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Assignment

BLC201/03 – INTRODUCTION TO LOGISTICS AND SUPPLY

CHAIN MANAGEMENT
Semester September 2022
Assignment

Instructions to candidates.
1. This is an individual assignment; you are advised not to share with others.

2. Please answer all the questions.

3. Please write all your answers in essay format. Do not answer in point-form unless the
questions mention “List” or “State”.

4. Total marks for this assignment are 100% and this contributes 50% towards the total
weightage of this course.

5. Assignment / coursework must be typed in A4 paper size, 1.5lines spacing with 12-point
Arial font and pages numbered.

6. Total word count to be 3,000 words (+/-10%).

7. The deadline for online submission in OAS is Week 8, Saturday 29 October 2022, (2359).

Copyright © 2022 WOU

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Answer all questions.

Question 1
A warehouse is a building for storing goods. Warehouses are used by manufacturers,
importers, exporters, wholesalers, transport businesses, customs, etc. They are
usually large plain buildings in industrial parks on the outskirts of cities, towns, or
villages.

(a) Explain FIVE (5) types of warehouses available in Malaysia.

[15 marks]

(b) Elaburate the Smart Warehouse contribution to enhance companies’ supply

chain efficiency.
[25 marks]

Question 2
Read the case study below and answer the following questions:
Colgate- Palmolive Supply Chain Excellency.
Gokul Pankaj, April 2020.

Colgate-Palmolive is one of the biggest names and a leading MNC in the FMCG
industry. Each one of us would have used at least one of their products in our lifetime.
They have product lines in oral care, personal care, pet nutrition and home care. With
operations in over 80 countries, spanning across 6 continents of the world, Colgate-
Palmolive has their products sold in over 220 countries, carrying over 200 years of
heritage from its origin in the US.
Colgate-Palmolive have always believed in consistency and focus on improving supply
chain processes of their partners and consumers, by investing in growth. Close to 60%
of the leadership’s efforts goes into business expansion or driving productivity. These
efforts are heavily driven by customer/partner collaborations that ensure efficient
communication of targets through the value chain. Colgate-Palmolive has a strong
financial leadership which drove 42 consecutive quarters of operating margin
improvement. This was achieved through manufacturing excellence that delivered
high volume products in shorter cycle times. The sales and operations planning teams
were exceeding expectations each year, thereby reducing the risk in the supply chain.
Colgate-Palmolive adapted quickly to emerging technologies in database
management systems (DBMS). Efficient technologies such as these meant that with
increase in number of shipments, the number of improper or incomplete orders were
reduced significantly whilst achieving lower inventory. The control procedures in these
integrated systems are supported by SAP that is dependent on the signals of daily
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demand along with the replenishment orders of inventory. Besides the technology
usage, Colgate-Palmolive standardize the production of all the products under one
platform for up to 85% of production, only to customize the products in the last 15% of
the manufacturing process.
In doing so, Colgate has managed to identify low value SKUs and concentrate their
efforts on providing high value products to customers. They have managed to identify
the 20% of SKUs that drive 80% of Revenue. This has enabled Colgate in increasing
promotions by conducting cross functional exercises with marketing and technology.
Material simplification plays an important part in balancing product proliferation and
achieving supply chain efficiency through product rationalization. Backed by a
supreme R&D team, Colgate manages to simplify materials based on colours and
products to cut costs.
Long before sustainability became a trending topic, Colgate determined means to
achieve zero waste manufacturing factories. Cycle time reduction and increased post
additional usage meant that Colgate achieved increased capacity with low losses in
material wastes and energy. The American giant has achieved GBCI TRUE Zero
Waste certification at 16 plants in 4 continents. Their commitment towards using less
plastic in packaging is evident in their efforts to develop a completely recyclable vegan
toothpaste. Through the new product line, Colgate hopes to make the world a more
sustainable place to continue living with tubes part of the circular economy.
Colgate-Palmolive has gone onto show that excellence in supply chains can be
achieved by doing the fundamentals right. The think tanks behind Colgate-Palmolive’s
success have beautifully illustrated how transparent communication can unlock supply
chain profitability and efficiency. Colgate-Palmolive has managed to demonstrate
every supply chain enthusiast’s dream, which is to align business strategies with
supply chain management that can ensure achieving objectives effectively,
productively and profitably.

Adopted from https://supplytechinsights.com/blog/2020/04/20/best-supply-chain-in-the-world/

a) Provide the Colgate- Palmolive strategies that make highly efficient supply chain
operation.
[30 marks]

b) Examine the supply chain options and strategies that Colgate- Palmolive can
consider maintaining its leading position.
[30 marks]

End of Assignment