Logistics and the Supply Chain Management

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Contents
Introduction.................................................................................................................................................3
Interface.......................................................................................................................................................3
Production...............................................................................................................................................4
Marketing................................................................................................................................................4
Accounting..............................................................................................................................................5
Finance....................................................................................................................................................5
Order Cycle.................................................................................................................................................6
Inventory Management................................................................................................................................8
Conclusion...................................................................................................................................................9
References.................................................................................................................................................11
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Introduction
Logistics Management is identified as one of the most advanced topics which is helpful in
providing assistance for improvement in the supply chain. With the help of logistics not only the
larger organizations, but the smallest organizations are also getting beneficial improvement as
well. Logistics Management is identified as one of the advanced term to face the competitive
environment. The concept of logistics is introduced to maintain the continuous flow and
maintenance of the pre-defined steps identified in the transfer of material from one place to
another.
The Crayola industry is first initiated by Edward Binny and Harold Smith in year 1885.From its
earliest days, Crayola is recognized as one of the specific team players in the field of color
industry. The Crayola is continually adapting and taking forward for specific strategies for
making innovative color combination. The organization believes in technical innovation,
consumer satisfaction and valued products. The organization is also famous for implementing the
concept of Go-Green and Corporate Social Responsibility in the organization.
The report mainly covers various sections which are named as the interface in which the
production, marketing, finance and accounting sections are included. Apart from this, the Order
Delivery and inventory management are helpful in designing the order and inventory related to
the Crayola products. The report has also covered with suitable recommendations and conclusion
to support the additional improvement.
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Interface
The interface phase is identified as one of the most specific phases in production related to any
organization. To provide assistance in understanding this phase, some of the specific steps are
mentioned on a wider scale. Being the logistics manager, it is essential to highlight the major
aspects related to the organization (Crayola, LLC, 2014).
Production
The production indicates specific production of crayons in different colors and designs. As the
organization trusts on the green and recycling of the products, so by this the wide range of
products gets manufacture on an organizational level. The large amount of products and services
are designed for the customers. These are considered as crayons and markers which are
manufactured with solar power, markers made with recycled plastics, colored pencils made with
specific reforested wood and other different type of products with natural resources. All these
products hold the great support and services on a definite level. To manage specific production
cycle, the Crayola also looks forward for the organized and supportive system. There are some
purchase commitment guidelines which may be helpful in making the purchasing easier and
comfortable. The capacity planning and purchasing with the suppliers in manufacturing will be
helpful in throwing the light on the specific process related to the production management
(Hanner, 2016).
Marketing
The marketing is the other different aspects related to the organization. The Crayola possesses
the strong strategy for kicking of the new venture in the current market. Through this market
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strategy and promotion of the new products in the market, the specific output can be originated.
There are various patterns and skills which can be used for promotion of marketing. These are
defined below in the form of different paragraphs.
The first method is the use of social media through which upcoming products can be designed
properly. Through these methods of marketing, it could become easier to promote products in a
definite manner. The Facebook can be able to provide a facility for the kids so that they can get
attracted more. The two facilities are “Jazz up photos with LIV Crayola “and the second one is
“Design your own Crayola design”. By this, the consumers can get attracted more towards
services and marketing product design of Crayola (Chen, 2015).
The second major step design for the marketing is targeting teen girls for making products more
live and high selling. To increase the sale of the product, it is essential to come up with
innovative ideas for teen girls. The advertisements are designed in such a manner, so that the
maximum usage of crayons can be managed easily. The domain of marketing plays most
peculiar role in the improvement of the products and logistics.
Accounting
According to Tedd Minnnini, specific design and coloring scheme of the crayon colors is
established with the help of definite material and services. These services can be managed
through the proper accounting system. The accounting system of the organization is quite
organized and responsive. To manage the logistics in a definite direction, it is essential to
organize the accounting system related to the organization. The wide range of tools and services
are mentioned in the Crayola through which the accounts can be managed easily.
