Refresco Gerber's Supply Chain Management Case Study

1994 Words8 Pages
Globalization trade, technological improvements in manufacturing and communications areas, customer expectations and preferences, as well as the growing demand for social and notably environmental responsibility are changing the international competitive landscape. As a consequence, companies are changing their business processes. Due to the intense international competition there is a need from European manufacturing companies to investigate all the best possibilities regarding cost reduction, quality and efficiency improvement. As a result, managers are becoming really aware that the largest part of their end product cost exists to the raw materials and services purchased from suppliers. For this reason, companies try to reconsider their…show more content…
This is reflected through the increased attention this discipline is receiving from managers and practitioners (Van Weele, 2010). Traditionally, purchasing has been adversarial and transaction focused, thereby mainly interested in the product price. Today, on the opposite, the focus is shifting to considering the lowest total cost of ownership (Bowersox et al, 2010). Refresco Gerber is not an exception, since it tries to develop and reform its way of working by focusing on new challenges in order to remain competitive in the market. Consequently, the revision of the Refresco Gerber 's purchasing practices and supply chain process constitutes a major challenge that needs to be explored and analyzed in…show more content…
Throughout Refresco Gerber’s Purchasing department there are no standardized policies for decision or suitable Incoterm where have been used in a constant way. To accomplish this, a mapping of current deliveries and Incoterms used from suppliers and their components shall be made. Hence, following relevant questions are raised: • What are the main characteristics of the current inbound logistics flows from external suppliers to Refresco Gerber? It is important to map the characteristics of the inbound logistics flow in order to get a proper understanding of the logistics system and its performance. Therefore, the mapping of the current inbound logistic flows, quantities, costs associated in each part of the inbound part of the supply chain and the incoterm used, is to be performed. • Which delivery term (Incoterm) is most advantageous for the inbound transportation from external suppliers to Refresco

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