GLOBAL SUPPLY CHAIN MANAGEMENT

QUIZ 2 (10%)

Family Name, First Name: ……GURLAL SINGH…. thedastaan@icloud.com

Answer the following questions.

1. Describe the strategy of Whirlpool to clean up its supply chain.

Strategy named as Order Process is the first aspect of Whirlpool. Changes in process,
technology and inventory were made, and the systems were either replaced or integrated with
Maytag systems. In the nutshell, there was a need to improve the visibility with the supply
chain management to improve the inside working and coordination of the systems.
Secondly, Whirlpool strategically planned the warehouses and rationalised the facilities by
eliminating 100 buildings and built 10 regional distribution centres to have feasible and cheap
distribution system for wide coverage. Moreover, this resulted in savings of over $60 million.
Last but not the least, the forecasted the demand and streamlined it with the supply. This was
done by using demand planning models, and software to maintain the records and integrating
the same with upstream suppliers.

2. Explain how IBM helps companies to boost their supply chain agility?

ERP, also referred to as enterprise resource planning is a popular business software

commonly used in big companies. Not only does ERP systems manage manufacturing
processes, but it is extensively effective in information centralization and workflow
processes. The data centralization feature of ERP allows easy access to data for business
processes, ensuring Data quality with no duplication. It reduces data complexity and
improves accessibility. Thus, ERP is and effective system for proper integration and
streamlining the data and workflow.

MRP, also referred to as material requirements planning measures the quantity, time and type
of material required. The MRP tools facilitate manufacturing processes which increases
inventory profitability. This system helps in production planning through material forecasting
and ordering, ensuring right material to be delivered at right time. Due diligence in data
entering is of utmost importance as incorrect data can lead to interruption in production
process because of less or more material availability.
 3. What are the differences between ERP and MRP?

Four major ways in which, IBM helps the companies to improve their systems and reach their
optimal goals:
1. Have a clear and transparent view of transactions and inventory. IBM provides data-
driven insights to uncover unseen time and cost saving opportunities, and gives real-time
analysis.
2. Using the same AI capabilities, they share the required information with the suppliers
with permission. This reduce the lead time, and transaction time. The system also suggests
recommendations to able you to respond to the supplier just on time.
3. Using the data, it forecasts the demand of customers and helps the business know the
demand of customers. It helps in good interaction with the customers, and let them know the
approximate time for delivery of their goods and services. And using inventory management
applications, shipping costs are also reduced by 7-8%.
4. IBM helps the business in running smooth operations. As it helps in coordination of
different departments of the organization, which again leads to reduce wastage of time,
effort and money, as the system helps in timely smooth communication between various
departments of the organization.

4. How demand forecasting and MRP are linked?

Demand forecasting refers to the forecast of demand of goods and services, which helps in
timely delivery manufacturing and delivery to the customers. It is considered as one of the
main objectives of supply chain management, as it helps in smooth coordination of of both
supply and demand aspects of the business.
Keeping high demand of products is important for the working of a business. At the same
time, right analysis is critical to maintain to make sure that goods and services are produced
and delivered on time. Otherwise, the business might be at loss, or lose customers. Demand
forecasting helps in to maintain right amount of inventory without incurring much storage
cost and avoid shortage of goods (raw material) at the same time.
It also helps to minimize the bullwhip effect, which is a phenomenon where small change at
retail level leads to a change in the overall demand of goods at wholesale level. Accurate
demand forecast and advanced communication systems among supply chain participants lead
to reduction in the bullwhip effect.
Few elements of demand forecasting are:
• Data collection from internal and external sources on the factors known to predict or
influence demand;
• Statistical analysis of sales, inventory and other data;
• Modeling the data to predict future demand; and
• Collaboration with suppliers, manufacturers, salespeople and other stakeholders to
gather information on events that could affect demand, such as promotions and production
delays.
 5. What is the Total Quality Management?

Total quality Management is an association wide way of thinking with its basic beliefs
fixated on consistently improving the nature of its item and administrations, and the nature of
its cycles, to meet and surpass client desires. This implies that everybody in the association -
from top administration to the representatives - assumes a function in giving quality items
and administrations to clients. Indeed, even providers and the clients themselves are essential
for the TQM

TQM work on these principles

 Produce quality work the first time 
 Focus on the customer 

 Have a strategic approach to improvement 

 Improve continuously 
 Encourage mutual respect and teamwork