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

Selected company - Hindustan Unilever Limited FMCG company

Inventory Replenishment System Application Criteria:

1. Inventory and Purpose of Inventory Management:- In this business , the management of the inventory determines the percentage of goods produced. The business uses inventory control to supply network within a plant for the further phase which is the production path and storage materials. The aim is to accomplish the demand-driven inventory management proportionality.

2. Integration of Inventory and Supply Chain Management:- It also assists in reducing inventories. From which the inventory management incorporates the market and predicts the market. The only way to determine the proper management of inventory and its limitations on a commodity basis is to incorporate the market forecasted into the managed inventory.

3. Inventory and Quality Management:- Companies aim to achieve success by economies of scale by collectively producing two or more goods at the factory.

4. Inventory Control Systems:- This control systems are the company's issues that determine how much order is to be fulfilled at any moment for the production of the goods. This problem can be managed using techniques which are mathematical for optimal control and optimization of the network.

Manufacturing and Service Cycle Application Criteria:

1. Strategic Importance of Product and Service Design:- It is important for Hindustan Unilever Ltd. to interpret the consumer demands, create new products, formulate technology, identify current products and construct prototypes for strategic product value and service design.

2. Importance of Design Strategy factors:- For Hindustan Unilever, design strategy is important because of social and demographic factors, environment, expense, product availability.

3. Importance of Standardization:- Standardization is essential in the FMCG sector, such that goods are available to consumers quickly, the production costs are smaller, the time to train staff with costs and interchangeable components.

4. Importance of Legal, Ethical and Environment Issues in Product and Service Design:- This is necessary for the company to assume risk responsibility and to uphold ethical practices for harm to the brand's image. In addition these environmental concerns are regulated in the business.

Material Management Functions Application Criteria:

1. Strategic Importance of Materials Management:- The company's competitive value to inventory management is that it supports in-store monitoring with certain correct handling, stock inspection, merchandise acquired control, reducing obsolescence, and emphasizing surplus product.

2. Activities Involved in Materials Management:- Hindustan Unilever Ltd. is engaged in material handling operations such as procurement, product preparation, purchasing, transportation, quality monitoring, material delivery, and material transport.

3. Intermodal and Multimodal Transportation:- By these types of transport, the transportation of goods in the container that inter-model or use two modes of carriers during loading period is used and the form that is technically responsible, the carrier or operator or MTO arrangement is multimodal transport.

4. ERP - – Importance and Limitations:- Enterprise management planning programs automate business operations, provide reliable and timely access to information, exchange information among the company's elements, minimize expenses and legal time, and enhance ERP and save money by reducing expenses in the company's business 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:- This is the method that each firm adopts in order to set the quantity and timing for delivering sales with the goal of aligning plans. It allows the company achieve improve cash flow, brings in higher income, and avoids fraud. Its drawbacks are high costs, often low productivity and strategy planning time consuming. It can also result in product failure or injury, if not properly prepared.

2. Inventory Control – Definitions, Objectives and Activities:- It is the system that is concerned within reasonable limits and at a fixed level with stock of the element. It is used to hold spending at a point that is the lowest and incompatible with operating requirements. This is also used for transporting raw material and semi-furnished goods. It also gains from discounts on sales in bulk and in full volumes. Its operations are policy development, system management , safety stock decision and lead time.

3. Dependent and Independent Demand:- Dependent demand in the business applies to subassemblies and component parts such as computer microchips, while individual demand is for competitive individual goods such as computers or bicycles.

4. Product and Service Design and Manufacturing Standardization:- The product and service design in Hindustan Unilever Limited refers to the whole phase of designing a product or service for its possible future and involves the shape and function of the product.

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.