Examples of Supply Chain Projects
Examples of supply chain projects that our students can work on with local organisations.
Example 1: Inventory Optimisation (Supply Chain specialisation)
Business context of the project
X is a large NZ corporation in the motor vehicle service industry. We strive to provide excellent service and parts availability for our customers and a cutting-edge supply chain capability is a key enabler of this objective.
Given the large variety of motor vehicles serviced in our network, we must maintain inventory of a very large number of parts (SKUs), some of which are sourced locally, but many are sourced from suppliers across the globe. After an ERP implementation few years back, we now have good, consolidated data of our inventory. This work placement is an exciting opportunity to add value to X’s business and work within a high performing supply chain insights team.
Description of the Business Problem
Company X holds inventory that includes thousands of SKUs which are required to service their customers. However, it is not clear if all the right quantity of items are stored in the right locations. Due to historical reasons, some of their SKUs are stored in all locations, while others are stored only in select locations. There are some SKUs that are stored only in regional distribution centres, and then there are others which are not held in stock but are ordered from suppliers as and when required. Retail managers often complain about unavailability of items demanded by customers. When an SKU is unavailable at a retail location, the item can sometimes be obtained from another retail location (at substantial logistics cost) - but often customers are unwilling to wait, and business is lost to competing firms. Overall inventory holding has increased over the last decade, but availability at retail branches continue to be an issue.
The Project
The company needs help with identifying the right stocking location and quantity for each SKU. In the process, they also need to figure out what is a reasonable service level (availability) for each of the SKUs. They also wish to know if there are certain SKUs that they should stop carrying.
A database, containing historical sales and inventory data for all SKUs, will be made available by the company. Students will address the business problem using data analytics and optimisation techniques and conclude with a presentation and a written report.
Example 2: Supply Chain Network Modelling (Supply Chain specialisation)
Business context of the project
X is a large NZ corporation in the dairy sector. We collect milk from farmers across New Zealand and after processing, sell high quality milk and milk-based products in the domestic and international market.
We have a complex network of farmers, processing facilities, storage locations, and customers. In addition, our products require different types of storage – e.g., milk powder can be stored in ambient temperature, while most other products require varying degrees of refrigeration. After an ERP implementation few years back, we now have good, consolidated data of our inventory. This work placement is an exciting opportunity to add value to X’s business and work within a high performing supply chain insights team.
Description of the Business Problem
Company X has one primary raw material input (milk) and produces a multitude of finished goods (SKUs) – milk powder, butter, cheese, etc. On the input side, there is tremendous seasonal fluctuation of supply – production during the warmest months is over ten times that of the coldest months! On the output side, the mix of finished goods to be produced is determined by prevailing prices in the international market – if butter is more profitable than cheese during the current season, then X will produce more butter and less cheese. These fluctuations and uncertainties necessitate unpredictable movement of inventory between processing facilities and storage locations, particularly because not every storage location will have the ideal (refrigerated/ambient) storage condition for every SKU. These shipments generally occur in a haphazard manner as and when the need arises. Despite having data, the company lacks a clear visibility of its entire network and the flow of products through the network.
The Project
The company needs a tool that would enable an overview of inventory movement across its network, which would allow better management of the supply network.
A database, containing shipment and inventory data for all SKUs, will be made available by the company. Students will address the business problem using data analytics and build a network modelling tool and conclude with a presentation and a written report.