CASE STUDY

MARSHAL FISHER

RIGHT SUPPLY CHAIN FOR YOUR

PRODUCT.
 ISSUES
• $ 30 Billion waste every year due to weak supply chain.
• Due to large amount of unneeded merchandize.
• Retailer claim that one quarter they are out of stock.
• Lack of technology integrated to monitor demand.
Major products that are effected:
Food ,Fashion ,Apparel,Automobile,Agriculture.
• we use supply chain to balance supply and demand bur till now not properly integrated so
that lower the margin.
 TYPES OF PRODUCT
Functional Innovative
• Daily consumed items such as Food ,Cloth • Those things which solve consumer
etc. problem or make things easy.
• Usually less Margins. • High Margin.
• E.G: Seat for children but later created E.G: IBM Think Pad
smart seat.
 MARKET FUNCTION
Physical Market Meditation
• Raw Material ,Componenets,Semi finished • Similar to Physical but where variety
goods etc. matches market demand in terms of place
• It may lost demand. and consumer.
• Preplan Resource, Manufacture. • Created to balance demand and supply.
• Manufacture,Supplier,Retailer plan . • Does not the investment.

Supply Chain can be improve by nature of product .e.g: product life cycle,demand prediction
 SCENARIOS ON FUNCTIONAL AND
INNOVATIVE PRODUCT.
• A consumer want a customized car he went • IBM 360 mainframe wait for 14 month to
to the dealer there they offer 20 million deliver but now no one have to wait
variety but they have only two variant because companies develop physical
available there .the fact is only 20 are base efficiency supply.
variants and 8 week of time is needed to
deliver there the plant have a large capacity
of production but due to slow supply of
parts made things radical.
 SCENARIO’S
• In Research come to know about there are 28 type of variety in toothpaste. Here
question arises does we need to much variety .Therefore I asked this question to V.P
of competitive manufacture .He replied that it should be to compete with rivals
player. While toothpaste is a product which is innovative to functional.
• Sports obermeyer designs of 95% products are new design and there
200% chance of error while 5% are new product of Campbell and demand meet 98%
the replishment time 1month and life cycle 6
month to prepare for worse result.
 CAMPBELL SOUP
• 1991 me Campbell introduce Electric Data Interchange(EDI) that monitor stock
and help to forecast future demand .Electronic medium which retailer tell demand
.So, also that help supplier to forecast and aslo manufacture can take stand about raw
material to supply.
• Campbell tackle this with offering the retailer who promote them to pay daily which
convert that into average price or get by discount at once which increase sale to
consumer.’
• Due to new year sales festive there is great demand of soup is high retailer start
buying to much even to stock for year this known as forward buying.
 CONTINUE
• We come to know about about physical efficiency is good here.this increase 98.5%
to 99.2% margins. It is noted retailer paid 25% of purchase if pay for year. Average
retailer 2% sales increase. Saving enough .increase profit 50% .Due to more
margin retailer prefer Campbell and ocuppy more shelfs in store.
 RESPONSIVE SUPPLY OF
INNOVATIVE PRODUCTS
• Who to prepare for uncertain demand. Especially, Fashion, Food etc. Company grew
oligopoly less competition their demand his high but due to weak retailer connection
they did not forecast err free, some time uncertainty is good because risk is link with
return high risk returns and high margins.
• A company have issue with uncertain demand .It can tackle with it by taking data and
according to that counter the demand and forecast from it save time and design flexible
supply chain.
 CASE OF NATIONAL BICYCLE
• National Bicycle as a small unit was great but in 1980 it is in problem because of Taiwan and Korea
inexpensive production.
• In 1986 Matushita appoint as president national executive from another division .no experience in
bicycle industry. He noticed division has strength .technical expert manufacturing, Highly skilled
workforce and a strong network of 9000 dealer .he noticed about potential. He decide to make a
responsive supply chain.komoto,s vision that customer select from 2 million option visit franchise
there order place and receive after 2 week order deliver due to his futuristic plan that increase
market share in japan from 5% to 29% and 99.99% delivery on time. It happens because of
responsive supply chain. This is best example of Mass customization. Many country started this
.e.g:Lutron Electronics of coopers burg because leader in dimmer switch .MichealPessian V.P of
manufacturing operation .Diverse offering difficult to predict. By knowing the customer need we are
able to fulfill on time without storing inventory .while doing this is difficult it need three time more
labor while in winter demand comes low. So, they build inventory for high sports bicycle but this
innovation pump ups margin.
 SPORT OBEMEYER CASE
• Sport obemeyer design fashion sportswear .distributes 800 special wear around U.S. 95%
items are new it is difficult to forecast about demand.
• V.P walter obermeyer launched project to tackle it .So, he take pre order from 25 large
retailer in Feb .So, they can forecast demand and err chances just 10%
• By this they have to ship in U.S September and in Asia also .So, they store in October that
saves company $25000.By,this time saves enough by production and other element by this
avoid uncertainty on half demand save them. This approach called Accurate response.
• That cut underproduction and overproduction to 50% .increase profit 60% and retailer
have 99% product availability this make them Best in industry for service.
 CONCLUSION
• It is not compulsory to use similar model .We can also make a blend of more to make a
decision according to condition.
• Company like sport obermeyer ,national Bicycle Campbell soup done their best. There is
always something left to do more if the companies continuously make things Better this
give edge to stay ahead in term of production cost saving and enhance their margins.