Poultry source chains in the Netherlands

Poultry source chains in holland are confronted with growing needs from customers and governmental rules associated with excellence and area. The present way of working must change to hold about competitive in the foreseeable future. In such a Wings & feet combine a slim and an agile approach in its source chain we use the concept of validity and the decoupling details to distinguish manifold other source chain designs. It has been performed at several companies in a chicken supply string in holland. All companies fit to the same cooperative group resulting in notion level between them.

Obviously, every of these two degrees of decisions need a different view point. The prepared decisions are, generally, globally or "all surrounding " for the reason that they make an effort to incorporate different facets of the source chain. Eventually, the models that make clear these decisions are enormous, and need a large amount of data. Often because of the level of data needs, and the wide-ranging opportunity of decisions, these models give approximated answers to the decisions they clarify. The functioning decisions, in the mean time, address your day to day procedure of the resource chain. Therefore the models that explain them tend to be very exact in aspect. Because of the thin view point, these models often consider great details and give very good, if not best answers to the functional decisions.

The poultry processor chip Wings & Hip and legs produces fresh chicken products for the consumer market. It provisions retail resource centers, which give out poultry products to the average person retail-outlets. Fresh chicken products are typical item products with low income precincts. The market success in the Netherlands is motionless cost. Market qualifiers are quality, show and service level. This is true for the finish consumer, who buys its products in retail outlets, and then for the retailer, who is the direct customer of Wings & Thighs. One could dispute that, due to increasing interest for food basic safety and recent outbraves of pet disease, quality is moving from a market qualifier to market victor The potential risks associated with deprived quality are as a result high, that vendors and consumers are gradually prepared to pay more for privileged quality. The high demands on quality, places constraints on the versatility of the source chain. The poultry processor itself initiates promotional activities. Typically it is provoked by the need to sell over-production of products. Over-production of poultry products will be the situation, because the demand for different poultry products is not similar and the product organization of poultry is different.

In short, demand hesitation is fairly high and for that reason, the necessity for production ability and thus the require for raw materials fluctuates. The production ability itself is fully utilized leading to very low development litheness. Finally, the way to obtain chickens from suppliers must be prepared 12 weeks in front due to length of the duplication and rising stages. Buffering is not possible in the resource chain because the quality of the source will decline. Production planning and control is material oriented with matter to the way to obtain chickens, is capacity-oriented with concern to production costs and is inventory-oriented pertaining to shelf life of products. .

The poultry processor chip Wings & thighs is its efficient production well carried out operations, planned resource string and quality of its products. The managing of the organization is aware of the trouble that the firm is facing, plus they know it is due to many factors that are directly impacting on its business. One of the essential factors that the supervision at Wings & feet decided to center point on is the, supply and demand needs.

Q NO 2

What will be the relative merits of every possible position of the material decoupling point and of the info decoupling point. just how do they relate with each other with respect to supply chain planning and control?


Many alternatives are planned for this supply chain to control with high demand hesitation. The client order decoupling point, the product differentiation point and the info decoupling point participate a central role in these alternatives. The precise characteristics of the chicken supply chain the opportunities for a legible resource chain design are limited.

Combining nimbleness and neatness in one supply chain by the strategic use of a decoupling point has been termed validity define legality as "the blend of the low fat and agile paradigm within a complete supply string strategy by placing the decoupling point so as to best suit the necessity for giving an answer to a volatile demand downstream, yet providing level arranging upstream from the decoupling point". The decoupling point identifies the point at which real demand penetrates upstream in a resource chain. According to Christopher the task to Supply Chain Management is to seek to build up "slim" strategies up to the decoupling point, but "agile" strategies beyond that point.

A basic idea in the strategy of legality is the source chain decoupling point. Mason-Jones declare that processes upstream from this decoupling point should concentrate on leanness, steps downstream from the decoupling point should be centered on agility

The one-dimensional view point of the decoupling point and discover two types of decoupling points in real-world source chains. First, they distinguish the "information decoupling point" (IDP), stating that it presents the utmost point to which home elevators real last demand penetrates. Upstream from the IDP procedures are forecast-driven and based on planning, downstream techniques can be demand-driven and based on real-time demand. The theory here is that the IDP should lay as far as possible upstream in the supply chain. The materials decoupling point (MDP) is where tactical inventory is performed in as universal a form as is feasible. They refer to the idea of "postponement", or "delayed construction" The challenge to supply string management is all about the productive management of the two decoupling details. However, some questions appear when you associate both of these "decoupling points" to the concept of legality. The following remarks can be made.

First of all, the IDP is not the point to which information about real end-consumer purchases penetrates the source chain, but is the idea to which information about final consumer demand of an earlier moment is manufactured evident. This means that downstream of the IDP procedures are not influenced by definite requests, but they are driven by (preferably undistorted) demand data of a youthful moment.

The demand information can penetrate the supply string far upstream; it generally does not automatically imply that all functions downstream from that IDP are suitable for agility. Demand data may be used to make creation even better and still follow a lean procedure. While using the legality and decoupling point's concepts demonstrates to be very useful in the analyses of source chains and in the popularity process of incentive supply string designs. However, because of specific characteristics of food resource chains the applicability of the principles is fixed. The vale of IDP information, the positioning of the CODP and the choice of agile versus low fat production is determined by the possibilities of synchronization in the source chain

Q NO 3

Most of managers of wings and les start to see the exchange of tactical information about (price) promotions between wings and hip and legs and the retail companies as difficult to accomplish. What are the advantages for the retail companies of exchanging more timely and more exact information about marketing promotions with wings and thighs?


