Logistics and Supply Chain Management Manufacturing Process

Question: Discuss about the Logistics and Supply Chain Management for Manufacturing Process. Answer: Introduction Jebsen Jessen (SEA) is a South East Asian company dealing in manufacturing, engineering as well as distribution of its key products. The products of the company comprise cable technology, ingredients, life sciences, technology along with material handling, offshore and packaging. The company was incorporated in Singapore and Malaysia in the year 1963. The companys headquarter is based in Singapore and conducts its operations largely in the ASEAN countries. The company supplies cables to the industries in ASEAN region, thereby operating in nine countries therein. The company also endorses and distributes ingredients related to life cycles and chemicals for various engineering and manufacturing purposes. The company also has over 100 dealer partners with 3500 customers in the ASEAN countries. The ingredients business deals in coating resins, feed ingredients, pharmacy as well as plastic and rubber. Jebsen Jessens business has changed over the years and has transformed into a complet ely engineering based company, providing solutions related to its offshore operations. The company manufactures the products that are essential for the customers. It also deals in packaging and has been fulfilling the needs of the people over the last 40 years. The company has been able to maintain its position due to excellent distribution (Jebsen Jessen (SEA), 2011). The objective of the paper is to understand the key flows in the supply chain, the make process and the supply chain forecasting of the company. There are four key flows in the supply chain, which are reserve flow, cash flow, information flow and the make process, which shows the flow of reserves, cash transactions, information and the steps that are required in the production process. The supply chain forecasting shows the methods that are needed for estimating customers demand for the products for being able to manage its production process effectively, thereby leading to the satisfaction of the customers The Key Flows in Supply Chain Reserve flow Some people believe that reverse flows are quite a new occurrence. The reverse flow has been a part of supply chain and logistics for a long period of time. The companies associated with logistics always had problems related to damaged goods that were returned to the company. The transportation companies always accepted the liability that has occurred as a result of the damaged goods (Coyle, Langley, Gibson, Novack Bardi, 2008). The illustration given below provides a clear inference of the reverse supply flow, where the channels of product tend to pass from the suppliers to the consumers in a particular pattern: Figure: Reverse Supply Chain (Source: Treasury Today, 2010) Jebsen Jessen group has a regional set-up of warehouses and offices for sales with over 300 products in the stock. The company has also got over 250 employees within the ASEAN countries. The company imports the best German cable technology and supplies it to markets of the ASEAN countries manufacturing the cable therein. The company also has inventory, which is valued in millions of dollars (1Jebsen Jessen (SEA), 2011). Jebsen Jessen has over 300 sales staff to serve 6100 customers within the ASEAN countries. The company supplies more than 100,000 tonnes of specialty chemicals every year. Over 100 partners in the field of technology support the company. The team consisting of the experts for import and exports, regulatory affairs and supply chain management. The company also clears, stores and distributes the goods with well-organized, accommodating and responsive services (2Jebsen Jessen (SEA), 2011). The company with a facility of developing the infrastructure has been able to avoid the problems related to delays (Jebsen Group, 2016). Cash flow Jebsen Group in the present scenario has become the market-leader in distributing premium products to China. It is also recorded to have attained a turnover of HK$ 15.2 million in the year 2014, which had been increased up to 4.8% as compared to that of its previous earnings (Jebsen Co. Ltd, 2015). Cash flow shows the overall inflow as well as the outflow of the cash in the business. It shows the movement of the cash through a business (IFRS Foundation, 2014).This can be clearly understood from the illustration provided below: Figure: Cash Flow (Source: Bloomsbury Publishing, 2014). Information flow The company includes data regarding the quality control and testing of the products, inventory information about the sales and operations. The use of modern technology in the company has enabled the company to attain highest levels of precision, efficiency and management of the warehouse operations. The company with a complete reorganization of the business has been able to address the requirements of every business unit and suppliers within the companys unique focus and capability (1Jebsen Group, 2016). The company has been able to maintain a good relationship with its suppliers and became partners in regard to the manufacturing and distribution of malted ingredients to the F B industry in the ASEAN countries. The company also joined hands with the Muntons, which is itself a manufacturing industry (3Jebsen Jessen (SEA), 2011). The following diagram represents the flow of information among the shareholders such as suppliers and various departments of the organisation. Figure: Information Flow Diagrams (Source: uml-diagrams.org, 2016) Make process The company with the use of leading technology has been providing cable supplies to the ASEAN countries. Many companies rely on the cable technology to control their manufacturing facilities. The company