exercise 8

Although Allen Flavors does not typically have large projects in regard to the daily function of the company, you can consider the development to manufacturing process a project. A number of steps are taken to go from initial idea to final product. The process begins with the customer’s ideas and meeting with the sales team and developers. It then continues from there into ‘sample projects’. At this time a retainer fee is given to Allen Flavors for the lab work done to develop the final product. This is when the lab gets to work and sends samples to the customer. The customer then approves the sample and gets a purchase order in to the sales department and production. Batches are pulled from the system and the items are set into the production schedule. If ingredients are missing, the purchasing agent will source the material. When the items are complete, the product is paid for and then shipped to the customer’s bottler. In the mean time, they coordinate bottles, labels, FDA approval, production at the bottlers, etc. The initial order is a long process and there are a number of tasks that take place to achieve it. Allen Flavors does not use Gantt charts. Because the main part of the business is produced in batches, which is one process, it is not necessary. I actually would not recommend an adjustment to the process. The customers seem to be happy with the way the initial orders are handled and I am not sure changing the process would be helpful.

exercise 7 supply chain management

Allen Flavors usually acts as the second tier supplier. The company, specifically the purchasing agent, source raw materials such as vitamins, teas, fruit concentrates, and chemicals from other suppliers and growers. These are used in manufacturing and blending at Allen Flavors’ plant. Allen Flavors’ circumstances are unique as its path to the final customer may vary with each of their customers. Some customers are distributors or wholesale suppliers. Some customers sell directly to the consumer such as a number of coffee flavor customers. This would mean, the material is going from the supplier to the retail facility where it is added into their product and sold to the consumer. In most cases, the blended vitamins and flavors leave Allen Flavors and ship to the co-packer’s warehouse. From there they usually go directly to the retail facility or a warehouse waiting to be ordered.
The performance of Allen Flavors as far as quickly getting material out to their customers also varies. Some items are make to stock, although there are probably only about 300 items out of thousands that are make to stock. The standard lead time from Allen Flavors to bottling warehouses is 14 days plus shipping. This may also vary depending on the availability of raw materials, but for the most part this lead time is feasible. Regarding ‘delivery’, Allen Flavors is probably on time 95% of the time. As mentioned the lead time is 14 days plus shipping. Many customers do not allow for the full lead time when they are in a rush for product. Their requests are always considered, but not always possible. Flexibility once the order is placed is not always possible. Once the product has been run, it is usually not possible to increase or decrease the order. The production schedule is set a week in advance and must be adjusted to squeeze in an extra batch when an order is increased. Allen Flavors always tries to accommodate these requests however. Again time management, especially regarding the shelf life on inventory is carefully monitored by the inventory control manager. Cost is also carefully monitored by the purchasing agent and vice president of technical services.
Allen Flavors would probably benefit from process simplification. As it has grown, many customers have different paths followed regarding the supply chain. There are probably a number of ways this process can by simplified.