2. DILEMMA
• MTC was imposed with additional taxes obligation which was 2.3%
• This obviously reduces the profit after tax
• The objective of this study is to analyse how to reduce costs through the
entire supply chain process to compensate for the extra tax being added
• We were supposed to implement all the techniques and knowledge we
learnt throught the specialization to come up with solutions
3. SOLUTION
• Optimising the way inventory is handled
• Forecasting possible outcomes with minimum error
• Reducing the number of middlemen and touch points
• Reducing costs by optimizing supply chain process
4. WHAT DO WE NEED TO COME UP WITH
THE SOLUTION?
• Human resource to increase efficiency
• A defined budget and safety stock to minimize costs
• Material readily available
• Efficient utilization of resources
5. RISKS INVOLVED
• Risk of too much inventory if there is improper planning
• Risk of too less inventory
• Risk of the inability of hospitals to handle the product properly
• All these increase costs tremendously
6. HOW DO WE RESOLVE THE ISSUES?
• Outsourcing the sterilization process or letting the hospitals do it
themselves would reduce cost
• On site kiosks would help the doctors to access the products easily
• Using methods to reduce holding inventory and safety stock would help
reduce costs
• Reducing trunk stock
• Strategically locating factory to warehouse and hospitals would reduce
transportation and inventory costs
