3. •Supply Chain
Strategy
What should the US$ target be to achieve the same Net
earnings? In addition, please be sure to detail how you can
achieve the goal of maintaining the same Net earnings.
• Because a special 2.3% tax on income will be introduced, it
will result in a 10% reduction in profits. Therefore, it is
almost impossible to increase income. The main objective
will be to reduce sales expenses (inputs) and the costs of
goods sold to increase sales, volume sales.
• It will be considered to stay with a net income of 5,816,921
million dollars. Saving us for the year 2015, a total of
136.94 million dollars. Calculation: 5,593.86(1-0.023) =
5,816.921. They even mention that for said year there will
be a growth prediction of 7.5%. Which means that the
following income will be much higher than 6,400.399
million dollars. Calculation: 5,953.86*(1,075). Therefore,
costs of 147.21 million dollars have to be saved.
Calculation (6,400.399*0.023) - 6,400,399.
4. • Supply Chain Strategy
Now that you have an idea of what
the target is, what possible gaps in
the company's supply chain do you
see that you would consider
exploiting.
• Renegotiate payment plans with
suppliers.
• If this is the case, get better
prices for inputs from other
suppliers.
• Quote suppliers with better
economic proposals for the same
type of input.
5. Logistics at MTC
Once the products are manufactured,
customers request order orders from
the commercial area according to their
needs, the commercial area enters the
order into the system, which is
reviewed by the credit and collection
area, which confirms whether the
transaction is with cash or credit
payment and after payment
verification, the approval is sent. After
billing, the warehouse staff prepares
the products and prepares the
respective delivery guide so that the
merchandise is reviewed and ready to
load the vehicles.
6. Logistics at
MTC
• What do you want to change?
As for storage, tracking the products will make the
system more transparent. The entire transport network
of the MTC must be reviewed. It is detailed that a lot of
money is spent on transportation costs, so it is better to
make sure that the network we are using is efficient by
optimizing in changing the modes of transportation, or
the route that the vehicles take, where these points
should be noted and action must be taken. Carry out all
logistics transportation by third party logistics instead of
distributors.
• What do you think the changes would improve?
A more precise idea of delivery time, seasonality, etc.
will be shown, and will thus allow us to save our costs
and money.
• How do you think the improvements will
translate into positive financial results?
MTC would increase the sale price since they would
sell to the retailer instead of the wholesaler. In the
distribution network, the contact points of our
products will increase. They will have their own
collected inventory. There will be greater product
visibility and tracking when using 3pls and
transportation cost will be reduced.
7. Operation at
MTC
Currently, a considerable part of the inventory is
held as "trunk stock" by the salespeople. Should this
practice continue? As part of the answer, be sure to
provide pro's and con's for this decision.
• Some of the pro's are that the response time is
much faster, which would reduce the delivery
time. In addition, the reduction in risk is very
low, since inventory stocks and deliveries are
evident. Quick replenishment.
• The con's are that there may be risks in the
inventory that it becomes totally obsolete, like the
item cannot be sold due to excess inventory. Even
the higher cost of storage or inventory
maintenance can provide stock of trunks.
9. Planning solut
ions at MTC
To avoid overproduction, MTC needs to copy
demand changes in a faster and more efficient
way, as it is a serious problem outside of the
2.3% tax. The product plan must change to
meet the demand given in the exercise. MTC
must invest so that it can produce more, so at
least it must have 80% standard surgical kits
and 20% specialized on request. According to
the nifty forecast I presented, as demand better
matches production, stock levels could drop. In
addition, they must avoid production gaps. The
nifty forecast matches MTC production if it
changes to coincide with the season.
10. Sourcing at
MTC
First, in the short term, the optimization of the supply
chain through internal sterilization and reduction of
offices. In the medium term, RFID methodology for
the management of intelligent inventories. In the long
term, application of a shared supply chain with
collaboration towards a forward storage location.
What are initiatives that MTC might consider
working on with hospitals that are strategic
partners? Name your top three.
• Increase collaboration with trading partners .
• Ask for a collaboration between all trading
partners in the device supply chain.
• Setting realistic goals will allow for a larger
organization, plus it's important to make
employees feel like they can fulfill their assigned
roles.
Strategic providers represent a considerable amount of
business, these show loyalty to their partners and provide
both growth and probability in a company. Therefore, in
order to position MTC, it must act following things in
process, fast response time in delivery. Greater increase in
mutual trust and quality products. MTC must find a good
market segment for the sale of the product. In addition,
going public through advertising will generate more
income or allow it to be placed in a marketing plan would
be the ideal option.
11. Sourcing at
MTC
• Its opportunity cost is between the
compensation of manufacturing and the
purchase of cheap and quality products.
• Therefore, the company develops the
product itself generating income. And the
purchase is that the company came from an
external company that is of good quality.
• Therefore, the benefits and costs offered by
each available alternative must be taken into
account before choosing the option.