UNIVERSIDAD EAN
Distribución y Logística
GUÍA #2 Eliana Barbosa Santamaría Fredy Enciso García Jairo Ricardo Camacho Fernández Luis Alexander Nieto Restrepo Wilmer Antonio Arias Barreto Distribución UNIVERSIDAD EAN FACULTAD DE ESTUDIOS DE AMBIENTES VIRTUALES Mercadeo
INTRODUCTION
The development of this guide will determine how logistics optimally coordinated in Right, for the right customer, in the right place, at the right time and product. The awareness that the logistics is not only an operational and functional theme; instead It is a model that adds value to companies. This work aims to show the importance of the environment in all production processes, the social responsibilities of companies producing and what kind of mechanisms exist to alleviate any damage caused during your logistics process. Respond appropriately role in managing the supply chain, the logistics functions, as the technology involved in this gear and the importance thereof, will establish the value they add to the companies.
OBJECTIVES
Determining Importance in the care of the environment for business To determine the degree of responsibility in the field of food production, Identify the types of mechanisms used to help with the care of the Establish the importance of logistics and components to generate business value Recognize the importance of technology in Logistics Through reading and case development Kellogg’s development of this guide have been respond fully achieved the objectives , enabling academic knowledge to recognize the value added logistics in the growth and development of the companies, the success in the activities of the companies has as one of its pillars Logistics, hence the importance of knowing , manage it and make it part of the organizational culture. Respect for the environment, corporate responsibility towards the issue and measures that can be taken for sustainable development of companies respecting the environment; show the development of this guide, generating knowledge to establish mechanisms, the degree of responsibility and the importance of logistics in this process productive as in this case of a company like Kellogg's transcendence. Definitely the marriage of Technology and Logistics is more than a necessity symbiosis for positive results, but even more to understand this process in a way technology, reports the achievement of objectives in the context of business management.
1. What was the Kellogg’s philosophy when experimenting with different ways to cook cereals without losing their goodness? Since the beginning the Kellogg´s brother had the philosophy focused on “improving a diet would lead to an improved health”. 2. What are Kellogg’s business strategies? The strategies of the company are focused on growing the cereal business, expanding the snack business and engaging in specific growth opportunities. All these strategies are possible by focusing on CSR, in that way they earn the respect and trust from communities, governments, customers and the public. They work on the creation of profit for all and create an image of a company that acts responsibly in all their supply chain levels and demonstrates an engagement to act respectfully and ethically. 3. There are three types of sector. What are these sectors? Primary or extractive sector: Activities related to natural resources in their original state and providing raw materials for consumers immediately or others to develop finished goods. Examples: Minerals, Agriculture, Oil, Coal, etc. Secondary or manufacturing sector: The activities that transform and build products with the raw materials. Some diverse activities, like energy, textile, metal, machines, chemicals, electronics, vehicles, etc. Tertiary sector or services, do not-produce-goods; just provide services, like commerce, education, health, transport, tourism, banking, retailing, etc. 4. Which sector is Kellogg’s in? The company is a secondary sector-business. It finds their primary suppliers like wheat, corn, cocoa, rice and sugar around the world and convert to a product for sell to costumers through the tertiary sector. They have an extensive research and development area that works on expanding product range using primary products to develop over forty cereals and snacks. As a large scale manufacturer, Kellogg’s should consider important factors such as where they locate their business, ideally near suppliers of the raw material, the size and scale of their operations, storage of materials and finished goods and the location of their customers.
5. using the case study, explain the difference between the three sectors. The Primary sector includes all raw materials and natural products that are then supplied to Kellogg’s for manufacturing of their finished goods. Kellogg’s, as a secondary or manufacturing sector, has a plant located in Manchester, United Kingdom, where they turn the primary sectors raw materials into cereals and snacks prior to distribution. The third sector is represented by the stores and outlets that then sell the final product. Kellogg’s is aware of the movement of its products from the first to third sectors before raw materials arrive for manufacturing and after they are shipped for distribution and retail, in regard to transportation and logistics so as to minimize any negative environmental impacts as part of their CSR philosophy. They also have a Service Level Agreements with partner companies in the primary secondary and tertiary sectors to follow good CSR policies 6. Why is lean production incorporated into most businesses? Lean production is commonly incorporated into most businesses because it increases efficiency and reduces waste. It is important to detect problems and inefficiencies early to prevent loss and damage of products. In the end it allows for higher profit margins for the companies and higher quality with lower prices for the customers. 7. How has Kellogg incorporated lean production into its operations? By using computerized systems at the warehouses products can be transported directly to the customers to avoid delay and in addition maintain lower storage and transportation costs. Lower costs help increase Kellogg’s profits while providing competitive pricing to their customers. There are also many positive effects to the environment due to waste reduction.
8. What is the FDF? The FDF (Food and Drink Federation) is an organization that seeks to reduce the environmental impact of the food, this reduction plans by carbon emissions, water conservation, food waste and packaging and transport, further controls and exercised and plans advised by this institution have shown favorable business results by reducing costs, increasing production, reducing the impacts of production and creating jobs.
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CO2 EMISSIONS The FDF plans have reduced CO2 emissions (carbon) by 35%, an example of this case has UNILEVER company has implemented procedures for measuring, monitoring and orientation of the carbon emissions and water consumption and these studies lead him to use biogas in boilers and thereby reduce their environmental impact.