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Finance
Apart from accounting, there are various tools and services which are managed for finance
process. The financial management tools are identified at a definite level, so that it could become
easier to manage specific services. The division of the expenses and management of the
resources also includes some financial assistance. This may also be planned by the finance
department of the organization. Apart from this, the maintenance of logistics and inventory can
also be identified with the help of finance resources (Kennedy, 2012).
Order Cycle
Every organization possesses its specific order-cycle, by which the orders can be fulfilled. The
order cycle of Crayola shows variations while delivering a specific set of order. To make the
order perfect and to deliver it from one place to another, it is essential to look forward for the
specific production cycle. The production cycle indulges various steps which are explained
below:
The organization mainly started by Binney and Smith from the carbon black and now the
crayons get converted and recognized as an innovative achievement. There are various colors
and perfumes which make the quality of crayons most specific and organized. Apart from this,
the organization also offers colors in different shapes and sizes, through which it gets easier to
attract the young ones (Tindle, 2013).
The crayon colors are formed from paraffin wax which is delivered to the organization by the rail
corporation of the country. At the same time, the colors are soft as well as rigid. To provide a
specific shape and essence to color to the different perfumes and natural colors is required for
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making the colors more effective and bright in an organic way. To provide assistance for
delivery of colors to different parts of America, there are various modes of delivery identified.
The delivery can be done either by managing the logistics or identifying online fulfillment of the
requirement raise by the consumers (Pyzdek, 2015).
The order cycle for the organization can be completed either directly from the organization or the
vendors can be able to provide the surplus amount of colorful packages to the users. From
Nursery to K-12, a wide range of the color support system is provided which may be helpful in
developing most specific coloring concept to a wider level. This coloring concept not only
generates a specific coloring scheme, but may also be helpful in supporting the kids in eco-
friendly manner (Crayola, LLC, 2014).
For managing delivery of crayons, the organization also introduced the concept of Crayola Color
cycles. The Crayola color cycle is the concept by which the schools from North America
introduced the process of eco-friendly colors through which maximum utilization of color can be
done. The Crayola color cycle is identified as the most innovative process in the profile of
crayons making organization. Through this color-making cycle, the kids are getting the surplus
amount of services related to the improvement and development (Ostrander, 2011).
Apart from this, for managing the order cycle the organization has their outlets and personal
kiosks through which supply chain and logistics can be managed at a definite level. In fact, to
fulfill the requirement of the consumers on an international level, the order delivery cycle is
framed and organized in an improved and well structured manner.
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Inventory Management
Inventory management is considered as one of the major steps which may be helpful in
managing the products on an optimum level (The University of Western Ontario, 2003).. When
there is a shortage of products and the demand get increases for the specific product at that time,
an effective process of inventory management system is essentially required then. As, Crayola is
identified as one of the known brand names in providing the most required products. So, it is
essential for the organization to maintain stock for completing the demands of the schools as
well as current market.
Crayola also maintains raw material on a larger level. To manage the raw material, like paraffin
wax, cartons, ink, clay, labels and plastic components, the warehouse and storage system is
highly required. The separate storage and maintenance system is required for managing the raw
material. Through this, the production is not affected at an initial level. The wide range of raw
material and storage system is required for managing the continuous flow of the crayon making
organization.
Apart from this, on an average Crayola provides customers with 1500 products which nearly
required 110$ for security and management. Similarly, the customers of different areas also
wants same stock at the same time. During this phase, it becomes quite difficult for the
organization to fulfill the demands of consumers. For making a comfort level high among the
customers, the Crayola makes arrangement for a year, which costs very high. The average
inventory value for the corolla is nearly 110 million dollars and according to division, it is 25%.
So, it is essential for Crayola to look forward to the more advanced approach. The wide range of
duplicate capacities is required for the Crayola on an initial level. These duplicate capacities run
in the form of third party, which will be helpful in providing the suitable guiding process.
