to read more…
Distribution systems for miscellaneous case goods stored and retrieved in public or private warehousing offer an excellent opportunity to study and document rules for efficient warehousing operation. A study of a large distribution center having over 100, 000 storage locations for general and special merchandise was conducted. The warehouse contained storage for general merchandise as well as segregated areas for items requiring special handling such as liquids, food and fabric items. The study included documenting and developing decision rules depending on the product handled and pallet strategy used…click here to read ahead
Pallets play a very important role in whole distribution systems through the supply chain. Such a fact alone shows the importance of pallets in today’s fast growing global logistics. Due to the increasing number of regulations and policies regarding natural resource conservations and also sustainable development, the issue of pallet utilization, reuse and recycling matters became the core concern in most of the researches performed in this field.As a consequence, the presented report discusses the current problems, requirements and debates around pallets utilization in distribution systems in depth along with the other affecting factors such as Cost, Environment, Materials, Sustainability, Information Technology and so forth. Read more….