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WASTE The FDF also concerned about waste treatment and therefore have implemented plans that seeks to minimize the waste of food and the misuse of these. McCain committed to this cause and sought to reduce waste throughout its supply chain, from the part of producers seeking to maximize the use of crops, the recovery of the potato starch water, which by a process of fermentation anaerobically biogas generated, which together with three wind turbines generate 80% of the power plant.
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PACKAGING
On the subject of packing the FDF has followed the approach of the WRAP1, which aims to improve the design of packaging, promoting the use of reusable materials in this task Coca Cola has managed to make a great contribution to redesign their packaging, which now has a 25% recycled content and 98% of its packaging are easy to recycle.
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WATER Another major objective of the FDF is to reduce the consumption of H2O in production by 20% by 2020. Nestle is a company that has adopted an approach to adapt to the environment, analyzing how past episodes have affected the location of their production sites and how they might affect future risks, through this analysis it was possible to identify a number of factors affecting the environment around the water consumption, as an example, have executed the plan thorough investigation of the functionality of sustainable urban drainage systems in its two main plants.
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TRANSPORT On the subject of the FDF transport makes it a comprehensive monitoring the incorporation of environmental standards in transport practices of both members and contracts with provider’s carriers within which there are 10 points to consider achieving this goal: Maximizing vehicle load, high proportion of tractor trailers, compliance with the latest emission standards of the EU, the use of technology in vehicle tracking, collaboration to 1
The objective of WRAP certification program is to inspect and certify compliance independently of global socially responsible production standards WRAP principles - and to ensure that manufacturing is conducted under lawful, humane and ethical conditions. The program aims to achieve these goals through the certification of factories that meet production standards WRAP universally recognized basic requirements covering work practices, working conditions and compliance with environmental laws and customs. Our auditors have participated in over one hundred WRAP certification process, 90% of the certified companies in Peru have continued their process with us also have clients in Bolivia, Mexico and represented by GUARDIAN INDEPENDENT CERTIFICATION LTD www.gicg.co. uk in Bangladesh, China, India and Pakistan.
reduce empty running, record and avoid difficult delivery points, increase the use of rail and / or ship, encourage innovation and best practices, driver training and vehicle maintenance including retaining the correct tire pressure, among others. Kellogs used committed to this cause suppliers, has sold products through the port of Liverpool, is part of a pilot project which intends to use semi which would allow carry 15% more cargo, reducing carbon emissions.
9. How has spare capacity been addressed in this case study? Kellogg’s company uses spare capacity to reduce waste and maximize production. By efficiently utilizing all of their resources, equipment and channels they will obtain higher production at a lower cost, while simultaneously promoting a more environmentally friendly approach to manufacturing. 10. What is Just in time production and what are the benefits of this type of production? Just in time production is when just enough product is made to fulfil orders and a limited amount of stock is kept. Retailers prefer to hold limited stocks of products to reduce warehousing costs. The greatest benefit of this type of production is its efficiency and ability to reduce cost when they find the right balance. 2.2 How do you apply “Logistical Value Proposition” that appears in Chapter 2 called “Logistics” guide book to the case of Kellogg’s? Please note as many aspects as possible. • Cereal All Bran ® Coco Pops ® Crunchy Nut® Froot Loops ® Krave ® Start Mini Max ® Optivita ® Rice Krispies ® Special K ® View All Toaster Pastries Pop Tarts® Biscuits All Bran®
Nutri-Grain® Special K® Bars All Bran® Crunchy Nut® Coco Pops® Frosties® Nutri-Grain® Rice Krispies Squares® Special K® Crisps Special K®
Fruit Flavoured Snacks Fruit Winders New Products Crunchy Nut® Glorious Oat Granola Fruit and Nut and Chocolate Special K® Chocolate Clusters Special K® Biscuit Moments Chocolate Rice Krispies® Multigrain Strawberry Rice Krispies Squares® Mint Kellogg’s offers a promise of providing logistical value to retailers and wholesalers. The provide: fast and regular deliveries, keeping their prices and use the system in order to ensure efficient customer product availability at the time (it is required), no matter how often (orders are due, including irregular orders) ie be flexible on the requirements of the customer
Conclusion’s Through reading case development Kellogg's of this guide, has been made fully meet the objectives, enabling academic knowledge to recognize the value added logistics in the growth and development of the companies, the success in the activities of the companies has as one of its pillars the Logistics, hence the importance of knowing, manage it and make it part of the organizational culture.
Respect for the environment, corporate responsibility towards the issue and actions that can be taken for sustainable development of the company respecting the environment, are apparent with the development of this guide, generating knowledge to establish mechanisms, degrees of responsibility and the importance of logistics in this whole production process and in this case a company like Kellogg's transcendence.
Certainly Technology and Logistics is more than a necessity for a symbiosis have positive results but further understanding this process, within a technological way, reports the achievement of objectives in the context of business management.
REFERENCES
1. http://virtual.ean.edu.co/bbcswebdav/pid-201885-dt-content-rid3974255_1/courses/0015092014D11E/AmbienteVirtual/anexos/kelloggs.pdf 2. http://www.kelloggs.co.uk/en_GB/home.html#prevpoint
3. Distribución y Logística. McGraw-Hill Create. Vital Book file Logística (Distribución y Logística 212) .