COMPANY 1: TOP GLOVE

Q1. Type in inventory: Raw materials are like the building blocks used to make stuff. For
example, when making gloves, materials like latex and nitrile are needed. These materials go
through different steps like mixing, shaping, and hardening to become the finished gloves.
Quality checks are done to make sure the gloves are strong, flexible, and keep your hands
safe. Work-in-Progress (WIP) inventory is like the middle stage of making something. It's
important for companies like Top Glove to keep track of this inventory so they can make sure
everything runs smoothly and they can get their products to customers on time. Finished
Goods are the gloves that are all done and ready to be sold. Top Glove has a bunch of
different types of gloves in this category, like latex powder-free, latex powdered, nitrile, and
TPE/CPE gloves.

Inventory elements: Inventory turnover can be compared to the number of times a store
receives new inventory after selling all of its existing stock. A high number indicates that the
store is handling its inventory well. However, a low number may indicate that they are either
overstocking or underselling. The Inventory-to-Revenue Ratio can be thought of as a way
to compare a store's total inventory to its revenue. A low number indicates that the store is
effectively managing its inventory. However, if the figure is high, it may indicate that they
are either overly materialistic or underpaid. Cost of Goods Sold (COGS) is like the price tag
for making stuff to sell. It's all the money a company spends on materials and workers to
make the things they sell. Top Gloves uses COGS to figure out how quickly they're selling
their inventory, how long it takes to sell it all, and how much inventory they have compared
to how much money they're making.

Q2. In product design concepts, the end-user is the main focus in all aspects of Top Glove
product design with a priority on the end-user, comfort and durability. This strategy
requires the company to have a thorough grasp on the requirements of workers in a variety of
sectors in order to provide gloves that are tailored to their needs. It is also consistent with the
broader discussion around user-centered innovation, which suggests that goods and services
need to be created with the needs and wants of the user in mind.

Next, Top Glove adheres to ISO 9001 standards for quality assurance in glove
manufacture. ISO 9001 emphasizes stringent quality control methods to ensure that high
standards are met. It demonstrates their commitment to provide excellent and high-quality

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goods. Moreover, quality assurance is crucial in product design, especially in safety-relevant
sectors such as glove production at Top Glove. Maintaining high quality requires testing and
quality control procedures that adhere to the company’s standards. This strategy aligns with
ISO standards and guidelines, which emphasis strong leadership commitment, meticulous
quality management in both product design and process development, extensive instruction
on quality assurance concepts and procedures.

In service design concept, Top Glove prioritizes excellent customer service to

ensure that their customers receive support within a variety of channels, via online platforms,
hotline calls, and in-person storefronts. This ensures quick access to information, assistance
and solutions for any issues. The company also offers comprehensive after-sales support
which includes warranty coverage and replacements.

Top Glove’s distribution network covers over 195 countries globally including the
United States, European nations and Asian markets. This to ensure effective inventory
management and on-time delivery. Through excellent logistics and supply chain
management, Top Glove company can reduce transit times and optimize the customer
experience, securing its credibility as a reliable and trusted provider in the global market.

Q3. Top Glove uses a variety of measures to assess its company performance. Revenue
growth indicates how well they have been able to raise revenue over time, as a result of
factors like product innovation, pricing strategies, market demand, and expansion initiatives.
Their capacity to effectively create profits via cost management and operational excellence is
demonstrated by their profitability margins, which include gross, operating, and net profit
margins. Their competitive position is indicated by their market share, which is the result of
their effective pricing, distribution, and product quality tactics. Diversifying income sources
and lowering reliance are achieved through product line or market expansion. Long-term
success depends on keeping an eye on customer happiness, upholding brand reputation via
moral and ethical business conduct, and making sure regulations are followed. Liquidity,
solvency, and efficiency ratios, which measure overall financial health, show that Top Glove
can successfully manage money, fulfill commitments, and make optimal use of its assets. All
of these factors add to Top Glove's success and reputation in the glove manufacturing sector.

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 Inventory management is vital for Top Glove's operational efficiency, impacting
production capacity and meeting customer demand. Streamlined manufacturing, minimal
downtime, and high output quality are crucial for efficiency, dependability, and quality
adherence. Effective inventory management, including Kanban and just-in-time methods,
optimizes stock levels and reduces waste, enhancing productivity. Supply chain management
ensures timely material procurement and delivery, lowering overall costs. Cost control
strategies prioritize waste reduction for profitability. Quality assurance procedures maintain
high-quality goods. Optimal resource utilization, training, and technological integration boost
productivity and cost-effectiveness.

