UNIVERSITI TEKNOLOGI MARA (UiTM)

CAWANGAN KAMPUS SG. PETANI, KEDAH

SUPPLY CHAIN LOGISTICS MANAGEMENT

(OPM 560)
INDIVIDUAL ASSIGNMENT 1 : CASE STUDY

PREPARED BY:
NAME MATRIC NUMBER
NOR SYAZWANI BINTI ABDUL RAHMAN 2022905573

GROUP:
KBA2444B

PREPARE FOR:
MADAM AINUL HANIZA BINTI MOHD RASHID

SUBMISSION DATE:
22 MEI 2023
CASE 2
HOW TO NAVIGATE LONE LEAD TIMES FOR MEDICAL DEVICE
COMPONENTS: THE COVID EFFECT
Last year, the global pandemic impacted procurement heavily, highlighting how susceptible the
medical device supply chain is to disruption. When the virus first hit in March, factory shutdowns
meant that many lead times for components and raw materials doubled or tripled from weeks into
months almost overnight. *Pre-Covid, any delays or disruptions were related to maybe machine or
personnel issues and probably justifying to the matter of days, not weeks," says John Corsten,
Custom Wire Technologies (CWT) sales manager. "It’s not necessarily what we're seeing in the
current landscape." CWT is a respected supplier of microphone wire used in medical devices and a
recognized specialist in reinforcement coils for catheters. This company has worked throughout the
pandemic and had no option but to adapt to the changing environment. Before 2020, CWT typically
quoted a four-week lead time for components, with estimates for complex assemblies at eight weeks
or more. The pandemic has pushed everything back, with simple parts taking six to eight weeks and
complex assemblies lasting 12 to 16 weeks. Increasing lead times have also led to rising costs and
delays in the time-to-market. Expedite fees are two to three times greater than before, often
becoming higher than the cost of the product to build.

To overcome the problem, three steps have been taken by CWT. The first one is communication.
Having full transparency with customers is of growing importance in the post-pandemic world.
Customers' expectations on lead times need to be correctly managed through what is realistic. That
way, customers have time to plan around potential delays to their supplies in advance. Second, to
ensure production continues, CWT advises forward-planning, something the company takes
seriously. Corsten suggests companies that plan their procurement for the long-term with forecasts
and blanket orders are almost always best placed to make it through any disruption of lead times
relatively unscathed. Third, CWT has introduced its QuikCoil program, which aims to provide custom-
made coils within a week, provided the material is in stock. Because forward-planning isn't always
possible and the demand for wire can fluctuate, and sometimes fast delivery is simply a necessity.
Manufacturers who have continued to work throughout the pandemic find a competitive advantage.
And while many companies are looking to reduce balance sheets and lay off workers, CWT is
expanding to cope with surging demand.
CASE STUDY CHAPTER 3

a) What is the lead time concept from Custom Wire Technologies (CWT)?

Custom Wire Technologies (CWT) is a respected supplier of microfine wire used in medical devices
and reinforcement coils for catheters. The lead time concept has changed drastically due to the
COVID-19 pandemic, causing major disruptions to the medical device supply chain. Customers have
had to adjust to longer lead times and may experience difficulty in fulfilling their orders due to the
disruptions. Suppliers have had to maintain high production and quality standards to meet the
demand for medical devices despite the challenging environment. Businesses must demonstrate
agility, resilience, and adaptability to navigate the current landscape successfully.

b) Based on the case, what are the sources of blockage due to the pandemic?

The global pandemic has had a significant impact on procurement, particularly in the medical device
industry. Factory shutdowns, increased lead times, and rising costs have caused delays in production
and delayed time-to-market for medical devices. CWT has implemented strategies to address the
challenges of the pandemic, such as communication, forward-planning, and the implementation of
programs like QuikCoil. These strategies enable CWT to navigate through disruptions and maintain a
competitive advantage in the industry.

c) If it is not due to the pandemic, what are the three (3) pressures leading to the growth of a
sensitive market?

The article discusses the impact of the global pandemic on the medical device supply chain, but does
not explicitly mention three pressures leading to the growth of a sensitive market. These 3 pressures
include Increasing Regulatory Requirements, Technological Advancements, and Innovation.
Regulatory authorities strive to enhance patient safety and ensure product effectiveness, leading to
longer development cycles, increased testing, and validation efforts. Technological Advancements
and Innovation are characterized by rapid technological advancements and innovation, enabling the
development of more sophisticated and effective medical devices. Manufacturers striving to stay
competitive may face pressures to adopt new technologies quickly, resulting in additional complexity
and potential delays in the supply chain.

The demand for medical devices is steadily increasing due to various factors such as an aging
population, rising healthcare needs, and advancements in medical treatments. To address these
pressures and navigate the sensitive market, companies like CWT can implement strategies such as
proactive compliance, agile product development, and collaboration in the supply chain to mitigate
delays and maintain a competitive effect. These strategies include proactive compliance, agile
product development, and collaboration in the supply chain to mitigate delays and maintain a
competitive effect.
 d) Relate steps for successful sales and operations planning (S&OP) with the new measures
taken by CWT to adapt to the changing environment?

