Hartmann group: Supply chain management

Résumé du document

Hartmann develops, produces and sells recyclable moulded-fibre packaging mainly for eggs. The group also offers industrial packaging and technology and machinery or the manufacturing of moulded-fibre packaging. Egg packing makes out 92 per cent of the total product distribution and we will therefore focus on this area and exclude industrial packing and other activities. Regarding the new strategy we scoped it to focus on centralization and cost reduction.

Hartmann uses sustainable and environmental friendly materials for their products as a part of their business model strategy. They have a small market share in North America while they are the market leaders on the European market. Hartmann have their own production factories, 5 of them are located in Europe, one in Canada and one in Israel. The demand for global eggs has increased, while it is more stable in Europe. The increasing prices on raw materials and energy is something Hartmann is sensitive to and they therefore try to engage in fixed-price contracts, which is not an option in all countries.

Extraits

[...] Bibliography - Logistics Management & Strategy; Competing Through the Supply Chain. Author(s) & edition Harrison & van Hoek. 4th edition Prentice Hall (ref HH) Fronter document, questions case 2 - Hartmann Fronter document, Hartmann case information for week 39 & 40, page 2 Fronter document, Hartmann case information for week 39 & 40, page 4 Hartmann annual report 2011, page 12 Hartmann annual report 2011, page 11 http://forsiden.3f.dk/article/20090626/FAGBLADET/906260308/2310/FAGBLADET The annual report of Hartmann http://borsen.dk/nyheder/medier/artikel/1/228759/vi_laeser_faerre_aviser_og_ blade.html The annual report of Hartmann [10]http://fronter.com/cphbusiness/links/files.phtml/85097802$326149770$/Dok umenter+mm/05+Compulsory+Casework/Case+2_week+40+_prcent_28Hartmann_prcent_2 9/Hartmann+H1+2012+report.pdf [11]http://fronter.com/cphbusiness/links/files.phtml/85097802$326149770$/Dok umenter+mm/05+Compulsory+Casework/Case+2_week+40+_prcent_28Hartmann_prcent_2 9/Hartmann+H1+2012+report.pdf Hartmann case information week 39+40 pdf page 7 Hartmann case information week 39+40 pdf page 7 http://www.transwide.com/community/fmcg 3/10-12 Downstream Focal firm Second tier customers Upstream First tier customers First tier suppliers Hartmann -Distribution - Stock mgm - customer rel. [...]

[...] Still Hartmann can postpone the production. They can produce the standard products and then when orders are placed they can finalize the product and save lead time. This demands a little longer storage time though. Competitive profile: Hartmann are focused on cost reduction to be able to offer products at competitive prices, at the same time they want to keep the quality high. Lowering cost of production can be done by economic of scale. Since Hartmann is doing centralization it is easier to buy larger volume of raw materials for production and therefore produce more at the same time. [...]

[...] Due to the stable demand, the uncertainty of purchase is low. When North America wants to buy large volume it is necessary for Hartmann to have large facilities to accommodate these products to keep the uncertainty low as well. The European segment demands specialized product and therefore a larger variety to choose from. The volume demand is large but spread out on many different products. The uncertainty here is higher due to the differentiated products ordered and the irregular patterns. [...]

[...] The efficiency and optimization of Hartmann's production area is per the new strategy to be achieved by focus on internal collaboration, efficient competency development, knowledge sharing. Focusing on these things should result in an enhanced production, energy efficiency and also reduce the consumption of raw materials further.[4] The competitive strength in marketing and sales lies in the employees. Hartmann wants to enhance these competencies by achieving specialist knowledge within the company and further strengthen the employee's skills and competencies.[5] 6. Question 2 In the supply chain model the supply chain of Hartmann is displayed. [...]

[...] Hartmann group: Supply chain management Table of contents 1. Interpretation of questions Hartmann & the egg industry Scope Overview and theory of models applied Question Question Question Interpretation of questions “Competitive edge-driving growth” Hartmann's focus on production planning and optimization as well as on enhancing its competitive strength is expected to lift the profit margin, while no targeted efforts will be made to generate growth in the short term.[1] 1. What does that mean in plain words? Question one is to briefly explain what Hartmann's new strategy basically means Identify which challenges and new tasks Hartmann's new strategy and the current market conditions, creates for the Supply Chain this through an analysis of their business set-up using relevant theory and models. [...]