Post on 12-Sep-2014
description
transcript
SUBMITTED BY:
RITUPARNA NEOG (24),
SURABHI SAVITA (33),
NIFT-MFM,
NEW DELHI
SUPPLY CHAIN COE SUBMISSION
Under the guidance of Prof.Amandeep Singh Grover
Xerox present headquarterNorwalk, Connecticut, US.
SUSTAINABLE SUPPLY CHAIN
Introduction Large global company: Financial
services & Document Processing Products marketed in over 130
countries Direct sales force: 15,000 (dealers,
distributors & agents 30, 000 technicians employed for
after sales services. 22 manufacturing facilities in Europe,
N & S America and in Far East. Its “Ready for Real Business “
campaign emphasizes that Xerox will drive “Non Core Business Processes” allowing its clients to focus only on ‘ real ’ business operations
Xerox –at a glance Founded in 1906, Rochester, NY, US.headquartered in Norwalk, Connecticut (moved from Stamford, Connecticut in October 2007..PARC founded in 1970. Incorporated in 2002 as an independent centre.Fuji Xerox was established in 1962 as a 50:50 partnership with Rank Xerox.
PRESENTKey people -Ursula Burns, CEO -Anne M. Mulcahy, ChairmanEmployees 53,600 (2009)9,400+ patents(2009)$880 million spent on R&D (2009)Xerox locations-160 countries.On September 28, 2009, Xerox announced the intended acquisition of Affiliated Computer Services for $6.4 billion.
Organisat
Xerox- Strategy to WinExecute on growth initiatives Capitalize on market opportunities
Expand distribution Leverage distribution investment
Secure future Technology leadership
Build on Xerox heritage of innovation
Optimize productivity& infrastructure.
Drive cost reductions & margin Improvement.
Segment Offerings
Mission & Goals
To develop, manufacture, market and service a broad range of document processing products including large scale electronic printers,duplicators,copiers,work stations, engineering products, telecopiers and supply associated with those products.
MISSION
Customer satisfaction Return on assets Market Share Employee Satisfaction
GOALS
Industries it servesEnergyFinancial ServicesGovernmentHealth CareHigher EducationHigh Tech and CommunicationsInsuranceManufacturingRetail and Consumer ProductsShipping and LogisticsTransportationTravel
Inventory Performance
0
5
10
15
20
25
30
Firms
Inve
ntor
y P
erfo
rman
ce
Average
20% inventory
11% Logistics cost
% o
f re
venu
e
1989 1990 1991 1992 1993
Unit Process Optimization
Cross-organizational process Change
Change Agents
10%
7%?
Logistics customer satisfaction
100 %
Route Map
Strategic Partnership- ‘Close the Loop’
•In late 2010, Xerox partnered with Close the Loop, one of the world's largest recyclers of imaging supplies that specializes in cartridge returns.
•Close the Loop collects U.S. customers returns and manages the recycling on� behalf of Xerox using a patented material separation process that recovers used materials for reuse in new printer cartridges and other products.
•These processes enable virtually all material returned through the program to be beneficially managed.
•This partnership both simplifies the returns process for customers and also allows more of the return stream to be recycled into useful products.
Features of Closed loop supply chain
• Closed-loop supply chain: supply chains that are designed to consider the processes required for returns of products, in addition to the traditional forward processes.
• These additional processes (also referred to as the reverse supply chain) are:• Product acquisition: the task of retrieving the used product. This is a key to
creating a profitable closed-loop supply chain.• Reverse logistics: the process of planning, implementing, and controlling the
efficient, effective inbound flow and storage of secondary goods and related information opposite to the traditional supply chain direction for the purpose of recovering value or proper disposal.
• Test, sort and disposition: testing and sorting the returns and disposition refers to how a product is disposed of, e.g. sold to a broker, sold to an outlet, sent to landfill, etc.– Refurbish: similar to reconditioning but requires more work to repair the product.– Selling and redistribution.
New Assets
Acquire
NewBuildRemain
Distribute
Deliver
Removal
Asset strip
Recovery and repair
1.2 billion $ Logistics
cost
A closed loop supply chain of Xerox
New Assets
Acquire
NewBuildRemain
Distribute
Deliver
Removal
Asset strip
Recovery and repair
1.2 billion $ Logistics
cost
A closed loop supply chain of Xerox
Manufacturing & Supply
• The company’s largest manufacturing site is in Webster, NY, where they produce fusers, photoreceptors, Xerox iGen and Nuvera® systems, components, consumables and other products.
• They also have EA Toner plant located in Webster.
• They have a facility in Venray, Netherlands, which handles supplies manufacturing and supply chain management for the Eastern Hemisphere
• Master supply agreement with Flextronics, a global electronics manufacturing services company, to outsource portions of manufacturing for Mid-range and Entry businesses, continues through 2014.
