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Sustainable Growth through Network Optimization

This presentation outlines strategies for achieving sustainable growth through effective network optimization. Dongfang Wu leads an insightful root cause analysis of the performance variations between CMSCs in the West and East, examining key operational metrics. Short-term improvements focus on inventory management retention levels, while long-term strategies include constructing small warehouses to decrease shipping costs and enhance responsiveness. Key initiatives such as postponement of differentiation and a milk-run approach are discussed to meet customer demand efficiently.

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Sustainable Growth through Network Optimization

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Presentation Transcript

  1. Sustainable Growth through Network Optimization Team 6 Dongfang Wu Yosuke Komori Meng-i Chou Tatsuki Ibuki

  2. Presenter: Dongfang Wu Agenda • Root Cause Analysis • Improvement Goal • Short-term Operation • Long-term Operation • Summary

  3. Presenter: Dongfang Wu Middle West Region West Coast East Coast South Region

  4. Presenter: Dongfang Wu Root Cause Analysis • Performance Evaluation • Operation Comparison Between CMSC in West and East. Using assumed lead time for calculation.

  5. Presenter: Dongfang Wu • Product Shortage Analysis 18.3% 28% 72%

  6. Presenter: Dongfang Wu Order by Source Analysis

  7. Presenter: Dongfang Wu Improvement Goal • For Short-term Operation • CMSCs in West maintains the same inventory management level as in East. • For Long-term Operation • To ensure a sustainable growth. Using assumed lead time for calculation.

  8. Presenter: Meng-I Chou Short-term Operation Postponement of Differentiation • Highly modular design • Generic product manufacturing in plant • Reduce uncertainties

  9. Presenter: Meng-I Chou Milk Run

  10. Presenter: Meng-I Chou Renting a Warehouse • Reduce lead time • Increase flexibility of LA and SF • Fulfill customers demand

  11. Presenter: TatsukiIbuki Long-term Operation • Build small warehouses such as DBN • Decrease shipping cost • Improve daily lead time between CMSCs and warehouses • Establish CMSCs near new small warehouses • Expand market • Improve customers’ response time

  12. Presenter: TatsukiIbuki Target Cities for New Warehouse New Jersey Chicago Salt Lake City

  13. Presenter: TatsukiIbuki Benefits of New Small Warehouses Shipping Cost Lead Time Salt Lake City New Jersey Chicago W87 W34

  14. Presenter: TatsukiIbuki Benefits of New CMSCs Minneapolis Salt Lake City New Jersey Chicago Kansas City W87 Albuquerque W34 Memphis New Orleans New CMSCs

  15. Presenter: Yosuke Komori Summary • Short-term Operation • Postponement of Differentiation • Milk-run • Forecast Improvement • Ordering System Revaluation (Kanban) • Long-term Operation • New Warehouses • Location • Salt Lake City • Chicago • New Jersey • Lower Shipping Cost • Shorter Lead Time • New CMSCs • Information System

  16. Thank you!

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