imports cable technology from Germany and manufactures them within the country. The companys vision is to supply companies with excellent cable solutions. The manufacturing process of the company sticks firmly to the quality and standards so the companies are provided with the best cable for their use (JJ-Lapp Cable, 2014). The make process as a part of the supply chain management as showed below provides a clear hint of the flow of the products at the time of manufacturing: Figure: Make Process (Source: Acquisition Community Connection, 2012) Make process Jebsen Jessen Group engineers, manufactures and distributes its key products to the countries within the ASEAN region.. The company uses the best cable technology, which has been imported from Germany and is the leading cable solution provider in the whole of ASEAN region. The company after importing the technology manufactures the cables within the country and supplies it to those companies, who are in need of them. The company produces the cable locally, in partnership with the cable-manufacturing corporation of India. The company manufactures PVC control pipes, fireproof pipes, automotive cables and instrumentation cables. The company also follows strict measures concerning the quality and standards of the manufacturing process (1Jebsen Jessen (SEA) 2011). The company also manufactures offshore equipments for lifting and pulling. The company has become the largest distributor of offshore cables in the world. The company has also become one of the biggest producers of the offshore winches. The company manufactures the products with the help of the largest team of engineers (Jebsen Jessen (SEA), 2011). The company manufactures products at technical, commercial and qualitative level (Jebsen Jessen (SEA), 2013). Process of making copper wire The first step in making a copper cable is the wire draw. The copper rod is first taken out from a series of artificial diamond dies, which gets reduced in size. The rod and the dies are mixed with the help of synthetic lubricant and coolant to increase dies durability and for preventing the wire from getting overheated. The copper wire is then transferred to the area of insulation, where it is left for two days to get nourished. The insulate line has innumerable functions such as including an additional drawing of the wire and annealing it. The process also tends to reduce the size of the copper for further wire draw. The wire after becoming soft is passed through the extruder, where the plastic coating is done. A thick polyethylene pellets are added on the backside of the extruder and are heated further until they soften (PennWell Corporation, 2016). The coated wire then passes through a cooling channel and then gets coiled on the reels. The reels then move to the next process of twisting and stranding, where the insulated wires are then twisted in pairs. Twist process involves transferring of the steel reels of the wire, whichrequire twist operators for completing the activities effectively. The process also needs two operators to start one stranding machine. The reels are then aligned on the supply stand specified with distinct color and twist length by one of the operator. The wire pair next is processed through a rotating faceplate, which prevents it from having same patterns and getting mixed up with other finished cables. The second operator then manages the wire into 25 sub-units. The wires are further passed through flyer blow that makes additional twist making the wire more flexible (PennWell Corporation, 2016). Figure: Make process of cable (Source: Asian Electric Appliances Cables Technology Co. Ltd., 2015) Supply Chain Forecasting Forecasting has always been an essential part of the supply chain management as it determines the operational performance of the company. Overestimation of demand might lead the company to incur more expenses while the underestimation would prevent the business from fulfilling the needs of the customers. Supply chain managements includes designing, planning, executing, controlling and checking of the activities within the supply chain. The result of overestimation of the demand leads to higher labour and storage costs. The underestimation of the demand might in turn lead the company to suffer from losses (Karajan Oztaysi, 2014). The organization uses demand forecasting to reduce the risk by estimating the demand and sales in future. Demand forecasting is an organized process that helps the company in determining the future demand of the product along with its competitive forces. The process of forecasting helps the authority of the company to make various decisions regarding the production process and purchasing decisions. Demand forecasting is therefore largely essential for the effectiveness of the operations (Davydenko, 2008). Quantitative forecasting Quantitative forecasting can be primarily used in two cases, when past numerical data are accessible and assuming that some of the aspects of the past designs might again be used in the near future. There are different types of quantitative forecasting methods, each having its own characteristics. Quantitative forecasting is used in case of time series or cross- sectional data (OTexts, 2016). Cross-sectional forecasting is used when the company wants to predict the value which has not been observed before. This method is used only when the variable, which is to be forecasted, shows connection with the predictor variable. This forecasting method is performed to observe the value of the variable that has been examined before (OTexts, 2016) Qualitative forecasting This method of forecasting is used when the company does not have access to historical data. The company with no past information takes the help of experts to forecast the