Logistics Management

Paws Petfoods Ltd, produces a range of canned pet foods. Manufacturing
the product consists of processing the raw material (meat, cereal, and
gravy) and then canning and cooking, prior to despatch to customers
through a distribution centre. The customers range from high volume
supermarkets to specialised wholesalers. The raw materials are
purchased from firms having close supplier partnerships with Paws.

Problems
Increasing demands by the customers for more flexibility and
responsiveness from Paws in their deliveries, is putting a strain on the
smooth running of production.

Effective management of the whole supply chain is required to overcome the
difficulties in planning production to meet the customers needs while
making a profit and achieving a positive cash flow.

Business improvements must be achieved through better customer
contact and sales management. This must be done without passing on the
problems to Paws' manufacturing function who in turn need to plan and
schedule production efficiently to meet the needs of sales deliveries. The
production schedules must also avoid creating difficulties for the
purchasing function, who rely on suppliers who have their own needs and
problems to deal with.