Answered step by step
Verified Expert Solution
Question
1 Approved Answer
help me create an example of a value stream map with this information. 6. Leadership: Leadership is aloof at the corporate offices. There is no
help me create an example of a value stream map with this information.
6. Leadership: Leadership is aloof at the corporate offices. There is no supply chain strategy. There has been two Presidents and three Chief Operation Officers in the past three years. Warehouses are operating independently from each other. There are no individual leading and directing supply chain processes. Financial statements have triggered intemal and external auditors judgement on the sustainability of operations. 7. Procurement: The Procurement office is located in Raleigh, NC. All sales, expense, accounting, and delivery documents are mailed to the corporate offices. All procurements are performed through fax. - The procurement office has over 500 suppliers for identical products with varying price points. No consistency of brand products within the retail outlets. > Suppliers are not measured on quality, delivery, or pricing. The procurement office is over staff by 25 , due to the manual documents processing and handling. To complete a full sourcing, negotiation, contract, and delivery of products to the warehouse is eight months. Competitors are averaging three months. 11. Third Party Delivery - 3PL Current 3PL is unreliable. Kolter would like to go from gas powered trucks to electric vans. The 3PL trucks are over 25 years old. 80% of the 3PL trucks have maintenance issues. Many of the drivers have motor vehicle violations, which prevents them from driving. 12. Product location: > Warehouse 1 Beds Couches Dressers Tables Warehouse 2 Outdoor furniture (seasonable) > Warehouse 3 Children furniture Desks Beds Warchouse 4 Lamps Ceiling Fans Televisions Dressers Tables Outdoor fumiture Couches Warehouse 5 At 30% a small combination of all products. A. Warchouse 1: Over staffed by 100 warehouse workers. The budget has a negative variance of 100 million. The warehouse is no meeting it service delivery goals. Average delivery time is two weeks/ 14 days. Transportation mode includes tractor trailers. The warehouse needs facility improvements in excess of 200 million. The warehouse is located in Laredo Texas, which is 500 miles from its Richmond Virginia customer base. The facility is a 75 thousand square foot facility. No ERP / supply chain system, all communication is performed by fax, mail, or telephone. B. Warchouse 2 Located in Toledo Ohio, which is 300 miles from its customer base in Richmond Va. Human resources are limited. > Warehouse is understaffed by 75 . > The warehouse is unable to meet its delivery requirements. The warehouse is overstocked and product is stored on trailers and satellite facilities. Product is expiring within the warchouse. Utilizes a third-party delivery service, by tractor trailer. Average delivery time is 2.5 weeks. The facility is a 100,000 square foot facility. > The third party is unreliable. Inventory turns are at 5 turns per year, where the industry average is 30 . No ERP/Supply chain system. > Employec tumover is high. > The damage rate for received product is 40%. C. Warehouse 3: Located in Tampa Florida. Due to union negotiations, the warehouse only operates four days a week, instead of the required seven. Production at this facility is 50% than other facilities. Delivery time is three weeks. Inventory values are 3X higher than other locations. The warehouse is overstocked, product is stored on trailers and satellite facilitics. The facility is 150,000 square foot facility. Service delivery is below the expected 95%, current data service is at 60%. Inventory turn rates are at a 5 , where industry average is 35 . Product is staged at a third party before final delivery. The warehouse facility is in need of 25 million in facility improvements. Uses a third-party tractor trailer trucking fleet. The third party (3PL) is unreliable. The warehouse tax rate is the best in the country. Low employee turnover rate. D. Warehouse 4: > Located in Norfolk, Va., 50 miles from its customer base. > The warehouse has an integrated ERP/Supply Chain System. Inventory Turn rate are above the national average. Inventory values are in-line with the turn rates. The warehouse has a low expiration rate. Damage rate is less than 1%. Deliveries are on-time as expected, one to two days. The facility is modern, with conveyors, and current equipment. No Union. > Private trucking fleet, and Box trucks as the delivery mode. Drivers are employed through the company. 8. Suppliers: There are 500 suppliers. 80% of the suppliers are located west of the Mississippi. 10% of the suppliers are located in China. 10% are located on the US east coast. Procurement is reluctant to source for other suppliers due to past relationship. Current supplier pricing is higher than others in the market. Contracts are negotiated for one year. Suppliers are not measured on their performance, quality, or price. 20% of their Suppliers can service all product lines and are capable to send and receive electronic information. 9. Order Processing: All orders are processed manually. The organization has no web-based services. Customers can not transmit orders through the website. Orders are mailed to the procurement location, fax to suppliers, suppliers, there is no acknowledgement that they received the orders. Orders are placed and delivered to the warehouse by truck, and trucked to the retail outlet. Three to four weeks cycle time. The organization is in need of an electronic ordering system to quickly process orders, track, and forecast inventory. 10. Delivery Service Currently, there is no home delivery service. Customers are waiting up to two weeks for products to be delivered. Box trucks are not allowed in most neighborhoods do to weight and size. Deliveries are not accounted for due to paper receipts. Box truck deliveries account for 30% of the customer deliveries damages. The customer base is far north as Philadelphia, PA and south Orlando, FL. The delivery service is expected to operate seven day a week. E. Warchouse 5: Located in Fredericksburg, Va., 20 miles from its customer base. - Brand new facility at 1.5 million square feet. The facility is 30% full. Drivers are employed through the company. > Delivery time is one day or less. Transportation mode in Box trucks instead of tractor trailers. The facility utilizes conveyors, high-rise picking cranes, and robots. > Warehouse salaries are the highest in the region. The warehouse is partly integrated. > No union. The warehouse has adequate staffing. > The facility has the ability to work 247. 4. Supply Chain System (SCS) / Enterprise Resource System (ERP): > 40 percent of Kolter warehouses have the ability to transmit critical information electronically. Kolter plans to incorporate the SCS into their facilities. > To integrate the SCS, the company Information System Budget is 25 million. To include all warehouses, the organization needs 75 million. The 25 million will accommodate two facilities. - Warehouses 1,2 , and 3 , will require internal and external infrastructure build, this would include, data lines, backup systems, and an on-site data system. 5. Retail Outlets: The sales at the retail outlets are suffering due to out of stocks, damages, and late deliveries. > The retail outlets can only receive electronic information from warehouse 4 and 5. Warehouse 4&5 only carry 40% of the products offered within the retail outlets. Competition from other retailers have produced low customer volume in the retail outlets. > The retail outlets can use a remodel to attract customers. There are 17 retail outlets. The organization would like to expand into other markets, however, with dismal sales and an inadequate supply chain system, the organization is reluctant to do soStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started