Executive summary
The term supply chain management is used in wholesaling and retailing to denote the integration of logistics and physical distribution functions with the goal of reducing delivery lead times. Manufacturers and service providers have used the same term to describe integration and partnership efforts with suppliers to reduce cost and improve quality and delivery timing. The company uses its supply management to arrive at positive efficiency of such operations such as shipment and delivery handling to keep customers on their side in providing better product an service responsiveness of continuously managing such facilities, transportation, inventory and information. Thus, it can’t be control that the smooth flowing of such supply chain process and logistics will experiences issues and barriers to a successful integration of the supply chain drivers as Evergreen Ltd will need to plan, act and apply such practices that will help the company achieve stable business equipped with ideal management structures and strong power of the business cycle along with appropriate supply chain approaches and tactics respectively. Evergreen will have to handle inventory control problems which may lead to higher than preferred inventory levels. The need to have good materials/distribution requirements plan as the materials requirements planning systems manage inventory in supply chains with the help of time-phased inventory levels.
The transportation management of Evergreen should be free flowing and should be executed with ease for every process taken as such the in speeding up process material to factory and how it reaches to the customers will then use just in time mode of delivery and transportation as the approach can reduce carrying costs of inventories, maximize the use of space, and in some cases improve the quality of results. Thus, there can be the use of two-way handling process transportation as purchasing and production can be accomplished on just in time transportation with such shipments be made by using cargo and freight services globally as necessary as possible. However, caution is needed because without the use of good handling and shipment, the arrival of orders cannot be accurate and fine-tuned. The idea of having facilities management as belief in potential to improve processes by which workplaces can be managed to inspire people to give of their best, to support their effectiveness and to make positive contribution to economic growth and business success. Evergreen have to examine the relevant costs connected with IT expenditure, such as design methodologies, training, and hardware, to be able to identify the optimum level of investment appropriate to the company.
Introduction of Evergreen
Evergreen Products Factory Ltd – A Hong Kong based company that is located at Shantou China and Vietnam with a range of products such as Christmas declaration products like stockings, tree skirts, table top, ornaments, bows and ribbon with over 2000 items, the ordering type of the is somewhat customary in ‘Direct Import type’ and the supplier of materials is from Asian region: Korea, India, China and Vietnam. The company’s customers were big US retailers with customer practice that each customer has different requirements on product design, labeling, shipment route, product quality (inspection), security standards.
Major issue/problems
The issues and problems have reflected Evergreen’s supply chain management as there were problems regarding their transportation management which implies delay of shipments and the delivery process does not flow smoothly and customers will tend to have complaints about their orders, also the inventory management of Evergreen can be too customary and that no updates were being made for a more sound integration of their inventory processes. Thus, there assumes that Evergreen’s facilities used are of old forms and does not conform to the global advances of technologies that is why the company’s inventory process intend to be slow as the company fails to provide the most advance facilities to date such as computer system usage that can be a tool for customers who want to inquire about such product and prices online. The information management of the Evergreen may then be out of paced, meaning there is no proper assimilation of the information ways they are using that has impede the company to take on a higher note in giving the best shot for achieving a stable success in the business.
Analysis
Inventory management
Evergreen will have to handle inventory control problems which may lead to higher than preferred inventory levels. Conversely, better integration of inventory records will result in lower inventory investment and are the foundation for forecasting, ordering, tracking, vendor evaluation and dead stock administration programs that has to be adopted by the company. The need to form corporate-wide education on the importance of record accuracy and the development of a general management plan based on sound principles for effective inventory control ( 2002 ;2003 )
The need to have good materials/distribution requirements plan as the materials requirements planning systems manage inventory in supply chains with the help of time-phased inventory levels. Evergreen can begin with production schedule that provides the timing and quantities of production of end-products through the help of the bill of materials a series of gross requirements by time period is generated for components. Then, the existing inventory levels are allocated against the gross requirements to produce a time series of net requirements. In distribution systems for each downstream stock point a master schedule with its gross requirements is developed. Through allocation of existing inventory levels, net requirements for the stock point are obtained. These net requirements are translated to planned receipts and planned orders respectively. The planned orders are translated to gross requirements for the next upstream inventory points.
Aside, Evergreen can utilize and adopt such inventory model base throughout their supply chain management that will cater to such feature such as: the analysis process of obtaining the model is straightforward and easy to understand; the “how many and when to order” decisions made by the model do not include complicated algorithms; the model has few restrictions and can cope with a wide range of inventory problems and application of the model will lead to efficient inventory management and significant cost savings. In what follows, the models included in the system’s knowledge base are discussed. (2004)
Transportation management
The transportation management of Evergreen should be free flowing and should be executed with ease for every process taken as such the in speeding up process material to factory and how it reaches to the customers will then use just in time mode of delivery and transportation as the approach can reduce carrying costs of inventories, maximize the use of space, and in some cases improve the quality of results. Thus, there can be the use of two-way handling process transportation as purchasing and production can be accomplished on just in time transportation with such shipments be made by using cargo and freight services globally as necessary as possible. However, caution is needed because without the use of good handling and shipment, the arrival of orders cannot be accurate and fine-tuned. The transportation management to be adopted by the Evergreen company can reflect high quality supply and manageable supplier network along with short transit times into customer places that will have efficient transportation and materials handling into better management commitment (1996).
