Study Case Outsourcing Reda Ouchain PDF

FRIEDLAND TIMBERS
CASE STUDY
DONE BY REDA OUCHAIN

CASE STUDY QUESTIONS:
1. Why do all the logistics costs seem to be rising at the same time?
An operational forecast aims to make statements about future demand in

the right level of detail such that it can drive the production and distribution
planning and the inventory levels in the supply chain.
Talking about the supply chain term which is a set of links between actors,
that produces complex connections in the chain . If your forecast is too high
you will produce more than the demand. Your finished goods stock will build
up, and in the longer term, warehousing costs may start to rise. Besides the
stock increase, your people and machines will be deployed in producing
more than required. Capacity is misused, productivity drops, and from there
your operating costs start to go in the wrong direction.
If your forecast is too low, your production will not satisfy the demand.
Sometimes, this can still be covered by safety stocks. But safety stock costs
money as well! If safety stocks cannot make up for the production deficit,
you’ll end up with out-of-stocks and expedited or late deliveries. And there
you go with your freight costs rising and your service levels dropping.
2. What do you think are the basic problems in Friedland?
The basic problems or the major dilemma is really the lack of synergy and
collaboration between all the actors or the multi actors’ network. Lack of
information transmission shown its havoc.
Every function or department working in isolation.
Ordering materials not knowing real time state of stocks level.
Some of the basic problems too is sticking to core suppliers instead of
having a multi network for urgencies like this.
Even the purchasing department, who do not order the amounts that they
request.’
3. What would you recommend Johann do?
Because a better forecast leads to lower operating costs, lower stock

levels, and higher service levels. But how do you make sure you have a
good forecast? How can you improve it?
Forecasting is a business function. Every business function needs a clear

process definition. The forecasting process needs to be embedded in your
organization with clearly defined roles and responsibilities. Do you need a
centralized organization?
Someone needs to be accountable for that forecast in the company.Then

comes the more tangible part. Data. You need to store data, harmonize it,
interpret it, and know how to use it to your forecast’s advantage. Tool is
necessary to use that data and get a forecast out of the fit. Of course, you
don’t necessarily need the most complex tool on the market.
I would recommend Johann to re-engineer the whole supply chain

process. And introduce a leaner philosophy.In this case , we testified the
supplier late delivery that shows a rough supplier relationship.
Implementing supplier relationship management (SRM) which is a
systematic approach of assessing suppliers' contributions and influence
on success, SRM is used by supply chain professionals involved in areas
such as procurement.The all time ideal is implementing a JIT way of
manufacturing and purchasing. I can present a multitude of systems but
the most important thing that Johann will have to accomplish, is
embedding a mindset of continuous improvement and passing it to his
partners mainly called suppliers in this case.
For a conclusion integrating the share of the information flow ,sharing

the real life data ,to escape the bullwhip effect that disrupt the working
flow of the company.Especially with a multitude of actors in the chain the
complexity rises linearly.
This solution is suitable for the budget Johann is left with.
DISCUSSION QUESTIONS:
1. What do you think are the main factors that encourage logistics to
change?
Yes, in the modern day, there is a huge changing for logistics. There is a lot of
evidence that supports this view. The evolution of logistics has been
characterized by an increasing degree of integration, for example. In the past
few years ago technology has revolutionized these communications.
The Main factors are : technological disruption , customers becoming more

knowledgeable.Demanding higher quality, lower costs and better
service.Competition is getting fiercer, and organizations must look at every
opportunity to remain competitive.There is changing power in the supply
chain. Very large retail chain demand customized logistics from their
suppliers.The awareness of corporations rises towards the respect of the
environment like by the exploitation of renewable energy and the reduction
of the industrial waste .
2. When Christopher says that ‘supply chains compete, not companies’

what exactly does he mean?
With considering that the supply chain is the nervous system of the whole
company.The conventional wisdom is that the competition in future is about
SC vs SC. No company in today’s world could make it on their own. But
technically SC vs SC is not accurate as it seems to a lot. To it to be reliable a
company shouldn't buy from the same suppliers that sold to their
competitors.As an example of how often that happen, if you look at the SC of
Colgate,Unilever,P&G,9 out of 10 they are buying from the same suppliers,
and selling to the same customers, it’s not a team vs B team it’s all about
relationship management. Who can manage his Relationships well going to win
over the competition.

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FRIEDLAND TIMBERS

DONE BY REDA OUCHAIN

An operational forecast aims to make statements about future demand in

2. What do you think are the basic problems in Friedland?

Because a better forecast leads to lower operating costs, lower stock

Forecasting is a business function. Every business function needs a clear

Someone needs to be accountable for that forecast in the company.Then

I would recommend Johann to re-engineer the whole supply chain

For a conclusion integrating the share of the information flow ,sharing

The Main factors are : technological disruption , customers becoming more

2. When Christopher says that ‘supply chains compete, not companies’

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