Project Introduction:
Use the business scenario provided to create a purchasing and supply chain plan for Chilly Willy.
Business Scenario
Company: Chilly Willy Grocery Company
• OEM manufacturer of refrigerated cases for grocery stores that sell their products in all 50 states. They have sales of $20 million a year and predict they have 25% market share.
• There are three other companies that manufacture refrigerated cases and compete with Chilly Willy.
• The primary customers are grocery store chains, coffee shops, and convenience stores.
• Their product line consists of 10 various refrigerated cases. Production lead time is 6 to 8 weeks.
• Chilly Willy fabricates its own steel components, acrylic bins, and wood processing.
• Materials and inventory costs have risen 5% in the last year causing great concern. Supplier shortages have shut down the production 10 times in the last year. Forecasting errors have created 6 month surpluses on some components.
• Company sales department just obtained a contract with a new grocery store chain that will equate to new sales of $5 million for the year 2014.
• Commodity list and # of suppliers
o Electrical-3
o Refrigeration-1
o Glass-2
o Aluminum extrusion-1
o Plastic-4
o Steel-2
o Hardware-3
o Wire racks-1
o Fasteners-6
o Wood sheets-1