Customer Service and Online Delivery Systems

1122 WordsJul 10, 20185 Pages
INTRODUCTION In today’s market, organizations must have the ability to meet customer’s demand, what they want and when they want it. Customer service and on-time delivery are two important factors in today’s environment. Product life cycles have shortened and customers are demanding immediate delivery. A company may have a great product, but if it is not delivered to the customer when they need it, the customer will move to the competitor and the product will fail. Organizations must recognize the importance of their supply chain and ensure that the right solutions and tools are in place. The supply chain is a system/network that includes inventory, distribution and transportation functions and consists of raw material suppliers,…show more content…
• Maximum inventory days at any MDX warehouse is 15 days. Applies to all regions. • Forecast budget locked for a 1 year period. 6 month rolling forecasts provided to factory at the beginning of each month. Manufacture purchased raw material based on the 6 month rolling forecasts. • Forecasts reviewed on a monthly basis. The impact of the current MDX inventory replenishment policies and methods are as follows: • Long delivery lead-time to customers, some customers asked to wait the full lead-time from production (60 to 90 days) to delivery (30-60 days). • Large inventories, high storage/carrying costs. • Wrong product mix. Out of stock of high demand products and large inventories of slow movers. • Fill rate penalties with large retailers. • Bad forecast planning. Inventory days above and below the 15 days inventory days. • Loss of sales. Product not on shelves. PROCTER & GAMBLE SUPPLY CHAIN MANGEMENT Procter & Gamble (P&G) is the world’s largest multinational consumer goods company that sell products that include, personal care products, baby care products, pet foods and cleaning products. P&G has 50 brands, $84 billion dollars in revenue in 2013and has a network of over 82,000 suppliers/partners (P&G, 2014). P&G recognized the benefits of Continuous (pull) Replenishment and focusing on customer demand and information sharing. They understood the market environment was changing, life cycle have collapsed to the

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