Presented by:Lama KhouryNathalie Estephan NehmeRana NajmRania JaberJalal Abdallah

The land of magic • The Walt Disney Company was funded in 1922.

• World leader in family entertainment & operating on a multinational level.

• The first purpose of the studio at the time was to produce animated films.

• Then it had gone from just producing animated cartoons to a successful media company reaching people through several different mediums.

• The largest licensor of manufactured goods in the world, with products ranging from fine furniture to plush toys that bear the Disney name

Disney World• The world’s largest amusement park operator came from the vision of

Walt Disney bringing his characters such as Mickey Mouse to come to life.

• Runs vast theme parks and resorts that serve tens of thousands of Guests daily on three continents.

• The first Walt Disney theme park and resorts was originated in Anaheim California on 1955. Today, it encompasses of eleven theme parks operating in five different countries on three continents.

• Disney World is comprised of 4 different Parks with each having their own personality with different attractions and entertainment.

• You will find Various attraction and rides, characters and parades, Nightlife and entertainment , restaurant and dining.

• Disney’s value chain is comprised of four primary segments:– media networks– parks and resorts– studio entertainment– consumer products

• Each one of its value chain operates as its own company with their own separate management team.

• Each also has its own Marketing, research, and sales function.

• Disney’s management success can be visualized as a vast array’s of hierarchy segments.

• Is diverse and substantial (To get things right, they take many different approaches. )

Core Competencies• Employee satisfaction and retention, superior customer value and

employee empowerment.

• "You're as strong as your weakest link," said Kimbrell [business programs facilitator for the Disney Institute]. "We (Disney) learned from listening to the front line.” The key to learning from employees is creating an environment that contributes to information sharing, he said.

• Disney’s ability to manage large crowds of people.

• Its ability to diversify enables them to survive through multiple recessions making them one of the world’s most robust entertainment companies

Overview of Key Portions of the Disney Supply Chain

• Disney BU supply chains depend on different core processes and drivers to respond to differing customer and guest requirements

• Cursory review shows sizeable assets are deployed to support Disney North American merchandise supply chain activities

– More than 20 warehouses owned or operating on behalf of Disney– More than 900 retail locations across the stores, parks, and resorts

• European operations depend on significantly higher numbers of warehouses and third-party providers than seen in North America

• The majority of costs and assets are in Disney Consumer Products, Parks and Resorts, and Buena Vista Home Entertainment

• An overview of activities and suppliers across BUs indicate that there are more opportunities for cross-BU synergy than are currently in operation

– Most supply chain activities are managed independently– Many contracts are negotiated and managed separately– Internal warehousing is underutilized,

Supply Chain • The Walt Disney Company has a large portfolio of intellectual property that

the company manages through relationships with a range of licensees, vendors and retailers. Products bearing Disney characters, stories, songs and brand names include a wide range of categories such as apparel, footwear, toys, stationery, published materials, food, CDs and DVDs, home furnishings and consumer electronics, among others. Disney has granted rights to more than 8,000 businesses to use our intellectual property in the manufacture of such products. Some of these licensees are large, even global, companies and retailers, while many others are medium-sized and small companies located around the world.

• The majority of Disney-branded products are manufactured by licensees, managed by Disney Consumer Products (DCP). Studio Entertainment, Parks and Resorts, Media Networks and Disney Internet Media Group also source Disney merchandise for retail sale or for promotional purposes through licensee and vendor relationships.

Supply Chain Characteristics

– Significant international sources of supply– On-site warehousing support for merchandise, food, and general supplies– Strategic outsourcing relationships in place– Hundreds of unique store layouts in each resort– Tens of thousands of active SKUs– SKU management driven by guest service and “The Show”– Daily replenishment of “A” items

Major BU initiatives

– Holistic approach to supply chain management– Electronic integration of supply base– Total cost approach to sourcing– Lead-time analysis and reduction– Supply chain system rationalization– Facility utilization

Customer Response:• Customer Service Policy• Customer Satisfaction• Order Entry• Order Processing• Invoicing and Collections

Inventory Planning & Mgmt. :• Forecasting• Order Qty. Engineering• Fill Rate Planning• Control Policy• Deployment

Supply Transportation Operations• Supplier Service Policy• Sourcing• Supplier Integration• Purchase Order Processing• Buying and Payment

Transportation:• Network Design• Shipment Management• Fleet Container Management• Carrier Management• Freight Management

DC Operations:• Receiving• Putaway• Storage• Order Picking• Shipping

DISNEY’s Supply Chain Management• Customer Response

establishes the appropriate logistics response to customer demand, as agreed in the Customer Service Policy

• Inventory Planning & Management determines and maintains the lowest level of inventory to support the Customer Service Policy

• Sourcing & Procurement builds the inventory to meet Customer Service Policy

• Logistics & Trade Management (Transportation)links the sources of supply with the customer

• DC Operations (Warehousing)stores the inventory that cannot be immediately and profitably consumed by the customer

“Show Business” Supply Chain

• Study the demand and set the appropriate customer service.

• Determine demand through forecasting and market trends.

• Measure performance through feedbacks and guest satisfaction measures.

I - Customer Response: Focus first on the guest

• Planning mixture:– Life cycle management– Optimization “making what works, work for us”

• Location optimization• Develop in-house advanced business solutions

II – Inventory Management: Balancing guest, show, and profitability

• A mix of supplier are used as a sourcing strategy which provides flexibility to respond to changing business demands.(domestic manufacturer – domestic importer with domestic pricing - domestic importer with import pricing – direct importer)

• Use developed tools to quantify the total delivered cost.

• A supplier scorecard is utilized to formally communicate performance.

III – Sourcing: combination of sourcing strategy to manage global volume and costs.

• Continuous planning and visibility• Automate information flow• Consolidate loads (moves)• Select modes and carriers• Track and trace• Audit / settle

IV – Logistics: maximize fulfillment service, minimize logistics costs.

• “world’s largest stockrooms”:• 50% of the warehoused SKUs are carried by

less than 1% of the serviced locations.

• 60% of the warehoused SKUs have a life span less than 1 year

V – Distribution center Operations :

WE CAN PUT THIS AS RECOMMENDATION – HOW TO IMPROVE DISNEY’S SCM

WE COULD PUT THE BELOW POINT IN THE CONCLUSION SLIDE

• Disney's outlook on planning, centers on their commitment to family entertainment, customer satisfaction, quality, diversification of markets, innovation, management reorganization and corporate restructuring when necessary.

THANK YOU