Question

Select a multinational FMCG company and evaluate it on the following Supply Chain Management criteria’s:

Inventory Replenishment System Application Criteria:
1. Inventory and Purpose of Inventory Management.
2. Integration of Inventory and Supply Chain Management
3. Inventory and Quality Management.
4. Inventory Control Systems.

Manufacturing and Service Cycle Application Criteria:
1. Strategic Importance of Product and Service Design.
2. Importance of Design Strategy factors
3. Importance of Standardization.
4. Importance of Legal, Ethical and Environment Issues in Product and Service Design.

Material Management Functions Application Criteria:
1. Strategic Importance of Materials Management.
2. Activities Involved in Materials Management
3. Intermodal and Multimodal Transportation.
4. ERP - – Importance and Limitations.

Inventory Planning Application Criteria:
1. Inventory Planning – Advantages and Disadvantages.
2. Inventory Control – Definitions, Objectives and Activities
3. Dependent and Independent Demand.
4. Product and Service Design and Manufacturing Standardization.

Answer 1

I will select Hindustan Unilever Limited FMCG company for the following evaluation of supply chain management criteria.

Inventory Replenishment System application criteria:

1)Inventory and purpose of inventory management.

Here for this company Inventory management is specifying the percent of goods which are stocked. The company uses inventory management to supply network within a facility for the further process which is the course of production and materials which are stocked.

Its purpose is to fulfill the inventory proportionality of demand-driven inventory management.

2) Integration of inventory and supply chain management.

It also helps in inventory minimization. By which it integrates demand and forecast the demand by inventory management.

integrating the demand forecasted into managed inventory is the only way that predicts the correct storage of inventory and its limits on a product basis.

3) Inventory and quality management

Companies attempt to gain success through economies of scope by achieving the production of two or more products in the facility jointly.

4) Inventory control systems

These control systems are the problems faced by the company that decides how much order is to be met for the demand of the products in each time. This problem can be controlled by using techniques that are mathematical of optimal control and network optimization.

Manufacturing and service cycle application Criteria :

1) The strategic importance of product and service design

It is important for Hindustan Unilever Ltd. for strategic product importance and service design to translate customer needs, developing new products, formulating quality, defining existing products, and constructing the prototypes.

2) The importance of design strategy

design strategy is important for Hindustan Unilever limited because of social and demographic factors, Economy, cost, availability of products.

3) Importance of standardization

standardization in the FMCG company is important so that products are available immediately to the customers, the design cost is less, time to train employees with cost, and for parts that are interchangeable.

4) importance of legal, ethical, and environmental issues in product and service design.

it is important in the company for liability of the product and maintaining ethical standards for damage to the reputation of the company.

Moreover with these issues related to the environment are regulated in the company.

Material management function application criteria



1) The strategic importance of materials management

The strategic importance of material management in the company is that it helps in-store control with many functions of proper storage, verifying stock, control of received material, minimizing obsolescence, and highlight unused Stock.

2) Activities involved in material management

The company Hindustan Unilever Ltd. is involved in activities of material management such as planning, inventory planning, purchasing, storing, controlling inventory, a supply of material, and transporting material.

3) Intermodal and multimodal transportation

By these modes of transportation, the movement of goods in the container which inter-model or using two modes of carriers is used during the time of shipping and the mode which is legally responsible, carrier or operator or MTO contracted is multimodal transport.

4) ERP -- Importance and limitations

Enterprise resource planning systems optimization of processes of business, they give accurate and timely access to information, they share information between components of the firm, they reduce costs and time of litigation and ERP improves and save time with the reduction of cost in the company activities.

Limitations of ERP systems in the company of Hindustan Unilever Ltd. are there these systems are difficult to use, installing ERP systems is costly, its success depends on the experience of the workforce and its benefits are not immediately presented with the software implementation.

Inventory planning application criteria

1) Inventory planning- Advantages and disadvantages

It is the process that every firm adopts to set the quantity as well as timing to produce sales with the aim of aligning plans. It helps in better cash flow in the organization, helps in higher profits, and prevents stealing. Its limitations are high cost, sometimes poor turnover, and time consumed in strategic planning. It may also lead to loss or damage to the inventory if not planned properly.

2) Inventory control- definitions, objectives, and activities.

It is the system that is concerned with the item's stock within safe limits and at a predetermined level. It is used to maintain investment at a level that is lowest and inconsistent with the requirements which are operational. It is also used to supply raw material and semi-furnished goods. It also avails discounts on bulk and maximum quantity purchases. Its activities are the formulation of policy, organizing structure, determining safety stock, and lead time.

3) Dependent and independent demand

In the company dependent demand is demand related to sub-assemblies and component parts such as microchips of computers, whereas independent demand is for demanding independent products, like computers or bicycles.

4) Product or service design and manufacturing standardization

In Hindustan Unilever limited, the product and service design refer to the whole process of engineering a product or service with its potential future which includes the product's form and function.

Manufacturing standardization means that standardization is manufactured in the company for material management. It means producing a variety of products in bulk from a minimum variety of tools or processes. By this, standards or units are established by which quality, value, performance, and quantity is measured and compared.