future demand of the products. For example, a company uses sales force to forecast a new product. The use of this forecasting technique is not appropriate for supply chain forecasting. The forecasting is done by collecting data from surveys or by consensus meetings (Bowersox, 2011). Production forecasting Production forecasting is an essential part of the decision-making process and evaluation of the investment. The forecasting of the production is the central and the most important part of the company, which helps to recognize opportunities and attain it. The forecasting process involves six steps. The first step is the identification of objectives where the company uses past data to forecast future demands. This is followed by the determination of the data to be used for forecasting the demand. The third step is to select the best forecasting method for achieving the desired results, which is again followed by the fourth step that is to examine the accuracy of the method used for predicting the future demand. The next step is to meet the demand along the supply chain and lastly the process of production is ended with the effective evaluation of the outcomes related to the forecasting process (Li, 2007). Figure: Supply Chain Forecasting (Source: Prepared for the Study) Conclusion It can be seen that the Jebsen and Jessen pvt.ltd is the leading manufacturing and distributor company in the ASEAN region, dealing in cables, ingredients, life science, material handling, offshore products, packaging and products. The company imports the cable technology from Germany and manufactures them by using the same technology. The company then supplies the cable to the nine countries within the ASEAN region and has even maintained good relationship with its suppliers, which is one of the reasons for the company to achieve success. The company aim is to achieve autonomy flexibility by meeting the needs of the customers. The company also possesses good reserve and cash flow. The company with the use of modern technology has helped in collecting information for warehousing operations. Jebsen Jessen has managed warehousing to attain accuracy. The company also includes receiving, cross-docking, quality assurance and inventory control of the products. The company also follows the supply chain forecasting in predicting the demand of the products and subsequently meeting the demand needs of the customers. The company has been successful because of maintaining the operations and meeting the demand of the suppliers. References Asian Electric Appliances Cables Technology Co., Ltd. (2015). Manufacturing process. Retrieved from https://www.asiawirecable.com/products-manufacturing-process.html Bloomsbury Publishing. (2014). QFINANCE: The Ultimate Resource. UK: Bloomsbury Publishing. 1Jebsen Jessen (SEA). (2011). Cable technology. Retrieved from https://www.jjsea.com/doc/CableTechnology 1Jebsen Group. (2016). Modern technology. Retrieved from https://www.jebsenlogistics.com/PageDisplay.aspx?did=e6dab814-3d2f-4110-97b7-05e5ce11d8ea 2Jebsen Jessen (SEA). (2011). Life sciences. Retrieved from https://www.jjsea.com/doc/LifeSciences 3Jebsen Jessen (SEA). (2011 From distributor to manufacturer. Retrieved from https://www.jjsea.com/PageDisplay.aspx?aid=2929658A-7046-4164-84BE-B1E74589DCB3action=ShowNewsDetailid=436129aa-0a29-4770-88e7-9be11e5755c6 Bowersox. (2011). Supply chain logistics management. New Delhi: Tata McGraw-Hill Education. Acquisition Community Connection. (2012). Supply chain operations reference (scor) model. Retrieved form https://acc.dau.mil/communitybrowser.aspx?id=520905 Coyle, J. J., Langley, C. J., Gibson, B., Novack, R. A. Bardi, E. J. (2008). Supply chain management: a logistics perspective. United States of America: Cengage Learning. Davydenko, A. (2008). Models for product demand forecasting with the use of judgmental adjustments to statistical forecasts. ISF. 1-20. IFRS Foundation. (2014). Making the most of cash flow statements. The EssentialsCash Flow Statements, 1-4. Jebsen Co. Ltd. (2015). Jebsen reports annual growth in 2014 and continues commitment and investments in greater China. Retrieved from https://www.jebsen.com/en/news/press-release/2015/jebsen-annual-growth-2014-greater-china-investment/ Jebsen Jessen (SEA). (2011). Our businesses. Retrieved from https://www.jjsea.com/doc/OurBusinesses Jebsen Jessen (SEA). (2013). Manufacturing. Retrieved from https://www.jj-lappcable.com/doc/ByIndustry/Manufacturing Jebsen Group (2016). Warehousing. Retrieved from https://www.jebsenlogistics.com/PageDisplay.aspx?did=40298991-92d0-4412-833f-ac8d8fbab332 JJ-Lapp Cable. (2014). The leading cable solution provider in ASEAN. Retrieved from https://www.jj-lappcable.com/ManualFiles/Documents/63529e2d-e9b7-4813-b8a7-beeecd4701ea/The%20Leading%20Cable%20Solutions%20Provider%20in%20ASEAN.pdf Kahraman, C. Oztaysi, B. (2014). Supply chain management under fuzziness: Recent developments and techniques. New York: Springer. Li, L. (2007). Supply chain management: Concepts, techniques and practices enhancing the value through collaboration. Singapore: World Scientific. OTexts. (2016). Forecasting data and methods. Retrieved from https://www.otexts.org/fpp/1/4 PennWell Corporation. (2016). How copper cable is made. Retrieved from https://www.cablinginstall.com/articles/print/volume-5/issue-9/contents/design/how-copper-cable-is-made.html The Mackerel. (2014). 50 years of Jebsen Jessen South East Asia. News Letter of Jebsen Jessen group of Companies South East Asia, 1, 1-12. Treasury Today. (2010). Return to sender reverse supply chain. Retrieved from https://treasurytoday.com/2010/07and08/return-to-sender uml-diagrams.org. (2016). UML information flow diagrams. Retrieved from https://www.uml-diagrams.org/information-flow-diagrams.html