Question

In view of the sluggish sales in the year 2019, Panasonic continued to search for new business opportunities by securing new agency with growth potential.

b) If you hired as the organisation consultant, suggest a way to improve their current supply chain to suit in the Malaysia market (40 Marks)

Would really appreciate if you do not copy paste your answers from other sources and do use your own words and answer according to the marks requirement.

Answer 1

Panasonic was founded in 1918 as a lightbulb socket manufacturer and later it expanded in  rechargeable batteries, automotive and avionic systems, as well as home renovation and construction. Over the years it has made itself a daily housegold name with good market reputation. Due to covid hit and losses in 2019 Panasonic was searching for new agnecy with growth potential but did not come up with anything concrete. The covid has challanged businesses to think of new ideas in all demains, also in supply chain management. It is important to change not only the manufacturing techniques but also procurement and supply methods worldwide. As an organisational consultant some improvement suggestions i would give will be-

1.Sourcing: It is important for panasonic to assess critical raw material availability or shortage and map it to high-value products and revenue streams. Identifying supply-side capacity constraints and quantity/price volatility emerges as a key focus area. In addition, panasonic need to evaluate existing contingency plans, and review contract agreements for allowable variation clauses that will highlight possible risks to address. These reviews would also help identify possible headroom for better managing cash-flows and renegotiating select contracts for better terms.

2.Supplier risk assessment: Panasonic should immediately identify their key/top suppliers as well as understanding/assessing their risks and ability to meet supply requirements. With the surge in demand for essentials, businesses should understand their supplier’s ability to supply materials with the right quality standards and timeliness. This assessment should include suppliers of materials as well as services that may affect the speed/viability of their operations. This will give a reality check and reliability clearance.

3. Monitoring inventory and the flow of goods: Panasonic should also try and gain visibility on the supplier’s end–supplier production schedules, shipment details, etc. to understand and foresee any material flow disruption situations beforehand. Investing in a technology-driven dashboard which provides real-time information via an app., could be a good option for retailers to explore. Ensuring smooth material handling, along with adequate manpower availability, is another area that needs to be reviewed and plugged. The process shouls be smooth and effective.

4. Delivering to the last mile: Panasonic should review the locations of Delivery Centres and distributors to compute risks by geography. Conducting an analysis on warehouse and front-end processing capacity along with its impact would reveal potential stress hotspots that need to be fixed.

5.Shift to ‘safe retailing’: COVID-19 has driven customers to prioritise health and supply chain safety over cost and convenience. Consumers today are more willing to buy from companies that are taking visible steps to curb the spread of the virus within their scope of operations, and beyond. There is a definite requirement for panasonic to realign their operations in ways that provide minimal touchpoints.

These are some pointers, you can think of more to make the process more safe, smooth, hassle free, innovative and especially with least possible cost.