P&G: Agent Based Modelling & Use of RFID

Description
supply chain at P&G from supply chain to supply network. It explains what is agent bases modelling and how RFID is used in supply chain optimization.

Agent Based Modeling and use of RFID

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From Supply Chain to ………………………………………………….Supply Network

Flow of Information was sequential

•Information was visible to all channel members •Analogous to internet •P&G saves more than $300 million annually because of this change

HOW………….??????

AGENT BASED MODELING

•Simulation tool to model a part of supply chain •To observe and study the impact of certain policies •Impact of new logistics were seen on 3 key metrics:inventory levels transportation costs in-store stock-outs •Results:Flexibility in distribution Relaxation of rigid rules, often counter intuitively fundamental retooling of manufacturing processes

PROCESS INNOVATION BY EMPIRICAL MEANS

Problem: Dock Loading Throughput

Bottleneck at loading dock

Production used to be stopped to make space Resulted in waste of time and productivity Movement of pallets was done twice: dock to trucks to docks System was error prone as pallets were sent erroneously to customers
SOLUTION RFID based system to identify the pallets

PRODUCT INNOVATION TO SUPPLY CHAIN INNOVATION

Shift from product innovation to supply chain innovation

Why •Development of submarket and large potential segments •Theme and variation strategy • Due to mass market targeting to precision market targeting •Offensive terminal point in the army – Narrower our front the deeper you can penetrate mantra
•Supply chain innovation •Vendor Managed Inventory – Started with Walmart – An inter company supply chain process oSupplier and vendor symbiotic relationship •Virtual integration with the downstream •Master Distributor instead of smaller accounts.

Who questions much, shall learn much, and retain much
Francis Bacon



doc_777960944.pptx
 

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