Class Assignment DT343-3
The Poultry Supply Chain
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1. How might Wings and Legs combine a lean and agile approach in its supply chain?
2. What are the relative merits of each possible position of the material decoupling point and of the information decoupling point? How do they relate to each other with respect to supply chain planning and control?
3. Most managers of Wings & Legs see the exchange of tactical information about (price) promotion between Wings & Legs and the retail companies as difficult to accomplish. What are the advantages for the retail companies of exchanging more timely and more accurate information about promotions with Wings & Legs?
4. The network-based approach of an agile operations strategy could solve part of the matching problem for Wings & legs. In supply chain management much attention is paid to improvement of the vertical processes in a supply chain. However, Wings & Legs also outsource part of production (they buy poultry products from other poultry processors) which means that horizontal processes and horizontal cooperation are of importance. (a) What advantages are there for Wings & Legs in outsourcing part of their production to other poultry processors? What advantages are there for these other poultry processors?
5. The information decoupling point only concerns information about changes in demand and market. This is information that flows upstream in the supply chain. In the poultry supply chain, living chickens and perishable products are exchanged. Wings & Legs therefore not only have to take into account variations in demand, but also variations in supply. What information should flow downstream in the supply chain (to the poultry processors) so that Wings & Legs is able to match supply with demand in a better way?
1 . How might Wings and Legs combine a lean and agile approach in its supply chain? In order to undergo achieving the equilibrium of having the combination of both the lean and agile in approach to their supply chain, the company must follow certain steps. As Wings and Legs are dealing with perishable goods, they have to be efficient in their supply chain in order for it to work. The problems the company faces in the beginning are that there have been a decrease in sales and that the product quality has somewhat gone downhill. To eradicate the quality problem, Wings and Legs must ensure that their supply chain has the quickness and agility to get to the consumer while still fresh and in its best condition for eating. To begin this, it is clear that the Sales management need to be in better and more frequent communication with the Operations and Purchases management to avoid disorganization, slow movement of product, and possibly even reduce production costs somewhere along the supply chain. It is possible to find a “happy medium” and a healthy balance between the two terms “lean” and “agile” to go towards having a successful supply chain. Although they are different requirements we can see that all the major and successful global companies have vast yet efficient supply chains which balance efficiency and low costs together. With Wings and Legs, driving cost down is key to staying competitive within their market segment and keeping the supply chain at its leanest is how to do this. Cutting cost while keeping standards is of optimum importance to the longevity of the company. Leanness helps companies like Wings and Legs to do this. Wings and Legs are in a market segment whereby the demand for the product may fluctuate from day to day, week to week, year to year. To stay relevant in the marketplace, Wings and Legs must be agile. They must be flexible in terms of being able to follow the trend of demand and react...
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