Logistics Management
Essays

The Theory of Constraints (TOC) as defined by Eli Goldratt (Bernardi, 2010) has a multitude of uses throughout retailing in general and in food and electronics product distribution specifically. The intent of this analysis is to evaluate how the TOC makes significant contributions to the areas of Supply Chain Management (SCM) for food and grocery distribution in addition to high tech electronics. The emergence of the Internet as a viable supply chain platform and retailing channel is also leading to a complete re-ordering of the grocery and high technology industries based on TOC-based contributions and insights (Hofacker, 2008). The first and most significant area of contribution is in the area of Supply Chain Management (SCM). The TOC is the basis fo many of the logistics strategies and systems within Kroger and Circuit City and many of the businesses in their industries (International Journal of Physical Distribution & Logistics Management, 2002). For Kroger and food grocery and retailing companies in this industry, the shelf life of many of their most valuable products are dependent on how well they manage replenishment and continual planning of new perishables purchases (International Journal of Physical Distribution & Logistics Management, 2002). How well a grocery company manages the perishable products it sells at often the highest margins possible will very often dictate the level of profitability achieved over the long-term as well (Bernardi, 2010). For Kroger and other businesses competing in this industry the ability to accurately predict demand with forecasting and automated replenishment systems is in large part predicated on the foundational elements of TOC (Gupta, Boyd, 2008). Getting forecasting and replenishment right for grocery retailers is a continual challenge however as the velocity of sales can change drastically based on customer preferences and seasonality (International Journal of Physical Distribution & Logistics Management, 2002). Being able to manage this aspect of variation and have it reflected back to suppliers, many of them several layers deep into their supply chains, is a continual process of improvement (Bernardi, 2010). Supply chains for perishables underscore the value of TOC in terms of optimizing inventory and mitigating loss due to spoilage brought about by not being in step with market requirements as closely as possible from an operations management standpoint (Gupta, Boyd, 2008). This same dynamic holds true for electronics distributors and retailers, who comprise in large part the most profitable areas of the high tech value chain globally. The need for having a very clear idea of inventory exposure and costs used as the basis of operations management strategies are critical to these companies staying profitable (Gupta, Boyd, 2008). The TOC serves as the theoretical foundation for these and many other industries in getting their operations management strategies to be as effective and profitable as possible.

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Distribution Planning for Make to Order Manufacturers

Procter and Gamble (NYSE:PG) is the world's leading producer and marketer of consumer packaged goods (CPG), healthcare products and healthcare services globally. In its latest full fiscal year, P&G generated $82.5B in Sales and attained a Net Income of $11.7B. The company's products are sold in 180 countries through a variety of multichannel-based strategies that include mass merchandising, grocery, and membership club stores. It's command of the retailing markets are formidable given the strength and depth of its global supply chain and continual new product development processes (Chen-Lung, Sheu, 2007). The company is organized into two Global Business Units (GBU), the first being Beauty and Grooming and the second being Household Care. P&G is also considered to be one of the best brand management companies globally with 27 of the best-selling brands in the CPG industry part of their portfolio. On average 15% of total sales are from Wal-Mart in any given year and the company is a leader in collaborative planning forecasting and replenishment (CPFR) and adoption fo the Radio Frequency Identification (RFID) pilots WalMart has created with its top 100 suppliers (Chen-Lung, Sheu, 2007).

Bendoly, E., Rosenzweig, E., & Stratman, J.. (2009). The efficient use of enterprise information for strategic advantage: A data envelopment analysis. Journal of Operations Management, 27(4), 310.

Despite being the second or third to market in an industry based on increasing returns, it is possible to catch up to the first mover in terms of installed base. Of the many factors that go into this strategic decision…

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Project Plan for Apply Lean Principles to Automotive Refurbishment and Service Lifecycle Management Processes

According to their corporate profile (2007), YUM! Brands, Inc. competes as a quick service restaurant company; the company develops, operates, franchises, and licenses a system of restaurants that prepare, package, and…