Brief (ali Ahmed) - Chain Cost.pptx

A CASE STUDY ON SUPPLY CHAIN MANAGEMENT OF TEREX CORPORATION GROUP MEMBERS MUHAMMAD ZAHID 03-298181-00 RIZWAN SHEHZAD 03-298181-00 AMIR RASHID 03-298181-00 NOMAN MUNIR 03-298181-00 WAQAR DAR 03-298181-00 SIDRA NAZAR 03-298181-00 ALI AHMAD 03-298181-03

INTRODUCTION TO TEREX CORPORATION

 TEREX CORPORATION is a global manufacturer of aerial lifting & material

processing machines.  Its headquarter is located in west port Connecticut, while transfer center is located in north bend, Washington.  Major Terex brands are Terex, Genie, Power Screen & Demag.

TYPE OF BUSINESS

 TEREX provide solution to a broad range of industries, including construction,

infrastructure, manufacturing, shipping, transportation, refining, energy, utilities, quarrying & mining by manufacturing of equipments like aerial work plat forms, concrete roller, pavers, concrete mixer trucks, cranes, light towers, material handlers, power screens, telehandlers & utilities industry equipments.  The machines are customized based on the need of customers.

PROBLEMATIC PART OF SUPPLY CHAIN MANAGEMENT

 Inventory management system of the company was problematic as the customer units present at the store were identified manually for onward delivery.  This sort of practice used to generate excessive costs.  It also used to waste valuable times as the labour used to remain engaged for longer periods.

One approach was to one wall board & sticker system which was a low tech solution for identifying of equipment items in the yard at Terex & also inexpensive.  However it will used to cost six minutes every time an employee had to locate a unit in the yard.  It also required a considerable number of hours to be spent each month taking physical inventories & updating the company’s ERP plat form.

STRATEGY ADOPTED BY COMPANY FOR EFFECTIVENESS AND EFFICIENCIES IN SUPPLY CHAIN MANAGEMENT

 Terex replaced the out dated manual yard management process with a new, digital solution using RFD tracking.  A yard management software system was chosen and the transfer center was surveyed before implementation of a pilot project covering a small portion of the yard.

 After successful pilot, the solution was approved for full scale implementation,

which replaced stickers, yard maps & wall board with electronic tracking & digital inventory management.

SUPPLY CHAIN COST MANAGEMENT RESULTS  The introduction of new yard management system provide a daily inventory

count via its business intelligence module.  This approach has save the labour costs previously in carrying out manual counts.  After launching of this RFID based unit identification system the company has saved around 70 weeks per year in labour costs.  The process time has reduced from 6 minutes to 30 seconds.

  

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