XEROX

THE DOCUMENT COMPANY

Group 7
Presentation- P9
 Introduction

 Large global company: Financial services &

Document Processing
 Products marketed in over 130 countries
 Direct sales force: 15,000 (dealers, distributors &
agents
 30, 000 technicians employed for after sales
services.
 22 manufacturing facilities in Europe, N & S
America and in Far East.
 Mission

To develop, manufacture, market and service a

broad range of document processing products
including large scale electronic printers,
duplicators, copiers, work stations,
engineering products, telecopiers and supply
associated with those products.
 Goals

 Customer satisfaction
 Return on assets
 Market Share
 Employee Satisfaction

Logistics Triangle
 Inventory Performance
30

25

20
Inventory Performance

15

10

Firms
Average
 Route Map
Logistics customer
satisfaction
20% inventory
100 %

11% Logistics cost

10%
revenue
% of

7%
?
1989 1990 1991 1992 1993

Unit Process Optimization

Cross-organizational process Change

Change Agents
 Key concerns
Design and implement a supply chain solution that
minimizes the impact of significant operational
constraints
 Standardize and modernize its spare parts supply
chain with new business processes, systems and
automation
 Maintain current service levels to its customers
through the transition phase
 Build a continuous improvement culture that
strives to increase supply chain efficiency
 Reduce operating costs
 Solution
 Exel placed a supply chain management (SCM)
consulting team in the Xerox organization
 Closing three regional centers and transferring
operations to two existing locations
 Redesigning the two existing locations to
manage increased product flow
 Integrating all systems and processes across
the network
 Implementing new warehouse and
transportation management systems
 A closed loop supply chain of
Xerox

New Assets

Acquire
Recovery
and repair

New
1.2 billion $ Build
Logistics Remain
Asset strip cost

Distribute
Removal

Deliver
 A closed loop supply chain of
Xerox

New Assets

Acquire
Recovery
and repair

New
1.2 billion $ Build
Logistics Remain
Asset strip cost

Distribute
Removal

Deliver
 Inventory management and logistics
process vision
 Customer satisfaction is the key
 Demand driven supply chain
 Time to customer is a competitive advantage
 Common product language
 Complexity managed through high
performance work systems
 Recycling is key
 Order Satisfaction/ Delivery Management

 Shared ownership of orders

 Plan for order satisfaction
 Information availability exchange for inventory
 Same day delivery capability
 100% build to order on high end
 Configuration (Asset Information)
Management

 One logical data base, SAP

 Co-ordinated, multifunctional, multinational, configuration
management
 Rapid communication of configuration information
 Inventory Planning

 One Company
 Service level- driven stocking
 Demand- driven forecasting
 Logistics & Physical
Distribution Planning

 One company, one integrated supply chain

 Networks optimize customer satisfaction at
lowest cost & inventory
 Plan networks as a continuum from customer
to supplier
 Logistics Operation

 Manage flow not stock

 Plan the work
 Integrate warehousing and transport
 Same day delivery capability
 Results

Greater visibility and more accurate data in the spare parts

supply chain, allowing Xerox to improve the planning
process and overall efficiency across its network
Improved supply chain reliability and responsiveness,
enabling Xerox to maintain its service commitments to
customers.
New process-driven, results-oriented management and the
attainment of significant cost savings.
Substantial savings across the supply chain:
 Transportation 16%
 Warehouse 12%
 Supply Chain 3%
 Total 15%
 Key Differentiators
 Unit Process optimization: multi cross functional team
 Process vision: IM & L
 Process improvements in process: Cross functionality
giving flexibility
 Management of Change:
 Convince people
 Converting understanding into positive perception
 Take the ownership and make people understand it’s the only way
Thank You