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Delivery Problems at Arrow Electronics, Inc - Group 5 - Sectionb

Delivery problems at Arrow Electronics' distribution centers led to procedural shortcuts that decreased efficiency. After acquiring Schweber, Arrow saw a large surge in orders, most of which were one-off orders needing same-day shipping. This caused delays, errors and the need for overtime. To solve these issues, Arrow can implement RFID to automate processes like receiving, putaway, picking and shipping. This would increase accuracy, visibility and efficiency while reducing labor needs.

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Jayant Bahel
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1K views17 pages

Delivery Problems at Arrow Electronics, Inc - Group 5 - Sectionb

Delivery problems at Arrow Electronics' distribution centers led to procedural shortcuts that decreased efficiency. After acquiring Schweber, Arrow saw a large surge in orders, most of which were one-off orders needing same-day shipping. This caused delays, errors and the need for overtime. To solve these issues, Arrow can implement RFID to automate processes like receiving, putaway, picking and shipping. This would increase accuracy, visibility and efficiency while reducing labor needs.

Uploaded by

Jayant Bahel
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Delivery problems at

ANKUR BHARDWAJ (10P068)


JAYANT BAHEL (10P081)
LOKESH HARNAL (10P086)
MANIKA VERMA (10P087)
MOHIT AHUJA (10P090)
SAMBHAV AHUJA (10P107)
Arrow’s history
 Started as a local distributor in NYC in the 30s
 Went public in early 60s, became 11th largest by
1968
 Became 2nd largest by 1980 with nationwide
presence
 Centralized purchasing and distribution (37
warehouses to 4 PDCs)
 Focus on growth through acquisitions
 1992 – acquired Scheweber to became no. 1
Arrow’s ordering process
Type of orders
Analysis of orders
 Type 1 (One off order with short lead time)
need to be shipped the same day
 Type 2 and type 3, do they need to be shipped
the same day?
 Therefore, does it mean that type 1 orders
comprised of 94% total orders before
Schweber acquisition?
 Premium freight paid for late orders

Schweber acquisition
Changes after acquisition
Average orders 94% efficiency 78% efficiency
July 91-Dec 91 86858 81646
Jan 92- Dec 92 1633811 127981 106197

Inference – Schweber may have more of type


1 orders

Processes at PDC
PROCESS
Problems
 Due to surge in orders, workers were taking
procedural short cuts to speed up the
process
 Consequences
 Sense of confusion, destroyed orderly flow
 Delayed parts already on the conveyor
 Increased chances of quality errors
 Rush during evening hours i.e 3-7 pm
 Overtime for initial processes


Possible solutions
Recommendations
Advantages of RFID
 Selectively apply the technology to improve
specific processes that are labor intensive or
prone to creating delays or inaccuracies
 Mobile readers are often advantageous to fixed-
position models because they can be used for
multiple applications
 As applications grow, so does inventory visibility,
which ultimately leads to lower inventory
levels and more efficient supply chain
operations
RFID IMplementation
RFID IMpact
 Receiving
 Labor Savings
 Pallets automatically identified
 Data read and transferred to Warehouse
Management System
 Cross docking for immediate transport
 Storage and picking personnel (40% of
workforce) can then be deployed in receiving
and packing & shipping
RFID Impact
 Putaway
 Automaticallyassociate stored goods with actual
putaway location
 Security/Documentation
 Unattended location monitoring
 Picking
 Error-proofing the picking process
 Shipping
 Can validate pallet loads and improve shipping
accuracy
 Asset Tracking
 Track the shipping container with RFID, if the
container is a returnable or reusable asset
 Improve planning, reduce buffers and increase
utilization

Thank You

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