Custom Wire Technologies (CWT) has implemented several measures to navigate the extended lead
times for medical device components. These measures align with the principles of successful sales
and operations planning (S&OP), which can be summarized in three steps: communication, forward-
planning, and responsiveness to customer needs. Communication involves keeping customers
informed about the current lead times and potential delays in the supply chain. Forward-planning
involves forecasting and placing blanket orders to mitigate disruptions caused by extended lead
times. Companies can better prepare for potential delays and have a buffer of inventory to rely on
during times of uncertainty.

CWT has taken three key steps to address the challenges posed by extended lead times for medical
device components. These steps include effective communication, forward-planning through
forecasting and blanket orders, and CWT's QuikCoil program, which provides custom-made coils
within a week. These measures align with the principles of successful sales and operations planning,
such as effective communication, forward-planning through forecasting and blanket orders, and
CWT's responsiveness to customer needs by providing expedited solutions when fast delivery is
essential. By implementing these measures, CWT strives to adapt to the changing environment,
maintain customer satisfaction, and effectively manage the challenges presented by the global
pandemic.
CASE STUDY CHAPTER 4
CASE 1 : RESPONSIVE SUPPLY CHAIN : BALANCING BETWEEN SUPPLY AND
DEMAND
Michael Dell left his college in 1983 at the age of 18 to start his own business providing hard-drive
upgrades to corporate customers. In 1985, Dell changed its strategy to begin offering built-to-order
computers. That year, the company generated $70 million in sales, and by the end of 2000, Dell's
revenues had topped an astounding $25 billion. The meteoric rise of Dell Computers was mainly due
to innovations in supply chain and manufacturing and the implementation of a novel distribution
strategy. By carefully analyzing and making strategic changes in the personal computer value chain
and seizing on emerging market trends, Dell Inc. grew to dominate the PC market less than it takes
many companies to launch their first product. Dell started as a direct seller, first using a mail-order
system and then using the Internet to develop an online sales platform. While most other PCs were
sold preconfigured and pre-assembled in retail stores, Dell offered superior customer choice in
system configuration at a deeply discounted price due to the cost savings associated with cutting out
the retail middleman. On the manufacturing side, the company pursued an aggressive "virtual
[integration" strategy by building a long-term relationship with top-quality PC components
manufacturers. Dell's suppliers' inventory hub near its assembly plants allowed Dell to communicate
with the supplier in real-time to deliver a precise number of required components on short notice.
This "just-in-time," low inventory strategy reduced the time it took for Dell to bring new PC models to
market and resulted in significant cost advantages without requiring the company to invest billions in
setting up its manufacturing operations in-house. In 1997, Dell reorganized its assembly processes.
Rather than having long assembly lines with each worker continually performing a single task, Dell
instituted "manufacturing cells." These "cells" grouped workers around a workstation where they
assembled entire PCs according to customer specifications. Dell's revolutionary distribution model
generated tremendous cost savings and unprecedented customer value in the PC market.
CASE STUDY

CHAPTER 4

a) Describing two strategies that gave Dell the competitive advantage in attracting customers’
attention over their competitors.

Dell employed two key strategies that gave them a competitive advantage in attracting customers.
Direct Selling and Customization allowed them to offer superior customer choice and customization
options, while Virtual Integration and Supply Chain Innovation reduced the need for large inventory
stockpiles and minimized the time it took to bring new PC models to market. These strategies gave
Dell a competitive edge by streamlining operations, optimizing inventory, and accelerating time-to-
market.

b) Explain three strategic changes in the personal computer value chain that Dell undertook to
seize the emerging market trends.

Dell undertook several strategic changes in the personal computer value chain to capitalize on
emerging market trends and achieve dominance in the PC market. These changes included direct
selling and customization, virtual integration and supply chain innovation, and reorganization of
assembly processes. Direct selling and customization allowed customers to customize their
computers according to their specific needs, while virtual integration and supply chain innovation
allowed them to receive precise components on short notice and reduce the time it took to bring
new PC models to market. Reorganization of assembly processes resulted in significant cost savings
and streamlining operations.

c) Explain three positive impacts of the “Just-in-time” strategy on Dell’s business.

Dell's "Just-in-time" strategy had several positive impacts on their business, including reduced
inventory costs, improved time-to-market, and increased cost efficiency. The strategy allowed Dell to
receive precise components on short notice, reduce holding costs, and avoid obsolescence.
Additionally, Dell was able to quickly bring new PC models to market, reducing the time required for
the entire manufacturing process. Finally, Dell was able to negotiate favorable pricing terms and
secure cost-efficient supplies, while also reducing inventory holding costs and eliminating the need
for massive in-house manufacturing operations.

d) Provide two advantages of the online sales platform to Dell’s business based on the above
case.

Dell's online sales platform provided two key advantages: expanded customer reach and cost savings
and operational efficiency. Expanded customer reach enabled customers to customize their system
configurations, allowing Dell to offer competitive prices and provide high-quality products at
discounted rates. Cost savings and operational efficiency enabled Dell to pass these savings on to
customers in the form of competitive prices. Automated order management and real-time
communication with customers enabled Dell to provide timely updates, track shipments, and address
customer inquiries more efficiently.