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Though the organization is already successful in providing the best output related to the
production and manufacturing (Xu, Xu, & Liu, 2014). But, to improve an existing scenario, some
recommendations are defined at a wider level. These recommendations are identified as one of
the source of improvement and specific services. The first recommendation is the management of
logistics in a suitable manner. The flow should be managed in the correct direction, so that the
maximum amount of products can be supplied easily. Secondly, the organizations have to come
up with few innovative approaches, so that the maximum utilization of the products can be done.
It is also recommended that the inventory management system also comes up with the
recognized identity. This will be helpful in providing proper assistance and improvement in the
services.
The above explanation of the inventory management may be helpful in improving the existing
structure a lot (Cambridge, 2016)
Conclusion
The above piece of work is successful in delivering the logistics management process in Crayola.
Being the logistics manager, it is my moral responsibility to understand the basic approaches or
requirements related to the organization and then come with few innovative approaches. But,
simultaneously the role of effective logistics management is also essential in completing the
process of transfer of products from one place to another. The logistics management itself
covers a wide area in which different sub parts or sections are included. To manage the logistics,
different supporting aspects and process are required. As, Crayola is considered as one of the
famous organizations for making crayons, so it is essential for the organization to distribute
products on local as well as on an international level. In this scenario, the need of a strong
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logistics management system is realized. The logistics management system will be helpful in
providing the proper assistance in all major steps related to the logistics. While managing the
logistics, there are various issues which are closely observed. These issues are related to the
inventory, order cycle and many more (Crain & Abraham, 2008). To provide a specific set of
assistance, effective and recurring planning in Crayola is managed on a wider level. The
recommendation also plays a specific role in providing assistance. The areas for improvement
are also defined with the help of recommendations. So, it is essential to apply the innovative
approaches to achieve the definite type of target.
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References
Chen, J. (2015, March). Color Outside The Lines With These Crayola-Themed Dresses.
Retrieved from https://www.pastemagazine.com/articles/2015/03/color-outside-the-lines-
with-these-crayola-themed.html
Crain, D., & Abraham, S. (2008). Using value-chain analysis to discover customers’ strategic
needs. Emerald Group Publishing Limited. Retrieved from
http://s93063416.onlinehome.us/iloveaccounting/614/Crain-and-Abraham-2008.pdf
Crayola, LLC. (2014). What Crayola® Looks For In A Supplier. Retrieved from
https://www.crayola.com/support/~/media/80FBB7457B6D493A80ED4FE400674795.as
hx
Hanner, J. (2016). Case Study: Crayola - A Bright And Colorful Future With Park City Group.
Kennedy, S. (2012, July). Kraft colors outside the lines in partnership with Crayola. Retrieved
from http://www.dairyfoods.com/articles/88674-kraft-colors-outside-the-lines-in-
partnership-with-crayola
Ostrander, A. (2011). The expansion of a retail chain: An analysis of Walmart. Retrieved from
https://digital.library.unt.edu/ark:/67531/metadc68027/m2/1/high_res_d/thesis.pdf
Pyzdek, T. (2015, June). Seeing Excellence in Full Color With Crayola’s Quality Team: Lean
Six Sigma Makes a Difference! Retrieved from https://sixsigmatraining.com/leading-six-
sigma/seeing-excellence-in-full-color-with-crayolas-quality-team-lean-six-sigma-makes-
a-difference.html
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The University of Western Ontario. (2003). Supply chain management at Wal-Mart. IVEY.
Retrieved from https://profesores.ing.unab.cl/~gbadillo/archivos/cursos/management-
information-systems/Case%20Study%20/Wal-Mart%20Supply%20Chain.pdf
Tindle, K. (2013, January). Copy of Life Cycle - Crayola Crayons. Retrieved from
https://prezi.com/0k16udtsb-mn/copy-of-life-cycle-crayola-crayons/
Xu, L., Xu, Q., & Liu, X. (2014). Wal-Mart and Carrefour’s Supply Chain Management
Strategies in China. International Journal of Business and Management, 9(7), 1-7.
Retrieved from
http://www.ccsenet.org/journal/index.php/ijbm/article/viewFile/36002/21302
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