costco kimberley clark strategic alliance case
TRANSCRIPT
Case: How Kimberley-Clark Keeps Client Costco
in DiapersSupply Chain Management
Presented By,Sumeet S. Neeraj+917842888751GITAM School of IBVisakhapatnam
*Distribution based Strategic Alliance
*Kimberly uses VMI (Vendor Managed Inventory)
*Mutual benefits (Retailer Supplier Partnership)
*Kimberly Clark (1) Cost savings in SC
(2) Huggies more popular than Pampers
*Costco (1) Saves money on staffing in inventory dept.
(2) Saves money on storage.
*Strategic Alliance
Downsi
d
es
*Question 1
Why VMI?
*Rare Stock-outs
*Curb Bullwhip
*High Service Levels
*Responsibility, Shared Risk
*Reduced Managerial Expense
*Higher compliance rate of customer
*Improved numbers
*Question 2
When to go for VMI?
*Risks & Trade Offs
*Confidentiality
*Supplier dominance
*Performance of POS retailer
*Cost to benefit ratio
*Responsibility appetite
*Question 3
Other types of alliance may help businesses
*3rd Party Logistics: e.g. Gati, DHL
*Distributor Integration: Huminsulin Injection- Eli Lilly
*Revenue Sharing: e.g. Dabur India
*Expired/Outdated Stock Replacements (Part): e.g. Ranbaxy
*Contract Manufacturing & Supplies
*Buybacks: e.g. Haldirams
*Question 4
How much can we emulate this case situation in other business set ups as
advantages?
*Cost reduction, Customer benefits
*Retailer benefits, Inventory management
*Immediacy to challenges (High)
*Overall Supply Chain Cost reduction
*Efficient working capital management