Logistics and
Supply Chain
Management
TUTORIAL 2: SUPPLY CHAIN MAPPING
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MS. BING HAN
Exercise for Topic 6 – process mapping
Mini Case Study: Domino’s Pizza – draw your supply chain
Quiz on Topic 5 & 6
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Exercise for Topic 6: Peanut Butter Case
You are the owner of Butter Co. located in , Brazil, and you have been wanting to improve operations at your manufacturing plant. One concern you have had is that your main supplier,
requires long lead times when you order peanuts. Pedro, who is the owner of Pedro’s Peanuts, has agreed that he would work with you in improving operations. After looking closely at how the ordering process works, you come up with the following summary of operations:
Pedro’s Peanuts,
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Peanut Butter Case
1. Ritz faxes order of 1000 kilos of peanuts to Maria, the receptionist
2. Maria checks the fax for orders at 8:00am, 12:00pm, and 3:00pm
3. Because the production manager’s office is on the other side of the plant, new orders are sent over only 2 times per day—at 8:30am and at 1:00pm
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Peanut Butter Case
4. Production manager faxes a materials request to the purchasing director. Fax sits for 1 hour.
5. If there is enough stock on hand, purchasing notifies production manager of this. If not, it takes an average of 1 day to get stock from local farmers.
6. Peanuts then enter a batch process that takes 6 hours
7. Upon finishing, workers notify production manager, and production managers requests an invoice from accounting to be prepared.
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Peanut Butter Case
8. When accounting finishes invoice, they notify the production manager and send him a copy.
9. Production manager sends invoice to shipping and requests a shipment be made. Shipping gets request and loads truck (3 hours), and sends it to Butter Co. (1 day to deliver)
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Map of their current process
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Domino’s Pizza – draw your supply chain!
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Discussion Questions
1. Why is Domino’s so successful?
2. What’s the difference between Domino’s supply chain and other competitors, e.g., Pizza Hut’s?
3. As a customer, what do you value most? Accordingly, how can these be reflected in the objectives for this supply chain?
4. What steps could Domino’s take in the future to improve their delivery system? How do you reflect it in your mapping?
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How Domino’s Pizza is made A Franchise Based Supply Chain Company
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Supply Chain Management
SCM is the design of seamless value added processes across organisation boundaries to meet the real needs of the end customer. SC design and improvement is assisted by:
1. Process Mapping – creates visibility of current and improved processes.
2. Value Stream Mapping – depicts flow of information and materials
3. SC Mapping – displays the dynamics that govern how a supply chain works
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Why so many Channels?
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Supply chain mapping helps companies: 1. Improve strategic supply chain
2. Identify inefficiencies
3. Visualize process for communication
4. Analyze development of core competencies
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Further Readings:
1. How Domino’s Pizza is made:
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