Description

Advanced Supply Chain Management
June 2024 Examination
1. Sourcing strategies used by Maruti helped it in lower down its costs to the tune of
approximately Rs. 60 crores and improve the delivery time by 20 per cent. Discuss how
sourcing could have helped Maruti in efficient procurement processes. (10 Marks)
Ans 1.
Introduction:
Effective sourcing strategies play a pivotal role in enhancing the efficiency of procurement
processes for organizations like Maruti. Maruti, being a prominent player in the automotive
industry, has demonstrated how adept sourcing can significantly reduce costs and improve
delivery times. Sourcing refers to the process of identifying, evaluating, and engaging
suppliers to obtain goods and services necessary for operations. In Maruti’s case, strategic
sourcing decisions have evidently yielded substantial benefits, including cost reduction and
enhanced delivery performance. This essay delves into the specific sourcing strategies
employed by Maruti, elucidating how they contributed to the optimization of procurement
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2. Designing a distribution network is a systematic process that involves a number of
steps. Discuss these steps in detail with relevant FMCG industry examples. (10 Marks)
Ans 2.
Introduction:
Designing an effective distribution network is crucial for FMCG (Fast-Moving Consumer
Goods) companies to ensure timely and efficient delivery of products to end consumers. This
process involves a systematic approach comprising several key steps. By carefully planning
and optimizing the distribution network, FMCG companies can minimize transportation
costs, reduce delivery times, and enhance customer satisfaction. This essay examines the
step-by-step process of designing a distribution network, drawing insights from the FMCG
industry to illustrate each stage with relevant examples. Through a comprehensive
understanding of these steps, FMCG companies can develop distribution networks that are
responsive to market demands, adaptable to changing conditions, and capable of sustaining
3. Mega Electronic Limited supplies electronic components to various TV
manufacturers. In the year 2022 the cost of goods sold by Mega Electronic was Rs.240
crores. The company was in a very bad shape with huge accumulated losses. After
an in-depth study the management found its different process and technologies was
not correctly aligning the capabilities of its supply chain with its business strategies. The
company carried an average inventory of Rs.60 crore and it was estimated the cost of
capital as 10%, storage cost was
7% and risk cost was 6% per unit per annum of inventory. Mega Electronic created a
task force to examine the different supply chain drivers and improve its utilization. In
the next financial year, 2023, the cost of goods sold remained the same but the company,
due to various improvement initiatives undertaken, was able to increase its inventory
turnover by 3 times of what it had achieved in the year 2022.
a. Calculate the savings achieved by Mega Electronic Limited through its improvement
initiatives. (5 Marks)
Ans 3a.
Introduction:
Mega Electronic Limited, a supplier of electronic components to TV manufacturers, faced
significant challenges due to misalignment between its supply chain capabilities and business
strategies. In 2022, the company incurred substantial costs of goods sold and carried a high
inventory, resulting in accumulated losses. Recognizing the need for improvement, Mega
Electronic embarked on a journey to optimize its supply chain processes and technologies to
b. Discuss some 5 different parameters Mega Electronics Limited can use for measuring
its performance of its supply chain. (5 Marks)
Ans 3b.
Introduction:
Performance measurement is essential for Mega Electronics Limited to evaluate the
effectiveness and efficiency of its supply chain operations. By utilizing various parameters,
the company can gain insights into its performance and identify areas for improvement. This
essay explores five different parameters that Mega Electronics Limited can use to measure
the