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White Goods

Developing economies have been an important market as they have always proved to be a fertile ground for the white goods industry. Penetration has been a challenge for most companies, requiring agile supply chains and aggressive marketing strategies.

The climatic changes have triggered newer demands in most markets and the increased energy regulations have given the sector the much needed traction to look beyond the saturation levels of developed markets.

Current Thinking

A Case Study on White Goods Supply Chain

The present work is a case study conducted on the Indian operations of a leading white goods manufacturer in the world, with a focus on the alignment and planning of the primary movements in the distribution resource planning cycle / manufacturing cycle. The present system at the company is analyzed for the three components viz. supply chain design, supply chain planning and supply chain operations. The characterization of the present system is based on high-implied demand uncertainties, high forecast errors, provisions for mixed order matching, seasonality of demands, end of month peak characterization and the irregular flow of information. The initial analysis is based on a simple queuing model that incorporates the theory of constraints to evaluate the criticality of the information flow in the system. This model is then extended to incorporate other parameters required in the strategic alignment of the system with the corporate objectives. The current initiatives in the company are then developed further into a strategic plan that incorporates considerations of new product launches, decreasing product life cycles, fragmentation of supply chain ownership, globalization and other difficulties in execution.

Read the detailed paper here.