Kimberly Clark - a Lean Operations Organization

2774 Words Jan 16th, 2013 12 Pages
Kimberly Clark – Lean Logistics

June 25, 2012

Executive Summary Organizations in today’s economy often include cost control or reduction in their overall strategies. Logistics is an area of increasing focus where internal and external costs affect the margins and customer demands require excellence of service. In distribution, selective, exclusive and intensive are three primary channels in which an organization must determine the best option in relation to products and customers. The Kimberly Clark Company provides an excellent example for today’s organizations with “a customer-oriented supply chain reorganization begun more than four years ago, K-C is improving distribution efficiencies, reducing
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Kimberly Clark’s Channel Selection Kimberly Clark’s success in supply chain management is the result of a long-term project that kicked off in 2004 with identifying important customers and asking them what they were looking for from K-C as a supplier. The general answer, “maybe not surprisingly they said they would like to improve service levels and reduce inventories and cycle times” (Gilmore, 2008, para.8). With that, Kimberly Clark can answer the question about degree of directness to meet the improved service levels, reduced inventories and improved cycle times requested by customers. Kimberly Clark Combines Technology with Objectives In choosing distribution channels based on product lines and customers, “The decision questions must be answered within a framework of objectives that are at times conflicting. The basic objectives can be reduced to four: (1) maximize sales; (2) minimize cost; (3) maximize channel goodwill; and (4) maximize channel control” (Mallen, 1996). As previously mentioned, three primary goals Kimberly Clark set for the new framework per customer feedback are improved service, reduced inventories, and improved cycle times. Internally, the company set two additional key objectives according to Mark Jamison, VP of North
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