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    Canbide's Denver Location

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    Your supervisor has assigned you to study Canbide's Denver location. This location handles an average of 52.7 trucks per day. On Tuesdays and Fridays, the count is usually over 75 trucks. About half of the shipments are set-up by Denver operations, which has the ability to reschedule/adjust product pick-up times with a four-hour notice to the designated carrier. The remaining shipments are set-up by the customer either using their own or contracted equipment. These vehicles often just show up at the gate, sometimes with an unanticipated purchase order in hand.

    Canbide's current contracts with their carriers allow drivers to wait up to 1 hour at any single loading facility without incurring demurrage. Canbide claims to achieve a 90% success in maintaining a 2-hour gate-to-gate service time with no truck spending more than 4 hours gate-to-gate. If customer owned trucks are made to wait, then "goodwill" suffers.

    Regardless of whether the truck is scheduled by Canbide or contracted by customer, all trucks have to transit throughout the plant to pick-up their full complement of items. Sometimes, truck drivers will get impatient and "balk" to another, hopefully less busy, loading facility. This, of course, adds unnecessary traffic to through the plant, aggravating the union safety committee.

    Develop a presentation for your manager listing the changes/improvements you would recommend to plant, divisional, and corporate management regarding the Denver location. How would prioritize their needs? Be sure to include the customer service/competitive advantage aspects.

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    Solution Preview

    Changes/Improvements to Corporate Management:

    The main objective of the corporate management is to take strategic decisions for the company as a whole and align all objectives towards achievement of corporate vision, mission and financial as well as other goals. The corporate management in this situation is not only concerned with improving the efficiency in Denver plant of the company in terms of improving the pickup of shipments but also enhance the goodwill among its customers by providing them improved pickup experience and customer service. This is very important for the organization in terms of securing long-term business relationship with its customers.

    To achieve these strategic objectives, the corporate management should incorporate modern supply chain management principles, which will assist in improving the pick up schedules and increasing the efficiency of the plant by reducing confusion, clutter and wastage of time. The implementation of a suitable ERP (enterprise resource planning system) will also help in coordinating activities within the plant. The corporate management should implement these systems not only at the Denver plant but at other locations as well including the corporate office in order to ...

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