Course 3 Case Work - How Kimberly-Clark Keeps Client Costco in Diapers
Senjaya
Course 3 Case Work - How Kimberly-Clark Keeps Client Costco in Diapers
Questions
1. In a vendor managed inventory situation, suppliers must be sure that customer inventory levels of the products they supply never run out. Explain how it is possible for the supplier to meet customer requirements and still reduce the level of inventory that they carry in their warehouse.
2. Thinking of the future, are there any ways for Costco and Kimberly-Clark to improve this situation? Individually? Together?
3. List and briefly discuss the advantages of supply chain management identified within this case.
4. Briefly debate the issue of handling logistics needs in-house versus using external sources. Are there more advantages versus disadvantages for one method over the other as the organization grows larger?
5. What other types of business partnerships can be used to improve supply chain performance?
Answer:
1. VMI
When we discuss about Vendor Managed Inventory, we will remember in Strategic alliances that we could do instead of to perform all of the key business functions in-house that may not always be effective. Steps must be taken so that the function is performed by the appropriate firm. Strategic alliances typically lead to long-term strategic benefits for both partners. One of the most important types of Strategic Alliance is Retailer-supplier partnership, as follow: Retailer-supplier partnership (RSP) will lead us to know that suppliers have a greater knowledge of their lead times and production capacities than retailers, and as margins get tighter and customer satisfaction becomes even more important, it makes sense to create cooperative efforts between suppliers and retailers in order to leverage the knowledge of both parties, VMI is one of the best practices in this world, and also in SCOR (P1, P2, P4, S1.1, S2.1, S3.3, ES.7, D1, D1.5, D1.6, D2.5, D2.6, D3.5, D3.6) as the supplier takes responsibility for the operational management of the inventory within
Course 3 Case Work - How Kimberly-Clark Keeps Client Costco in Diapers
Questions
1. In a vendor managed inventory situation, suppliers must be sure that customer inventory levels of the products they supply never run out. Explain how it is possible for the supplier to meet customer requirements and still reduce the level of inventory that they carry in their warehouse.
2. Thinking of the future, are there any ways for Costco and Kimberly-Clark to improve this situation? Individually? Together?
3. List and briefly discuss the advantages of supply chain management identified within this case.
4. Briefly debate the issue of handling logistics needs in-house versus using external sources. Are there more advantages versus disadvantages for one method over the other as the organization grows larger?
5. What other types of business partnerships can be used to improve supply chain performance?
Answer:
1. VMI
When we discuss about Vendor Managed Inventory, we will remember in Strategic alliances that we could do instead of to perform all of the key business functions in-house that may not always be effective. Steps must be taken so that the function is performed by the appropriate firm. Strategic alliances typically lead to long-term strategic benefits for both partners. One of the most important types of Strategic Alliance is Retailer-supplier partnership, as follow: Retailer-supplier partnership (RSP) will lead us to know that suppliers have a greater knowledge of their lead times and production capacities than retailers, and as margins get tighter and customer satisfaction becomes even more important, it makes sense to create cooperative efforts between suppliers and retailers in order to leverage the knowledge of both parties, VMI is one of the best practices in this world, and also in SCOR (P1, P2, P4, S1.1, S2.1, S3.3, ES.7, D1, D1.5, D1.6, D2.5, D2.6, D3.5, D3.6) as the supplier takes responsibility for the operational management of the inventory within