The land of magic
The Walt Disney Company was funded in 1922.
World leader in family entertainment & operating on a
multinational level.
The first purpose of the studio at the time was to produce
animated films.
Then it had gone from just producing animated cartoons to
a successful media company reaching people through
several different mediums.
The largest licensor of manufactured goods in the world,
with products ranging from fine furniture to plush toys that
bear the Disney name
Disney World
The worlds largest amusement park operator came from the vision of
Walt Disney bringing his characters such as Mickey Mouse to come to life.
Runs vast theme parks and resorts that serve tens of thousands of Guests
daily on three continents.
The first Walt Disney theme park and resorts was originated in Anaheim
California on 1955. Today, it encompasses of eleven theme parks operating
in five different countries on three continents.
Disney World is comprised of 4 different Parks with each having their own
personality with different attractions and entertainment.
You will find Various attraction and rides, characters and parades, Nightlife
and entertainment , restaurant and dining.
Disneys value chain is comprised of four primary segments:
media networks
parks and resorts
studio entertainment
consumer products
Each one of its value chain operates as its own company with their own separate
management team.
Each also has its own Marketing, research, and sales function.
Disneys management success can be visualized as a vast arrays of hierarchy
segments.
Is diverse and substantial (To get things right, they take many different approaches.
)
Core Competencies
Employee satisfaction and retention, superior customer
value and employee empowerment.
"You're as strong as your weakest link," said Kimbrell
[business programs facilitator for the Disney Institute]. "We
(Disney) learned from listening to the front line. The key
to learning from employees is creating an environment
that contributes to information sharing, he said.
Disneys ability to manage large crowds of people.
Its ability to diversify enables them to survive through
multiple recessions making them one of the worlds most
robust entertainment companies
Overview of Key Portions of the
Disney Supply Chain
Disney BU supply chains depend on different core processes and drivers to
respond to differing customer and guest requirements
Cursory review shows sizeable assets are deployed to support Disney
North American merchandise supply chain activities
More than 20 warehouses owned or operating on behalf of Disney
More than 900 retail locations across the stores, parks, and resorts
European operations depend on significantly higher numbers of
warehouses and third-party providers than seen in North America
The majority of costs and assets are in Disney Consumer Products, Parks
and Resorts, and Buena Vista Home Entertainment
An overview of activities and suppliers across BUs indicate that there are
more opportunities for cross-BU synergy than are currently in operation
Most supply chain activities are managed independently
Many contracts are negotiated and managed separately
Internal warehousing is underutilized,
Supply Chain
The Walt Disney Company has a large portfolio of intellectual property
that the company manages through relationships with a range of
licensees, vendors and retailers. Products bearing Disney characters,
stories, songs and brand names include a wide range of categories such as
apparel, footwear, toys, stationery, published materials, food, CDs and
DVDs, home furnishings and consumer electronics, among others. Disney
has granted rights to more than 8,000 businesses to use our intellectual
property in the manufacture of such products. Some of these licensees are
large, even global, companies and retailers, while many others are
medium-sized and small companies located around the world.
The majority of Disney-branded products are manufactured by licensees,
managed by Disney Consumer Products (DCP). Studio Entertainment,
Parks and Resorts, Media Networks and Disney Internet Media Group also
source Disney merchandise for retail sale or for promotional purposes
through licensee and vendor relationships.
Supply Chain Characteristics
Significant international sources of supply
On-site warehousing support for merchandise, food, and general supplies
Strategic outsourcing relationships in place
Hundreds of unique store layouts in each resort
Tens of thousands of active SKUs
SKU management driven by guest service and The Show
Daily replenishment of A items
Major BU initiatives
Holistic approach to supply chain management
Electronic integration of supply base
Total cost approach to sourcing
Lead-time analysis and reduction
Supply chain system rationalization
Facility utilization
Customer Response:
Customer Service Policy
Customer Satisfaction
Order Entry
Order Processing
Invoicing and Collections
Inventory Planning & Mgmt. :
Forecasting
Order Qty. Engineering
Fill Rate Planning
Control Policy
Deployment
Supply Transportation Operations
Supplier Service Policy
Sourcing
Supplier Integration
Purchase Order Processing
Buying and Payment
Transportation:
Network Design
Shipment Management
Fleet Container Management
Carrier Management
Freight Management
DC Operations:
Receiving
Putaway
Storage
Order Picking
Shipping
DISNEYs Supply Chain Management
Customer Response
establishes the appropriate logistics response
to customer demand, as agreed in the
Customer Service Policy
Inventory Planning & Management
determines and maintains the lowest level of
inventory to support the Customer Service
Policy
Sourcing & Procurement
builds the inventory to meet Customer Service
Policy
Logistics & Trade Management
(Transportation)
links the sources of supply with the customer
DC Operations (Warehousing)
stores the inventory that cannot be
immediately and profitably consumed by the
customer
Show Business Supply Chain
Study the demand and set the appropriate
customer service.
Determine demand through forecasting and
market trends.
Measure performance through feedbacks and
guest satisfaction measures.
I - Customer Response: Focus first on the guest
Planning mixture:
Life cycle management
Optimization making what works, work for us
Location optimization
Develop in-house advanced business solutions
II Inventory Management:
Balancing guest, show, and profitability
A mix of supplier are used as a sourcing
strategy which provides flexibility to respond
to changing business demands.(domestic manufacturer
domestic importer with domestic pricing - domestic importer with
import pricing direct importer)
Use developed tools to quantify the total
delivered cost.
A supplier scorecard is utilized to formally
communicate performance.
III Sourcing:
combination of sourcing strategy to manage global
volume and costs.
Continuous planning and visibility
Automate information flow
Consolidate loads (moves)
Select modes and carriers
Track and trace
Audit / settle
IV Logistics:
maximize fulfillment service, minimize logistics costs.
worlds largest stockrooms:
50% of the warehoused SKUs are carried by
less than 1% of the serviced locations.
60% of the warehoused SKUs have a life span
less than 1 year
V Distribution center Operations :
WE CAN PUT THIS AS RECOMMENDATION HOW TO
IMPROVE DISNEYS SCM
WE COULD PUT THE BELOW POINT IN THE
CONCLUSION SLIDE
Disney's outlook on planning, centers on
their commitment to family entertainment,
customer satisfaction, quality, diversification
of markets, innovation, management
reorganization and corporate restructuring
when necessary.
THANK YOU
