Fresh Connection Tips PDF

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Fresh Connection Tips: 1. Work your way from Sales via Ops to SCM and Purchasing. 2. For the teams with a negative ROI I often see shelf life agreements that are very high; obsolescence is often very high too which results from the fact that products need to be remanufactured all the time. Select your customers and do not put your shelf life agreements too high. Make sure you have at least one customer where you can get rid of your products with short shelf life remaining. 3. On the carbon footprint side this is very much having an impact too as you use resources that are not to the benefit of the customer; a result of high obsolescence is that scrap is high; therefore carbon footprint will be much higher than promised and therefore you get penalties. Do not promise too much in carbon footprint. Remember what suits a focus on carbon footprint better: responsive or operational excellence? In order to deliver to discounters you need to eliminate waste which fits a green strategy very well. A responsive strategy does not fit a low carbon footprint strategy yet this fits the introduction of innovative products such as the fresh pressie. 4. Be careful what the attributes are of a customer: a discounter may accept products with a shorter remaining shelf life yet he/she requires high on time service levels. 5.In this game you cannot do everything for every customer without running out of capacity so you have to make a selection of who you serve; if you serve everyone with every product you will most likely be in big trouble. Capacity is not sufficient resulting in high utilization, high levels of outsourcing etc. 6. Make sure to select customers based on your strategy: if you focus on product excellence a carbon footprint focus fits very well too so set your carbon footprint targets accordingly. In a responsive situation carbon footprint focus does not fit well so don't set your carbon footprint targets high. 7. Very often teams with a negative ROI have a low production reliability: if you promise much but you deliver not much and your production is unreliable then you need to look at component availability. Most likely reliability is furthermore low because of too high service levels to customers or issues with shelf life agreements. Check whether production costs and purchasing costs have risen more than the turnover, if so you have spent too much on this! 8. Outsource may be high because of too high utilization. This is high since many of you want to service all customers and that is not possible. Capacity is constrained, you cannot do everything! Make choices. 9. Be careful with component lot sizing. Figure out how many PET bottles fit on 1 pallet – you will see that most of your warehouse consists of PET! Reduce your lot size of PET to zero and select a supplier that can deliver quickly and you will see that your component inventory wil disappear as snow under the sun. 10. Be careful with capacity: this is constraint and not all customers can be served simply by putting extra shifts in production. You therefore need to make a choice who to serve. You need to segment. There are several segments: Green (focused on fair

trade, sustainability, efficient logistics), discount (low costs, accepting low remaining shelf life yet requires high service), direct sales (innovative, high margins, slack in supply chains required e.g. in mix and volume but also responsiveness is rewarded), value for money (freshness relevant, minimal out of stock, promotion sensitive) 11. And last but not least: put effort in a good forecast; this is essential for a good assessment of capacity.

A plan of action for future and long-term expansion along the game would be to implement continuous replenishment along the stock purchasing methods that will allow either the purchasing and the supply chain to predict and respond to the needs of the customer with more accuracy and will establish between the different service a natural communication process (Gattorna, 2006). On the sales department perspective it will be appropriate to more to focus on customer prioritization, through technics such as ABC methods and to implement accurate forecasting to reduce the margin of error that the production line have to deal with. The supply chain department will have to rely on forecasting and purchasing to implement an accurate replenishment of the stock by working closer with the operations in charge of warehousing spaces and could seek every waste that could have been made in order to increase the lean management accuracy. The implementation of six sigma1 strategy oriented will also lead to a reduction of cost through waste elimination with a continuous improvement scheme....