Designing a supply chain for a foreign Greenfield facility

Abstract

ABB Schweiz AG has experienced substantial growth in demand for the innovative energy management and conversion products designed and assembled by the Medium Voltage Automation Products Division. This demand has fully consumed the capacity in their assembly facilities worldwide and has driven the organization to initiate planning of a ten thousand square meter assembly facility in Lodz, Poland. This thesis focuses on the design and implementation of the supply chain for the new facility. By utilizing supply chain optimization concepts, the network of hundreds of suppliers, two warehouses, and multiple assembly and test locations has been optimized. This thesis details the application of theoretical models, such as the economic order quantity model, continuous review inventory policies and generalized power rule forecasting, in the development of inventory management guidelines for the Greenfield facility's supply chain. Additionally, the document details the practical challenges associated with implementation including customs clearance, business plan development, supplier involvement and packaging strategy.