Prasanna Kumar Kandula

Student ID-0835111

In Class Assignment 5 (Planning)

1. The purchasing department of KiwiMart (KM) would gain from carrying out a methodical
and structured sourcing procedure in a number of ways.
Cost savings: KM can obtain better pricing and terms by methodically examining suppliers,
negotiating contracts, and utilizing economies of scale. This results in cost savings.
Supplier dependability: A well-structured procedure enables KM to carefully screen
suppliers, making sure they are dependable, solvent, and able to fulfill demand on a regular
basis.
Risk management: By diversifying its supplier base through methodical sourcing, KM can
lower the risk of supply chain interruptions brought on by events like natural catastrophes,
geopolitical unrest, or supplier insolvency.
Quality assurance: KM can guarantee that the products it sources fulfill its quality standards
and lower the possibility of returns by closely examining suppliers' quality control procedures
and production processes complaints from clients.
Productivity and efficiency: Procurement activities are streamlined by an efficient sourcing
process, giving KM's purchasing department more time and resources to devote to value-
added and strategic initiatives.

2. A strategic alliance is a kind of collaboration that would improve Plexet's supply chains and
KM's supply chains. Under this kind of relationship, Plexet and KM would collaborate
closely to achieve shared objectives and improve the overall performance of their supply
chains. Using this method, they could:
Collaborative demand forecasting: Plexet and KM might discuss how much they anticipate
selling and decide how much to produce and stock.
Information sharing: The two businesses might inform one another on market conditions,
consumer preferences, and supply chain issues.
Collaborating on new product development: Plexet and KM might work together to
develop new products or modify existing ones to better suit consumer needs.
Coordinating the movement and storage of items: Plexet and KM can save costs, expedite
delivery, and increase efficiency by collaborating on the transportation and storage of
commodities.
Constantly improving: Plexet and KM could communicate frequently and provide feedback
to one another. This aids in their quest for methods to streamline operations and enhance the
efficiency of their supply networks over time.

3. A Just-In-Time (JIT) manufacturing strategy would greatly benefit Plexet. How to do it is as

follows:
Lower inventory costs: Plexet will save money on inventory storage since it won't need to
keep as many excess products in storage while using JIT. This lessens the possibility of things
breaking or becoming outdated.
Greater financial resources: Plexet can allocate its resources to other areas, such as
expanding its business, rather than squandering them on unsold merchandise.
Quick production adjustments: Plexet can swiftly adjust its production levels using Just-In-
Time (JIT) in response to changing client demands, market conditions, or supply-chain lead
times.
Creating better products: JIT enables Plexet to concentrate on maintaining the highest
standards for its products. They can quickly address any issues to guarantee that clients
receive the best items available.

4. KM and Plexet would benefit from the following reasons if an inventory management system
were implemented:
Prasanna Kumar Kandula
Student ID-0835111

improved visibility: Real-time visibility into inventory locations, levels, and movement
within the supply chain is made possible by an inventory management system, which
facilitates improved planning and decision-making.
Demand forecasting: The system can assist KM and Plexet in effectively projecting demand,
lowering the danger of stockouts or overstock situations, by analyzing past sales data and
market trends.
Effective order management: Automated replenishment and order processing features
shorten lead times and guarantee on-time product delivery by streamlining the ordering
process.
Cost reduction: An inventory management system can assist Plexet and KM in lowering
operating costs and increasing profitability by managing inventory levels and minimizing
carrying costs.
Enhanced customer service: With better inventory visibility and availability, both KM and
Plexet can fulfill customer orders more accurately and quickly, leading to improved customer
satisfaction and loyalty.