Using Six Sigma to improve replenishment process in a direct selling company

Citation

Wei, C.-.-C. (2010), "Using Six Sigma to improve replenishment process in a direct selling company", Strategic Direction, Vol. 26 No. 8. https://doi.org/10.1108/sd.2010.05626had.010

Using Six Sigma to improve replenishment process in a direct selling company

Article Type: Abstracts From: Strategic Direction, Volume 26, Issue 8

Wei C.-C., Sheen G.-J., Tai C.-T. and Lee K.-L.Supply Chain Management: An International Journal (UK), 2010, Vol. 15 No 1, Start page: 3, No. of pages: 7

Purpose – proposes a Six Sigma project to improve the replenishment process in the logistic centre of Amway Taiwan Company. Design/methodology/approach – this study elucidates the define, measure, analyse, improve and control (DMAIC) methodology of Six Sigma, using qualitative and quantitative tools. Numerous improvement actions are implemented. A control plan is developed to sustain and enhance the performance of the replenishment process. Findings – the project has substantially benefited the logistic centre, including reducing replenishment frequency and urgent shipping rate, decreasing cost of transportation, lowering the inventory of service centres and shortening the replenishment planning time. Research limitations/implications – the methodology that is employed in this study can be adopted by the logistic centres of other direct companies. However, they can modify the detailed contents and tools according to their organizational conditions. Practical implications – this study demonstrates a project in which Six Sigma is adopted to improve the replenishment process of the logistic centre in Amway Taiwan. It describes how the project was specified, how the tools were employed in the different phases and how the improvement actions were implemented. In conclusion, the key benefits of, and experience gained from this project are emphasized. Originality/value – will be of interest to academic researchers and practical managers. The structured methodology of Six Sigma integrated logistic techniques was applied in a leading direct sales company. The project in the logistic centre of Amway Taiwan provides a good reference for other companies that plan to implement Six Sigma management.Article Type: Case studyISSN: 1359-8546Reference: 39AF421

Keywords: Direct selling, Distribution management, Six Sigma, Supply chain management