Table of Content
1.0 INTRODUCTION & BACKGROUND 1
1.1 TETRA PAK 4
1.2 TETRA PAK CHINA 4
1.3 BUSINESS OPERATIONS 4
1.4 ORGANIZATIONS 5
2.0 OBJECTIVE OF THE STUDY 6
3.0 DESCRIPTION OF CURRENT SUPPLY CHAIN 7
3.1 OBJECT 7
3.2 LOGISTICS ACTIVITY 7
3.3 LOGISTICS OBJECTIVE 8
3.4 TPC'S SUPPLY CHAIN 8
3.5 SWOT ANALYSIS 9
3.5.1 Strength 9
3.5.2 Weakness 10
3.5.3 Opportunities 12
3.5.4 Threats 12
4.0 PROPOSED DEVELOPMENT PLAN 14
4.1 ORGANIZATIONAL STRUCTURE CHANGE 14
4.2 IMPLEMENT E-SUPPLY CHAIN SYSTEM 15
4.2.1 Install VMS and centralize purchasing 15
4.2.2 Use VMI (Vendor management inventory) or Pay for the consumption 16
4.2.3 Improve order processing efficiency 16
4.2.4 Inventory(IMS) / Warehousing management(WMS) 17
4.2.5 Transportation management (TMS) 18
5.0 CONCLUSION 20
6.0 IMPLEMENTATION PLAN & SCHEDULE 22
REFERENCES 23
Executive Summary
This report is a consultancy report formed of 6 parts.
Part 1 describes the background of Tetra Pak China and showed its business operations and organization structures.
Part 2 gives the reason why we conduct such a consultancy report and what we want to achieve in the study
Part 3 analysis the current distribution and supply chain along with TPC. After the SWOT analysis of current system, we found that its strength can be concluded as 3PL using which is cost saving & more professional and simple supply chain which is easy to control. Their weaknesses are concluded as no dedicated department in charge of logistics activities that the control of 3PL's is hard. Truck always have availability problem in high season, follow-up on truck transportation is difficult and cheating of 3PL companies for LTL issues. Another weakness is each factory is dependent on production and inventory planning which cause no information exchange between every factory. So inefficiency often occurred when out-of-stock happened. From Y2004 statistic, though transportation cost only consist 2% of total sales revenue, great money will be saved if only reduce 0.5% of logistics costs. Finally, TPC is realized that fierce competition is a threat to them. 3 years before their sales terms changed from Ex work to CIP customers sites, this adjustment is also for fit the satisfaction of customers.
Part 4 recommend the changes that TPC can improve its business performance. Firstly is organization structure change, there must be a dedicated department to in charge of all logistics issues so that 3PL companies and venders are all strictly mongered and achieve information availability through every factories. Secondly is to implement E-supply chain advice. In this part will describe the goodness of using VMS, VMI, SAP, IMS, VMS in detail and give the example of how SAP monitor and control.
Part 5 made the conclusion of this study with summary with all recommendations and part 6 note down the detailed implementation plan.
