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Case Study: Optimizing Supply Chain Operations at Orange Electronics

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6 views

Case Study: Optimizing Supply Chain Operations at Orange Electronics

case study new

Uploaded by

Likhith
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Case Study: Optimizing Supply Chain Operations at Orange Electronics

Background
Orange Electronics is a leading global consumer electronics manufacturer with multiple
manufacturing plants and distribution centers worldwide. The company has been facing
several challenges in its supply chain, which have led to increased operational costs and
reduced customer satisfaction. Key issues include inefficiencies in inventory
management, poor supplier coordination, and delays in product delivery. You have to
study the case below and suggest solutions against each of the tasks.

Objectives oof the Study:


• Improve data-driven decision-making.
• Enhance analytical skills to identify and solve supply chain problems.
• Increase customer satisfaction by improving delivery performance.
• Address supply chain bottlenecks through effective problem-solving.
• Develop strong people management skills.
• Formulate long-term strategic plans for supply chain optimization.

Problem Statement:
Orange Electronics is experiencing a 15% increase in operational costs over the past year.
Delayed shipments have resulted in a 10% drop in customer satisfaction scores.
Inventory levels are inconsistent, with frequent stockouts and overstock situations. The
company aims to reduce operational costs by 10%, improve on-time delivery rates by
20%, and achieve a 15% increase in customer satisfaction over the next year.

Data and Information Provided


Inventory Data (Sample)

Lead Demand
Product Stock Reorder
Product Name Warehouse Time Forecast
ID Level Point
(days) (units/month)

101 Smartwatch A WH1 500 300 10 800

102 Smartphone B WH2 1000 700 15 1200

103 Laptop C WH1 200 150 20 500


Lead Demand
Product Stock Reorder
Product Name Warehouse Time Forecast
ID Level Point
(days) (units/month)

104 Tablet D WH3 300 250 12 600

105 Headphone E WH2 150 100 8 300

Supplier Data (Sample)

Supplier Supplier Product Lead Time Order Cost Quality Rating


ID Name ID (days) ($) (1-5)

S001 Supplier X 101 10 50,000 4.5

S002 Supplier Y 102 15 75,000 4.0

S003 Supplier Z 103 20 100,000 3.8

S004 Supplier A 104 12 60,000 4.2

S005 Supplier B 105 8 30,000 4.6

Distribution Data (Sample)

Distribution Average Delivery On-Time Delivery Operational


Region
Center Time (days) Rate (%) Cost ($)

North
DC1 5 85 200,000
America

DC2 Europe 7 80 250,000

DC3 Asia 10 75 300,000

South
DC4 12 70 180,000
America
Distribution Average Delivery On-Time Delivery Operational
Region
Center Time (days) Rate (%) Cost ($)

DC5 Africa 15 65 150,000

Tasks for the Case:


Task 1: Data Analysis
• Analyze the inventory data to identify trends and discrepancies.
• Determine optimal stock levels and reorder points for each product to minimize
stockouts and overstock situations.
Task 2: Supplier Evaluation
• Evaluate supplier performance based on lead time, order cost, and quality rating.
• Recommend strategies to improve supplier coordination and performance.
Task 3: Distribution Optimization
• Analyze the distribution data to identify bottlenecks in delivery times.
• Propose solutions to improve on-time delivery rates and reduce operational costs.
Task 4: Customer Centricity
• Review customer feedback data to identify key areas of dissatisfaction.
• Develop strategies to enhance customer satisfaction by improving delivery
performance and product availability.
Task 5: Problem Solving
• Address a specific supply chain issue, such as a delayed shipment or a supply
shortage.
• Develop a detailed action plan to resolve the issue, including short-term and long-
term solutions.
Task 6: Strategic Planning
• Develop a five-year strategic plan for Orange Electronics' supply chain.
• Consider global expansion, sustainability, and technology integration.
• Propose metrics to measure the success of the strategic initiatives.
Submission Guidelines
• Present the analysis and solutions in a detailed report.
• Include data analysis, proposed solutions, and strategic plans.
• Work in teams to simulate real-world collaboration.
• Present findings during the virtual session, ideally by a group of volunteers for
feedback.

Note: You can consider relevant business assumptions to assess the case and
suggest solutions.
• Tips: You can use EOQ, ROP, Supplier Performance Assessment etc.

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