• They also acquire products from various third parties in order to increase the breadth of product portfolio and meet channel requirements.
• Arrangements with Fuji Xerox under which they purchase and sell products.
Inventory management and logistics process vision
Customer satisfaction is the key
Demand driven supply chain
Time to customer is a competitive advantage
Common product language
Complexity managed through high performance work systems
Recycling is key
Order Satisfaction/ Delivery Management
Shared ownership of orders
Plan for order satisfaction
Information availability exchange for inventory
Same day delivery capability
100% build to order on high end
Configuration (Asset Information) Management
One logical data base, SAP
Co-ordinated, multifunctional, multinational, configuration management
Rapid communication of configuration information
Inventory Planning
One CompanyService level- driven stockingDemand- driven forecasting
Logistics & PhysicalDistribution Planning
One company, one integrated supply chain
Networks optimize customer satisfaction at lowest cost & inventory
Plan networks as a continuum from customer to supplier
Logistics Operation
Manage flow not stock Plan the workIntegrate warehousing and transportSame day delivery capability
WASTE PREVENTION AND MANAGEMENT
Waste Prevention & Management
• Xerox’s Green World Alliance initiative provides a collection and reuse/recycling program for spent imaging supplies.
• Xerox’s Product Takeback and Recycling program manages equipment at end of life.
• Xerox is investing in technologies that reduce the creation of waste.
• Example: – The solid ink imaging process utilizes compact “cartridge-free” solid ink
sticks with no plastic housings or casings, thereby reducing print-related waste by up to 90% compared with comparable color laser products.
WASTE FREE GOAL
Design products, packaging and supplies that make efficient use of resources, minimize waste, reuse material where feasible and recycle what can’t be reused
• This partnership with Xerox customers resulted in more than 3.4 million cartridges, toner containers and other used supply items being returned in 2010.
• Eco-Box returns allow the customer to order free bundles of Eco Boxes that hold from five to 12 cartridges per return, depending on the size of the item.
• Xerox continues to monitor global customer feedback and industry best practices to stay on the path of continuous improvement.
Waste Prevention & ManagementGreen World Alliance Reuse program
Central to the commitment to waste-free products
Total Waste Diverted from Landfills from Cartridges, Bottles and Waste Toner through Reuse/Recycle
• Returned products are sorted, and items suitable for remanufacturing are cleaned, inspected and then remanufactured.
• Those which cannot be remanufactured are recycled. • Remanufactured cartridges, containing an average of 90%
reused/recycled parts, are built and tested to the same performance specifications as new products.
Waste Prevention & ManagementWell-Established Collecting and Reprocessing Methods
Individual unit returns for sale
Eco Box program
Pallet returns.
Xerox customers have three options for returning spent consumables to Xerox for reuse and recycling at no charge:
• Xerox enables reuse according to the following hierarchy:– Reuse of complete end item as used or new, depending on the condition of the
machine. This requires the least reprocessing, transportation and energy usage.
– Remanufacturing or conversion into a newer-generation product or part Nearly 40% of machines returned in the U.S. are sent for remanufacturing of some sort.
– Reuse of major modules, subcomponents, and parts for spares or manufacturing. In 2010, almost 200,000 parts were stripped off of used machines and sent back out to the field for reuse either in manufacturing or as repair parts.
– Material recycling. Any remaining portion of a machine after the above processes have been followed is stripped of any recyclable material (e.g., plastics, copper wire) and material requiring special disposal services, such as PWBs, batteries and lamps. The remainder of the machine is then crushed and sent to a scrap metal reclaim facility.
Waste Prevention & ManagementProduct Take-Back and Recycling
Waste Prevention & ManagementWaste Diverted from Landfills through Remanufacture and Parts Reuse
•Xerox continues to operate its European take-back program to enable equipment remanufacturing and parts reuse
• A waste vendor approval process assesses the safety and environmental practices as well as compliance history of each vendor. •Xerox does not allow its vendors to send electronic scrap to developing nations for processing.
E-Waste
Process Flow
Xerox –green supply chain
• Xerox cites a number of benefits of a waste-free company:
• financial,• competitive advantage,• compliance • legislative regulation, • meeting customer requirements.
In 1991, the Xerox Corporation set a goal for the company to become waste-free.
Proactive leadership is Xerox’s stated goal in its environmental programs. All Xerox products are required, at a minimum, to comply with government standards and meet Xerox’s internal environmental standards. Internal standards are frequently more stringent than existing legislative requirements.
Process Flow
Process flows comprises of:
•Forward Flow•Reverse Flow•Remanufactured Flows
Product recovery process• The product recovery process is as follows:1) Products are collected from Xerox customers and returned to one of
centralized logistic return centers. • Reverse flows represent the movement of goods from the end-user
to Xerox for disposition and reuse.