Customer satisfaction is a level at which clients feel happy with the products and
how they encounter the company’s offer. Firstly, product quality. Top Glove efficiently
manages their raw materials to guarantee that they utilize only the finest supplies in their
manufacturing. In addition, this business uses batch tracking, which enables it to track every
raw material used in the production of gloves. Top Glove will be able to identify the affected
batch in the case that any quality issues arise during production and take appropriate action to
handle all defective products. Secondly, service quality. When the inventory is managed
properly, it will help the company to produce the goods whenever the customer needs them.
The production team is also able to provide a wide variety of glove types to meet the various
needs of buyers, which helps the company to increase their customer satisfaction. Next, a
customer’s order can be made accurately and on time, which helps in getting a positive
review from customers because of the good and fast services.

Q4. Top Glove has a comprehensive inventory management system in place to ensure the
availability of materials for production and meet customer demands. The company's materials
planning and inventory management system covers various aspects, including managing
logistics, stock levels, materials quality, and cost1. This system is crucial for Top Glove's
manufacturing process, and the company continually seeks ways to improve it. Top Glove
operates at a median inventory method of 6, reflecting its commitment to efficient inventory
management. The company's inventory management strategy has evolved over time, and it
has adapted to the changing market conditions. For instance, during the pandemic, Top Glove
experienced a surge in demand for gloves, leading to a significant reduction in production
lead time. To manage this demand, Top Glove expanded its annual glove production capacity
to 100 billion pieces, which is expected to increase to 111 billion by the end of the year.

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 The company's inventory management system is supported by a robust supply chain
management approach that prioritizes strategic supplier relationships, risk management, and
continual performance improvement. Top Glove seeks competent business partners who can
meet its high requirements, particularly in areas like automation, IoT solutions, IT hardware
and software, and maintenance, repair, and operations materials. Top Glove's commitment to
sustainability is evident in its inventory management practices. The company creates value
through sustainable practices, managing its business in a way that respects and contributes
positively to the environment and community. Top Glove's sustainable procurement practices
encourage suppliers to share innovative ideas, and the company is committed to transitioning
into a low carbon and ultimately a net-zero carbon business5. These practices ensure that Top
Glove's inventory management system is not only efficient but also sustainable.

Q5. 1. Inventory turnover ratio. This ratio shows how effectively the business controls its
inventory, which affects working capital efficiency and gives it a competitive advantage in
the glove manufacturing industry. Top Glove can successfully manage inventory levels and
ensure timely restocking in response to market demand by focussing on improving this ratio,
which will improve the performance of the supply chain as a whole. Top Glove may make
use of advanced forecasting of demands instruments like predictive analytics and machine
learning algorithms to improve this optimization even more. These tools look at specific
elements affecting glove demand, like standards in the sector or healthcare requirements, as
well as historical sales data and market trends. Top Glove is able to prevent stockouts and
reduce excess stock expenses by precisely predicting customer demand for an inventory of
glove kinds and sizes.

2. Return on assets (ROA) is a key indicator of how well its supply chain is performing, to
assess how well it earns profits per dollar of deployed assets. This indicator shows how well
management uses capital to produce profits for shareholders. In order to enhance overall
supply chain performance and maximize return on assets, Top Glove must focus on
optimizing asset utilization within its operations. Enhancing production efficiency through
automation and staff development is one way in achieving this. Top Glove can increase
production and make the most use of its resources by decreasing the amount of time that
machinery is idle and raising output per unit of input. Further improving asset utilization is
the application of lean manufacturing techniques, which can also assist minimize waste in

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 material handling processes, eliminate defects, and optimize inventory storage and
transportation.

Q6. 1. Take forecasting seriously. Top Glove needs to be able to predict the future and
supply of gloves. During Covid-19, they did a great job of forecasting and increasing
production when the demand for gloves went up. By being able to predict changes in demand
for their products, Top Glove can make sure they are making enough gloves without having
too many left over. This will make customers happy because they will always have gloves
when they need them.

