Classic Markets, Corp.
Supply Chain
by:
Stephanie Garner
Eric Brubaker
Robert Wilson
Neal Belcher
Tara Godfrey
Binney & Smith
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Parent company of Crayola
Founded in 1885
First box of crayons produced in1903
Production to date of crayons has exceeded 100
billion
Also owns Hallmark, Portfolio, Silly Putty and
Revell-Monogram.
Products by Crayola
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Crayons
Markers
Clay
Chalk
Paint
Colored Pencils
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Play-Doh
Water Colors
Stickers
Silly Putty
School Kits
Stamps
Supply Chain for
Classic Markets, Corp
Warehouse
Classic Markets,
Corp
Information Flow
Product Flow
Step 1: Crayola Factory
How Crayons are Made
STEP 1:Wax &
Pigment
Crayola Crayons are made
from two basic ingredients:
paraffin wax and pigment.
Heated tanks store the wax.
Pre-measured pigments
are added to the wax
and mixed.
STEP 2: Flat Bed
Molding
The paraffin wax and
powdered pigment
mixture are poured into
the crayon molds, filling
the molds from the tip
up. The wax mixture is
cooled using a water
cooling system.
STEP 3: Quality
Assurance
Each Crayola® Crayon
is inspected. Molded
crayons that do not pass
inspection are remelted
and remolded. Quality
crayons are fed into a
cylinder.
How Crayons are Made cont’d
STEP 4: Labeling
STEP 5: Packaging
Labels are then fed onto the
rotating cylinder while a white
roller presses the label against
the glue and the label wraps
around the crayon twice for
Crayola® Crayons are
packaged in different size
boxes and packages.
strength.
Warehouse
Classic
Markets, Corp
Crayola Factory Facts
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All Crayola products are produced at the Crayola Factory in
Easton, Pennsylvania.
Since the individual products i.e. crayons, markers, etc are packaged
at the factory the products are shipped to the warehouse
pre-packaged and remain at the warehouse until needed.
The Crayola warehouse that CMC uses is also located in Pennsylvania
so transportation from the factory to the warehouse is by full
truckload quantities.
From the warehouse to CMC is less than truckload quantities of mixed
products.
The lead time for orders placed by CMC is 1-2 weeks.
Warehouse
Step 2: The Crayola
Warehouse
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Classic
Markets, Corp
The Crayola warehouse ships to large retailers, such
as Wal-Mart, Sam’s Club, Target, etc.
The warehouse also ships directly to schools when the
schools deplete their reserves of Crayola products.
The warehouse also ships to companies, such as Sysco,
Warehouse
Step 3:
Classic Markets, Corp
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Classic
Markets, Corp
CMC supplies to Small Restaurant chains Nationwide, such
as Tony Roma’s, Spaghetti Factory, Garfield’s, etc.
CMC acts as a Representative for Crayola to school districts
nationwide. CMC sends samples to the schools that Crayola
does not have an account with.
CMC also acts as a Representative for food service supply
companies such as Sysco.
Classic Markets Office
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The CMC location consists of three offices, one conference room, a waiting
room, the copy room, the main inventory storage room , and the paint storage room.
The main inventory storage room is approximately 12,000 sq ft and is at capacity
85% of the time.
When the capacity is reached all excess inventory is stored in the main office.
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The staff consists of
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Carolyn Stiffler (the
owner), one full time
employee,and one part
time employee
Classic Markets Office
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A display case in the office
shows off all the products
Crayola offers or has offered
in the past, including promotional
paraphernalia and specialty
products no longer in production.
CMC Inventory Storage
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Crayon, Silly Putty, and Promotional
Kits storage
Est ROP: Crayons 8ct = 200, 16ct =
100, 64ct = 15 boxes
Silly Putty = 1/2 dozen eggs
Promotional Kits = 10
CMC Inventory Storage cont’d
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Colored Pencils, Modeling clay,
Scissors, and Markers storage.
Est ROP - Pencils = 60 boxes
Clay
= 5 buckets
Scissors= 10 pairs
Markers= 100 boxes
Paint Storage Room
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The different kinds of paint
Crayola produces requires its
own storage room
Freight Facts & Figures
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Freight Methods: Crayola uses a contracted ground carrier.
CMC uses UPS ground shipping
Freight charge from Crayola to CMC paid for by Binney &
Smith
Freight charge from CMC to customers is paid for by the
customer using standard commercial UPS rates and takes
between 3-5 days
Companies for which CMC is the Master Representative have
a $500 minimum order amount.
Throughput
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Crayola produces 3 billion crayons,540 million colored
pencils, 425 million markers, 90 million chalks, 6 million
silly putty eggs, and 1.5 million jars of paint per year.
CMC moves 1,000,000+ units per year (a unit is a packaged
product, not an individual item.)
That’s less than 1% of total volume for Crayola
CMC Distinguished Service Award
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In 1999 Classic Markets, Corp
received the Distinguished Service
Award for outstanding customer
service out of all Crayola distributors
and representatives in the United
States
Crayola Trivia
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Did you ever wonder how many crayons a kid
will use before age ten?
Do you know the most popular crayon color?