A retailer' location is paramount to its potential to entice customers. The expenses of creating or leasing facilities have a major effect on the replier earnings. Thus site location decisions are usually more among the main the merchant makes. Small store may have to accept what every location using move forward methods. The retail businesses can enjoy benefits by exchanging timely exact information to the Wings & lower limbs regarding product campaign. It increases the basic value of a product for retail companies for a restricted time and stimulates the buyer purchasing, and retailing successfully. Sustaining' competitive advantages' on the market is only possible if the suppliers share well-timed information to the Wings& legs, about the client demand and market tendencies for a product

The promotional action initiated by the retail companies place heavy strains on the upstream resource chain. An chance to level demand is to get rid of all promotional activities, as stated, but this encounters much level of resistance from the retail companies involved; poultry products are favorites for offers to generate clients.

Information enrichment could extend the basic idea of the exchange of EPOS-data, by including 'tactical' information exchange between source chain partners regarding promotional activities. Longer-term information about future special offers, but also category management decisions at the retail-outlet concerning the product-assortment, can be Characterized as tactical information Simpleness of the tactical information in the source chain can boost the level of sensitivity of the supply chain.

Q NO 4

The network-based way of an agile procedure strategy could solve area of the matching problems for wings and legs. In supply string management much attention is paid to improvement of the vertical procedures in a resource string. However, wings and thighs also outsource part of creation (they buy poultry products from other poultry- processors) which means that horizontal processes and horizontal assistance are of importance.

What advantages is there for wings and hip and legs in outsourcing part of the development to other poultry processors? what advantages are there for these other poultry processors?

Ans Part a

The supply chain is characterized by very brief required business lead times (retailers

Demand a delivery between 18 to 48 hours), regular deliveries and increasing product variety; typical elements of an agile source chain. Lead-times are very short and therefore stock needs to be kept at the chicken processor. The required service levels for chicken products are high. The poultry processor must comply with a minor delivery trustworthiness of 99 percent. Development planning and control is material oriented with matter to the supply of hens, is capacity-oriented with concern to development costs which is inventory-oriented relating to shelf life of (end) products. Production

and supply are currently based on demand forecasts, which can be unreliable given the market characteristics offered. The Wings & thighs, they have out sourced an integral part of their development to the other chicken processors; the top benefit of the low personnel costs. The Wings & lower limbs does not have to pay reliable salary to their possess employee. It is cost efficient method and brings about personal savings. If we see other aspect to poultry processors the development is being outsourced, they certain gain. There can be an upsurge in quality and profitability due to upsurge in orders. The employment is made to dependence on the production demand in less time.

How should wings and thighs outsource part of production to others poultry processors, with respect to creation planning quality control and product specifications?


The production capacity itself is designed for maximum consumption to keep creation expenses per kg product only possible resulting in low creation suppleness. Finally, the supply of chickens from suppliers needs to be planned 12 weeks forward due to duration of hatching and stuffing phases. The potential for buffering and inventory storage is bound in the resource chain since the quality of the resource (birds) and of the buyer products will decline. Product necessity is to ensure that the following design and development of a product meet the customer needs, Wings & thighs specify their poultry products according to advertise demands.

The order for poultry products by end-consumers shows an extremely changeable design, and seems unstable. It looks peculiar at first view, but is discussed by the key use of promotional habit at the retail stage in the resource chain that are not always communicated in detail to Wings & Lower limbs.

Q NO 5

The information decoupling point only concerns information about changes in demand and market. This is information that flows upstream in the source chain, living hens and perishable products are exchanges. Wings and thighs therefore not only have to take into account variations in demand, but also modifications in resource. What information should move downstream in the supply string (to the poultry cpu) so that wings and hip and legs have the ability to match resource with demand in a better way?


The swift changes in consumer preferences, technology, and competition, companies must develop a steady stream of new products and services. A company can obtain services in two ways. One is through acquisition by buying a complete company, a patent, or a license to produce somebody else's product Information decoupling details in the source chain supports the information blend between Wings & feet and its suppliers, in the framework of information posting, concerted product design and development. The basic reason is to boost supply string coordination. This development directly relates to the business's benefit A strong network of upstream information network in the resource chain allows such initiatives to impact inventory management at Wings & hip and legs and revenue-enhancing methods that, subsequently, increases its income. Wings & feet is dealing with a development and logistics plan predicated on forecasts and estimations, helping these to meet customer demand more constantly, for this reason production utilization rates have increased and production verification lead-times have improved upon. It is already achieving several initiatives particularly in the region of lead-time reduction and the better matching of source and demand for the company.

Demand uncertainty is comparatively saturated in poultry business; the necessity for raw materials fluctuates with the changing demands on the market. Suppliers for Wings & legs form an important link in the company's overall customer worth delivery system, they provide the certified chickens needed by the business to create its chicken products, and offer and demand problems can seriously affect chain source and marketing generally. Marketing professionals at Wings & feet must watch source availability regarding demand i. e. supply shortages or delays, labour strikes and other incidents can cost sales in the brief run and damage customer satisfaction in the long run.

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