2. Maximize supply chain. To maximize their supply chain, Top Glove can collaborate
closely with suppliers and customers, ensuring timely delivery and optimal inventory levels.
They can also reduce costs without compromising quality, such as sourcing less expensive
materials and streamlining manufacturing processes. Additionally, investing in research and
development can lead to innovative products, setting them apart from competitors. These
actions can enhance financial stability and ensure timely access to necessary resources.

COMPANY 2: PANASONIC

Q1. Panasonic Holdings Corporation, renowned for its extensive range of electronic products,
systematically manages various categories of inventory essential to its operations. These
inventories comprise raw materials, work-in-process (WIP), finished goods, and
Maintenance, Repair, and Operations (MRO) inventory. Panasonic prioritizes efficient
inventory management because it ensures product availability to satisfy customer demand,
avoids production disruptions, optimizes costs, and adds to supply chain efficiency. The raw
material inventory, consisting of electronic components, plastics, and metals, is indispensable
for Panasonic's manufacturing processes. Ensuring an adequate supply of raw materials is
critical to prevent delays due to shortages, as indicated by their commitment to maintaining
sufficient quantities and establishing reliable supplier relationships. This is corroborated by
Panasonic's dedication to monitoring inventory turnover rates to optimize stock levels while
minimizing carrying costs. Similarly, Panasonic's work-in-process inventory, as elaborated in
their MOM Supply Chain Solutions, encompasses partially completed products undergoing
assembly on the production line. Efficient management of WIP inventory is pivotal in
maintaining seamless production flow and meeting customer demands. Panasonic's proactive

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approach involves monitoring production progress and implementing measures to streamline
production activities and minimize lead times.

Moreover, Panasonic's diversified range of finished goods, including TVs, appliances,

and electronics, is managed with accuracy to fulfil customer demand promptly. Accurate
demand forecasting and optimization of inventory levels are key aspects highlighted in their
sustainability report. This aligns with their commitment to prevent stockouts or overstocking
and implement effective distribution and logistics strategies to expedite product delivery.
Lastly, Panasonic recognizes the importance of MRO inventory in preventing production
downtime due to equipment failures. The sustainability report emphasizes the identification
of critical spare parts and the establishment of efficient procurement processes to support
equipment maintenance and facility operations. In conclusion, Panasonic's robust inventory
management practices, as evidenced by their Sustainability Data Book 2021 and MOM
Supply Chain Solutions, underscore their commitment to operational efficiency, cost
optimization, and customer satisfaction. By thoroughly addressing the important inventory
elements within raw materials, WIP, finished goods, and MRO inventories, Panasonic
continues to uphold its reputation as a leader in the electronics industry.

Q2. Panasonic has several classifications of goods which includes consumer electronics,
business solutions, building materials, automotive and industrial systems, energy solution,
and other products. Panasonic's dedication to innovation and quality can be seen in all of its
products and services, from improving daily life with consumer electronics to promoting
efficiency and sustainability in business and industrial environments.

A product's aesthetics are only one aspect of its design. It takes into account the
requirements of the user and how the product will perform in real-life situations. The idea of
design is applied by Panasonic in all of their business segments, from automotive components
to appliances. For instance, in the consumer electronics segment, user-centered design
influences the vary creation of washing machines that come with modern control panels or
refrigerator with easy-to-access compartments.

Next, the service design concept. The main holding company, Panasonic Holdings, is
part of the Panasonic Group, which also includes eight operating companies and foreign and
domestic affiliates. This structure, known as the "Operating Company System," helps the
operating companies to increase their competitive advantage in their respective markets. For

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example, Panasonic Automotive Systems Co., Ltd. operates in the automotive sector. It
specializes in a variety of products and solutions that are designed to improve driving quality
and meet changing customer demands.

In conclusion, Panasonic's commitment to quality and innovation is evident in the

wide range of products it offers, such as automotive systems, business solutions, and
consumer electronics. Their focus on user-centered design guarantees that every product
successfully satisfies needs in the real world. This dedication is evident throughout their
entire organizational structure, as demonstrated by the Operating Company System, which
improves responsiveness and competitiveness.

