SCMA

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On Friday, January 28, 2011 the Supply Chain Association organized a visit to the Office Depot facility in Newville, PA. Our trip brought us face to face with three Penn state alumni who extended a very warm welcome and a guided tour of the facility. We received an overview of the Office Depot operations and Mr. Zelis explained how the company was in the process of consolidating its supply chain operations. This new facility setup about a year ago is catering to the entire Northeast region – Maine to Virginia – and reduces the need for a cross-dock in Mountain Top, PA and distribution centers in West Hampton, NJ, Baltimore, MD and Boston, MA. The key focus of their supply chain operations currently is to reach a high success rate of 99.3% in their next day delivery and also to convert their retail operations from a Push to a Pull process.

The most exciting part of the visit was seeing the Kiva robots in action. These robots are commissioned to fulfill the end customer orders for Office Depot, which are typically split case orders. The Kiva robots come in handy right from the inbound order station to the intermediate picking station and finally to the shipping station.  The Kiva robots are designed and programmed to bring the inventory to the picking stations where the associates can pick the appropriate items to fulfill the order. The robots move based on Cartesian co-ordinates and recognize their relative positions based on Bar code stickers on the floor, which they capture using a camera. They navigate to different parts of the floor and identify the target inventory to be fetched and bring them to the picking station. They are equipped with sensors and are programmed to avoid collisions. When the inventory rack arrives at the picking station, the associate is guided by a laser and a display picture as to which product (SKU) to pick. Once the pick is confirmed, the Kiva robot moves the rack back to the original position and a next one takes its place at the station. The average time for a Kiva robot to fetch a product to the picking station is 14.4 seconds, and they definitely did seem to meet that tirelessly. Once, an order is fulfilled, the robots move the order boxes to the shipping area, where they are sealed and then sent to the sorting station, which directs these cartons to the correct loading deck. Most of us were amazed at the efficiency of these robots and that they were constantly optimizing the location of the inventory based on repeat requests for products. This meant that fast moving products were brought closer to the picking stations while the rarely demanded product moved away from the picking stations.  This was a tour that we all enjoyed and one that has enriched our knowledge, tying MBA class concepts to the real world.

Please click on the link below to see a video of these robots in action:

http://db.tt/Or1Bvcp (Courtesy: WeiCai Li)

-Viswanathan Adinarayanan,

MBA Class of 2012


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On Friday, September 24th, the Supply Chain Association went to Auntie Anne’s in Lancaster, PA for our first trip of the year. Our tour consisted of two parts. We first stopped at the manufacturing facility where the dough is mixed and the pretzels are rolled. The plant managers walked us through the process of making Auntie Anne’s pretzels from start to finish. While we were there, the plant was busy making Pretzel Dogs. We were amazed to see how manual the entire process was. Almost everything is done by hand. We got to see all stages of the production from the blending, to the rolling and finally, the baking. One first year student, Damon Fisher, learned a lot from the plant tour. “I really enjoyed the up close view of Auntie Anne’s operations. It was nice to get an understanding of what the issues were from a procurement perspective and the fact that sometimes the whole line had to be shut down if certain supplies were not obtained in a timely manner. This is in alignment with Auntie Anne’s key differentiation of freshness. We wouldn’t have felt close to the operation if we’d only visited the headquarters office.”

We also learned that fundraising is a large part of Auntie Anne’s business. Most of the products that they make are frozen and shipped to students across the country to sell to their friends and neighbors to help make money for their school. Most of us were surprised by this, since we typically associate Auntie Anne’s with the concession stand in our local mall. Kolika Chatterjee, a first year student really enjoyed the trip. “Coming from the industry, I was familiar with (and excited to revisit) some of the nuances, but the details still amazed me. There’s so much about Auntie Anne’s though that I had no idea about going in—like the volume, the fund raising share, the labor intensive process etc. It was really helpful, mapping the SCM idea onto a moving system. Great job planning this…where to next?”
For the second half of the tour, we went to Auntie Anne’s corporate headquarters located in downtown Lancaster. We met Scot Crain, Chief Customer Officer, and as he walked us through the office he explained how Auntie Anne’s image has changed over the years as well as how the business has grown. It was interesting to see how the franchises have expanded since the 80’s. We were surprised to see the vast list of countries that have added Auntie Anne franchises since the company went international in 1995. We also enjoyed walking through the official Auntie Anne’s training center. The center consisted of a life size store set up with all the functioning parts. We learned that all new franchise owners have to come to the headquarters in Lancaster and go through a thorough training before they can open their own store. At the end of the tour, we were all given kits to make our own Auntie Anne’s pretzels at home. Chad Handley, another first year student, thought it was good to see real life concepts outside of the classroom. He also appreciated that the right people were there for both tours. They were able to give us a complete tour and answer all of our questions. All in all, the Supply Chain Association had a great time in Lancaster and we can’t wait for our next trip!


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The Center for Supply Chain Research (CSCR) sponsored the annual Spring Career Fair held on Feb 5th and 6th. More than 70 companies participated in the event, which was open to both graduate and undergraduate students. Due to the overwhelming response of participant companies, this was the first time that the Career Fair was held for two days. Recruiters from the top Supply-Chain companies in retail, pharmaceuticals, energy, healthcare, technology, logistics, aerospace and virtually every other sector held on-campus interviews. Some of the shortlisted candidates were invited by the companies to either interview at Penn State the following day or to visit their facilities for on-site interviews. Many Penn State alumni were also present as representatives of the visiting companies and shared their industry experiences with the current students. The Supply Chain Career Fair was a tremendous success in offering new career opportunities for supply chain practitioners and has continued to grow over the years.

Rohit Gurtu

MBA Class of 2009

Prior to Smeal, Rohit has worked for more than 15 years in the automotive industry. He has undertaken various roles in manufacturing, purchasing, and procurement with Maruti Suzuki, Honda Siel Cars, Delphi Automotive Systems, and Saud Bahwan Automotive, LLC.


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