Integrated Logistics for Depigard Case Study

Case 1: Integrated Logistics for DEPIGARD

1. Diagram the DEPIGARD supply chain. What stages are adding value? What stages are not?

DEP/GARD Supply Chain

Company 1 Compnay 2 Company 3 Company 4 Company 5 Company 6

A B E F A B C D A B E F C D E F C D

60% 60%15%15% 25%25%15%15% 15%15%25%25% 60%60% 60%60% 25%25%

Some of the stages that are adding value are the stages where product or material is in movement. For example, where there is inbound transportation from supplies that is an adding value stage. Another adding value stage is where there is DEP packaging. Manufacturing is yet another adding value stage. Finally, product delivery is a value adding stage.

There are some stages that are not adding value and these are stages in which the material and or the product is not moving or is static. For example, where there is “dwell time” at the warehouse, this does not add value. Also, materials receiving, matching orders to paperwork, and materials inventory are all examples where stages of production are not adding value.

2. Using the primary DEP suppliers (60 percent of business), what is the minimum

performance cycle for the supply chain diagrammed above? What is the maximum?

Production cycle time refers to production activities, such as the total time required to produce a product. Order processing cycle time is used in the front office to determine the total time required to process an order. From a financial perspective, terms like cash-to-cash cycle time describe the amount of time a company takes to recover its financial investment. From a management perspective, cycle time is used to evaluate performance in all aspects of a business.

Here, DEP would only be utilizing four segments of two organizations in this capacity. At the minimum level, inventory invested to achieve minimum performance cycles for the supply chain diagrammed above can be modified only by changes in network...