Q3. 1. Company's performance

An effective inventory management can prevent from stockouts because the

insufficient inventory can lead to stockouts, lost sales, and customer dissatisfaction or excess
inventory which is the company hold too much stock incurs unnecessary carrying costs,
reduces storage space, and increases the risk of obsolescence.Other than that,by optimizing
the inventory levels, Panasonic Malaysia company can enhance its cash flow where the
company of Panasonic Malaysia can free up their cash tied up in stock. This improves cash
flow and allows for quicker reinvestment in the business.reduce storage costs, and improve
customer satisfaction through timely deliveries.Additionally, effective inventory management
allows Panasonic to respond quickly to changes in demand and minimize the risk of obsolete
inventory, contributing to overall profitability and competitiveness.

2. Operational efficiency

Panasonic’s operational efficiency hinges on its comprehensive inventory

management strategies, encompassing supply chain optimization, reduction of excess
inventory, and enhanced customer service. Leveraging Blue Yonder’s advanced software,
Panasonic ensures timely inventory availability, reduces lead times, and improves demand
forecasting accuracy. Through a centralized database, the company enhances decision-
making, minimizes excess inventory, and reduces costs. Moreover, end-to-end inventory
visibility ensures prompt delivery of essential parts, vital for maintaining customer
relationships and operational efficiency, particularly in utility sectors. These strategies
underscore Panasonic’s commitment to operational excellence through efficient inventory
management practices.

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 3. Customer satisfaction

Inventory management is a cornerstone of customer satisfaction at Panasonic, evident

in their commitment to product availability, quick delivery, and maintaining quality.
Panasonic guarantees that its products are easily obtainable, expedites prompt service, and
maintains product quality through effective inventory management. This strategy lowers
stock-outs and facilitates prompt problem solving, which eventually raises customer
satisfaction. Panasonic consolidates its position as a dependable supplier of superior goods
and services by bolstering its post-sale relationships, customer service, and technical
assistance through careful inventory management.

Q4. Panasonic Healthcare and Panasonic Automotive exemplify industry-leading inventory

management practices tailored to the specific needs of their respective sectors. Panasonic
Healthcare's strategy revolves around optimizing inventory operations within the healthcare
industry. This includes leveraging an integrated Enterprise Resource Planning (ERP) system
to manage stock alongside critical functions like procurement and distribution. By integrating
these functions, Panasonic Healthcare ensures optimal inventory levels, streamlined
workflows, and enhanced regulatory compliance. In contrast, Panasonic Automotive
emphasizes lean manufacturing principles and supply chain resilience within the automotive
sector. They adopt Just-in-Time (JIT) inventory principles to minimize holding costs while
ensuring timely availability of components for production and aftermarket services.
Additionally, implementing Kanban systems facilitates efficient material flow within
manufacturing, reducing waste and enhancing overall efficiency.

Both companies utilize advanced technologies to drive their inventory management

strategies. Panasonic Healthcare harnesses Radio Frequency Identification (RFID)
technology for real-time monitoring of high-value items like medical devices and
pharmaceuticals. This ensures accurate inventory levels and timely restocking to meet
healthcare demands. Similarly, Panasonic Automotive leverages supplier collaboration tools
and continuous monitoring of key inventory metrics to optimize replenishment and mitigate
supply chain risks, ensuring operational reliability. In conclusion, Panasonic Healthcare and
Panasonic Automotive showcase how tailored inventory management strategies contribute to

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operational excellence and customer satisfaction within their respective industries. By
integrating technology, adopting lean principles, and fostering collaborative relationships
with suppliers, both companies optimize workflows, reduce costs, and maintain high
standards of inventory management efficiency. Through continuous improvement and
innovation, Panasonic Healthcare and Panasonic Automotive remain at the forefront of
effective inventory management practices, supporting their industries' unique demands and
challenges.

