SIG Combibloc: Supply Chain Innovation, How Can the Forecasts be Improved?

SIG Combibloc: Supply Chain Innovation
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Question 1
(a) Map the current supply chain of SIG Combibloc.
The current supply of SIG Combibloc has its functions divided into several parts. For example, the order procession is grouped under sales while purchasing is grouped together with finance. Such variations and groupings are also present in other regions. There is no supply chain management center to consolidate all the essential knowledge needed to make better decisions. Instead, information is immensely distributed (EMC Corporation, 2007).
During the production, carton rolls are fed onto the line at the beginning of process; the cartons weigh 2 tons. An aluminum foil and polythene granulate from an overhead funnels are melted before they can be applied in a liquid stream to the carton from both sides. This is done to ensure that the cartons can withstand any forces from inside or outside, for example, the impacts of activities like printing. After this process, the carton rolls are printed using different colors depending on the customers design as ordered. Each design has a set of the printing cylinder (EMC Corporation, 2007).
The cylinders are unique sets produced by a specialist who engraves the desired shapes onto to a chrome surface. The whole process takes more than six weeks for a new design to be produced; this is because the cylinders are never delivered on time. The next phase involves the carton rolls being creased and cut into the desired shapes as required. In the final stages of the production, the carton is folded and sealed at once, making them into sleeves. The sleeves are delivered packed into carton and stack on pallets (EMC Corporation, 2007).
During the production, some machines require different cartons and aluminum thickness or even different types of polyethylene layers. The main changes in production occur during the printing, and when setting up for creasing and cutting. The set-up time usually takes more than thirty minutes to change from one design to the other while the actual production would take less time than even the setup times (EMC Corporation, 2007).
(b) Identify the challenges SIG Combibloc is facing within the supply chain?
Some of the challenges facing SIG Combibloc within the supply chain include the following:
Initially, the supply chain management was not a priority for the company. Hence, the available information was not adequate to make better decisions (Trebilcock, 2011). Besides, there are a lot of entry barriers in the market especially for aseptic carton packaging. This is as the result of strict quality standards requirement by customers. The complex aseptic filling technology requires companies to have the know –how especially in packaging and engineering sectors. New market entrants face difficulties to gain the grip in the markets because installing filling lines and constructing cardboard plants need huge capital investments (Harkharia & Shankar, 2005).
The main problem with the supply management started when SIG transferred its know –how it had acquired for several years, to other activities to come up with complementary business lines. This resulted to diversification as a way of minimizing cost. The...