2) Remanufactured flows are the movement of remanufactured goods from Xerox to customers.
• The customers for remanufactured products are often not the same customers as for new equipment.
• The flow of remanufactured goods is a forward flow of materials, not a reverse flow.
Product categorization for reuse• Returned units are inspected and assigned to one of four graded categories. These categories
represent the most economically attractive use of the returned product. The grades are the basis for the reuse alternative .
• Category 1 products are virtually unused machines requiring only minor servicing. • Category 2 machines are in good condition. These machines require parts and components
to be replaced during the remanufacturing process.• Category 3 machines are in good condition, but not economically fit for remanufacturing.
Therefore, parts and components are stripped off the frame of the machine and enter the reused parts inventories.
• Machines are classified as category 2 or 3 based, in part, on the demand for remanufactured machine and the levels of reused parts inventories.
• Category 4 machines are economically fit only for materials recycling.
• The categorization decision is based on a variety of factors including:
– the overall condition of the machine, – the age of the machine, – the demand for reused parts, and– current inventory levels of reused parts.
Results
Greater visibility and more accurate data in the spare parts supply chain, allowing Xerox to improve the planning process and overall efficiency across its network
Improved supply chain reliability and responsiveness, enabling Xerox to maintain its service commitments to customers.
New process-driven, results-oriented management and the attainment of significant cost savings.
Substantial savings across the supply chain: Transportation 16% Warehouse 12% Supply Chain 3% Total 15%
Key Differentiators
Unit Process optimization: multi cross functional team
Process vision: IM & L
Process improvements in process: Cross functionality giving flexibility
Management of Change: Convince people Converting understanding into positive perception Take the ownership and make people understand it’s the only way
Issues related to Reassemble-to-Order Process
The key dimensions in aggregate planning for a Reassemble-to-Order environment are :
• Xerox Europe reported a total of 116,308 copiers returned in 1999. The majority of these units were returned from lease agreements.
• The quality of these returns is difficult to predict, because not only are copiers complex but the condition of a photocopier is dependent on the intensity of its use and its age.
• Through the use of the nominal grading system , Xerox is able to determine the most economic use of a copier—after the condition of the copier has been determined.
• The use of Signature Analysis profiles aid the examiner in determining the reusability of a component.
• The complexity of the remanufacturing processes is directly related to not only the number of part and components, but also the number of operations required to return each component to usable status..
Issues related to Reassemble-to-Order Process
• Xerox tracks leases to enable the forecasting of the rate of product returns.
• Product returns from leasing, for non-OEM remanufacturers, represent less than 5% of total returns.
• Consequently, forecasting product returns is difficult due to the uncertainty associated with non-leasing returns.
• Matching return rates and sales rates is difficult. The volume of returns in the case of value-added remanufacturing is significantly less than for container reuse.
• Marketing is more complex for the remanufactured products, since customers may require significant education and assurances to convince them to purchase remanufactured products.
Managerial Concerns and Needs
• Xerox Europe does not make remanufactured copiers to stock and have chosen to reassemble the required components and parts per each customer order.
• Managers in a Reassemble-to-Order (RATO) environment have greater information needs, since the products, testing, and remanufacturing processes are significantly more complex than in a Remanufacture-to-Stock (RMTS) environment.
• Further, these products are more expensive; therefore units awaiting disposition and inventoried components may represent a sizable investment. There may be multiple economic uses for a remanufactured component (e.g. spare or on a remanufactured unit), so inventory planning must take this into account.
• The management of remanufacturing product and components must take into account the life cycle of the product in the field (likely demand for spare parts and consumables) and the market life cycle (likely demand for product in the future).
• A successful production planning system must be capable of coping with the inherent complexities in this type of an environment. A disposal policy to balance supply and demand is an obvious concern.
• Xerox continues to expand its consumable return programs. Most recently, a new program called the Green World Alliance is expected to increase worldwide return rates for retail and office products’ supplies.
• The anticipated growth in product returns makes the development of formal planning systems crucial to ensure that product reuse programs continue to be value-added activities for Xerox.
Key concerns
Design and implement a supply chain solution that minimizes the impact of significant operational constraints
Standardize and modernize its spare parts supply chain with new business processes, systems and automation
Maintain current service levels to its customers through the transition phase
Build a continuous improvement culture that strives to increase supply chain efficiency
Reduce operating costs
Solution
Exel placed a supply chain management (SCM) consulting team in the Xerox organization
Closing three regional centres and transferring operations to two existing locations
Redesigning the two existing locations to manage increased product flow
Integrating all systems and processes across the network
Implementing new warehouse and transportation management systems
Sources
• www.trinity.edu• www.personal.psu.edu• www.xerox.com• www.xerox.com/gwa.