Magister Management (Production Management) Trisakti University 2015. Case Study : Managing the Supply Chain for Globally Integrated Product. Link source http://businesscasestudies.co.uk/exel/managing-the-supply-chain-for-globally-integrated-products/introduction.html#axzz3s6RM1h12

1. Case Study : Managing the Supply Chain for
Globally Integrated Products
Presentation Supply Chain Management & Logistics
Trisakti University | Indonesia | 22 October 2015
Leonard Merari | 122140085
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2. Content
Supply Chain Management
Just in Time and Lean Production
The Challenge of Supply Chain Management
Introduction
The Result
Conclusion
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3. Introduction –
Exel Supply Chain
INTRODUCTION | SCM | JIT-LEAN | SCM CHALLENGE | RESULT | CONCLUSION
Exel Supply Chain : Services Provider
Exel is a part of Deutsche Post DHL
How they do it?
Source :
By providing innovative, customized supply chain solutions
and third-party logistics to some of the world's best-known
and most successful companies.
Exel supply chain design, consulting, warehousing,
fulfillment, and transportation services help companies be
more productive, more efficient and more competitive. In all
cases, our customer is at the center of everything we do — from
initial situation analysis to the continuous improvement programs
that help deliver better results every day
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4. Introduction – Mission and Values
INTRODUCTION | SCM | JIT-LEAN | SCM CHALLENGE | RESULT | CONCLUSION
Mission
Make the most of our scale,
experience and passion to build
global leadership in logistics, and to
become the first choice for customers
and associates.
Values
1. To deliver excellent quality For any product, at any time, in any place.
2. To make our customers more successful Customer satisfaction defines our
success. Your success is our success.
3. To foster openness We think globally, act locally, and respect different cultural
values in every region where we or our customers operate.
4. To act according to clear priorities Clear priorities determine our actions.
5. To act in an entrepreneurial way We require and promote individual
responsibility—it's the very spirit of our company.
6. To act with integrity, internally and externally At all times, within Exel and with
our business partners, shareholders, and the general public.
7. To accept social responsibilities We are committed to goals that generate
benefits for the communities where we work.
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5. 21,900 Associates
298 facilities
84 million square ft
INTRODUCTION | SCM | JIT-LEAN | SCM CHALLENGE | RESULT | CONCLUSION
Introduction - Highlights
USA
8,200 Associates
51 facilities
14 million square ft
CANADA
Source :
$4,6 billion
REVENUE
Ownership
Exel is a wholly owned entity of
Deutsche Post DHL, the
world's leading logistics group.
Headquarters
Exel 570 Polaris Parkway
Westerville, Ohio 43082
U.S.A. 877-272-1054
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6. INTRODUCTION | SCM | JIT-LEAN | SCM CHALLENGE | RESULT | CONCLUSION
Introduction - Highlights
Campus Operations Warehouse Operations
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7. INTRODUCTION | SCM | JIT-LEAN | SCM CHALLENGE | RESULT | CONCLUSION
Introduction – Case Study
Globally Integrated Distribution Systems, eg :
• Fruit and Vegetables that we Purchase in
our local supermarket arrive other country
• Motor vehicles that we drive around in
which contain components from many
different countries
Keywords : COMPLEXITY
“This case study, introduces you to some of
the processes that go on behind the scenes
by examining supply chain management.”
Raw Material Distributor Storage /
Warehousing
Retailer End User
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8. Supply Chain Management – SCM Definitons
INTRODUCTION | SCM | JIT-LEAN | SCM CHALLENGE | RESULT | CONCLUSION
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Supply Chain Management
Council of SCM Professional
Supply chain management encompasses the planning and
management of all activities involved in sourcing and procurement,
conversion, and all logistics management activities. Importantly, it
also includes coordination and collaboration with channel partners,
which can be suppliers, intermediaries, third-party service
providers, and customers. In essence, supply chain management
integrates supply and demand management within and across
companies.