Q5. The Ratio of Inventory Turnover (ITR) is one of the main metrics that can be taken into
consideration when evaluating Panasonic's supply chain performance. A company's ability to
efficiently manage its inventory is gauged by its inventory turnover. It is computed by
dividing the average inventory for a certain time period by the cost of goods sold. When a
company's inventory turnover ratio is high, it means that its products are being sold fast and
effectively; when it is low, it can mean that sales are slow or that overstocking is occurring.
Although inventory turnover is not specifically mentioned in the presented paper, it does
offer insights into Panasonic's supply chain management, procurement practices, and ethical
mineral acquisition. These elements are essential to comprehending Panasonic's inventory
control and ensuring a smooth product turnover. Due diligence initiatives, cooperative efforts
with international business partners, and conscientious supply chain processes all help
Panasonic manage inventory effectively. Panasonic makes sure that its inventory turnover is
in line with moral and sustainable practices by encouraging initiatives with its international
business partners to fulfill its CSR obligations throughout the whole supply chain.
Additionally, the company's focus on clean, fair, and equitable procurement as well as
adherence to CSR procurement standards show that it is dedicated to supporting moral and
ethical business practices while preserving an effective inventory turnover. In conclusion,
although inventory turnover is not specifically covered in the document, the material that is
given emphasizes Panasonic's dedication to ethical supply chain management and
procurement, both of which eventually help to ensure an effective turnover of inventory.
Next, supplier lead time. This indicator measures how long it takes a supplier to
deliver products or services following a Panasonic order. Lead times that are shorter can
enhance responsiveness and lower the cost of keeping inventory. This is a crucial component
of the supply chain management process as well because it affects Panasonic's capacity to
satisfy consumer demand and continue running an effective business. Panasonic ensures that
lead times are streamlined for prompt delivery of goods and services by closely collaborating

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with its suppliers. This entails creating effective routes for communication, defining
reasonable deadlines for deliveries, and putting effective inventory control and logistics
procedures into place. Panasonic also places a strong emphasis on fair and ethical business
practices in its procurement rules, which include dependable and timely supplier delivery. In
addition to fulfilling its corporate social responsibility (CSR) objectives, this guarantees that
the business can keep up a robust and sustainable supply chain. In conclusion, Panasonic is
dedicated to collaborating with its suppliers to ensure the prompt and effective delivery of
goods and services. As such, supplier lead time is a critical component of Panasonic's
procurement and supply chain management processes.

These metrics allow for the recommendation of various improvements, including

Advanced Demand Forecasting and Inventory Management System, for the structure and
functions of Panasonic's supply chain. In order to produce precise demand projections,
Panasonic can put advanced demand forecasting technologies into place that make use of
industry trends, historical sales data, and predictive analytics. This will lessen the possibility
of stockouts or overstock situations by enabling Panasonic to more accurately predict
consumer demand and modify inventory levels accordingly. Using inventory management
systems that make use of IoT (Internet of Things) and RFID (Radio-Frequency Identification)
technologies can also give supply chain managers real-time visibility into inventory levels.
This would enable improved inventory turnover optimization, effective restocking, and better
inventory control.

The next step is to create partnerships with key suppliers. To shorten lead times from
suppliers and guarantee a steady supply of high-grade materials, Panasonic can work
cooperatively with its main suppliers. Closer integration and communication can result in
shorter lead times and less reliance on buffer stocks. This can be achieved by using Vendor-
Managed Inventory (VMI) programs or forging strategic collaborations with suppliers. In
addition, Panasonic has the ability to collaborate with suppliers to establish Just-In-Time
(JIT) delivery systems, which save inventory holding costs and streamline manufacturing
processes by precisely delivering components when needed.

Q6. 1. Material Requirements Planning

Maintaining an adequate supply of materials on hand is one of the major time wasters
in manufacturing. Here, material requirements planning (MRP) tools are revolutionary. By

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determining precisely which components are required for each product in production, they
optimize the workflow. This guarantees that there are no delays in the availability of
materials when it comes time to produce products. But they do more than just that. In
addition to sales orders, production orders, purchase orders, current inventory levels, and
sales predictions, many MRP apps can also calculate numbers. This provides manufacturers
with a comprehensive understanding of their current and future material and distribution
needs. It makes planning more successful and economical.

2. Inventory Forecasting and Suggested Purchasing

One of the most important parts of business planning is anticipating inventory needs.
Inventory management is aided by forecasting systems, which project future demand levels
by examining historical sales data. These reports make sure there are enough supplies on
hand. Sales trends can be precisely monitored with the use of data analytics. Users can
manually enter extra data, such as new items or consumers, even though the majority of
forecasting programmes give a framework for this data. Systems for recommended purchases
are essential to improving sales and optimizing inventories. These systems take supply and
demand dynamics into account when automating the purchasing process based on inventory
estimates. They satisfy vendor requirements by producing purchase orders in a cheap and
effective manner. These systems take into account elements like shipping container capacity
and pack sizes and optimize orders to maximize benefits like prepaid freights and vendor
minimums. They can also evaluate several warehouses and assist with stock transfers to avoid
overstocking, which can save a lot of money.

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