Facilities management
The facilities management of Evergreen are to be committed to where its business standards are obtained enable the company to utilize basic facilities management department that if facilities are tuned in they help meet business objectives and values. Evergreen in its facilities management can be effectively managed only if seen as integral parts of the enterprise. The packages of contracted services are to be coordinated within the context of management control to ensure they deliver on quality, cost and time to meet user requirements. Thus, Evergreen will secure the future of facilities management as a credible discipline, vocation and business service is enormous. The idea of having facilities management as belief in potential to improve processes by which workplaces can be managed to inspire people to give of their best, to support their effectiveness and to make positive contribution to economic growth and business success. (1998)
Greater accountability for the use of resources has heightened demands for improved efficiency and value for money. The introduction of competition and choice in delivering services has opened opportunities for ventures with Evergreen.
Facilities provide the infrastructure for business and play role in attracting inward investment. The key facilities issues for the future are: ( 1998)
- Increase adaptability to changing needs
- provide healthy workplace
- assimilation of potential technology
- usage of better resources
Shifting boundaries
There implies deep cultural change in organizations, influencing restrictive attitudes and practices and evolving structures to remove the barriers to progress imposed by traditional, functional and professional boundaries. Facilities management should be positioned as a cross-disciplinary activity and enable the application of generic management skills across these boundaries. This requires the development of new roles and profiles. Three emerging management roles in facilities management organizations are those of managing customers, managing service and managing assets. Evergreen will have its improved ability to determine and specify their facilities management requirements, closely aligned to the business strategy. They will be determined and able to get the best out of the industries that serve them. The facilities department will be organized as a profit centre and will seek to create the relationships that will enable the service to develop, with continual improvement of quality, better value for money and at minimum risk to Evergreen.
Information management
The information management of Evergreen correlates the business flow among customer, the supplier and such flow of the supply chain approaches by which management information are to be obtained through: ( 2001 ; 2002 )
By-product technique – information that is produced as a by-product of systems that are needed by Evergreen to carry out the routine processing of information Null approach – recognizes that Evergreen management tend to ignore formal structured information but rely on informal sources which must be nurtured and developed. Key indicator system – identification of selection of key indicators for the business together with a system of exception reporting by which management are advised only when performance moves outside predetermined parameters. (2001;2002) Technology strategy in effect supporting the applications strategy by providing the necessary hardware and software to provide the systems required for the future. Issues contained therein would relate to Evergreen’s preferred supplier for hardware, machine standards to ensure compatibility and common network protocols so that information can be transferred effectively. Thus, Evergreen have to examine the relevant costs connected with IT expenditure, such as design methodologies, training, and hardware, to be able to identify the optimum level of investment appropriate to the firm.
The idea that Evergreen managers should expect continued demands for increasing the levels of automation. For example, as suppliers upgrade from using telephones to an electronic medium to communicate, logistics managers should encourage the learning process through intranet Web pages, conducting joint meetings or use similar kinds of hardware/software. For example, given the quick obsolescence of components in the computer industry, logistics managers need to periodically invest in new systems. However, upgrades can be done at a slower pace.
Conclusion
Most market forecasts indicate the continued growth of the contracting out of services grouped under facilities management. But facilities management and contracting out are not synonymous. In some sectors, such as information technology, the definition of facilities management assumes the outsourcing of the installation and maintenance of the IT service. All services will be regularly subjected to market testing and there will be greater choice, but this increases the need for effective planning and contract management inside the organization. Facilities management itself cannot be contracted out. It is an organization’s core business. Adaptation to change will continue to be key business criterion in the coming decade and will continue to provide the greatest challenge for facilities management. Predicting the future and managing uncertainty is in the nature of facilities management. Identifying the influences for change in the business environment and developing facilities to accommodate it are central to the function.
Recommendation
Senior management have to create the conditions in which facilities can be effectively managed and have ultimate responsibility for generating the resource on organization needs to support its business objectives. Strategic planners need to predict future business conditions in order to make the appropriate decisions about the balance of facilities needed, the way in which to organize their operation and management, and the best way of providing them. The company should take review of the way in which facilities are managed and the contribution they make to the business to identify the opportunities they provide and recognize their business impact. There is a need for visionaries and business leaders who are able to develop and manage facilities to provide an advantage. Facilities managers need to be involved in setting the business agenda. There are few better placed than those responsible for facilities management to assume leading role as change master in corporate restructuring and process re-engineering. The customer interface must be designed to take account of the complexities of the workplace and the need for adaptability, the interaction of people, technology and processes. The intelligent client will also have a responsibility to innovate to develop production systems which develop people while improving productivity; and for the environment, to develop sustainable workplaces. Facilities must be seen in context of business, and will be related to key income/cost ratios. Economies to reduce the cost of being in business must be sought, because of the pressure on costs, and the constant search to reduce overheads. This is particularly the case in the public sector where the influence of the private sector is seen to bring positive benefits. A new balance of skills is needed combining leadership, technical understanding and management know-how, purchasing and contracting skills, personal and interpersonal skills. The facilities manager is, by definition, a hybrid manager. The need to develop business leaders who recognize the opportunities, can motivate others and create service environment: to encourage relationships among users and providers.
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