9. SCM – Exel Success Story
INTRODUCTION | SCM | JIT-LEAN | SCM CHALLENGE | RESULT | CONCLUSION
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10. Customer : Volkswagen
Exel provides innovative solutions as
how to reduce cost and accelerate the
movement of VW products locally,
regionally and globally
Keyword :
Reduce Cost and Accelerate!!
INTRODUCTION | SCM | JIT-LEAN | SCM CHALLENGE | RESULT | CONCLUSION
SCM – Case Study
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11. INTRODUCTION | SCM | JIT-LEAN | SCM CHALLENGE | RESULT | CONCLUSION
JIT & Lean - Concept
"Just-in-Time" means making“ only what is
needed, when it is needed, and in the amount
needed."
For example, to efficiently produce a large
number of automobiles, which can consist of
around 30,000 parts, it is necessary to create a
detailed production plan that includes parts
procurement. Supplying "what is needed, when
it is needed, and in the amount needed"
according to this production plan can eliminate
waste, inconsistencies, and unreasonable
requirements, resulting in improved
productivity.
Source : 11

12. Taichi Ohno (29 Feb 1912 – 28 May
1990) was a Japan Industrial Engineer
and Business man.
Ohno define “Seven Waste” model
which have become core in many
academic approach. These Waste are :
INTRODUCTION | SCM | JIT-LEAN | SCM CHALLENGE | RESULT | CONCLUSION
JIT & Lean – Concept
Source : Source :
1. Delay
2. Producing more than you need
3. Over processing or undertaking non-value added activity
4. Transportation
5. Unnecessary movement or motion
6. Inventory
7. Production of Defects
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13. JIT sets out to cut costs by reducing the amount
of goods and materials a firm holds in stock.
JIT Involves :
1. Producing and delivering finished goods
‘just in time’ to be sold
2. Partly finished goods ‘just in time’ to be
assembled into finished goods
3. Parts ‘just in time’ to go into partly finished
goods
4. Materials ‘just in time’ to be made into
parts.
INTRODUCTION | SCM | JIT-LEAN | SCM CHALLENGE | RESULT | CONCLUSION
JIT & Lean – Case Study
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15. Developing a JIT approach requires
sophisticated planning and considerable
experience in this field.
This is why leading companies contract out their
supply chain management to a specialist
company like Exel with considerable experience
of this area.
INTRODUCTION | SCM | JIT-LEAN | SCM CHALLENGE | RESULT | CONCLUSION
JIT & Lean – Why Exel?
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16. JIT and Lean Production – Benefit
INTRODUCTION | SCM | JIT-LEAN | SCM CHALLENGE | RESULT | CONCLUSION
A further advantage of
JIT is the benefit
derived from eliminating
lineside storage of parts
and the associated
“clutter” which inhibits
efficient movements
to/from the production
line.
By reducing the storage
of parts at the production
line, a manufacturer is
often able to increase the
speed of the production
line and produce more
cars with the same
number of resources,
lowering the overall unit
cost of production.
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17. The Challenge of Supply Chain Management –
Customer Needs
When Volkswagen decided to
produce its new Beetle model,
the goal was to transfer the
lean manufacturing technique
and highly effective just-in-time
supplier park model from the
VW/SEAT assembly plant in
Martorell in Spain, to Puebla in
Mexico.
INTRODUCTION | SCM | JIT-LEAN | SCM CHALLENGE | RESULT | CONCLUSION
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18. 1. Exel has created and manages the JIT system that
ensure a smooth running supply chain of parts to the new
Beetle final assembly plant.
2. Volkswagen collaborated with Exel, which designed,
engineered and now operates the Innovative Park in
Spain, to transfer the park model to Mexico.
3. Exel is responsible for primary transport from the
component suppliers main plant to the Park.
4. Exel responsible to for warehousing, picking,
subassembly, and sequencing operations, and
deliveries to the assembly lines.
5. Exel handle new deliveries via EDI (Electronic Data
Interchange) in 105 minutes
INTRODUCTION | SCM | JIT-LEAN | SCM CHALLENGE | RESULT | CONCLUSION
The Challenge of Supply Chain
Management – Solutions
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19. The Result
 Adopting the supplier park
model in Mexico to reach its
present level of 1,380 vehicle
per day.
 Exel employs around 850
people at the Puebla (Mexico)
facility to support VW
operation
INTRODUCTION | SCM | JIT-LEAN | SCM CHALLENGE | RESULT | CONCLUSION
Supplier Network Model
Source :
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20. Conclusion
INTRODUCTION | SCM | JIT-LEAN | SCM CHALLENGE | RESULT | CONCLUSION
• Exel able to save the world’s
leading business large amount
of money, time and effort by
creating an effective supply
chain
• JIT methods and Lean
production play important roles
on VW Supply Chain
Management
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