Saturday, April 12, 2008

Supply Chain Management



Whitehouse Floors LLC’s supply chain consists of many different components. These components will vary depending on the type of material needed for each specific job. The process for the supply chain remains constant, even though the suppliers may change according to the job specifications. The supply chain for Whitehouse Floors is an upstream chain, starting with the manufacturers, moving to the distributors, then to Whitehouse Floors’ warehouse, then to the customer. The supply chain function can be described as smooth moving and very functional. The process starts with placing an order with a specific distributor. This distributor already has information from the manufacturer as to what inventory items they have, how much they have, when they are expecting a new shipment, and what the quantity of that shipment will compose of. Therefore when Whitehouse Floors calls to place an order there is an abundance of information translated from the distributor to the retailer and vise versa. At this time of order the distributor will enter an order into their system, provide Whitehouse Floors with a reference number and an expected time of arrival for the order. Once this information is retained, Whitehouse Floors notifies the customer as to when the order is expected to arrive at their warehouse, and the job is scheduled at that time or when the customer is ready. Once the job is scheduled, a call is made to the subcontractors to confirm the scheduling of any job, and then the proper paperwork, also known as a work order, is then faxed to the proper installer. Once the scheduled date and all materials arrive, the material is then picked up from Whitehouse Floors’ warehouse and is brought to the customer’s house or a particular job site. Installers then install the material for the customer and the supply chain is then complete.
When determining the performance of delivery, Whitehouse Floors operates under on-time delivery; however, there are exceptions to this type of operation. Job scheduling depends strongly on when all materials will arrive for a specific job. When placing an order, Whitehouse floors always states the fact they would like the order being placed to ship complete. This means that an order cannot be shipped in pieces as the materials become available. This gives a more accurate date of arrival time for the order and also reduces shipping costs from the distributor to Whitehouse Floors. In some situations, however, there is a lead time on materials. In most cases, this lead time is due to production dates, which is when the manufacturer has run out of stock on a particular product and is in the process of producing more. When this occurs, the customer is made immediately aware, and the status of the order is checked on twice a week. Until the distributor is able to provide an exact date of arrival to Whitehouse Floors’ warehouse, the customer is constantly updated and the job will remained unscheduled. Once a firm date is given for the arrival of the material, the job is then scheduled. This can issue can be avoided simply by checking stock on the order before the actual order is placed.
Quality performances for products are very high. Customers are given an abundance of information prior to even making a selection. This allows the customer to make an informed decision on the particular flooring they chose. In most all cases, customers are extremely happy with the quality of product and its performance. Whitehouse Floors only sells products in which they support and believe in. This helps avoid any quality performance issues.
Time for the entire supply chain usual runs a week to two weeks. This depends mostly, however, on when the customer is ready for the material to be installed into their home or job site. The average total supply chain throughput time is usually about two weeks. Again there are different variables which can affect this, but in majority of cases the performance of this timing is very effective and strong.
Whitehouse Floors prides them selves on being very cost competitive. They cut costs by all means possible to ensure the customer that they are getting a great quality product for an extremely great price. Of course there are the costs of the actual material, shipping and fuel costs charged by the distributor, and labor costs charged by the subcontractor. Whitehouse Floors is the kind of business whose accounts payable are taken care of within 15 days time, while their accounts receivable ranges from the start time of a job to the end time. Generally speaking this process could take anywhere from a month to two months time. The total supply chain costs varies depending on the type and amount of material ordered.
In terms of the supply chain management, the office manager is responsible for ensuring all things run smoothly between the distributor and the end customer. This manager is responsible for the materials flow, ensuring the material has arrived as scheduled, and scheduling the job. What Whitehouse Floors should consider is finding a way to make this process smoother than it currently is. Because the warehouse is not located at the physical showroom known as Whitehouse Floors, they should consider some form of an electronic device in which once material is received in at the warehouse it can be scanned and that information sent directly to the system at Whitehouse Floors. Currently there is a paper receiving slip that is signed and left at the warehouse until the owner checks the material in. By skipping this step, time could be saved, jobs could be scheduled faster, and a record of what is in the warehouse could be constantly and immediately updated.

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