Order Delivery Management : Case: Xerox Oy
Vuorinen, Antti (2013)
Vuorinen, Antti
Metropolia Ammattikorkeakoulu
2013
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201305036143
https://urn.fi/URN:NBN:fi:amk-201305036143
Tiivistelmä
This thesis discusses the importance of inventory management, specifically focusing on order delivery management. The thesis is written for a case company, Xerox Oy, the Finn-ish subsidiary of printing industry corporation Xerox Corporation.
The thesis discusses how to optimize order sizes and the size of the customer inventory from the service provider’s point of view. While it is at times important for the customer to maintain high inventory levels in order to maintain steady production, the service provider at often times wants to decrease their financial liability in terms of customer stock. In the case of Xerox Oy this is especially true, as the customer inventory is not billed per the agree-ment and is thus considered capital cost for the service provider.
The main focus of the literary review is on how inventory management relates to Michael Porter’s value chain and how theory can be utilised in the Xerox Oy case. The case is ana-lysed by creating metrics to compare customer delivery data in the month of September 2012. The metrics are then compared to figures provided by Xerox Oy and their logistics service provider DSV Solutions Oy. Finally, an adapted balanced scorecard approach is used to reference the presented data.
The conclusion of the analysis is that Xerox’s current customer inventory philosophy caus-es their total cost of ownership to be extremely high due to a high number of individual transportation transactions. Customer orders are not grouped efficiently due to a lack of resources in order optimization, and therefore the processing of orders is not optimal, par-ticularly for the largest individual Xerox customers.
The thesis discusses how to optimize order sizes and the size of the customer inventory from the service provider’s point of view. While it is at times important for the customer to maintain high inventory levels in order to maintain steady production, the service provider at often times wants to decrease their financial liability in terms of customer stock. In the case of Xerox Oy this is especially true, as the customer inventory is not billed per the agree-ment and is thus considered capital cost for the service provider.
The main focus of the literary review is on how inventory management relates to Michael Porter’s value chain and how theory can be utilised in the Xerox Oy case. The case is ana-lysed by creating metrics to compare customer delivery data in the month of September 2012. The metrics are then compared to figures provided by Xerox Oy and their logistics service provider DSV Solutions Oy. Finally, an adapted balanced scorecard approach is used to reference the presented data.
The conclusion of the analysis is that Xerox’s current customer inventory philosophy caus-es their total cost of ownership to be extremely high due to a high number of individual transportation transactions. Customer orders are not grouped efficiently due to a lack of resources in order optimization, and therefore the processing of orders is not optimal, par-ticularly for the largest individual Xerox customers.