Certified Supply Chain Management Specialist (CSCMC) Strategic Plan
The Certified Supply Chain Management Specialist (CSCMC) Program requires participants to complete a Strategic Supply Chain Management Plan in order to graduate from the program. This plan is worth 100 points and accounts for 50% of the total grade within the program.
Once you have completed this project, please send it and your request to take your desired exam date at least 2 weeks before the scheduled exam date, please use this form Schedule Your Exam. To schedule yourself for an exam date, this project must be received, completed, at least 2 weeks before the exam date.
Bryzel Corporation is an original equipment manufacturer of commercial kitchen equipment. The company has been in business for 25 years and has been a relatively strong competitor in its market. The company has been able to keep its overhead costs low because it outsources all of the machining, painting, and specialty manufacturing. Even with the struggles of the economy, the organization has been able to be profitable with a slight increase in sales over the last two quarters. You have been hired as the new Supply Chain Manager. During your interview, the owners of the company made you aware of some of the challenges that you would be confronted with. They have become frustrated with the increase in the cost of freight and the lack of control in tracking the multiple process parts which sometimes affects the on hand inventory. These two areas affect the ability to ship to customers and the company’s profits.
After settling into your new position, you have noticed areas that need improvement. While analyzing the freight costs, you notice that one of the areas of concern is the constant shortages on the hardware (nuts, bolts, screws, etc.). To prevent a production stoppage due to stock outages, the buyers and expediters have to often rush shipments of fasteners from the suppliers (usually the Bolt House) to the production line. This has caused freight to exceed budget. Something has to be done to reduce (or dissolve) these freight costs.
The other area that needs your attention is control of multiple process parts. You think a good place to focus on is the areas where multiple vendors play a part in getting the finished item to your facility. There is a good portion of these parts and the problem will get larger as business continues to grow. These parts require multiple processes and therefore many vendors are involved with getting one part ready to be assembled at our facility. For example, the oven side panel, part number 78299, is a multi-process part.
This means vendor #1, in this case ABC machining, form and makes the part from metal, and ships it to you. Your quality department will inspect the part and approve it to go to Vendor #2 (XYZ Coating) for a protective coating to be put on the part. You incur cost for the parts being shipped from ABC Machining to you, then from you to XYZ Coating and back to you. There are sometimes parts in inventory that have come from ABC Machining but did not make it to XYZ Coating (maybe your department got busy and forgot about the parts needing to go out).
The items mentioned above are two items that you initially need to focus on – 1. Reducing freight costs, and 2. Strengthening your supply chain. Please explain how you would accomplish this based on your experiences and what you have learned from this course.
First, you have to have some information on your suppliers:
THE BOLT HOUSE – located about 50 miles from Bryzel Corp. They have delivery trucks and salesmen in your area twice a week. They offer various programs to support their customers including restocking programs. They make it a point to stop by your facility at least 2 times a month to make sure everything is going fine and there are no problems with their product. They supply all of your hardware (nuts, bolts, and screws, etc.) except for a few specialty items coming from Sharon Specialty Fasteners, who supply you with the hardware that is unique to your product. They are a manufacturer and The Bolt House is a distributor.
ABC Machining –A machining and fabrication company that is located in your city. They have been a long-time supplier to Bryzel Corp. The company is a privately held partnership and does a lot of business with Bryzel Corp. They have recently hired a quality control manager and plan to invest in updated quality tools and equipment in order to expand into other markets. The company is financially stable and has capacity to increase production if necessary.
XYZ Coatings – A painting and coatings company that caters to customers that need parts painted or coated with special clear coatings to prevent rust on metal items. They are a small company that has only been in business for 5 years. They, like any other startup company, have experienced the challenges of being new to a market. They have done quite a bit of business with Bryzel Corp. , who is their largest customer. The company has three customers that supply them with continuous work, and about 10 customers that have sporadic requirements.
***Side note – the words hardware and fasteners have the same meaning for this project.