Case Study

Marshal Fisher

What is the 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  Those things which solve consumer
Food ,Cloth etc. problem or make things easy.
 Usually less Margins.  High Margin.
 E.G: Seat for children but later  E.G: IBM Think Pad
created smart seat
 Market Function
Physical
 Raw Material, Components, Semi
finished goods etc.
 It may lost demand.
 Preplan Resource, Manufacture.
 Manufacture, Supplier, Retailer plan .
Market Meditation
 Similar to Physical but where variety
matches market demand in terms of place
and consumer.
 Created to balance demand and supply.
 Does not the investment.
 Scenarios on Functional and
innovative product
 A consumer want a customized car  IBM 360 mainframe wait for 14 month to
he went to the dealer there they offer deliver but now no one have to wait
20 million variety but they have because companies develop physical
only two variant available there .the efficiency supply.
fact is only 20 are base 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.