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Introduction
Large global company: Financial
services & Document Processing
Products marketed in over 130
countries
Direct sales force: 15,000 (dealers,
distributors & agents
30, 000 technicians employed for
after sales services.
22 manufacturing facilities in
Europe, N & S America and in Far
East.
Its “Ready for Real Business “
campaign emphasizes that Xerox
will drive “Non Core Business
Processes” allowing its clients to
focus only on ‘ real ’ business
operations
Xerox –at a glance
Founded in 1906, Rochester, NY, US.
headquartered in Norwalk, Connecticut (moved from
Stamford, Connecticut in October 2007..
PARC founded in 1970.
Incorporated in 2002 as an independent centre.
Fuji Xerox was established in 1962 as a 50:50
partnership with Rank Xerox.
PRESENT
Key people -Ursula Burns, CEO
-Anne M. Mulcahy, Chairman
Employees 53,600 (2009)
9,400+ patents(2009)
$880 million spent on R&D (2009)
Xerox locations-160 countries.
On September 28, 2009, Xerox announced the intended
acquisition of Affiliated Computer Services for $6.4
billion.
Organisat
Xerox- Strategy to Win
Execute on growth
Capitalize on market opportunities
initiatives
Expand
Leverage distribution investment
distribution
Secure future
Build on Xerox heritage of
Technology innovation
leadership
GOALS
Customer satisfaction
Return on assets
Market Share
Employee Satisfaction
Industries it
serves
Energy
Financial Services
Government
Health Care
Higher Education
High Tech and
Communications
Insurance
Manufacturing
Retail and Consumer Products
Shipping and Logistics
Transportation
Travel
Inventory Performance
30
25
Inventory Performance
20
15
10
Average Firms
Route Map
Logistics customer
satisfaction
20% inventory
100 %
10%
7%
?
1989 1990 1991 1992 1993
Change Agents
Strategic Partnership- ‘Close the Loop’
•In late 2010, Xerox partnered with Close the Loop, one of the world's largest
recyclers of imaging supplies that specializes in cartridge returns.
•Close the Loop collects U.S. customers’ returns and manages the recycling on
behalf of Xerox using a patented material separation process that recovers used
materials for reuse in new printer cartridges and other products.
•These processes enable virtually all material returned through the program to be
beneficially managed.
•This partnership both simplifies the returns process for customers and also allows
more of the return stream to be recycled into useful products.
Features of Closed loop supply chain
• Closed-loop supply chain: supply chains that are designed to consider the
processes required for returns of products, in addition to the traditional
forward processes.
• These additional processes (also referred to as the reverse supply chain)
are:
• Product acquisition: the task of retrieving the used product. This is a key
to creating a profitable closed-loop supply chain.
• Reverse logistics: the process of planning, implementing, and controlling
the efficient, effective inbound flow and storage of secondary goods and
related information opposite to the traditional supply chain direction for
the purpose of recovering value or proper disposal.
• Test, sort and disposition: testing and sorting the returns and disposition
refers to how a product is disposed of, e.g. sold to a broker, sold to an
outlet, sent to landfill, etc.
– Refurbish: similar to reconditioning but requires more work to repair the
product.
– Selling and redistribution.
A closed loop supply chain of
Xerox
New Assets
Acquire
Recovery
and repair
New
1.2 billion $ Build
Logistics Remain
Asset strip cost
Distribute
Removal
Deliver
A closed loop supply chain of
Xerox
New Assets
Acquire
Recovery
and repair
New
1.2 billion $ Build
Logistics Remain
Asset strip cost
Distribute
Removal
Deliver
Manufacturing & Supply
• The company’s largest manufacturing site is in Webster, NY, where they
produce fusers, photoreceptors, Xerox iGen and Nuvera®
systems, components, consumables and other products.
• They also acquire products from various third parties in order to increase
the breadth of product portfolio and meet channel requirements.
Inventory management and logistics
process vision
Customer satisfaction is the key
Recycling is key
Order Satisfaction/ Delivery Management
One Company
Service level- driven stocking
Demand- driven forecasting
Logistics & Physical
Distribution Planning
Xerox customers have three options for returning spent consumables to Xerox for
reuse and recycling at no charge:
Individual unit
Eco Box
returns for Pallet returns.
program
sale
– Material recycling. Any remaining portion of a machine after the above processes have
been followed is stripped of any recyclable material (e.g., plastics, copper wire) and
material requiring special disposal services, such as PWBs, batteries and lamps. The
remainder of the machine is then crushed and sent to a scrap metal reclaim facility.
Waste Prevention & Management
Waste Diverted from Landfills through
Remanufacture and Parts Reuse
E-Waste
Process flows
comprises of:
•Forward Flow
•Reverse Flow
•Remanufactured
Flows
Product recovery process
• The product recovery process is as follows:
1) Products are collected from Xerox customers and returned to one of
centralized logistic return centers.
• Reverse flows represent the movement of goods from the end-user
to Xerox for disposition and reuse.
Improved supply chain reliability and responsiveness, enabling Xerox to maintain its
service commitments to customers.
• Xerox Europe reported a total of 116,308 copiers returned in 1999. The majority of these
units were returned from lease agreements.
• The quality of these returns is difficult to predict, because not only are copiers complex but
the condition of a photocopier is dependent on the intensity of its use and its age.
• Through the use of the nominal grading system , Xerox is able to determine the most
economic use of a copier—after the condition of the copier has been determined.
• The use of Signature Analysis profiles aid the examiner in determining the reusability of a
component.
• The complexity of the remanufacturing processes is directly related to not only the number
of part and components, but also the number of operations required to return each
component to usable status..
Issues related to Reassemble-to-Order
Process
• Xerox tracks leases to enable the forecasting of the rate of product
returns.
• Matching return rates and sales rates is difficult. The volume of returns in
the case of value-added remanufacturing is significantly less than for
container reuse.
• Xerox Europe does not make remanufactured copiers to stock and have chosen to reassemble the required
components and parts per each customer order.
• Managers in a Reassemble-to-Order (RATO) environment have greater information needs, since the
products, testing, and remanufacturing processes are significantly more complex than in a
Remanufacture-to-Stock (RMTS) environment.
• Further, these products are more expensive; therefore units awaiting disposition and inventoried
components may represent a sizable investment. There may be multiple economic uses for a
remanufactured component (e.g. spare or on a remanufactured unit), so inventory planning must take
this into account.
• The management of remanufacturing product and components must take into account the life cycle of the
product in the field (likely demand for spare parts and consumables) and the market life cycle (likely
demand for product in the future).
• A successful production planning system must be capable of coping with the inherent complexities in this
type of an environment. A disposal policy to balance supply and demand is an obvious concern.
• Xerox continues to expand its consumable return programs. Most recently, a new program called the
Green World Alliance is expected to increase worldwide return rates for retail and office products’
supplies.
• The anticipated growth in product returns makes the development of formal planning systems crucial to
ensure that product reuse programs continue to be value-added activities for Xerox.
Key concerns
Design and implement a supply chain solution that
minimizes the impact of significant operational constraints